Affirm Lifts on Strong Holiday Season, Quarterly Beat
Key Points:
* AFRM shares surge 16% in premarket trading.
* Q2 GMV up 35% to $10.1 billion, exceeding expectations.
* Total revenue jumps 47% to $866 million, surpassing estimates.
* Q2 net income flips to $80.4 million, reversing prior year's loss.
* Fiscal 2025 revenue forecast beats Street consensus.
Details:
Affirm Holdings, Inc. (AFRM) reported a surprise quarterly profit, driven by a surge in holiday shopping. The buy now, pay later lender's GMV, a measure of transaction volume, climbed 35% to $10.1 billion in the second quarter ended December 31. Strong demand for electronics and merchandise boosted growth, with GMV from top merchants and partners jumping 40%.
Total revenue soared 47% to $866 million, exceeding estimates. Affirm posted a net income of $80.4 million, or 23 cents per share, compared to a loss of $166.9 million in the same period last year. Analysts had anticipated a loss of 15 cents per share.
Affirm's strong performance sets it apart from other lackluster fintech results this quarter. The company's ability to demonstrate both high volume growth and profitability margin is notable.
Looking ahead, Affirm predicts fiscal 2025 revenue of $3.13 billion to $3.19 billion, outpacing Street expectations of $3.09 billion. The optimistic outlook contributed to the premarket surge in AFRM shares.