'Buy Now, Pay Later' Company Affirm's Stock Is Soaring After Hours - Here's Why

Affirm Holdings, Inc. AFRM shares are trading higher after the company reported better-than-expected first-quarter financial results and issued guidance.

What To Know: Affirm reported quarterly losses of 57 cents per share, which beat the analyst consensus estimate of losses of 70 cents, a 33.72% increase over losses of 86 cents per share from last year.

The company reported quarterly sales of $496.55 million, which beat the analyst consensus estimate of $444.77 million, a 37.31% increase over sales of $361.62 million in the same period last year.

Gross Merchandise Volume (GMV) was $5.6 billion, up 28% compared to last year’s quarter. Also, Revenue Less Transaction Costs (RLTC) was $212 million, a 16% year-over-year increase.

Affirm’s active customers grew 15% year-over-year to 16.6 million. The transaction per active customer grew 25% year-over-year.

The company issued guidance for the second quarter of 2024 with Revenue estimated to be between $495 million and $520 million, versus the $502.39 million estimate. Full-year 2024 GMV is anticipated to be more than $24.25 billion. Revenue as a percentage of GMV is expected to be similar to full-year 2023

Founder and CEO Max Levchin commented on the earnings: “Affirm delivered another set of strong results in fiscal Q1, beating our outlook across all metrics, so I’ll keep this short. GMV growth accelerated sequentially, and we significantly exceeded our outlook for Revenue Less Transaction Costs (“RLTC”). We continued to gain market share, while maintaining strong unit economics, driving positive credit outcomes, and adding funding capacity.”

Related Link: Lyft’s Bottomline Takes A Hit In Q3, Stock Slides

AFRM Price Action: Shares of AFRM were up 9.38% at $23.80 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by Thomas Breher from Pixabay