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Mar 31, 2024
Affirm Q3 2024 Earnings Report
Affirm delivered excellent results, marked by accelerating GMV growth and improved credit performance.
Key Takeaways
Affirm reported a 51% increase in revenue to $576 million and a 36% increase in GMV to $6.3 billion for the third fiscal quarter of 2024. The company's credit performance remained stable, and its funding capacity increased slightly. Adjusted operating income improved to $79 million, compared to a loss of $6 million in the same quarter last year.
GMV grew 36% year over year to $6.3 billion, accelerating for a fourth consecutive quarter.
Total revenue increased by 51% year over year to $576 million.
Active consumers increased 13% year over year to 18.1 million.
Active merchant count grew 19% year over year to 292,000.
Affirm
Affirm
Affirm Revenue by Segment
Revenue by Segment
Merchant Network Revenue
CapyFin.comCard Network Revenue
CapyFin.comInterest Income Revenue
CapyFin.comLoan Sales Gain Revenue
CapyFin.comServicing Income Revenue
CapyFin.com Forward Guidance
Affirm provided financial outlook for Fiscal Q4 2024, anticipating revenue between $585 million and $605 million and GMV between $6.75 billion and $6.95 billion. Adjusted Operating Margin is expected to be between 15 and 17 percent.
Positive Outlook
- Revenue is expected to be between $585 million and $605 million.
- GMV is projected to be between $6.75 billion and $6.95 billion.
- Adjusted Operating Margin is anticipated to be between 15 and 17 percent.
- Equity Capital Required (“ECR”) as a percentage of Total Platform Portfolio (“ECR Ratio”) is expected to remain near FQ3’24 levels.
- The substantial majority of the benefit from our pricing initiatives will be realized by the end of fiscal year 2024.
Challenges Ahead
- Revenue is expected to be between $585 million and $605 million.
- GMV is projected to be between $6.75 billion and $6.95 billion.
- Adjusted Operating Margin is anticipated to be between 15 and 17 percent.
- Affirm Money Account, the business-to-business (B2B) product, is not expected to be a material contributor during fiscal year 2024.
- International growth outside of North America are not expected to be material contributors during fiscal year 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income