Affirm Soars as Revenue Jumps, Merchant, Consumer Base Strengthen
By Dhirendra Tripathi
Investing.com – Affirm stock (NASDAQ:AFRM) climbed 22% in Friday’s premarket trading as the company’s fourth-quarter revenue beat estimates on big momentum in its fintech business.
Total revenue rose 71% on-year to $261.8 million, driven by increases in network revenue and interest income. Growth in gross merchandise value, loans held for investment as well as gains on loan sales all grew.
GMV is an operational metric that indicates the total dollar amount of all transactions on the platform during the given period, net of refunds. It more than doubled in the fourth quarter to $2.5 billion.
Active merchants rose by more than five-fold and active consumer base nearly doubled as the company broadened its existing partnerships and forged new ones.
Affirm made Shop Pay Installments available to all eligible Shopify (NYSE:SHOP) merchants in the U.S. Last month, it tied up with Amazon (NASDAQ:AMZN) to offer flexible payment solutions to consumers.
The company expects revenue in the ongoing year to be $1.17 billion at midpoint of the forecast range and GMV at $12.60 billion.
It booked a net loss of $128.2 million during the quarter owing to an increase in stock-based compensation following its public offering.
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