The Zip Co Ltd (ASX: ZIP) share price closed steady on Tuesday at 43 cents.
The buy now, pay later (BNPL) share continues to cause despair among its shareholders.
Zip shares lost 7.3% in value in FY23 and marked the end of the financial year with a new 52-week low.
It hit 40 cents per share on 30 June.
Investors are now eagerly awaiting Zip’s next report during the August reporting season.
Zip has laid out two key financial goals over the past year since changing its entire company strategy:
- Turn the United States business division cash flow positive by the end of FY23
- Turn the whole company cash flow positive by the first half of FY24.
So, in August we will find out if Zip has achieved its first goal.
In its March 2023 quarterly report, Zip said it “remains on track” to do so.
Meantime, Zip has announced a key managerial appointment that may help its US division to expand.
Key managerial appointment
According to businesswire.com, Zip has announced the appointment of former American Express and Capital One Financial Corp executive Andy Stearns to its US management team.
Stearns will be Zip’s senior vice president and head of merchant business in the US.
The Zip share price fell 2.27% yesterday amid the announcement appearing on businesswire. The appointment was not announced on the ASX.
Stearns will be charged with growing Zipâs merchant network and driving product innovation to assist retail merchants.
Zip’s global CEO Larry Diamond described Stearns as “an exceptional global financial services leader”.
He leaves his former job at Capital One where he looked after customer management groups in the business cards and payments division.
Stearns previously worked at American Express as director of small business relationship management and global corporate payments business development.
Diamond added:
His unparalleled expertise within the payments industry and vast network make him uniquely suited for this pivotal role. We eagerly anticipate the valuable contributions he will bring to our organization.
Stearns said:
… Buy Now Pay Later is still in its infancy and expected to grow 3X in the next 5 years in the US.
Now is the time for merchants to capitalize on the opportunity & together, we will further revolutionize the industry and leave a lasting impact.
What’s next for Zip shares?
FY24 may be a better year for Zip shares if the company can achieve its two key financial goals.
A long-standing headwind for the Zip share price was the anticipated tightening of government regulation for the BNPL sector.
The government finally made a decision in May and went with Zip’s preferred middle-ground option.
