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”.