Affirm holdings up 25% after announcing quarterly results
- The company exceeds its first-quarter predictions and increases its GMV (Gross Merchandise Volume) Outlook.
- Increased its Active Merchants to 102,000 from 6,500 expanding its network.
- It also increased its Active Consumers by 8.7 million year-over-year, an increase of 124%
Affirm Holdings (NASDAQ: AFRM) is a payment system that helps merchants drive growth and empowers consumers. The company went up by around 25% after it announced its first-quarter financial results for 2022.
Senior management statements
Affirm’s Chief Executive Officer and Founder, Max Levchin, said:
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Our strong quarter once again demonstrates the continued momentum across Affirm as more people embrace the transparency, flexibility and value our solutions provide.
The CEO claimed that the industry-leading talent, unrivaled technology, and investments the company has made are what’s helping them come up with the results they’re getting.
Over the past twelve months or so, Max says that they’ve expanded the company’s network by adding over 100,000 active merchants to their platform and doubling the number of customers as well.
The CEO said that the partnerships and deep connections they’ve created with these merchants have helped drive the growth in revenue, frequency of engagement, and GMV.
Levchin continued to say:
We are pleased with our performance and proud of the contributions of our nearly 2,000-strong Affirm team. At the same time, there is a lot more for us to build to achieve our objectives, and we are even more excited about the opportunities ahead.
Levchin claims that they’ll continue to grow and delight their whole network by providing consumers with even more reasons why they need to consider using Affirm strongly. He says that they’ll do this by getting into more markets and adding more products.
Financial operating highlights
GMV for the first quarter was around $2.7 billion, representing an 84% increase. There was also an 8% increase in transactions per active consumer. In addition, the company recorded $269.4 million in total revenue during this quarter, representing an increase of 55%.
This growth was mainly driven by the rise in interest income linked to the increase in loans set aside for investments.
They recorded a $166.1 million operating loss, which was a lot more than the $33.3 million they recorded in the same quarter of the previous fiscal year.