At least we know it's not just Zip that is experiencing the...

At least we know it's not just Zip that is experiencing the losses. Block would have expected these numbers and they still proceed to buy Afterpay for $39B. They wouldn't have done this if they didn't believe in the BNPL model.

Afterpay’s 2021 loss balloons to $US345.5 million

Tom Richardson

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Afterpay-owner Block has released accounts showing that Afterpay’s net loss ballooned to $345.5 million in 2021 for the six months to December 31, versus $79.2 million in 2020.

Afterpay’s operating loss nearly quadrupled to $263.7 million for the six months to December 31, 2021, versus $68.2 million in 2020.

Total income climbed 54 per cent to $644.9 million. Income from merchant fees made up $560.7 million, with late fees and other income reaching $78.5 million.

Bad debts ballooned to $176.7 million over the six-month period, versus $72.1 million in the prior corresponding period. In effect bad debts made up 27.4 per cent of total revenue over the half-year.

In February 2022 Block completed its acquisition of Afterpay by offering 0.375 Block shares for every Afterpay share.