Zip founder Larry Diamond says the group is only getting started and will achieve profits faster after walking away from Sezzle.
Zip’s global chief operating officer and co-founder Peter Gray said the growth model was on hold, not abandoned, as the company fights to survive in a new economic reality and convince investors it can be profitable.
“Not having the distraction of integrating another business does allow us to focus on our core business,” Mr Gray said. “In line with its strategic objective to focus on the core markets of Australia and New Zealand and the US, this quarter Zip has continued to make changes and decisions to right-size its global footprint and reduce group cash burn,” chief executive and founder Larry Diamond said in the statement.
Zip Co co-founder and chief executive Larry Diamond: “Zip has continued to make changes and decisions to right-size its global footprint and reduce group cash burn.”As concerns mount over whether the buy now, pay later sector can achieve profitability in a deteriorating economic environment“Our role as a financial services technology provider is becoming even more crucial in the current climate as we support our customers and merchant partners through this inflationary period,” he said.
“We are still focused on sustainable growth. Growth is a very important part of our future, particularly in a market like the US which is less mature than Australia.” Zip said its $278.6 million in cash and liquidity “is expected to be sufficient reserves to support the Company through to cash EBTDA [earnings before tax, depreciation and amortisation] profitability”.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX gains 0.5pc as ZIP drives tech sector rallyAustralian shares edged higher on Thursday as falls in energy and materials stocks were offset by an afternoon rally in the tech and healthcare sectors.
Read more »
Hunt for wild monkey in Japan after 10 attacks in a fortnightTraps set and residents warned to keep windows shut after infant grabbed in most serious incident
Read more »
Australia could avoid ‘economic cliff’ amid inflation pressures
Read more »
ASX gains 0.5pc as ZIP drives tech sector rallyAustralian shares edged higher on Thursday as falls in energy and materials stocks were offset by an afternoon rally in the tech and healthcare sectors.
Read more »
'Birthing parent' scrapped on health forms after mum's outrageBill Shorten has confirmed the label 'birthing parent' will be scrapped on government forms after a Queensland mum raged on social media that the term was 'alienating and derogatory' towards any parent.
Read more »
Foot and mouth disease detected in meat products in AustraliaThe devastating livestock disease is sweeping across Bali and poses an $80 billion economic threat to Australia.
Read more »