Seemingly on the brink of an exit not so long ago, there may be substance in the turnaround story for Zip Co.

Zip reported a net profit of $3,7 million for the year to June 2024, following a colossal loss of $364 million in FY2023.

Receivables, however, declined slightly to $2.4 billion from $2.6 billion, after exiting a number of markets.

Revenue increased 28 per cent to $868 million.

Transaction volume increased 14 per cent to $10.1 billion.

Merchant numbers increased 10 per cent to 79,300.

The bad debt charge increased to $164 million from $158 million.

Net bad debts fell 18bps to 1.7 per cent.

Zip favours “cash gross profit” as an earnings measure. This was up 53 per cen to $373 million.

Zip’s turnaround is largely a result of improvements in its business in the United States, where many changes have been made to top management.

Volumes were up 40 per cent in the Americas, with revenue up 46 per cent.

The absence of an effective collections operation to minimise bad debts: Zip didn’t talk about that.