Affirm shares jumped more than 10% in extended trading on Thursday after the provider of buy now, pay later loans, reported better-than-expected fiscal second-quarter results.
Here is how the company did, compared to analysts’ consensus estimates from LSEG.
- Earnings per share:Â 23 cents adjusted. That’s not comparable to an expected loss of 15 cents.
- Revenue:Â $866 million vs. $807 million expected
Affirm reported gross merchandise volume, or GMV, of $10.1 billion, topping the average estimate of $9.64 billion, according to StreetAccount and surpassing $10 billion for the first time. GMV, a key metric that helps gauge the total value of transactions, increased 35% from a year earlier.
Revenue in the quarter rose 47% from $591 million a year ago. When revenue grows at a faster rate than GMV, it typically signals strong unit economics.
Revenue less transaction costs, or RLTC, jumped 73% to $419 million. The RLTC margin of 4.1% came in ahead of the long-term range of 3% to 4%.
The company expects revenue this quarter of between $755 million and $785 million, or $770 million in the middle of the range, versus the average estimate of $772 million, according to LSEG.
Affirm said it remains committed to achieving profitability on a GAAP basis exiting its fiscal fourth quarter of 2025.
The company has 21 million active consumers, up 23% year-over-year, and its Affirm Card, which is the company’s big bet for driving greater usage overall, has 1.7 million active users, up more than 136% from the year-ago quarter. Card volume has more than doubled.
The company’s new relationship with Apple plus other partnerships with Amazon and Shopify are boosting results. In June, Affirm and Apple announced plans for U.S. Apple Pay users on iPhones and iPads to be able to apply for loans directly through Affirm.
Affirm’s quarterly earnings call starts at 5:00 p.m. ET.
— CNBC’s Robert Hum contributed to this report.
