Summary
Affirm Holdings, Inc. reported significant growth in its fiscal second quarter of 2022, driven by a substantial increase in Gross Merchandise Volume (GMV) and active consumers. Total revenue surged by 77% year-over-year to $361 million, fueled by strong performance in merchant network revenue and interest income. Despite this revenue growth, the company reported a net loss of $159.7 million, widening from the previous year's loss of $26.6 million. This increased loss was largely attributed to a significant rise in operating expenses, particularly in sales and marketing, technology and data analytics, and general and administrative costs. These increases were driven by investments in growth initiatives, including expanded marketing campaigns, technology infrastructure, and increased headcount. Affirm's balance sheet shows a substantial increase in cash and cash equivalents, largely due to the proceeds from issuing convertible senior notes. The company also saw a significant increase in its loan portfolio, with loans held for investment growing considerably. While the company highlighted its capital-efficient model and diverse funding sources, investors should note the continued high operating expenses and the resulting net loss. The company's strategic partnerships, such as with Shopify and Amazon, are key growth drivers, but also contribute to increased sales and marketing expenses.
Financial Highlights
38 data points| Revenue | $361.01M |
| Operating Expenses | $557.21M |
| Operating Income | -$196.20M |
| Interest Expense | $17.70M |
| Net Income | -$159.74M |
| EPS (Basic) | $-0.57 |
| EPS (Diluted) | $-0.57 |
| Shares Outstanding (Basic) | 281.53M |
| Shares Outstanding (Diluted) | 281.53M |
Key Highlights
- 1Total revenue increased by 77% to $361.0 million for the three months ended December 31, 2021, compared to $204.0 million in the prior year period.
- 2Gross Merchandise Volume (GMV) grew by 115% to $4.5 billion for the three months ended December 31, 2021, compared to $2.1 billion in the prior year period.
- 3Active consumers grew to 11.2 million as of December 31, 2021, a 150% increase from the prior year period.
- 4Net loss widened to $159.7 million for the three months ended December 31, 2021, from a net loss of $26.6 million in the prior year period.
- 5Operating expenses increased significantly, with Sales and Marketing up 267%, Technology and Data Analytics up 128%, and General and Administrative up 245%, primarily due to investments in growth, headcount increases, and stock-based compensation.
- 6The company successfully raised $1.7 billion in net proceeds from the issuance of 0% convertible senior notes due 2026.
- 7The allowance for credit losses as a percentage of loans held for investment increased slightly from 5.8% to 6.5% during the period.