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Highlights
- Affirm Holdings, Inc’s (NASDAQ:AFRM) total revenue increased by 55% year-over-year to US$269.4 million in the first quarter of 2022.
- CEO Max Levchin said the results reflect the company’s superior technology and growth investments that helped expand its number of active merchants and consumers.
- After the upbeat results, the company has raised the outlook for gross merchandise volume (GMV) and revenue for FY2022.
Fintech company Affirm Holdings, Inc. (NASDAQ:AFRM) reported a 55% jump in quarterly revenue on Wednesday, boosted by robust sales through its buy now, pay later (BNPL) platform.
The San Francisco, California-based company posted revenue of US$269.4 million in the first quarter of fiscal 2022, up from US$173.9 million a year ago.
Affirm founder and CEO Max Levchin said the results reflect the company’s superior technology and growth investments that helped expand the number of active merchants and consumers.
Levchin said Affirm’s active merchants grew to over 100,000, while its active consumers more than doubled in the quarter ended Sep 30.
First-Quarter Highlights
Affirm’s total revenue increased by 55% year-over-year to US$269.4 million in the first quarter of 2022, driven by growth in loan interest income, network proceeds, and loans.
Its Q1 revenue topped Wall Street estimates of US$248.2 million, according to EODHD/Others.
However, the company’s operating loss rose to US$166.1 million from US$33.3 million a year ago.
Affirm launched its initial public offering (IPO) in January this year.
Its adjusted operating loss for the quarter was US$45.1 million, compared to an operating loss of US$7.9 million in the corresponding period of fiscal 2021.
Likewise, the net loss for the quarter was US$306.6 million versus US$3.9 million a year ago.
The active merchants on the platform grew to 102,000 from 6,500 YoY, while active consumers increased 124% to 8.7 million YoY.
The company has raised the outlook for gross merchandise volume and revenue for FY22 after the upbeat results.
It now expects second-quarter revenue to be in the range of US$320 million to US$330 million, above analysts’ estimates of US$296.09 million.
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Source: Pixabay
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Affirm-Amazon Partnership
Affirm has expanded its partnership with e-commerce heavyweight Amazon.com Inc after the results, allowing all users to split their Amazon purchases of US$50 or more into monthly installments. It was earlier available only to select customers.
The company said Amazon will receive multiple warrants to purchase shares of its Class A common stock and would be Amazon’s only third-party BNPL service provider in the US through January 2023.
The partnership would also make Affirm a payment method in Amazon Pay's digital wallet for the US market.
The Affirm stock jumped 28.29% to US$171.30 in the after-hours session at 6:36 pm ET. The stock rose more than 76% since its January IPO.
Affirm Holdings Inc has a current market cap of about US$37.08 billion.
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Bottomline
The US indices saw significant gains in recent weeks, boosted by the record quarterly earnings of companies. Most stock segments on the S&P 500 index are accruing rapid gains. Analysts expect the third-quarter earnings of the S&P 500 companies would rise more than 37% YoY. So far, around 80% of the S&P 500 companies have exceeded Wall Street expectations in the third quarter.
