confirm“buy now pay later” loan provider’s financial health better than expected first quarter results.
Here’s how the company performed, compared to LSE analysts’ consensus estimates.
- Loss per share: Adjusted 31 cents, expected loss of 35 cents
- income: $698 million vs. $664 million expected
Affirm reported gross merchandise volume (GMV) of $7.6 billion, above the average estimate of $7.28 billion, according to StreetAccount. GMV, a key metric that helps measure the total value of a deal, increased 35% year over year.
First-quarter revenue increased 41% from $496.5 million a year earlier.
Revenues less transaction costs (RLTC) were $285 million, up from previous guidance of $265 million to $280 million.
Affirm said it expects to be profitable on a GAAP basis in the fourth quarter of fiscal 2025. Last quarter, CEO Max Levchin said in a note to shareholders that the company set a new goal of achieving GAAP operating profitability by the end of its fiscal year.
According to LSEG, the company expects second-quarter revenue to be between $770 million and $810 million, with $790 million in the middle of that range, compared with the average estimate of $785 million. Affirm guided for GMV between $9.35 billion and $9.75 billion. Analysts polled by StreetAccount expected GMV of $9.48 billion.
Affirm shares were essentially flat this year as of Thursday’s close, but have been trending higher recently, rising more than 70% since the end of August.
Companies and new partnerships apple Plus other partnerships Amazon and Shopping is helping to achieve results. Juneconfirmation and apple announced plans U.S. Apple Pay users on iPhone and iPad can apply for a loan directly through Affirm.
“Affirm’s growth story continues, especially as they add new strategic distribution partners,” Kevin Kennedy, an analyst at global research firm Third Bridge, said in an email.
Kennedy added that the quality of Affirm’s underwriting, particularly for high-priced orders and interest-bearing BNPL purchases, sets the company apart from a growing field of competitors.
“The payments space continues to face the risk of commoditization, and BNP, while still nascent, faces the same challenge,” he wrote. “However, through Affirm it becomes more competitive than what its peers offer,” he wrote. It’s easier to make large interest-bearing purchases and it’s better protected.”
Fang Mu cloggedThe company also announced its financial results after the bell and acquired BNPL company Afterpay. $29 billion in 2021.
Affirm’s quarterly earnings conference call begins at 5:00 p.m. Eastern Time.
— CNBC’s Robert Hum contributed to this report.
