Shares of Affirm Holdings Inc. surged in after-hours trading Thursday after the buy-now pay-later company delivered a revenue beat and an upbeat volume forecast in the face of “volatile market conditions.”
The company posted a fiscal third-quarter net loss of $54.7 million, or 19 cents a share, compared with a loss of $287 million, or $1.23 a share, in the year-earlier period. Analysts tracked by FactSet were expecting a 46-cent loss per share.
Revenue at Affirm
increased to $354.8 million from $231 million, while analysts had been modeling $344 million.
Affirm processed $3.9 billion in gross merchandise volume (GMV) in the latest quarter, up 73% from a year earlier. Analysts had been projecting $3.85 billion.
“Our strong performance demonstrates our ability to drive growth with attractive unit economics, despite volatile market conditions,” Chief Financial Officer Michael Linford said in a release.
Shares of Affirm were up 22% in aftermarket trading Thursday, following a 23% gain in Thursday’s regular session. The shares have slid about 61% over the past three months.
Chief Executive Max Levchin said in the release that Affirm is “especially proud of the re-engagement we are driving with consumers as 81% of our transactions were from repeat Affirm users.” That metric marked the company’s highest repeat transaction rate that it has reported, he said.
For the June quarter, Affirm expects $3.95 billion to $4.05 billion in GMV, while analysts were expecting $3.97 billion. The company also anticipates $345 million to $355 million in revenue for the June quarter, whereas the FactSet consensus was for $352 million.
The company shared in its earnings release that it reached a multiyear extension on its Shopify Inc.
partnership, meaning Affirm will be the exclusive provider of “pay-over-time” technology for the company’s U.S. Shop Pay Installments product.