Afterpay - An Internet Scale Company

Key points

• Afterpay is well on its way to becoming an "Internet Scale" company facilitating viral customer growth in multiple markets.
• AfterPay’s flywheel results in aggregation of demand and supply with exceptionally low marginal cost of acquisition.
• Afterpay is exposed to two winning trends - growth in eCommerce and migration away from credit cards.
• Afterpay is Global - low-cost acquisitions in Europe and Asia will enable it to scale in new geographies quickly and attract global retailers.
• It brings retailers new customers, higher conversion, hard to reach millennials and higher AOVs.
• It drives repeat purchases with each new cohort increasing frequency of use over the previous cohort.
• We still see further upside, despite Afterpay being up almost 5X since the beginning of 2020 (valuation article to follow).