E-commerce platform Zebit beats prospectus forecast with strong quarterly results
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Special Report: Zebit Inc. reports record December 2020 revenue in Quarterly Update.
Zebit Inc. (ASX:ZBT), an e-commerce platform, based in the US, has released its December 2020 Quarterly Update reporting strong results across its December, Q4 and H2 FY20 finances.
The fourth quarter boasted strong sales due to the peak shopping season in the United States, and the second half of HY20 reported revenue exceeding its initial prospectus forecast.
Zebit’s unique e-commerce model has driven revenue growth and expanded the Company’s contribution margin – coming out significantly stronger than the prior year thanks to solid credit performance.
The Company’s reduction of its bad debt reserve and the active management of customer down payments and shopping limits based on expected credit risk are just some of the ways Zebit was able to achieve this, and manage bad debt risk while driving high revenue growth.
Zebit’s president and CEO Marc Schneider said he was extremely pleased with the Company’s performance.
“We saw positive trends overall, with strong revenue growth and improved credit performance.
“We launched multiple new credit risk models which benefited our Q4 credit performance and are expected to continue to carry this impact through to 2021.”
Zebit ended Q4 FY20 on a strong note, with a cash balance of $22.6m which will continue to fund the company’s growth throughout 2021 and its key financial metrics improved throughout the quarter.
“Zebit continues to be the one-stop ecommerce solution for millions of US consumers who don’t qualify for mainstream credit and need a longer duration to finance sizable purchases,” said Schneider.
“In over thirty years of operating companies, I have never seen such a strong demand and repeat usage of a product offering. We’re focused on high growth in 2021 and are also working on piloting an ecommerce solution for prime credit customers that will allow Zebit to move up market with a differentiated product.”
Zebit debuted on the ASX in October last year. In early January its shares jumped 10% off the back of its Q4 sales announcement boasting a 35.2 increase.
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.