Affirm Q4 Earnings Highlights: Revenue Beat, EPS Miss, Updated Guidance, Shopify Partnership Bringing Consumers In

Buy now, pay later company Affirm Holdings AFRM reported fourth quarter and full fiscal year results after market close Thursday. Here are the key highlights.

What Happened: Affirm Holdings reported fourth-quarter revenue of $364.13 million, up 39% year-over-year. The total beat a Street estimate of $354.8 million according to data from Benzinga Pro.

The company reported a net loss of 65 cents per share in the fourth quarter, missing a Street estimate of a loss of 59 cents per share.

Gross merchandise volume (GMV) was $4.4 billion in the fourth quarter, up 77% year-over-year.

The company reported active merchants of 235,000, with Shopify Inc SHOP highlighted as a reason for the increase. Active consumers were up 96% year-over-year to 14.0 million in the fourth quarter.

Strong growth in the travel and ticketing category in the fourth quarter was cited as a key growth item.

“Affirm delivered strong performance in the fourth quarter. We grew GMV by 77% and set a new record for consumer re-engagement with 85% of transactions coming from repeat users, all while prudently managing risk,” Affirm founder and CEO Max Levchin said.

Full fiscal year GMV was $15.5 billion, up 87% year-over-year. Full fiscal year revenue was $1.3 billion, up 55% year-over-year.

Related Link: Here's How To Trade Affirm Stock Before And After Q4 Earnings Print 

What’s Next: Levchin said online commerce is falling back to pre-COVID-19 levels, but financial products are still gaining momentum. Levchin said the company remains ready to meet the needs of customers.

“We remain focused on scaling our network, maintaining attractive unit economics, capturing greater share, and helping our partners grow,” Levchin said.

The company sees first-quarter revenue hitting $345 million to $365 million versus a Street estimate of $386.0 million. The company is guiding for full fiscal year revenue of $1.625 billion to $1.725 billion, compared to a Street estimate of $1.34 billion.

“In light of the uncertain macroeconomic backdrop, we are approaching our next fiscal year prudently while maintaining our focus on driving responsible growth and continuing to invest in strengthening our leadership position,” Affirm CFO Michael Linford said.

Linford said the company expected to hit a “sustained profitability run rate” by the end of fiscal 2023.

AFRM Price Action: Affirm shares are down 12.71% to $31.23 in after-hours trading Thursday.

Photo: Screenshot Affirm video