Affirm exceeded expectations in Q4 2024, with revenue growth and plans for profitability

From CNBC: 2024-08-28 18:25:03

Affirm’s shares surged 16% in after-hours trading after reporting Q4 results that beat expectations. Loss per share was 14 cents vs. expected 51 cents, revenue was $659M vs. expected $604M. GMV was $7.2B, up 31% YoY. Revenue grew 48%, net loss narrowed to $45.1M. Active merchants exceeded 300,000, active consumers rose 19% to 18.6 million.

CEO Max Levchin aims for operating profitability by Q4 2025. Q5 revenue is projected to be $640-670M above analysts’ forecast of $625M. Affirm shares are up 12% in August. Federal Reserve hints at lower interest rates soon. Analysts believe rate cuts will benefit Affirm through improved funding costs and enhanced loan sales.

Affirm’s new relationships with Apple, Amazon, and Shopify have been beneficial. Affirm plans to launch in the UK by year-end. However, some analysts warn of consumer slowdown impacting profitability. Consumer behavior may slow until rate cuts are fully realized. CEO discusses consumer shopping trends and future prospects.



Read more at CNBC:: Affirm (AFRM) earnings report Q4 2024