Ann: IOU Provides Mid December Quarter Update on BNPL Business, page-12

Good point about the footnote, I read that but didn’t know how to calculate it (we can’t, we don’t know the actual amount of missed instalments). Understood re: how bad debts are reported, my point here is looking at it this way: If that is the total bad debt number, how much of their revenue is it going to eat up (because they’re expecting to get it as a receivable, but won’t). That’s where I arrive at the 12.5% figure.

Anyway, it’s a bit of a moot point (I was just agreeing with the point @Getx was making). Bad debts are hardly terminal here. The core issue remains very lumpy TTV and no real growth; if you go back and look at the mid-December update from 12 months ago, they’re managed to go backwards on both TTV and margins:



This to me explains why in the recent presentation they pushed out debt funding to FY24; it isn’t growing, so doesn’t have the scale required to be attractive to a warehouse provider. I don’t know what the answer to this problem is. The $1M raise remains totally mystifying.