The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jonathon Higgins - Shaw and Partners Limited, Research Division - Analyst
: Obviously, a massive first half of '21, a lot of initiatives launched. Just interested just on a couple of points. Firstly, just around the app-based usage,
the metrics and sort of the customer adoption in the U.S., we're seeing average balances and average transaction sizes in Australia rising and the
U.S. rising materially as well as you've provided some new data on sort of repeat customers in the U.S. that looks pretty high around that 85%, 90%
level. Are you surprised as to the level of uptake and adoption in the U.S.? And secondly, just talk us through just like what you are seeing in the
U.S. from a competition point of view.
Question: Jonathon Higgins - Shaw and Partners Limited, Research Division - Analyst
: Yes. Just talk us through just the competitive landscape and how it's playing out in the U.S. from your view?
Question: Jonathon Higgins - Shaw and Partners Limited, Research Division - Analyst
: Two last ones for me, just weaving on to that question, just in regards to the product portfolio. You are running with a single product internationally
or mainly a single product. You've got a significant portfolio of other longer-duration products and various sort of like interest-free and buy now,
pay later products. Are you able to sort of give us your thinking around the suitability of those products into the international market and when
you'd look to take them there?
Question: Jonathon Higgins - Shaw and Partners Limited, Research Division - Analyst
: Last one for me, guys, just on the unit economics. I know it's a real focus for you. Unit economics have held up really well through the half, and
you've also delivered a flat result on the cash EBITDA front, which I think was probably a little bit surprising for us with the growth. Are you able to
just talk us through just what we should expect around the gross margins into the second half and onwards? I don't think you've split out Quad
versus Zip, but Quad, obviously, effectively has a higher turn and higher margin there. It just looks like gross margins are sort of coming in ahead
of expectations. How should we think about that moving forward?
Question: Timothy Piper - RBC Capital Markets, Research Division - Analyst
: I just had another one around the unit economics, just given the focus that you have on that and talk of valuation, et cetera. I guess, (inaudible)
used to look at the (inaudible) business, it's always been a yield on receivables that we've kind of looked at? I've noticed that, obviously, you've
integrated Quadpay now, which the [paying for] is more of a transaction margins as a percentage of volume, et cetera.
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FEBRUARY 25, 2021 / NTS, Z1P.AX - Half Year 2021 Zip Co Ltd Earnings Call
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