10-QPeriod: Q3 FY2021

Affirm Holdings, Inc. Quarterly Report for Q3 Ended Mar 31, 2021

Filed May 17, 2021For Securities:AFRM

Summary

Affirm Holdings, Inc. (AFRM) reported substantial growth in revenue and Gross Merchandise Volume (GMV) for the nine months ended March 31, 2021, compared to the same period in the prior year. Total revenue increased by 71% to $608.7 million, driven by a 69% increase in GMV to $5.8 billion. This growth was supported by a significant expansion in both the active consumer base (up 60% to 5.4 million) and the merchant network (up 103% to 11,513). Despite this top-line growth, the company continued to experience significant net losses, with a net loss of $277.7 million for the nine months ended March 31, 2021, compared to $147.4 million in the prior year period. This increase in net loss was largely attributable to a substantial rise in operating expenses, particularly in technology and data analytics, sales and marketing, and general and administrative costs. The company also completed its initial public offering (IPO) in January 2021, raising approximately $1.3 billion, which significantly bolstered its cash position. Key financial highlights include a dramatic increase in cash and cash equivalents to $1.62 billion as of March 31, 2021, from $267.1 million as of June 30, 2020, largely due to the IPO proceeds. The company's funding capacity also increased. However, the significant increase in operating expenses, particularly stock-based compensation, and the continued net losses are key areas for investor attention. The acquisition of PayBright in January 2021 added $257.2 million in goodwill, reflecting strategic investment for future growth.

Financial Highlights

39 data points
Beta

Revenue

$230.66M

Net Income

-$287.05M

-124.4% Net Margin

EPS (Diluted)

$-1.23

Total Assets

$4.77B

Cash & Equivalents

$1.62B

Free Cash Flow

-$128.61M

Financial Statements
Beta
Revenue$230.66M
Operating Expenses$440.01M
Operating Income-$209.35M
Interest Expense$14.66M
Net Income-$287.05M
EPS (Basic)$-1.23
EPS (Diluted)$-1.23
Shares Outstanding (Basic)233.31M
Shares Outstanding (Diluted)233.31M

Key Highlights

  • 1Total revenue increased 71% to $608.7 million for the nine months ended March 31, 2021.
  • 2Gross Merchandise Volume (GMV) grew 69% to $5.8 billion for the nine months ended March 31, 2021.
  • 3Active consumers increased 60% to 5.4 million as of March 31, 2021.
  • 4Merchant network expanded by 103% to 11,513 as of March 31, 2021.
  • 5Cash and cash equivalents significantly increased to $1.62 billion as of March 31, 2021, driven by the IPO.
  • 6Net loss widened to $277.7 million for the nine months ended March 31, 2021, compared to $147.4 million in the prior year period, primarily due to increased operating expenses.
  • 7Acquisition of PayBright completed in January 2021, adding $257.2 million in goodwill and contributing to strategic growth.

Frequently Asked Questions

For the nine months ended March 31, 2021, Affirm's total revenue increased by 71% to $608.7 million. However, the company continued to experience net losses, which widened to $277.7 million from $147.4 million in the same period last year, primarily due to significant increases in operating expenses.

Affirm experienced substantial growth in its user base and merchant network. Active consumers increased by 60% to 5.4 million, and the merchant network grew by 103% to 11,513 merchants as of March 31, 2021.

Affirm completed its initial public offering in January 2021, raising approximately $1.3 billion and significantly increasing its cash and cash equivalents to $1.62 billion as of March 31, 2021. The acquisition of PayBright in January 2021 contributed $257.2 million in goodwill, reflecting a strategic investment for future growth, but also contributed to the overall increase in expenses.