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Sep 30, 2023

Affirm Q1 2024 Earnings Report

Affirm delivered strong results, exceeding expectations across all metrics and demonstrating growth and profitability.

Key Takeaways

Affirm reported strong Q1 2024 results, with GMV growth accelerating to 28% year-over-year and total revenue increasing by 37% year-over-year. The company exceeded its outlook for Revenue Less Transaction Costs (RLTC) and achieved record adjusted operating income. Affirm also saw growth in active consumers and the Affirm Card program.

GMV grew 28% year-over-year to $5.6 billion, driven by strong demand at enterprise platform partners and growth in Affirm Card and virtual cards.

Total revenue increased 37% year-over-year to $497 million, driven by higher interest income and network revenue.

Adjusted operating income was $60 million, representing a 12% adjusted operating margin, the highest in Affirm's history.

Active consumer count grew 15% year-over-year to 16.9 million.

Total Revenue
$497M
Previous year: $362M
+37.3%
EPS
-$0.57
Previous year: -$0.86
-33.7%
Gross Merchandise Volume
$5.6B
Previous year: $4.4B
+27.3%
Active Consumers
16.9M
Previous year: 14.7M
+15.0%
Transactions per Consumer
4.1
Previous year: 3.3
+24.2%
Gross Profit
$288M
Previous year: $162M
+77.4%
Cash and Equivalents
$1.49B
Previous year: $1.53B
-2.7%
Free Cash Flow
$63.1M
Previous year: $20.1M
+214.4%
Total Assets
$8.41B
Previous year: $7.17B
+17.3%

Affirm

Affirm

Affirm Revenue by Segment

Forward Guidance

Affirm provided financial outlook for the full year FY'24 and the second fiscal quarter of 2024, considering the current macroeconomic conditions.

Positive Outlook

  • GMV of more than $24.25 billion for FY'24
  • Revenue as a percentage of GMV similar to FY'23
  • Revenue Less Transaction Costs as a percentage of GMV similar to FY'23
  • Adjusted Operating Margin of more than 5 percent for FY'24
  • Weighted Average Shares Outstanding of 311 million for FY'24

Challenges Ahead

  • GMV between $6.70 to $6.90 billion for Fiscal Q2 2024
  • Revenue between $495 to $520 million for Fiscal Q2 2024
  • Transaction Costs between $310 to $320 million for Fiscal Q2 2024
  • Revenue Less Transaction Costs between $185 to $200 million for Fiscal Q2 2024
  • Adjusted Operating Margin between 2 to 4 percent for Fiscal Q2 2024

Revenue & Expenses

Visualization of income flow from segment revenue to net income