Buy now, pay later outfit Zip Co is looking to ease cash burn after the company?s losses blew out to $1 billion.
Transaction volumes hit record highs on the back of an increase in customers to 11.4 million people?so where did it go wrong?
During the period ending June 30, the company reported a $821.1 million impairment of goodwill and intangibles.
The company?s loss would have been softer at around $256 million had it not been for that impairment which was recorded on the basis of global inflation and rising interest rates.
The company has delivered a number of initiatives to reduce cash burn including exiting the United Kingdom as it retreats to core markets in Australia and the US.
With the downturn in Australia and the US making Zip more attractive to merchants and a 51% increase in transaction volumes - investors have looked past the $1b blow out.
Zip?s shares rose this morning, up 3.61%.
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