UPDATED 23:07 EDT / SEPTEMBER 09 2021

APPS

Affirm shares surge more than 20% on strong earnings outlook

Shares in Affirm Holdings Inc. surged more than 20% in after-hours trading today after the online payments company predicted stronger-than-expected earnings.

For the quarter ended June 30, Affirm reported a loss before costs such as stock compensation of 48 cents a share, on revenue of $261.8 million, up 71% from a year ago. Analysts had been predicting a loss of 29 cents a share on revenue of $226.39 million.

Looking ahead, Affirm predicted revenue of $240 million to $250 million in its fiscal 2022 first quarter on gross merchandise volume of $2.42 billion to $2.52 billion. Analysts had predicted revenue of $232.6 million and GMV of $2.2 billion.

For the full fiscal year 2022, Affirm estimates revenue of $1.16 billion to $1.19 billion on GMV of $12.45 billion to $12.75 billion.

Despite a mixed bag on analysts’ expectations, investors were quite impressed with Affirm’s financial outlook. Shares in Affirm surged nearly 21% after the bell.

Affirm booked GMV of $2.5 billion in billion in the quarter, up 106% year-over-year or 178% excluding Peloton, the connected treadmill company. Active merchants using Affirm’s platform grew by 412% in the quarter to nearly 29,000, including several newly integrated Shopify merchants.

Active consumers using Affirm’s platform jumped 97% year-over-year, to 7.1 million, while transactions per active consumer rose 8% to 2.3 million as of the end of June.

For the full fiscal year 2021, Affirm reported total revenue of $870.5 million, up 71% from the previous year. Adjusted profit came in at $14.3 million, reversing an adjusted operating loss of $68.3 million in the previous year.

Highlights in the quarter included Affirm advancing an exclusive partnership with Shopify by making Shop Pay Installments available to all eligible Shopify merchants in the U.S. Affirm exclusively powers that service.

“The secular shift toward flexible and transparent financial products continues to accelerate,” Max Levchin, founder and chief executive offer of Affirm, said in a statement. “We remain focused on extending our leadership position with our core products while capitalizing on our vast opportunities to empower more people with the new ones we continue to launch.”

Image: Affirm

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU