Loading...
•
Jun 30, 2024
Affirm Q4 2024 Earnings Report
Delivered excellent results driven by product improvements, merchant growth, attentive risk management, and excellent capital execution.
Key Takeaways
Affirm reported excellent results for the fourth fiscal quarter and full fiscal year 2024, with GMV growing over 30% and revenue growing over 45%. Adjusted operating income reached $150 million in Q4, contributing to $381 million for the full year. The company expects to be profitable on a GAAP basis in Q4 2025.
GMV grew 31% year over year to $7.2 billion, outpacing e-commerce growth.
Active merchant count increased 19% year over year to 303,000.
Revenue increased by 48% year over year to $659 million.
Transactions on the Affirm network grew 42% year over year to 24.7 million.
Affirm
Affirm
Affirm Revenue by Segment
Revenue by Segment
Merchant 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 Q1 2025 and Fiscal Year 2025. They expect to achieve operating income profitability on a GAAP basis in FQ4 2025.
Positive Outlook
- GMV for fiscal Q1 2025 is expected to be $7.1 to $7.4 billion.
- GMV for fiscal year 2025 is expected to be more than $33.5 billion.
- Revenue for fiscal Q1 2025 is expected to be $640 to $670 million.
- Revenue for fiscal year 2025 is expected to be at least 10 basis points higher than FY’24 as a % of GMV.
- Adjusted Operating Margin for fiscal year 2025 is expected to be more than 18.4 percent.
Challenges Ahead
- Transaction Costs for fiscal Q1 2025 are expected to be $375 to $390 million.
- Transaction Costs for fiscal year 2025 are expected to be similar to FY’24 as a % of GMV.
- Revenue Less Transaction Costs for fiscal Q1 2025 are expected to be $265 to $280 million.
- Adjusted Operating Margin for fiscal Q1 2025 is expected to be 14 to 16 percent.
- Weighted Average Shares Outstanding for fiscal year 2025 are expected to be 323 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income