Special Report: Zebit hit a new sales record in FY20 after booking Q4 sales of $US44.8m.

US ecommerce play Zebit (ASX:ZBT) is off to a strong start in 2021 after sales momentum continued to build through the December quarter.

The company announced this morning that Q4 sales came in at $US44.8m – a 35.2 per cent increase on the prior comparative period.

In addition, Zebit booked December sales for the busy Christmas period $US21.3m, up 55.4 per cent from December 2019.

Following a surge in sales during the Black Friday promotion at the end of November, Zebit said it only needed to generate $US14.9m of net sales in December to meet the half-year revenue target of $US54m outlined in its prospectus.

So having beaten that figure by around 50 per cent, the company is now set to easily exceed the 2020 sales target that it set out for investors before listing.

Shares in the company rose more than 10 per cent in morning trade to around $1.06.

Along with its topline sales result, Zebit also expanded its distribution footprint with eight new B2B partnerships that flowed through to an increase in active memberships of 28,800.

The company now has 792,000 active users on its platform, which provides an online marketplace of more than 90,000 products.

Zebit’s sales strategy is targeted at customers with historically low credit scores, with the provision of finance options including buy now, pay later (BNPL) services to help fund the purchase of goods and services.

By extending its customer base to those with an industry-standard FICO credit score below 620, Zebit is opening up an addressable market of around 120 million US consumers, the company says.

Commenting on the Q4 result, Zebit CEO Marc Schneider said the company’s strong growth was a “bellwether for the increasing demographic of consumers who value and repeatedly use our services”.

“We expect strong growth in 2021, as we expand our reach in helping the increasing number of Americans living paycheck-to-paycheck to purchase everyday products that many of us take for granted.”

Schneider and the management team said the company now looks forward to providing more details on the Q4 sales result with its next trading update at the end of January.

This article was developed in collaboration with Zebit, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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