I’ve been buying this on the pullback. They are spending around...

I’ve been buying this on the pullback.

They are spending around $250 to acquire a customer which is more than twice lower than what it costs in more mature markets such as Australia / UK. This shows: 1. Immaturity and popularity of the product. 2. Whatever they spend is lower than customer LTV so the goal is just spend and gain customers.

Pretty simple, I like simple opportunities with good timing - right product, right market, right time.

They also have that Afterpay and A2 Milk thing, where the product name is the benefit - like that too as a differentiator.

Those people saying margins are thin and they are just spending to acquire losses, don’t make any sense. Margins will improve at scale when less money is spent relatively on customer acquisition. (Existing customers repeat usage).

Lastly, the no barrier to entry argument is weak, primarily because people use one bookie and wont change for no valid reason. (Same argument was used for money transfer firms or Webjet and proved irrelevant). Others may compete with them, but again it wont affect growth (not at the start anyway) - which is where the returns will come from.