Affirm reported impressive 48% revenue growth in FQ4 and recorded adjusted operating income of $150 million. The company has substantial catalysts in FY25 with digital wallets like Apple Pay and the expansion of use of the Affirm Card. The company aims for GAAP profitability by FQ4'25, a shift that may hinder stock performance due to market focus on meager GAAP metrics.
New economy fintech and payment stocks exhibit strong growth and bullish prospects. Affirm's bullish earnings report last night should bolster this market segment further into 2025.
Affirm NASDAQ: AFRM has seen wild fluctuations in its stock price over the past three years. Shares peaked at nearly $169 in November 2021 but are down 80% from that level today.
Affirm's strong growth trajectory, driven by expanding merchant network and effective risk management, now makes it a compelling buy despite previous neutral stance. Impressive 33% y/y revenue growth expected in fiscal 2025, surpassing analyst expectations and showcasing Affirm's ability to grow both rapidly and profitably. Valuation at 17x forward non-GAAP operating profits, with potential for 19% adjusted operating margins and $600 million non-GAAP profits in the next 12 months.
Affirm Holdings, Inc. (NASDAQ:AFRM ) Q4 2024 Earnings Conference Call August 28, 2024 5:00 PM ET Company Participants Zane Keller - Director of Investor Relations Max Levchin - Founder and Chief Executive Officer Michael Linford - Chief Financial Officer Conference Call Participants Jason Kupferberg - Bank of America Securities Reginald Smith - JPMorgan Ramsey El-Assal - Barclays William Nance - Goldman Sachs Andrew Bauch - Wells Fargo Robert Wildhack - Autonomous Research Kyle Peterson - Needham Dan Dolev - Mizuho Securities James Faucette - Morgan Stanley Timothy Chiodo - UBS Matthew O'Neill - FT Partners Operator Good afternoon and welcome to the Affirm Holdings Fourth Quarter Fiscal 2024 Earnings Call. Following the speakers' remarks, we will open the line for your questions.
While the top- and bottom-line numbers for Affirm Holdings (AFRM) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Affirm shares jumped Wednesday in after-hours trading following a beat on the top and bottom lines. The company reported a per share loss of 14 cents, while analysts were expecting a loss of 51 cents per share.
Affirm Holdings (AFRM) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.45. This compares to loss of $0.69 per share a year ago.
As consumers navigate a challenging economic environment, they are increasingly adopting buy now, pay later (BNPL) options to manage their spending. Affirm, a leading BNPL provider, reported Wednesday (Aug. 28) in its fourth quarter fiscal 2024 financial results that it saw 31% year-over-year growth in gross merchandise volume (GMV), reaching $7.
Affirm stock popped as fiscal Q4 earnings and revenue beat. The company expects operating income profitability on a GAAP basis in fiscal Q4 2025.
Affirm Holdings Inc.'s stock AFRM soared 16% in after-hours trade Wednesday, after the buy-now-pay-later, or BNPL, company blew past estimates for its fiscal fourth quarter and said it expects to generate operating profit by the fourth quarter of fiscal 2025.
Fintech stocks have struggled of late , with nCino's (NCNO) dismal fiscal third-quarter forecast only adding pressure today.