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Andredamus1

2,154 Posts.

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18/05/20

10:45

Post #: 44674377
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Originally posted by Goodfella58: ↑

No mate that's not correct.

The vast majority of customers drop of the platform

With any technology you have "early adopters" or fans.

They do use the platform regularly but they are not enough to generate a profitable business.

You can see from the company's own numbers that although customer growth looks great in the headline numbers the reality is utilisation factor is roughly halving each year 23 14 ,7 3 .

Do the same exercise with Merchant revenue and you can see revenue per merchant is declining year on year.

They are like the mouse in the round wheel they have to run furiously just to stay in the same spot.

We are seeing customer saturation and fatigue in Australia and other territories with competition emerging are only going to increase customer acquisition costs.

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It is an extremely simple concept, but you have gotten it completely wrong. The longer someone is a customer of Afterpay, the more frequently they use the platform. Someone who has been a customer since FY17 is using the platform 23 times per year now (on average), whereas someone who joined in FY19 is currently using it 7 times per year (but in 2 years time they will be using it 23 times per year). Scary, that you could get this so wrong.

APT Price at posting: $41.96 Sentiment: Buy Disclosure: Held
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0 Great analysis

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APT Chart, page-1557

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