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.
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More reading
- Why Atomos, BOD Australia, Galaxy, & Zebit shares are racing higher
- Why the Zebit (ASX:ZBT) share price is jumping 12% today
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.
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