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Jun 30, 2022
Affirm Q4 2022 Earnings Report
Affirm delivered strong performance driven by GMV growth and active consumer increase.
Key Takeaways
Affirm Holdings, Inc. reported a 39% increase in total revenue for the fourth quarter of fiscal year 2022, driven by continued GMV growth, higher interest income, and greater servicing income. Active merchants increased significantly, and active consumers grew by 96% year-over-year.
GMV increased by 77% to $4.4 billion.
Active merchants increased from 29,000 to 235,000.
Active consumers grew by 96% to 14.0 million.
Total revenue increased by 39% to $364.1 million.
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 the fiscal first quarter and full year 2023, assuming the current forward interest rate curve and early signs of macroeconomic stress persisting through the fiscal year.
Positive Outlook
- GMV for fiscal Q1 2023 is expected to be $4.20 to $4.40 billion.
- Revenue for fiscal Q1 2023 is expected to be $345 to $365 million.
- GMV for fiscal year 2023 is expected to be $20.50 to $22.00 billion.
- Revenue for fiscal year 2023 is expected to be $1,625 to $1,725 million.
- The Company expects equity capital required as a percent of total platform portfolio to remain below 5% throughout the fiscal year.
Challenges Ahead
- Transaction Costs for fiscal Q1 2023 is expected to be $176 to $188 million.
- Revenue Less Transaction Costs for fiscal Q1 2023 is expected to be $169 to $177 million.
- Adjusted Operating Margin for fiscal Q1 2023 is expected to be (12) to (10) percent.
- Transaction Costs for fiscal year 2023 is expected to be $865 to $915 million.
- Adjusted Operating Margin for fiscal year 2023 is expected to be (6.5) to (4.5) percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income