Affirm Holdings Inc’s (NASDAQ: AFRM) revenue and volume topped Wall Street expectations in the fiscal fourth quarter. Shares of the company are roughly 25% up this morning on upbeat guidance for full-year volume, even excluding the boost from its recent buy-now-pay-later partnership with Amazon Inc.
Q4 financial performance
Affirm reported $128.2 million of net loss for the fourth quarter that translates to 48 cents per share. In the same quarter last year, it had posted $35.4 million in net income or 17 cents per share. The fintech firm generated $261.8 million in revenue versus the year-ago figure of $153.3 million.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Gross merchandise revenue (GMV) stood at $2.5 billion – an increase from $1.2 billion last year. According to FactSet, experts had forecast $224.4 million in revenue and $2.2 billion in GMV.
Also on Friday, Mad Money host Jim Cramer said, “when worlds collide, it will be PayPal versus Affirmâ€.
Guidance for the future
For the full financial year, Affirm Holdings forecasts up to $1.19 billion in revenue and $12.45 billion to $12.75 billion in GMV, including up to $250 million in revenue and $2.42 billion to $2.52 billion in GMV it expects in the current quarter (Q1).
In comparison, analysts are calling for $1.16 billion in revenue and $12 billion in GMV this year. For Q1, their estimates are capped at $232.6 million in revenue and $2.2 billion in GMV.
Mizuho reiterates its ‘buy’ rating
According to Mizuho’s Dan Dolev, Affirm’s guidance was “very conservativeâ€.
“While management revealed that the Amazon partnership was non-exclusive, this is unlikely to hurt the significant growth opportunity ahead, especially given that FY22 guidance does not include any Amazon contribution,†the analyst wrote in a note to clients.
Ahead of the earnings, Dolev had reiterated Affirm at ‘buy’ with a price target of $110 that has been hit today.
eToro
10/10
67% of retail CFD accounts lose money
