Confirmed shares rise as company exceeds revenue expectations ‘despite volatile market conditions’
Shares of Affirm Holdings Inc. rose. In after-hours trading on Thursday after the buy now, pay later firm posted a revenue outpour and an optimistic volume outlook in the face of “volatile market conditions.”
The company reported a 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 same period a year earlier. Analysts tracked by FactSet expected a loss of 46 percent per share.
Revenue in Affirm AFRM,
It rose to $354.8 million from $231 million, while analysts were designing $344 million.
The company processed $3.9 billion in gross merchandise volume (GMV) last quarter, up 73% from the previous year. Analysts had expected $3.85 billion.
“Our strong performance demonstrates our ability to drive growth with attractive unit economies, despite volatile market conditions,” Chief Financial Officer Michael Linford said in a statement.
Confirmed shares of the company are up 22% in aftermarket trading Thursday, after a 23% rise in Thursday’s regular session. Shares are down about 61% over the past three months.
CEO Max Levchin said in the statement that Affirm is “particularly proud of the re-engagement we drive with consumers as 81% of our transactions have been from confirmed repeat users.” This metric represented the highest transaction frequency reported by the company, he said.
For the June quarter, Affirm expects $3.95 billion to $4.05 billion in GMV, while analysts expected $3.97 billion. The company also expects revenue between $345 million and $355 million for the June quarter, while FactSet’s consensus was $352 million.
The company shared in its earnings statement that it reached a multi-year extension at Shopify Inc. SHOP,
Partnership, meaning Avirm will be the exclusive provider of “Pay over Time” technology for the company’s Shop Pay installment product in the United States.