Affirm: BNPL And Beyond

Feb. 15, 2022 3:23 AM ETAffirm Holdings, Inc. (AFRM)SQ11 Comments
Riyado Sofian profile picture
Riyado Sofian
1.96K Followers

Summary

  • Affirm is growing exponentially as BNPL adoption gains steam in a lowly penetrated US market.
  • Affirm's two-sided network has the potential to disrupt the traditional credit card payment network dominated by Mastercard and Visa.
  • Competition from Afterpay and Klarna, as well as high cash burn rates, remain as Affirm's major risks.
  • However, Affirm's brand, technology, and network effect moats solidify its position as the market leader in the US.
  • While Affirm is known for its BNPL offering, the company is actively launching new products well beyond BNPL, which, I believe, is the ultimate bull thesis for Affirm.

Buy Now Pay Later

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Before I start, I want to say thank you for finding me and taking the time to read (or at least glance over) my work. I have been writing for Seeking Alpha for over one and a half

Affirm Two-sided network

Affirm FY2021 Q4 Investor Presentation

Affirm App

Affirm App at the App Store

BNPL job flow

Marqeta

Affirm network effect

Affirm FY2021 10-K

Credit card and BNPL network

Bain & Company

Credit card trend

Afterpay FY2021 Investor Presentation

BNPL e-commerce penetration

CB Insights

Affirm MDR

Affirm 2021 Investor Forum Presentation and Author’s Analysis

Affirm Merchant Fee

Affirm FY2022 Q2 Investor Presentation

Affirm Financials

Affirm Investor Relations and Author’s Analysis

Affirm financials

Affirm Investor Relations and Author’s Analysis

Affirm financials

Affirm Investor Relations and Author’s Analysis

Affirm financials

Affirm Investor Relations and Author’s Analysis

Affirm financials

Affirm Investor Relations and Author’s Analysis

Affirm financials

Affirm Investor Relations and Author’s Analysis

Affirm delinquency rates

Affirm FY2022 Q2 Investor Presentation

Affirm financials

Affirm Investor Relations and Author’s Analysis

Affirm financials

Affirm Investor Relations and Author’s Analysis

Affirm financials

Affirm Investor Relations and Author’s Analysis

Affirm long term goals

Affirm 2021 Investor Forum Presentation

Affirm outlook

Affirm FY2022 Q2 Investor Presentation

Affirm balance sheet

Affirm Investor Relations and Author’s Analysis

Affirm platform portfolio

Affirm Investor Relations and Author’s Analysis

Affirm funding capacity

Affirm Investor Relations and Author’s Analysis

Affirm cash flow

Affirm Investor Relations and Author’s Analysis

Affirm FCF

Affirm Investor Relations and Author’s Analysis

Afterpay partners

Afterpay FY2021 Results Presentation

Afterpay GMV

Afterpay Investor Relations and Author’s Analysis

Afterpay GMV

Afterpay Investor Relations and Author’s Analysis

Afterpay financials

Afterpay Investor Relations and Author’s Analysis

Afterpay merchants

Afterpay Investor Relations and Author’s Analysis

Afterpay financials

Afterpay Investor Relations and Author’s Analysis

Afterpay financials

Afterpay Investor Relations and Author’s Analysis

Afterpay and Square

Afterpay FY2021 Results Presentation

Klarna

Klarna FY2021 H1 Investor Presentation

Klarna financials

Klarna Investor Relations and Author’s Analysis

Klarna financials

Klarna Investor Relations and Author’s Analysis

Klarna financials

Klarna Investor Relations and Author’s Analysis

BNPL comparison

Author’s Analysis

Affirm NPS

Affirm FY2021 Q4 Investor Presentation

McKinsey BNPL

McKinsey

KoyFin

Koyfin

KoyFin

Koyfin

This article was written by

Riyado Sofian profile picture
1.96K Followers
My goal is to help you find the companies of tomorrow.I am a long-term growth investor in search of innovative companies that make the world a better place. My investment strategy revolves around finding what I call "divergent stocks" — disruptive companies that have strong fundamentals and long growth runways, but depressing prices.I also recently launched my YouTube Channel (I'm not a natural speaker but I'll get better over time!).

Disclosure: I/we have a beneficial long position in the shares of AFRM, MQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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