Affirm Holdings, a consumer lending company, has recorded a fourth quarter earning of $364.13 million with the help of e-commerce platform Shopify. With this, the company recorded a 39 percent hike in the annual revenue.
Affirm claims to serve approximately 235,000 Shopify merchants. While most of the business came from Shopify, other companies that helped Affirm include Revenue Beat, EPS Miss and Updated Guidance.
We remain focused on scaling our network, maintaining attractive unit economics, capturing greater share, and helping our partners grow.
Max Levchin, CEO, Affirm
Offering ‘buy now, pay later’ feature, Affirm Holdings was expecting a revenue of $354.8 million, based on a Street estimate calculated by Benzinga Pro. Reporting its full fiscal year results after the market closed on Thursday, Affirm shared a net loss of 65 cents per share, while its gross merchandise volume (GMV) hiked by 77 percent to $4.4 billion in the Q4.
Shopify Gets All Credit
Thanking Shopify, the company revealed its active consumers rose by 96 percent year-over-year to 14 million in the recent quarter. Most of its growth came in the travel and ticketing category.
“Affirm delivered strong performance in the fourth quarter. We grew GMV by 77% and set a new record for consumer re-engagement with 85% of transactions coming from repeat users, all while prudently managing risk,” Max Levchin, Affirm founder and CEO, said as quoted by benzinga.com.
While its full fiscal year GMV rose by 87percent to $15.5 billion, Affirm’s full fiscal year revenue reached $1.3 billion thanks to a hike of 55 percent year-over-year.
According to Levchin, the e-commerce sector is currently struggling and consumer spending has come back to the pre-COVID-19 levels, though financial products have maintained a favourable momentum.
With an objective to meet the consumers’ needs, Levchin added: “We remain focused on scaling our network, maintaining attractive unit economics, capturing greater share, and helping our partners grow”.
Future Estimates
Affirm is aiming for a $365 million first-quarter revenue with a Street estimate of $386.0 million. Its full fiscal year revenue of $1.625 billion may rise to $1.725 billion in comparison to a Street estimate of $1.34 billion.
“In light of the uncertain macroeconomic backdrop, we are approaching our next fiscal year prudently while maintaining our focus on driving responsible growth and continuing to invest in strengthening our leadership position,” Michael Linford, Affirm CFO, said.
The CFO was quick to add that Affirm is eyeing a “sustained profitability run rate” by the end of fiscal 2023.
