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.


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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.

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If the monthly churn rate is 1.3%, it would make sense for the LTV/CAC ratio to be 30x.

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