Affirm stock skyrockets after company reports 71% revenue growth and strong guidance

Business

Affirm Holdings Inc. website home screen on a laptop computer in an arranged photograph taken in Little Falls, New Jersey, U.S., on Wednesday, Dec. 9, 2020.
Gabby Jones | Bloomberg | Getty Images

Affirm reported better-than-expected fiscal fourth-quarter results after the bell on Thursday, including solid guidance and 71% revenue growth.

The stock soared more than 18% in extended trading following the report.

Here’s how the company did: 

  • Revenue: $261.8 million vs. $225 million expected, according to a Refinitiv survey of analysts
  • Loss per share: 48 cents per share, which is not comparable to estimates

Affirm is one of the leading players in the burgeoning buy now, pay later space, allowing people to split their purchases into installments. Founded in 2013 by PayPal co-founder Max Levchin, Affirm made its stock market debut in January, with shares beginning trading at $90.90 a share, after listing at $49 a piece.

Affirm also gave upbeat guidance for the current quarter. It expects revenue for the fiscal first-quarter of 2022 to come in between $240 million to $250 million, which surpassed analysts’ estimates of $233.9 million.

The blockbuster earnings report comes after Affirm last month announced it’s teaming up with Amazon to launch the e-commerce giant’s first partnership with an installment payment player. The partnership allows Amazon customers in the U.S. to split purchases of $50 or more into smaller, monthly installments.

In the earnings report, Affirm said its guidance for the full year and fiscal first-quarter doesn’t factor in any potential contributions to revenue or gross merchandise volume from the partnership with Amazon, which is currently being tested select customers, before rolling out more broadly in the coming months.

— CNBC’s Kate Rooney contributed to this report.

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