From CNBC: 2024-11-07 17:47:08

Affirm, a buy now, pay later loan provider, exceeded expectations in its fiscal first-quarter results. Loss per share was 31 cents adjusted, beating the expected 35 cents loss. Revenue reached $698 million, surpassing the $664 million estimate. Gross merchandise volume (GMV) hit $7.6 billion, a 35% increase from the previous year.

Revenue in the first quarter rose 41% from the prior year to $496.5 million. Revenue less transaction costs (RLTC) was $285 million, surpassing the projected $265 million to $280 million. Affirm aims for GAAP profitability in Q4 2025 and expects second-quarter revenue between $770 million and $810 million.

Affirm’s partnerships with Apple, Amazon, and Shopify have contributed to its success. The company’s new relationship with Apple allows U.S. Apple Pay users to apply for loans directly through Affirm. Third Bridge analyst Kevin Kennedy praised Affirm’s underwriting quality for higher-priced orders and interest-bearing BNPL purchases.

Affirm’s growth continues with strategic partnerships, setting it apart from competitors. Despite commoditization risks in the payments space, Affirm’s focus on large ticket interest-bearing purchases provides better protection. Square’s parent company, Block, acquired BNPL firm Afterpay for $29 billion in 2021.

Affirm’s quarterly earnings call is set for 5:00 p.m. ET. Shares have been trending higher recently, up over 70% since August. The company predicts GMV between $9.35 billion and $9.75 billion for the second quarter, compared to the estimated $9.48 billion. CEO Max Levchin aims for operating profitability by the end of the fiscal year.



Read more at CNBC:: Affirm (AFRM) earnings report Q1 2025