Full Year 2020 Zip Co Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jonathon Higgins - Shaw and Partners Limited, Research Division - Analyst : Obviously, a huge year just past in context and got a lot on the go this year. I was just wondering if you could just talk a little bit around some of these initiatives that you're launching into the first half of '21 that look like you're probably going to aggressively sort of increase growth trajectory. So just firstly, you flagged the U.K. launch in first half of '21, and I've noticed you started hiring a bit more over there. Typically, you've spoken around sort of a flywheel merchant launch over there. Are you able to tell us how that would look, in particular, when you're sort of looking at doing it? Obviously, you've got a key sales period come out. And maybe just touch on the competitive environment in the U.K., please?

Question: Jonathon Higgins - Shaw and Partners Limited, Research Division - Analyst : Just 2 more for me. One, just shifting gear towards the funding side of things. During the year, you've closed that master trust issue, and you've announced some funding for the business receivables with Victory Park Capital and also Quad, which is coming to the group, close that facility. Obviously, you've seen an aggressive sort of repayment profile with your receivables. Are you able to talk about it in terms of the funding for the Quad business? Anything on that front and what we can expect into this half with growth?

Question: Jonathon Higgins - Shaw and Partners Limited, Research Division - Analyst : Last one for me. Just on QuadPay coming into the group on Monday onwards under Zip's ownership, you did speak about in your release on Monday, I think it was, about this partnership with Fiserv and also one of the credit card providers. Are you able to just give us a bit of an idea of sort of the merchant pipeline with a company like Fiserv with QuadPay? Should we expect sort of further announcements along this into the next quarter?

Question: Timothy Piper - RBC Capital Markets, Research Division - Analyst : Congrats on the result. Actually, just a follow-up from Jon's question there on in that Fiserv agreement in the U.S. Can you just describe that relationship there in terms of, obviously, that Fanatics came through that pipeline? Is Fiserv actively promoting QuadPay over in the U.S.? Are they promoting other buy now pay later financing solutions for merchants as well?

Question: Timothy Piper - RBC Capital Markets, Research Division - Analyst : Okay. And just one second one, sort of a boring analyst question. But I mean, previously, you talked to where you saw the sort of the fuller 12 months in terms of your cash EBITDA yield on receivables. Now what's sort of changed in the business now you've gone into QuadPay in the U.S., you're launching in the U.K.? I was kind of hoping you might have talked to a little bit of guidance around your operating cost leverage sort of over the next 12 months and where you see that yield kind of heading on an earnings basis.

Question: Timothy Piper - RBC Capital Markets, Research Division - Analyst : Okay. That would be helpful. And just one follow-up from that. Your comments around revenue yield, expecting to rise on QuadPay, but also the Zip Biz or Biz products that you're launching, that $100 million facility that you've got to support the launch of Biz, assumably, you expect the receivables, the turnover to be higher in that Biz business. I mean, are we sort of thinking that, that facility is going to fund a few hundred million in TTV or GMV? Is that sort of where you see that channel sort of projecting over the sort of the next 12 to 24 months?