Summary
Affirm Holdings, Inc. reported its second quarter results for fiscal year 2022, ending September 30, 2021. The company demonstrated strong top-line growth, with total revenue increasing by 55% year-over-year to $269.4 million, driven primarily by an 84% increase in Gross Merchandise Volume (GMV) to $2.7 billion. This growth was fueled by significant expansion in both the active consumer base, which grew 124% year-over-year to 8.7 million, and the merchant network, which saw a substantial increase in active merchants. Despite revenue growth, Affirm experienced a widening net loss of $306.6 million, compared to a net loss of $3.9 million in the prior year period, primarily due to substantial increases in operating expenses, particularly in technology and data analytics, sales and marketing, and general and administrative costs. Significant increases in stock-based compensation and a notable fair value adjustment to contingent consideration liability contributed to the increased expenses. The balance sheet shows a robust increase in total assets to $5.4 billion from $4.9 billion, bolstered by substantial growth in securities available for sale and loans held for investment. However, liabilities also rose significantly, driven by an increase in notes issued by securitization trusts and accrued expenses. The company ended the quarter with $1.4 billion in cash and cash equivalents, providing a seemingly adequate liquidity buffer for its operations over the next 12 months, supported by available capacity from its debt facilities and loan sale arrangements. Investors should monitor the company's ability to manage its escalating operating expenses and convert its significant revenue growth into profitability, alongside its continued expansion of the platform and funding sources.
Financial Highlights
38 data points| Revenue | $269.38M |
| Operating Expenses | $435.46M |
| Operating Income | -$166.07M |
| Interest Expense | $16.75M |
| Net Income | -$306.62M |
| EPS (Basic) | $-1.13 |
| EPS (Diluted) | $-1.13 |
| Shares Outstanding (Basic) | 271.68M |
| Shares Outstanding (Diluted) | 271.68M |
Key Highlights
- 1Total Revenue surged by 55% to $269.4 million, driven by strong GMV growth.
- 2Gross Merchandise Volume (GMV) increased by 84% year-over-year to $2.7 billion.
- 3Active consumers grew by 124% to 8.7 million, and the merchant base expanded significantly.
- 4Net Loss widened considerably to $306.6 million from $3.9 million in the prior year, mainly due to increased operating expenses.
- 5Operating expenses, particularly in Technology & Data Analytics, Sales & Marketing, and G&A, saw significant year-over-year increases.
- 6Stock-based compensation expense increased substantially, impacting overall profitability.
- 7The company ended the quarter with substantial cash reserves of $1.4 billion, indicating sufficient liquidity for at least the next 12 months.