Affirm(US:AFRM) ZACKS·2025-11-05 18:16Industry Overview - The Internet Software industry is expected to report modest-to-solid revenue growth for Q3 2025, driven by technological innovations in AI, cloud computing, and automation [1][4][10] - Steady demand for AI-powered software solutions, sustained cloud migration, and expanding enterprise IT budgets are anticipated to support this growth [2][3] Key Players and Performance Expectations - Leading companies such as Backblaze (BLZE), Datadog, Inc. (DDOG), JFrog (FROG), Affirm Holdings (AFRM), and Block (XYZ) are expected to benefit from increased adoption and subscription renewals [2][10] - Backblaze's revenues are projected at $36.95 million, reflecting a 13.37% year-over-year increase, driven by strong demand in its B2 Cloud Storage business [9] - Datadog's revenues are estimated at $849.77 million, indicating a 23.15% year-over-year growth, supported by strong momentum in its security and AI-focused offerings [14] - JFrog's revenues are expected to be between $127 million and $129 million, with a year-over-year increase of 17.73% anticipated [17] - Affirm Holdings is projected to report revenues of $885.01 million, representing a 26.7% year-over-year rise [19] - Block's revenues are estimated at $6.34 billion, indicating a 6.12% year-over-year increase [22] Growth Catalysts - AI and generative AI are major growth catalysts, enhancing productivity and customer engagement across various sectors [3] - The expansion of cloud and edge computing capabilities, along with increased data-center investments, is expected to further support revenue growth [3] Challenges - The industry's performance may be affected by macroeconomic factors such as high interest rates and market volatility, which could dampen investor sentiment [4][10] - Companies with strong AI features, solid cloud platforms, and flexible SaaS models are likely to outperform their peers despite these challenges [4]