Summary of articles published up to: 2025-02-08 15:20
Affirm Holdings (AFRM) Reports Strong Q2 Results, Surpassing Expectations
[🔑] Affirm’s stock surged by 21.81% following its fiscal second-quarter results, which revealed a surprise profit and a revenue increase. The company reported an adjusted EPS of $0.23, exceeding analysts’ expectations of a $0.10 loss. Revenues increased by 47% year-over-year to $866.4 million, with an active customer base of 21 million, representing a 19% growth. Gross merchandise volume (GMV) spiked by 35% to $10.1 billion, exceeding optimistic forecasts.
[🔑] Affirm’s CEO, Max Levchin, attributes the company’s success to consumers choosing its buy now, pay later platform for its superior product quality. Levchin highlighted that Affirm has outperformed its competitors in North America by 10 points and globally by 20 points. Affirm’s solution to high costs is resonating with consumers, with Levchin mentioning that the company is gaining market share from credit cards, which it was initially designed to counteract.
Analysts Praise Affirm’s Performance and Growth Potential
[🔑] Analysts see Affirm as a long-term winner in the buy now, pay later sector, with significant potential for growth. They highlight Affirm’s strong financial performance, growth in active customers, and positive credit performance. Affirm’s guidance for fiscal 2025 includes a GMV of $34.74 billion to $35.34 billion and revenue of $3.13 billion to $3.19 billion. The company’s focus on 0% financing offers and the Affirm Card program are seen as key drivers for future growth.
Affirm’s Focus on 0% Loans and Card Program Drives Profitability
[🔑] Affirm’s strategic focus on 0% promotional financing offers and the Affirm Card program drove positive results in the second quarter. The company saw a 35% increase in GMV to $10.1 billion and a 23% growth in active customers to 21 million. The Affirm Card program saw a 113% increase in direct-to-consumer GMV to $845 million. Affirm’s CEO highlighted the appeal of not paying interest as a significant factor in driving consumer purchases.
Reference
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