Affirm, the buy now, pay later (BNPL) loan provider, reported fiscal first-quarter results that surpassed analysts’ expectations. The company posted an adjusted loss per share of 31 cents, better than the anticipated 35 cents loss, and generated $698 million in revenue, outperforming the expected $664 million. Affirm’s gross merchandise volume (GMV) reached $7.6 billion, exceeding the forecast of $7.28 billion and marking a 35% increase from the previous year. Revenue for the quarter climbed 41% from last year’s $496.5 million, and revenue less transaction costs came in at $285 million, surpassing guidance.
Affirm anticipates achieving GAAP profitability by fiscal Q4 2025. The company projects second-quarter revenue between $770 million and $810 million, with a midpoint estimate of $790 million, slightly above the $785 million average expected by analysts. GMV guidance for the upcoming quarter ranges from $9.35 billion to $9.75 billion, compared to the anticipated $9.48 billion.
Affirm’s stock has gained momentum recently, rising over 70% since the end of August, partly due to new partnerships with companies like Apple, Amazon, and Shopify. In June, Affirm and Apple announced plans to enable U.S. Apple Pay users to apply for loans directly through Affirm. Analyst Kevin Kennedy from Third Bridge highlighted Affirm’s strong growth trajectory, emphasizing the company’s strategic partnerships and robust underwriting for high-priced, interest-bearing BNPL transactions. Affirm faces competition in the BNPL sector from firms like Afterpay, acquired by Block for $29 billion in 2021.
Affirm’s quarterly earnings call is scheduled for 5:00 P.M. Eastern.
Original Story https://www.cnbc.com/2024/11/07/affirm-afrm-earnings-report-q1-2025.html
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