Why it matters: Zip’s huge losses have reflected its growth mentality.
It is now focused on achieving profitability in the US and Australia.
The company did not pay a dividend.
Zip Co’s new CEO Cynthia Scott said the buy now, pay later provider’s latest full-year result will be the last when it runs at an epic loss, and it expects growing demand from customers turning to its credit products to cope with the rising cost of living.
Zip is still running a hefty annual statutory loss, $413 million over the year, but reported record transaction volumes and revenue, suggesting there may still be some life in the buy now, pay later sector.
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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
