Zebit Inc (ASX: ZBT) shares are on the run today after the company provided the market with a positive trading update. At the time of writing, the Zebit share price is flying 11.58% higher to $1.06.
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What's driving the Zebit share price higher?
The Zebit share price is surging this morning following the company's report it has achieved record net sales for its FY20 fourth quarter and full year performance.
The company delivered net sales of US$44.8 million in the final quarter, which trumped the previous corresponding period by 35.2%. Management said this was due to the strong trading conditions recorded throughout the peak shopping season. In December alone, net sales accounted for US$21.3 million, which was also 55.4% above the same time last year.
This flowed through to the company's full year FY20 performance in which Zebit achieved total net sales of US$88.1 million, exceeding FY19's result.
In the update, Zebit also highlighted that its registered user base grew to 792,000 at the end of the year. This was complemented by the company completing eight B2B acquisition partnerships during the period, which added 28,800 registered users in the fourth quarter.
About Zebit
Based in California, United States, Zebit is an e-commerce company that sells products and provides financing to financially challenged customers.
Its platform offers a built-in buy now, pay later (BNPL) facility, servicing customers who are unable to access traditional credit. Zebit shares first listed on the ASX in October 2020.
Management remarks
Commenting on the company's achievement, Zebit president and CEO Mr Marc Schneider said:
The strength of Zebit's performance through Q4 is a bellwether for the increasing demographic of consumers who value and repeatedly use the company's e-commerce services.
We expect strong growth in 2021 as we expand our reach in helping the increasing number of Americans living paycheck to paycheck purchase everyday products that many of us take for granted.
In addition to its primary e-commerce sales channel, as physical retail stores reopen, Zebit will also enable consumers to continue to finance purchases in physical retailers through sales of electronic gift certificates on our platform that can be redeemed in brick and mortar.
About the Zebit share price
On its first day of trading on 26 October 2020, the Zebit share price opened at $1.50 after floating at an issue price of $1.58. By the end of the day, Zebit shares closed the session at $1.05. By early Decmber, the Zebit share price fell to just below the $1 mark and since then has traded around the same level prior to today's rise.
Based on current prices, the company has a market capitalisation of around $90 million.
