Affirm the home screen of the Affirm Holdings Inc. website. on a laptop
Gabby Jones / Bloomberg
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Affirm participations
shares skyrocketed even after the company reported earnings that had no forecast of analysts ’net income.
Affirm reported a fourth-quarter loss of 48 cents per share, missing forecasts of a loss of 29 cents, on sales of $ 261.8 million. Revenue exceeded expectations by $ 226.39 million. The company it buys now pays later also said it expects first-quarter tax revenue of $ 240 million to $ 250 million, above forecasts of $ 234 million.
Affirm says it is gaining strength in lower dollar items, enrolling more merchants and expanding its services. The company reported 29,000 active merchants in its network, up from 5,700 the previous year.
Sales are accelerating in categories such as fashion and beauty, along with “reopening” categories such as travel, which account for 14% of gross volume of goods.
The company’s GAAP loss would have been reduced without taking into account share-based compensation and non-cash items. The company posted an adjusted operating income of $ 14 million compared to a GAAP loss of $ 128 million.
Apparently, investors give more weight to the income guide than to the gains, as Affirm’s shares jumped 20% in overtime trading.
The actions have been tears since the company announced it had struck a deal
Amazon.com
(AMZN) will offer its BNPL service at the Amazon site box, with the goal of deploying it over the coming months. Affirm said its agreement with Amazon is not “exclusive,” but indicates that other BNPL services may also be available on the e-commerce site.
Dan Dolev of Mizuho Securities described the results as “excellent” in a note. Gross volume of goods, excluding sales related to Peloton products, rose 178%, marking a “significant acceleration” from 100% growth in the previous quarter, he noted.
Dolev reiterated the stock’s buy rating and the $ 110 target, though that already seems obsolete. On Thursday, shares traded around $ 110 after hours, after a 5.2% gain in the regular session. Shares rose 40% during the last month of trading at the close on Thursday and have risen 53% over the past three months.
Corrections and amplifications:Affirm has reported 29,000 active merchants in its network. An earlier version of this story said it reported 29 million.
Write to Ben Levisohn at [email protected]