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FY Ended June 30, in millions | 2019 | 2020 ------------|--------|-------- net revenue | $264 | $509 op ex | $391 | $617 net

FY Ended June 30, in millions | 2019 | 2020 ------------|--------|-------- net revenue | $264 | $509 op ex | $391 | $617 net loss | $(120) | $(113) loss ex SBC | $(79) | $(83) volume | $2,620 | $4,637 customers | 2.05 | 3.62

xoxoy 6y ago
doubling revenue while keeping losses stable is pretty good, especially when we’re talking about consumer credit
- JumpCrisscross 6y ago
  Does Affirm carry the credit risk on its books?
  - xoxoy 6y ago
    Haven’t read the prospectus but I know they sell loans to investors and they are fairly highly rated from a credit perspective. I’m sure they have some debt on their books too though.
    - wholien 6y ago
      some debt, but that is mostly for experimentation purposes. Most everything goes into different debt facilities or are securitized and sold
      - xoxoy 6y ago
        sounds about right.
      - formercoder 6y ago
        No one would buy the debt if they didn’t hold on to any.
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toomuchtodo 6y ago
Am I right in reading 30% of their rev is coming from Peloton? (Control-F “Peloton”) “Our top merchant partner, Peloton, represented approximately 28% of our total revenue for the fiscal year ended June 30, 2020 and 30% of our total revenue for the three months ended September 30, 2020. Our top ten merchants in the aggregate represented approximately 35% of our total revenue for the fiscal year ended June 30, 2020 and approximately 37% of our total revenue for the three months ended September 30, 2020.” “For example, the significance of Peloton in our portfolio has increased as a result of consumer spending trends on home fitness equipment, and there can be no assurance that such trends will continue or that the levels of total revenue and merchant network revenue that we generate from Peloton will continue. The loss of Peloton as a merchant partner, or the loss of any other significant merchant relationships, would materially and adversely affect our business, results of operations, financial condition, and future prospects. In addition, an anticipated material modification in the merchant agreement with a significant merchant partner could affect the results of our operations, financial condition, and future prospects.”
- herewhere 6y ago
  Recently, I went to Peloton dealership to order one bike. They offered 39 months 0% APR. I asked if they can give me some sort of cash discount. Because of lack of cash discount, and availability of 0% APR naturally I financed it. Perhaps, that's how Affirm is getting their business.
  - toomuchtodo 6y ago
    Quite the premium Peloton owners are paying in aggregate to subsidize that zero interest rate through merchant fees to Affirm. Peloton gets to immediately recognize the revenue of the sale (versus them carrying the debt themselves), and Affirm gets to show quality vintage from price insensitive prime borrowers.
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xoxoy 6y ago

doubling revenue while keeping losses stable is pretty good, especially when we’re talking about consumer credit

JumpCrisscross 6y ago
Does Affirm carry the credit risk on its books?
- xoxoy 6y ago
  Haven’t read the prospectus but I know they sell loans to investors and they are fairly highly rated from a credit perspective. I’m sure they have some debt on their books too though.
  - wholien 6y ago
    some debt, but that is mostly for experimentation purposes. Most everything goes into different debt facilities or are securitized and sold
    - xoxoy 6y ago
      sounds about right.
    - formercoder 6y ago
      No one would buy the debt if they didn’t hold on to any.
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toomuchtodo 6y ago

Am I right in reading 30% of their rev is coming from Peloton? (Control-F “Peloton”) “Our top merchant partner, Peloton, represented approximately 28% of our total revenue for the fiscal year ended June 30, 2020 and 30% of our total revenue for the three months ended September 30, 2020. Our top ten merchants in the aggregate represented approximately 35% of our total revenue for the fiscal year ended June 30, 2020 and approximately 37% of our total revenue for the three months ended September 30, 2020.” “For example, the significance of Peloton in our portfolio has increased as a result of consumer spending trends on home fitness equipment, and there can be no assurance that such trends will continue or that the levels of total revenue and merchant network revenue that we generate from Peloton will continue. The loss of Peloton as a merchant partner, or the loss of any other significant merchant relationships, would materially and adversely affect our business, results of operations, financial condition, and future prospects. In addition, an anticipated material modification in the merchant agreement with a significant merchant partner could affect the results of our operations, financial condition, and future prospects.”

herewhere 6y ago
Recently, I went to Peloton dealership to order one bike. They offered 39 months 0% APR. I asked if they can give me some sort of cash discount. Because of lack of cash discount, and availability of 0% APR naturally I financed it. Perhaps, that's how Affirm is getting their business.
- toomuchtodo 6y ago
  Quite the premium Peloton owners are paying in aggregate to subsidize that zero interest rate through merchant fees to Affirm. Peloton gets to immediately recognize the revenue of the sale (versus them carrying the debt themselves), and Affirm gets to show quality vintage from price insensitive prime borrowers.
  - deleted 6y ago
    [deleted]
- 6y ago