Affirm CEO: We're not seeing a degradation in Affirm's consumer

Core Viewpoint - The company reported a strong earnings performance with a record of 20.41 million transactions last quarter, indicating robust consumer engagement despite broader economic concerns [1][3]. Company Performance - The company achieved a quarterly gross merchandise volume (GMV) of just under $11 billion, reflecting a growth rate of 42% [3]. - The company added 500,000 users to its debit card, bringing the total number of active consumers to over 24 million [1][15]. - The company remains profitable, with a target revenue-less transaction cost margin of 3% to 4%, achieving 4.2% in the latest quarter [8]. Consumer Behavior - There are no signs of degradation in consumer spending among the company's users, with significant growth in categories like ticketing and travel [3][11]. - The company is closely monitoring employment data, as it considers U.S. employment to be a critical metric for its operations [9][10]. Credit Underwriting Practices - The company underwrites each transaction individually, allowing for daily adjustments to credit standards based on current data [6][11]. - The average life of each transaction is approximately four and a half months, enabling the company to respond quickly to changes in consumer behavior [6][11]. - The company does not charge late fees or compounding interest, focusing instead on effective underwriting practices [7][8]. Future Outlook - The company is committed to expanding its merchant base and continues to promote the buy now, pay later model as a favorable purchasing option [14][15]. - The company is actively engaged in research and development in machine learning and AI, although it adheres strictly to legal regulations regarding credit underwriting [16][17].