Core Viewpoint - Affirm Holdings, Inc. (AFRM) reported better-than-expected first-quarter fiscal 2024 results, driven by increased card network revenues and servicing income, although rising expenses, particularly in credit loss provisions, partially offset these gains [1][6]. Financial Performance - The company incurred a fiscal first-quarter loss of 31 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 36 cents per share, remaining flat year over year [2]. - Total net revenues reached $698.5 million, exceeding management's expectations of $640-$670 million, and surged 40.7% year over year, surpassing the consensus mark by 5.6% [2]. - Active merchants increased by 21.4% year over year to 323,000, with GMV of $7.6 billion, a 35.7% increase year over year, exceeding management's expected range [3]. - Total transactions rose to 27.2 million, a 45% increase year over year, driven by a significant rise in repeat customer transactions [4]. Revenue Breakdown - Servicing income improved by 28.9% year over year to $26 million, although it missed the consensus mark of $29.3 million [4]. - Interest income surged 44% year over year to $377.1 million, exceeding the consensus estimate of $348 million [4]. - Merchant network revenues totaled $184.3 million, growing 26.3% year over year but missing the Zacks Consensus Estimate of $194 million [5]. - Card network revenues rose 41.8% year over year to $47.5 million, attributed to higher usage of Affirm and single-use virtual debit cards, beating the consensus mark of $42.9 million [5]. Expense Analysis - Total operating expenses increased by 17.7% year over year to $831.1 million, primarily due to higher losses on loan purchase commitments and processing expenses [6]. - Provision for credit losses escalated by 60.3% to $159.8 million [6]. - Sales and marketing expenses decreased by 1.1%, while general and administrative expenses fell by 1.3% year over year [6]. Adjusted Metrics - Affirm generated an adjusted operating income of $130 million, up from $60 million in the prior-year quarter, with an adjusted operating margin of 19%, exceeding management's estimated range of 14-16% [7]. - The net loss of $100.2 million was narrower than the prior-year quarter's loss of $171.8 million [7]. Financial Position - As of September 30, 2024, Affirm had cash and cash equivalents of $1 billion, a 3.3% increase from the fiscal 2023-end figure [8]. - Total assets rose to $10.1 billion, a 6.5% increase from the fiscal 2023-end [8]. - Funding debt amounted to $1.74 billion, up 5.1% from the previous year [8]. - Total stockholders' equity grew by 3.8% to $2.8 billion [8]. Cash Flow - Affirm generated $196.9 million of net cash from operations during the September quarter, compared to $98.9 million in the prior-year quarter [9]. Future Guidance - For the second quarter of fiscal 2025, Affirm forecasts GMV in the range of $9.35-$9.75 billion and revenues between $770-$810 million [10]. - Management anticipates a GMV of over $34 billion for fiscal 2025, with revenues projected to expand at least 20 basis points from fiscal 2024 [11]. - The adjusted operating margin is estimated to be at least 20% for fiscal 2025 [11].

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Affirm Holdings (AFRM) reported $698.48 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 40.7%. EPS of -$0.31 for the same period compares to $0.00 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $661.39 million, representing a surprise of +5.61%. The company delivered an EPS surprise of +13.89%, with the consensus EPS estimate being -$0.36.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

Affirm Holdings (AFRM) came out with a quarterly loss of $0.31 per share versus the Zacks Consensus Estimate of a loss of $0.36. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.89%. A quarter ago, it was expected that this operator of digital commerce platform would post a loss of $0.45 per share when it actually produced a loss of $0.14, delivering a surprise of 68.89%.Over the last fou ...

Financial Data and Key Metrics Changes - The company reported strong unit economics with improvements in revenue as a percentage of GMV and RLTC margins increasing from 10 to 20 basis points, driven by interest income and capital market benefits [8][15][39] - Adjusted operating income margin guidance is now above 20%, with expectations for the fiscal second quarter to be between 21% to 23% [22][23] Business Line Data and Key Metrics Changes - The company is experiencing healthy consumer growth, with active consumer growth accelerating due to deeper approvals and more compelling new consumer deals [25] - The company is focused on increasing transaction frequency among existing users, achieving a new record of five transactions per user [25] Market Data and Key Metrics Changes - The company is entering the UK market, where there is strong demand for longer-term payment products, which are currently underserved [28] - The competitive landscape in the UK is noted to be challenging, but the company believes its unique business model and underwriting capabilities will provide a competitive advantage [30] Company Strategy and Development Direction - The company is preparing for a strong holiday season, leveraging 0% promotions to attract new consumers and drive sales [20] - The company aims to harmonize its financial programs across multiple channels, enhancing consistency and consumer engagement [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the margin performance in the second half of the year, with expectations for continued growth in margins and operating leverage [15][23] - The company is confident in its ability to navigate regulatory scrutiny and maintain growth, particularly with the Affirm card rollout [34] Other Important Information - The company is focused on maintaining a stable funding base while benefiting from favorable capital market conditions [17] - Management emphasized the importance of underwriting expertise and data utilization in sustaining competitive advantages [31][35] Q&A Session Summary Question: Can you unpack the uplift to revenue as a percentage of GMV for the full year? - The company highlighted strong unit economics and benefits from interest income and capital markets [8] Question: What is the current underwriting posture and expected RLTC margin trend? - Management indicated a stable underwriting posture with expectations for healthy margins in the upcoming quarters [12][15] Question: How does secondary market activity impact balance sheet management? - The company noted strong demand for whole loan purchasers and emphasized careful management of funding channels [17] Question: What is the outlook for 0% promotions during the holiday season? - Management expressed confidence in leveraging 0% promotions to drive consumer engagement and sales [20] Question: What are the expectations for long-term operating income margins? - The company reiterated its long-term margin framework while acknowledging current performance above expectations [22][23] Question: What are the early thoughts on the UK launch and competitive landscape? - Management reported strong initial reception in the UK and emphasized the unique value proposition of their offerings [28][30] Question: Will increased regulatory scrutiny impact the growth of the Affirm card? - Management assured that regulatory scrutiny would not hinder growth and emphasized their strong compliance framework [34] Question: Are there nuances in underwriting consumers in the UK versus the US? - Management indicated readiness to apply their underwriting expertise in the UK while monitoring early performance metrics [35][36]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Class A common stock, par value $0.00001 per share AFRM The Nasdaq Global Select Market FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transitio ...

Affirm, the provider of buy now, pay later loans reported better-than-expected fiscal first-quarter results.Here's how the company did, compared to analysts' consensus estimates from LSEG.Loss per share: 31 cents adjusted vs. a loss of 35 cents expectedRevenue: $698 million vs. $664 million expectedAffirm reported gross merchandise volume (GMV) of $7.6 billion, topping the average estimate of $7.28 billion, according to StreetAccount. GMV, a key metric that helps gauge the total value of transactions, incre ...

| --- | --- | --- | |---------------------------|-------------------------------------------------------------------------------|---------| | | | | | affirm) | | | | Shareholder Letter | | | | First Fiscal Quarter 2025 | " = છે ଷ୍ର | | | | Add money Request to split eligible purchases of $50 d $58.32 $117.72 @ ® g D | affirm) | Max Levchin Founder and CEO Fellow Affirm shareholders: Affirm galloped out of the gates in FQ1'25. We met or exceeded every metric provided in the August outlook: | --- | --- | --- ...

The financial technology space is expected to benefit from expanding transaction volumes resulting from the widespread adoption of digital means. The ongoing digitization movement, triggered by the pandemic, is a major catalyst for this industry. Financial technology represents a transformative investment space within a hybrid sector merging finance and technology. The companies in this space offer a variety of services, such as online banking, peer-to-peer payments, insurance, cryptocurrency and cybersecur ...

Key TakeawaysAffirm Holdings is set to report first-quarter earnings after the bell Thursday, with analysts expecting revenue to grow nearly 34% from last year's quarter. Analysts polled by Visible Alpha expects to see losses of 33 cents per diluted share.Deutsche Bank analysts see opportunity for customer growth as interest rates come down. Affirm Holdings (AFRM) is set to report its fiscal first-quarter earnings after the market closes on Thursday, with analysts expecting the buy now, pay later (BNPL) fir ...