Affirm stock soars as company tops revenue expectations ‘despite volatile market conditions’

Shares of Affirm Holdings Inc. surged in after-hours trading Thursday after the buy-now pay-later company delivered a revenue beat and an upbeat volume forecast in the face of “volatile market conditions.”

The company posted a fiscal third-quarter net loss of $ 54.7 million, or 19 cents a share, compared to a loss of $ 287 million, or $ 1.23 a share, in the year-earlier period. Analysts tracked by FactSet were expecting a 46-cent loss per share.

Revenue at Affirm AFRM,
+ 23.31%
increased to $ 354.8 million from $ 231 million, while analysts had been modeling $ 344 million.

Affirm processed $ 3.9 billion in gross merchandise volume (GMV) in the latest quarter, up 73% from a year earlier. Analysts had been projecting $ 3.85 billion.

“Our strong performance demonstrates our ability to drive growth with attractive unit economics, despite volatile market conditions,” Chief Financial Officer Michael Linford said in a release.

Shares of Affirm were up 22% in aftermarket trading Thursday, following a 23% gain in Thursday’s regular session. The shares have slid about 61% over the past three months.

Chief Executive Max Levchin said in the release that Affirm is “especially proud of the re-engagement we are driving with consumers as 81% of our transactions were from repeat Affirm users.” That metric marked the company’s highest repeat transaction rate that it has reported, he said.

For the June quarter, Affirm expects $ 3.95 billion to $ 4.05 billion in GMV, while analysts were expecting $ 3.97 billion. The company also anticipates $ 345 million to $ 355 million in revenue for the June quarter, whereas the FactSet consensus was for $ 352 million.

The company shared in its earnings release that it reached a multiyear extension on its Shopify Inc. SHOP,
+ 10.96%
partnership, meaning Affirm will be the exclusive provider of “pay-over-time” technology for the company’s US Shop Pay Installments product.

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