Affirm Stock Jumps On Q4 Earnings: Revenue Up 22%, Strong Guidance, Adjusted Operating Income Positive From Now On

Affirm Holdings Inc AFRM shares are trading higher in Thursday's after-hours session after the payment network company reported better-than-expected financial results. Here's a look at the key metrics from the quarter.

What Happened: Affirm said fiscal fourth-quarter revenue increased 22% year-over-year to $445.82 million, which beat the consensus estimate of $406.26 million, according to Benzinga Pro. The company reported a quarterly adjusted loss of 69 cents per share, which beat analyst estimates for a loss of 85 cents per share.

Gross merchandise volume achieved $5.5 billion, up 25% year-over-year. Active merchants grew 8% compared to the prior year, while active consumers increased 18%. 

The company said it saw 3.9 transactions per active consumer during the quarter, up 30% on a year-over-year basis. 

Affirm said it ended the quarter with $2.1 billion in cash and available-for-sale securities. 

"Affirm was adjusted operating income positive as the fiscal year came to a close. On an annual basis, we intend to remain consistently positive on this metric going forward," said Max Levchin, founder and CEO of Affirm.

"Macroeconomic headwinds persist and more challenges are certain to come, but I think we have proven that Affirm has the talent and the grit to take them on."

Affirm expects first-quarter revenue to be between $430 million and $455 million versus estimates of $429.86 million. First-quarter gross merchandise volume is expected to be between $5.3 billion and $5.5 billion. Adjusted operating margin is expected to be between 2% and 4%.

Affirm said it expects to achieve full-year profitability on and adjusted operating income basis in fiscal year 2024. Full-year gross merchandise volume is expected to total more than $24 million. Adjusted operating margin is expected to be more than 2%. 

Management will hold a conference call to discuss its fourth-quarter results at 5 p.m. ET.

See Also: US Stocks Sink, Dollar Jumps As Investors Fret Over Fed's Jackson Hole Event: What's Driving Markets Thursday?

AFRM Price Action: Affirm shares were up 10.60% after hours at $15.27 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Affirm.