I find the active customers comparison across BNPL players to be...

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Mecca452

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14/01/21

13:19

Post #: 50166084
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Originally posted by BrutalDeluxe: ↑

They have a bigger take-out rate, and they also have an interest-bearing loan product. However, Affirm credit losses are higher. Their prospectus doesn't mention the NTM, but I'm sure it could be worked out. The big take-out rate, combined with their larger losses, exposes them to the competition hitting the sector.

I found this below in the Affirm prospectus - it shows active customers at 3.88m at Sep-20, up only 63% from a year ago, Active customers are about double Sezzle. Transaction per active customers is only 2.2 - very weak - customers are not engaged with the product.

Sezzle is the one with the sustainable, scalable business model loved by customers and merchants.

https://www.sec.gov/Archives/edgar/data/1820953/000110465920126927/tm2026663-4_s1.htm

I think we're in for a good month here!

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I find the active customers comparison across BNPL players to be misleading.
You may have already done this, if not try standardising the active customers to a value, say $1000 per annum.

Then from there I do two metrics
- avg spend per customer (this tells me if they change their definition of active customer or if there is growth in expenditure ; and
- a true comparison of active customers across BNPL with each “active customer” being worth the same amount.

hopefully some of that is useful.

SZL Price at posting: $6.94 Sentiment: Hold Disclosure: Held
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