Core Insights - A firm’s shares surged 11% after hours due to earnings and revenues surpassing Wall Street estimates [1] - The company reported a 42% increase in transaction volume for the quarter, indicating strong business performance [1][2] - A significant highlight was the new 5-year partnership with Amazon, which CEO Max Lechin emphasized as a major achievement [1] Financial Performance - Earnings more than doubled expectations, showcasing a strong revenue beat [3] - Transaction volume reached a new high despite limited seasonal lift, reflecting robust demand [3] - Card volume increased by 135% year-over-year, indicating effective growth strategies [3] User Engagement - Active users have now reached 2.8 million, demonstrating an expanding customer base [3] - The demand for 0% loans has become the fastest-growing product for the company, suggesting a shift in consumer preferences [2]

Core Viewpoint - Affirm's shares declined following a weak revenue forecast, raising concerns about CEO Max Levchin's strategy to expand through 0% loans [1][2]. Revenue Forecast - Affirm projected revenue for the current quarter to be between $815 million and $845 million, with the midpoint falling short of the $841 million average analyst estimate [2]. Business Strategy - CEO Max Levchin is focusing on 0% loans to attract consumers and foster long-term customer loyalty, even at the cost of current profit margins [2]. - The strategy aims to educate consumers on the benefits of avoiding excessive revolving interest, positioning Affirm as a competitor to credit cards [3]. Market Position - Currently, 0% loans account for 13% of Affirm's total Gross Merchandise Volume (GMV), with 80% of these loans being issued to prime and super-prime customers [3]. - Affirm's primary business involves providing point-of-sale installment loans for consumer purchases in categories such as apparel, electronics, and sporting goods [3].