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]

Financial Performance - Total revenue for the three months ended September 30, 2024, was $698.5 million, a 41% increase from $496.5 million in the same period of 2023[219]. - Total operating expenses increased to $831.1 million, up 18% from $706.0 million year-over-year[219]. - The operating loss improved to $(132.6) million, a 37% reduction compared to $(209.4) million in the prior year[219]. - Net loss for the quarter was $(100.2) million, down 42% from $(171.8) million in the same quarter of 2023[219]. - For the three months ended September 30, 2024, Gross Merchandise Volume (GMV) was $7.6 billion, representing a 35% increase compared to $5.6 billion in the same period of 2023[241]. - Merchant network revenue increased by $38.4 million, or 26%, for the three months ended September 30, 2024, driven by a $2.0 billion increase in GMV[253]. - Card network revenue grew by $14.0 million, or 42%, for the three months ended September 30, 2024, correlating with a 38% increase in GMV processed through card-issuing partners[255]. - Interest income rose by $114.4 million, or 44%, for the three months ended September 30, 2024, attributed to a 34% increase in the average balance of loans held for investment[257]. - Gain on sales of loans increased by $29.3 million, or 86%, for the three months ended September 30, 2024, with loan sales totaling $2.8 billion compared to $2.2 billion in the same period of 2023[258]. - The net loss for the three months ended September 30, 2024, was $100.2 million, a 42% improvement from a net loss of $171.8 million in the same period of 2023[248]. Loan and Credit Metrics - Pay-in-X loans represented 14% of total GMV for Q3 2024, slightly down from 15% in Q3 2023, while 0% APR installment loans remained stable at 11%[221]. - Interest-bearing loans accounted for 75% of total GMV in Q3 2024, compared to 74% in Q3 2023[222]. - Approximately $1.3 billion, or 17%, of loans were directly originated by the company in Q3 2024, consistent with the previous year[226]. - The company has expanded its loan modification programs, resulting in a modest benefit to delinquency rates, with modified loans representing 0.18% and 0.42% of the outstanding principal balance as of September 30, 2024[239]. - Provision for credit losses increased by $60.1 million, or 60%, for the three months ended September 30, 2024, with loans held for investment rising to $6.3 billion, a 39% increase compared to the same period in 2023[266]. - The company was exposed to credit risk on $6.3 billion of loans held on its balance sheet, an increase from $5.7 billion as of June 30, 2024[317]. - Approximately 11% of loan receivables were related to customers in California, with no other state exceeding 10%[317]. - The company sold $5.6 billion of unpaid principal balance of loans subject to risk sharing arrangements as of September 30, 2024, compared to $4.2 billion as of June 30, 2024[317]. - The maximum exposure to losses from risk sharing arrangements was $101.5 million as of September 30, 2024, up from $81.2 million as of June 30, 2024[317]. Cash Flow and Funding - Net cash provided by operating activities for the three months ended September 30, 2024, was $196.9 million, compared to $98.9 million for the same period in 2023[293][296]. - Net cash used in investing activities was $575.0 million for the three months ended September 30, 2024, primarily due to $6.4 billion in purchases and origination of loans held for investment[297]. - Net cash provided by financing activities was $465.6 million for the three months ended September 30, 2024, mainly from net cash inflows of $750.0 million from new issuance and repayment of notes[299]. - As of September 30, 2024, the company had $2.1 billion in cash and cash equivalents and available for sale securities, with $3.9 billion in available funding debt capacity[282]. - As of September 30, 2024, the company has drawn an aggregate of $1.3 billion on its U.S. warehouse credit facilities, which allow borrowing up to $5.0 billion[286]. - The aggregate commitment amount of Canadian credit facilities was $652.9 million, with $407.0 million drawn as of September 30, 2024[287]. - The company had $22.4 million and $34.5 million in debt outstanding under sale and repurchase agreements as of September 30, 2024, and June 30, 2024, respectively[288]. Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2024, were $831.1 million, an 18% increase from $706.0 million in the same period of 2023[248]. - Loss on loan purchase commitment rose by $19.4 million, or 56%, for the three months ended September 30, 2024, primarily due to a 40% increase in total volume of loans purchased, from $4.6 billion to $6.4 billion[264]. - Funding costs increased by $30.2 million, or 41%, for the three months ended September 30, 2024, attributed to a 34% increase in average total funding debt from $4.0 billion to $5.4 billion[268]. - Processing and servicing expense increased by $19.5 million, or 26%, for the three months ended September 30, 2024, driven by a 38% increase in payment processing fees[270]. - Technology and data analytics expense increased by $1.3 million, or 1%, for the three months ended September 30, 2024, with amortization of internally-developed software rising by 44% due to a 127% increase in capitalized projects[272]. - Sales and marketing expense decreased by $1.6 million, or 1%, during the three months ended September 30, 2024, primarily due to a 92% decrease in the amortization of intangible assets[274]. - General and administrative expense decreased by $1.9 million, or 1%, during the three months ended September 30, 2024, mainly due to an 8% decrease in payroll and personnel-related costs[276]. - Other income, net, decreased by $4.4 million, or 11%, during the three months ended September 30, 2024, primarily due to a decrease in non-operating income related to the wind-down of the Returnly business[279]. Market and Economic Conditions - The company continues to monitor macroeconomic conditions, noting that elevated borrowing costs and economic uncertainty may impact consumer demand and transaction costs[234][235]. - The company estimates that a hypothetical instantaneous 100 basis point upward shock to interest rates would have a less than $55.0 million adverse impact on cash flows associated with market risk sensitive instruments over the next 12 months[313]. - Continued volatility in interest rates may adversely impact consumers' spending levels and their ability to pay outstanding amounts owed[311]. - The company has not experienced any credit losses related to its financial institutions but acknowledges potential material adverse effects if multiple financing sources fail to fulfill obligations[318]. - The company maintains cash deposits in highly-rated, federally-insured financial institutions, managing credit risk through diversification and established guidelines[318].

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 ...

Affirm Holdings, Inc. (AFRM) is scheduled to release first-quarter fiscal 2025 results on Nov. 7, after the closing bell. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 36 cents per share, suggesting a narrower figure than the prior-year quarter’s loss of 57 cents. Its quarterly performance is expected to have been driven by increased merchant network revenues, higher interest income and continued transaction growth undertaken through AFRM’s platform.   Stay up-to-date with all quar ...

Affirm Holdings, Inc. (NASDAQ: AFRM ) is a fintech company offering consumers Buy Now, Pay Later (BNPL) options, allowing them to split purchases into installments. This week they are presenting results, and my expectations are that they will continue to grow as they have done inInvesting in high-growth opportunities across industries, employing a value investing approach that prioritizes robust business models and strategic foresight. Focusing on companies with the potential to profoundly influence the glo ...