Affirm (AFRM), Zscaler (ZS) stocks rally after revenue guidance boost

Highlights

  • The Affirm Holdings, Inc’s (NASDAQ: AFRM) total revenue surged 71% YoY to US$261.8 million in Q4 of FY21.

  • The revenue of Zscaler, Inc. (NASDAQ: ZS) jumped 57% YoY to US$197.1 million in Q4 of FY21.

  • The AFRM stock declined by 5.33 percent YTD, while ZS stock rose 42.9% YTD.

Stocks of Affirm Holdings, Inc. (NASDAQ: AFRM) and Zscaler, Inc. (NASDAQ: ZS) were up more than 22 percent and 2 percent, respectively, on Friday morning, a day after raising their full-year revenue guidance and reporting solid quarterly earnings.

AFRM stock traded at US$112.40 at 8:21 am ET, up 22.09 percent, while ZS stock was priced at US$287.80 at 8:18 am ET, up 2.71 percent from the previous closing price.

Here we look at the quarterly performance of the two companies.

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Affirm Holdings, Inc. (NASDAQ: AFRM)

Affirm Holdings, Inc. is a financial technology company based in San Francisco, California, and operates a payments platform for customers.

The company's total revenue soared 71 percent YoY to US$261.8 million in Q4 of fiscal 2021. It reported an operating loss of US$124.7 million, compared to an operating income of US$39.3 million in the previous year's fourth quarter. The net loss of the company came in at US$128.2 million, compared to a net income of US$34.8 million in Q4 of FY 2020.

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The total revenue of the company for the full-year FY21 increased by 71 percent YoY to US$870.5 million. Its operating loss for the full year was US$379.2 million against a loss of US$107.8 million in the previous fiscal year. In addition, it reported a net loss of US$430.9 million, compared to a loss of US$112.6 million in FY20.

The company now expects its revenue for Q1 of FY 2022 to be between US$240 million and US$250 million, and full-year FY 22 revenue to be between US$1.16 billion and US$1.19 billion.

Affirm Holdings’ market cap id US$24.40 billion, the forward P/E one year is -113.65. The AFRM stock declined by 5.33 percent YTD. Affirm Holdings’ 52-week highest and lowest prices were US$146.90 and US$46.50, respectively. Its share volume was 10,966,660 on September 9.

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Zscaler, Inc. (NASDAQ: ZS)

Zscaler is based in San Jose, California, and is a cloud-based IT security company. The company provides cloud-based security services.

Zscaler’s Q4 FY 2021 revenue jumped 57 percent YoY to US$197.1 million. On a GAAP basis, its net loss came in at US$81.0 million, or a loss of US$0.59 per share, compared to a loss of US$49.5 million, or US$0.38 per share in the same quarter of the previous year.

Zscaler reported a loss of US$67.4 million from operations against a loss of US$44.9 million in the year-ago quarter on a GAAP basis. The cash provided by operations was US$44.7 million, compared to US$31.6 million in Q4 of FY 2020.

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The full-year revenue of the company surged 56 percent YoY to US$673.1 million in FY21. Its GAAP net loss was US$US$262 million, compared to US$115.1 million in FY20.

The company now expects its Q1 revenue to be between US$210 million and US$212 million in FY22. For the full year, it projected its revenue to be between US$940 million and US$950 million in FY22.

Zscaler’s market cap is US$38.38 billion, the forward P/E one year is -154.82, and its EPS is US$-1.93. The ZS stock ticked up 42.9 percent YTD. The 52-week highest and lowest stock prices were US$293.44 and US$120.34, respectively. Its share volume on September 9 was 73,407.

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Bottomline

The fintech companies have witnessed notable growth due to rapid digitalization globally. Besides, more and more people are opting for digital transactions, helping the sector grow.

The cyber security sector also has been in focus as online threats rise. Analysts believe these sectors to grow further as technologies are fast evolving.

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