Thank you very much for this excellent report. Not being very familiar with banks and their business model, I wonder what you think about Nu's financial position. Nu has about 15 billion in current assets and about 20 billion in current liabilities. While the long-term liabilities are negligible, I am a bit concerned about their financial health. Would be very happy to hear your thoughts on this.
Could you please provide more details about the 0.13% monthly churn rate or share the source with me? After annualizing the projection, the annual churn rate will be only 1.56%. Following a $4.1 ARPAC, I calculated the LTV as $1,513, using the formula 4.1 * 12 * 48% / 1.56% (assuming a 48% gross margin). Therefore, the LTV/CAC (1,513/5) doesn't equal 30x.
Hello Tanay,
Thank you very much for this excellent report. Not being very familiar with banks and their business model, I wonder what you think about Nu's financial position. Nu has about 15 billion in current assets and about 20 billion in current liabilities. While the long-term liabilities are negligible, I am a bit concerned about their financial health. Would be very happy to hear your thoughts on this.
Thanks!
Hi Tanay, thank you for your helpful information.
Could you please provide more details about the 0.13% monthly churn rate or share the source with me? After annualizing the projection, the annual churn rate will be only 1.56%. Following a $4.1 ARPAC, I calculated the LTV as $1,513, using the formula 4.1 * 12 * 48% / 1.56% (assuming a 48% gross margin). Therefore, the LTV/CAC (1,513/5) doesn't equal 30x.
Or perhaps I misunderstood something.