Affirm Stock Rallies After Strong Q4 Earnings, Upbeat Q1 Guidance: What To Know

Affirm Holdings Inc. AFRM shares are trading higher following strong fourth-quarter earnings and upbeat first-quarter guidance. Here's a look at the details from the report. 

The Details: Affirm reported quarterly losses of 14 cents per share, which beat the analyst consensus estimate of losses of 51 cents by 72.55%. Quarterly revenue came in at $659 million, which beat the consensus estimate by 9.17% and represents a 47.82% increase over the same period last year.

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• GMV grew more than 30% and revenue grew more than 45%.
• Transactions on the Affirm network grew 42% year over year to 24.7 million in the quarter.
• Transactions per active consumer reached 4.9 in the fourth quarter with consumers transacting quarterly or more often accounting for approximately 40% of all Affirm transactions in the fiscal year.
• Affirm’s network had over 300,000 integrated active merchants at the end of fiscal year 2024.

“We delivered excellent results in both the fourth fiscal quarter as well as full 2024 fiscal year. Just over two years ago, we set a public goal of achieving profitability on an adjusted operating income basis exiting FY'23. As our FY'23 ended, we were proud to report that we achieved this goal. Adjusted operating income in FQ4'23 was just $15 million, but it had a plus
sign in front of it!” Affirm CEO Max Levchin wrote in a letter to shareholders.

Outlook: Affirm sees first-quarter revenue in a range of $640 million to $670 million, versus the $603.661 million estimate.

AFRM Price Action: According to Benzinga Pro, Affirm Holdings shares are up 14.79% after-hours at $36.30at the time of publication Wednesday.

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Image: Courtesy of Affirm Holdings, Inc.