Ben Gilbert: commitment

Transcript context

…That's the best Ben Gilbert thing that is possible. I love it. But what's interesting is the fact that they offered it at all. When you look under the covers of, why was Peloton willing to offer 0% or why was Affirm willing to offer 0%? What does that deal look like? Peloton and Affirm did a back-end deal where Peloton said, if you agree, Affirm, to do 0% financing, we will pay you an amount in order to make it worth your while and so tell us what that amount is. At the time of Affirm's IPO, 28% of all of the revenue in the previous year leading up to the IPO was from the Peloton deal, which if I'm doing the math right based on what their revenue numbers were at the time, that is $150 million a year that Peloton was paying to Affirm to offer this 0% financing thing. That gives you a sense of how much Peloton knows and knew. Even then, oh my God we need to expand down the market because we are saturating our wonderfully price-insensitive core customer base or initial customer base. Wow, that's huge. We're about to release a great LP Show episode with Christina Melas-Kyriazi who just joined Bain Capital Ventures—been a longtime friend of mine but was an early employee at Affirm. We talked with her about the whole buy now, pay later space. One of the key value props to merchants is this enables sales that wouldn't happen otherwise, but oh my gosh, you're right, this is between a bull and a bear. But trending into the bear category here, the focus on their core customer is really, things have gotten so wonky in the past year-plus.…

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