Zebit (ASX:ZBT) share price rises on quarterly report

The Zebit (ASX: ZBT) share price lifted slightly today after the company released its quarterly report. We take a closer look.
The post Zebit (ASX:ZBT) share price rises on quarterly report appeared first on The Motley Fool Australia. –

Payment Technology

The Zebit Inc (ASX: ZBT) share price had some ups and downs today after the company announced its quarterly and half year reports. Shares in the e-commerce company went up as high as $1.13 in afternoon trade before retreating to close at $1.10, up 0.45%.

Zebit is a California based e-commerce company that enables customers to pay for products in instalments over six months.

The small cap retailer operates in both retail e-commerce and financial services. Zebit sells products as a merchant and provides the financing for its customers (via a BNPL solution) for those products over time.

What’s driving the Zebit share price?

The Zebit share price was up today on the back of its solid quarterly report ending 31 December which exceeded the prospectus forecast.

In particular, the company increased revenue by 34.2% compared to this period last year. This resulted in quarterly revenue coming in at $44.2 million. Contribution margins also climbed to 15.8%, a significant improvement compared to the 7.3% achieved during December of FY19.

Zebit reduced its bad debts metric to 9.4%. While the level is still high, it’s well below the 19.1% recorded in the prior corresponding period.

Management comments

Zebit president and CEO Marc Schneider welcomed the news, saying:

I am extremely pleased with the company’s performance and continued strong operational execution of Q4 and H2 FY20. We saw positive trends with strong revenue growth and improved credit performance.

Zebit continues to be the one-stop e-commerce solution for millions of US consumers who do not qualify for mainstream credit and need a longer duration to finance sizable purchases.

In over 30 years of operating companies, I have never seen such a strong demand and repeat usage of a product offering. The company continues to be focused on high growth in 2021.

About the Zebit share price

Zebit plans to expand its solid quarterly report by adding new products. The company is piloting an e-commerce solution for prime credit customers. This will allow them to move up the market with a differentiated product.

Listing on the ASX in October last year, the Zebit share price has returned 5.5%. In comparison, the All Ordinaries Index (ASX: XAO) has returned 10.5% over the same period.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Zebit (ASX:ZBT) share price rises on quarterly report appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!