Affirm (AFRM) soars after reporting 71% revenue growth and strong forecast

Affirm (AFRM) soars after reporting 71% revenue growth and strong forecast

Affirm Holdings Inc. on a laptop in a systematic photo taken Wednesday, December 9, 2020 in Little Falls, New Jersey, United States. Website home screen.

Gabby Jones | Bloomberg | Getty Images

Confirm better-than-expected fiscal fourth quarter results after Thursday’s bell, including strong guidance and revenue growth of 71%.

The share rose more than 18% in extended trading following the report.

Here’s how the company did it:

  • Returned: $ 261.8 million vs. $ 225 million expected, according to Refinitiv survey of analysts
  • Loss per share: 48 cents per share, not comparable to estimates

Affirm is a major player in the rapidly growing buy later, pay later market, allowing people to split their purchases into installments. Founded in 2013 by PayPal co-founder Max Levchin, Affirm debuted on the stock exchange in January, with shares starting at $ 90.90 per share, after trading at $ 49 per coin.

Affirm also provided optimistic indications for the current quarter. It expects revenue of between $ 240 million and $ 250 million for the fiscal first quarter of 2022, beating analysts’ estimates at $ 233.9 million.

The blockbuster earnings report was announced by Affirm last month that it is teaming up with Amazon to launch the e-commerce giant’s first partnership with the installment payments player. The partnership allows Amazon customers in the United States to split purchases of $ 50 or more into smaller monthly installments.

In the earnings report, Affirm said its forecast for the full year and the first quarter of the fiscal year did not take into account a potential contribution to the revenue or gross trading volume of the partnership with Amazon, which is currently being tested by selected customers. months before deployment.

– CNBC’s Kate Rooney contributed to this report.

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