Is post-payment profitable?

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posted onMay 5, 2023 by Daniel Pereira
Is post-payment profitable?
Is Afterpay profitable? While announcing its first financial results after being acquired by Block, a US group, Afterpay announced a net loss of $345.5 million for the six-month period ended December 31, 2021. This was a huge increase from the $79.2 million recorded in the previous half.



Afterpay’s pre-tax loss was also $501.9 million, up from $76.2 million the year before. These losses were chinese overseas australia data attributed to an increase in the company’s impairment charges on accounts receivable, also known as bad debts, to $176.8 million from $72.1 million the previous year. High marketing costs, the loss of the company’s Clearpay business in the UK and the closure of one of its convertible bonds also contributed to the increase in the half-year losses. Amid these losses,

Afterpay’s total income has halved significantly, from $417 million last year to $645 million, an increase of 50%. Recent reports have suggested that the company’s bad debts are now under control and are not set to change, despite the challenging economic times facing businesses in the sector globally.

In 2022, Afterpay was responsible for Block’s $811 million in revenue and $588 million in gross profit. Afterpay is a FinTech company that partners with some of the largest online retailers to offer online shoppers BNPL (buy now, pay later) solutions.