All figures in AUD unless stated otherwise
Revenue - $212.2 M up 105% on pcp
Net transaction Margin - $102 M (or 48% of revenue) up 118% on pcp
Impairment expense - 1.0% down from 1.2% on pcp
Net transaction loss - 0.5% down 0.1 % on pcp
Operating loss - $31.5 M or -14% of revenue.
Operating expenses - $80.8M - 317% increase on pcp - Primarily due to a 500% increase in marketing spend ($32M), which is now around 15% of revenue.
Merchant income margin - 3.8% up 0.1% on pcp
operating cashflow - -$33.8 (-15% of revenue)
Revenue growth - regional breakdown
ANZ ($3.1B transactions)- 55% growth on PCP - 23% active customer growth, showing expanding revenue per customer as the platform matures. 98% customer retention for monthly users - this is despite being only able to use Afterpay when the accoutn is fully paid month to month.
US ($1.4B transactions)- 445% growth on PCP!. Customer net losses and revenue per customer is tracking the ANZ experience, demonstrating the model is translating to the US - so far. There are now more US customers than ANZ customers.
UK ($0.2B transactions) - operational for 6 months. At the end of December, $0.65B transaction run rate achieved.
Late fees, as a percentage of underlying sales continues to fall, down to 0.7% of sales. This is important, as APT needs to demonstrate it promotes responsible use.
22900 customers signed up PER DAY in November / December. Thar is more than 1 million customers in 2 months!
Expansion into Canada this year.
Customer outstanding balances are $211 compared to credit cards at $3380.
Current revenue run rate is $480 Million ($11 billion transactions)! However, APT only has sufficient funding capacity for $15 BN in transaction volume. I think APT will need more capital / funding to meet the opportunity.
Currently, existing US & UK merchants and pipeline merchants comprise a $30 BN transaction pipeline TAM - WITHOUT ANY FURTHER MERCHANTS ACQUISITION.
PEOPLE - Afterpay have recruited some executives to boost management capability -
GLOBAL CHIEF PRODUCT OFFICER
DAVID KATZ (EX FANATICS, GROUPON)
GLOBAL CHIEF MARKETING OFFICER
GEOFF SEELEY (EX AIRBNB)
ANZ SALES DIRECTOR
KATRINA KONSTAS (EX AMEX)
VP PRODUCT DESIGN
SCOTT POLCHLEB (EX WEWORK)
US HEAD OF FINANCE
LAURA NADLER (EX VISA)
Partnerships - VISA in the US, and Mastercard in ANZ.
Regulatory Developments:
Australian BNPL code of Practice - APT support code of practice, with it being resolved later this year.
Reserve Bank Issues Paper on surcharging - APT oppose surcharging, but this is a risk to the Australian business.
AUSTRAC considering auditors (positive) report - APT implementing recommendations. Low risk of adverse outcomes.
Targeting to exceed revenue run rate of $800 M by June 2022.
In store transactions is 25% of underlying sales in ANZ, and it is anticipated this will increase over time.
They have achieved their online target in the US of 5% of the millennial market, and are now turning their attention to bricks and mortar retail in the US, using their millenial customers to drive this channel.
Marketing spend - marketing is done in partnership with merchants, with increased spending anticipated with new US, UK, and Canadian merchants.
Presentation link: https://edge.media-server.com/mmc/p/24q3daze