Likewise Grandiloquent. Hmm interesting... I'll be sure to check...

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niceaussieguy

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08/09/21

13:04

Post #: 55920226
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Originally posted by Grandiloquent: ↑

I think the CAC payback was sub 6 months ( with no improvements to the unit economics) and the long tail of ~20% of revenue from that initial cohort kind of continues and is pretty sticky (on a customer level, I reckon it’s that dynamic Periculum pointed out with customers dropping out and then coming back then dropping out again - you could call this week on week churn but the business still has an active customer just not a customer who is active every week).

I’d suggest checking out the strategy day presentation for this data and more detail on how the unit economics work.

Really interesting point on more and more replacement marketing being required to maintain the top line with the current customer dynamics. I think you’re spot on in absolute $ amounts. However, you’d expect this as a % of total revenue to come down ie it grows less quickly than the top line as the back book of customers dropping in and out grows

Can I say, really enjoyable having a proper discussion here - a bit rare for HC I reckon…

Check out the myfoodbag disclosures for what this business model looks like when not investing in growth. I don’t think blue apron is a good benchmark since they obviously didn’t get their operations/ unit economics right before they threw heaps of money at marketing

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Likewise Grandiloquent.
Hmm interesting... I'll be sure to check that out.
How do you value MMM then?
On comps to HelloFresh? Or, on a multiple of future cashflows, assuming it can get to scale?

MMM Price at posting: $1.78 Sentiment: None Disclosure: Not Held
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0 Great analysis

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