Financial Data and Key Metrics Changes - The company is pleased to improve its outlook for the current quarter and the fiscal year, indicating a positive trend in financial performance [6][7] - The quarter showed strong growth in GMV (Gross Merchandise Volume), with March being the strongest month at 40% year-on-year growth [20] Business Line Data and Key Metrics Changes - Strong growth was observed across various business lines, particularly in direct-to-consumer services, which outpaced the overall business growth [19] - The zero APR product is gaining traction, although it has a lower revenue and return on loan compared to interest-bearing loans [10][12] Market Data and Key Metrics Changes - The company noted broad-based strength in GMV across its merchant base, with only one category experiencing a decline [19] - The company is actively engaging with merchants to promote zero APR offers, which are seen as beneficial for both parties [11][28] Company Strategy and Development Direction - The company aims to balance growth and profitability while continuing to take market share [7] - There is a focus on enhancing the Affirm app to improve user engagement and repayment rates, with ongoing updates and features being rolled out [61][63] Management's Comments on Operating Environment and Future Outlook - Management is mindful of potential economic challenges, including the impact of student loan enforcement and broader economic conditions [59] - The company is prepared for recession scenarios and has a proactive approach to adjusting credit quality and underwriting standards as needed [34][112] Other Important Information - The partnership with Costco is highlighted as a significant development, although specific timelines and metrics are not disclosed [70][71] - The company is committed to reporting loan data to credit bureaus, which is seen as beneficial for consumers and the company's brand [40][42] Q&A Session Summary Question: Can you discuss the balance of economics between zero APR and interest-bearing loans? - Management indicated that while zero APR loans generate less revenue, they enhance brand loyalty and customer acquisition, leading to better credit quality in the long term [10][12] Question: What are the pockets of strength in GMV? - The company reported strong growth across most categories, with direct-to-consumer services leading the charge [19][20] Question: How does the company view the impact of student loan enforcement? - Management is monitoring the situation closely and has already factored student loan delinquencies into their underwriting processes [59] Question: Can you elaborate on the competition and funding structure? - The competitive landscape remains intense, but the company focuses on conversion and impact rather than pricing to maintain its market position [122][123] - A bank charter is not seen as a solution for the current funding strategy, but the company remains open to pursuing one if necessary for product development [116][120]

Financial Data and Key Metrics Changes - The company is pleased to improve its outlook for the current quarter and the fiscal year, indicating a positive trend in financial performance [6] - The company is on a journey towards becoming GAAP profitable, balancing growth and profitability [6] Business Line Data and Key Metrics Changes - The strength in GMV (Gross Merchandise Volume) was broad-based, with strong growth across various categories, particularly in direct-to-consumer services, which grew faster than the overall business [18][19] - March was highlighted as the strongest month of growth, achieving a 40% year-on-year GMV growth [19] Market Data and Key Metrics Changes - The company noted that the 0% APR product is gaining excellent traction, with a focus on maintaining high credit quality [10][12] - The company is actively responding to merchant requests for promotional financing, which is seen as a growth opportunity [10][12] Company Strategy and Development Direction - The company aims to balance growth opportunities with excellent credit quality while being judicious in spending [6] - The management emphasized the importance of the 0% APR product as a tool for market share growth and customer acquisition, viewing it as a long-term value booster [12][28] Management Comments on Operating Environment and Future Outlook - Management is mindful of the potential implications of student loan enforcement and has factored this into their underwriting processes [59] - The company is continuously monitoring credit trends and is prepared to adjust its strategies based on market conditions [110][115] Other Important Information - The company is focused on enhancing its app to improve user engagement and repayment rates, with ongoing updates and improvements [61][64] - The partnership with Costco is seen as a significant opportunity, although specific timelines for impact were not disclosed [70][71] Q&A Session Summary Question: Can you discuss the balance between zero APR loans and interest-bearing loans? - Management indicated that while zero APR loans generate slightly lower revenue, they significantly improve credit quality and customer acquisition, leading to long-term benefits [10][12] Question: What are the pockets of strength in GMV? - The company reported strong growth across various categories, with direct-to-consumer services leading the charge [18][19] Question: How does the company view the competitive landscape? - Management acknowledged the competitive environment but emphasized their focus on conversion and impact rather than pricing [126][129] Question: What are the implications of student loan enforcement? - The company is monitoring the situation closely and has already incorporated student loan data into their underwriting processes [59] Question: Can you provide an update on international expansion? - The partnership with Adyen is expected to speed up integration in the UK, with ongoing efforts to educate the market about the company's offerings [91][92] Question: How is AI being utilized within the company? - The company is leveraging machine learning for credit scoring and operational efficiency, while also exploring generative AI for customer interactions [96][100]