Home > Latest News > Zip Posts Severe Losses For 2021 As Competitors Circle

Zip Posts Severe Losses For 2021 As Competitors Circle

Zip made a big global expansion play this year, which resulted in declining earnings, and a total reported loss of $653 million.

Zip reported cash earnings before tax, depreciation and amortisation as a $22.9 million loss, despite analyst expectations of a positive cash result in the ballpark of $8-9 million.

This follows a EBTDA of $3.5 million in 2020.

Zip spent $71 million on marketing during the past financial year, made an accounting adjustment to the tune of $306 million after underpaying for US business acquisition Quadpay, and made share-based payments of $142 million to staff.

Cash operating costs rose to $221.4 million, more than tripling 2020’s $77.5 million, while the company bled money elsewhere, with salary costs doubling to $97.7 million, and IT costs doubling.

It’s total reported loss of $653 reflected these moves.

Zip shares fell 1.5 per cent to $7.21 after reporting its financials.


You may also like
Buy-now-pay-later Zip Rumoured For Takeover
Canva Touts Two New Investors During Valuation
Buy Now, Pay Later To Be Regulated As Credit
BNPL Company Zip Will Be Profitable FY24
Afterpay Shareholders Sue Block To Failing To Disclose Cyberattack