Affirm

AFRM Q4 2024 Earnings

Reported Aug 28, 2024 at 4:05 PM ET · SEC Source

Q4 24 EPS

$-0.14

BEAT +72.55%

Est. $-0.51

Q4 24 Revenue

$659.2M

BEAT +9.20%

Est. $603.7M

vs S&P Since Q4 24

+56.2%

BEATING MARKET

AFRM +85.3% vs S&P +29.1%

Full Year 2024 Results

FY 24 EPS

$-1.67

FY 24 Revenue

$2.32B

Market Reaction

Did AFRM Beat Earnings? Q4 2024 Results

Affirm delivered a standout fourth fiscal quarter, posting a loss of $0.14 per share against a consensus estimate of negative $0.51, a beat of 72.55%, while revenue of $659.18 million topped the $603.66 million estimate by 9.20% and climbed 47.9% yea… Read more Affirm delivered a standout fourth fiscal quarter, posting a loss of $0.14 per share against a consensus estimate of negative $0.51, a beat of 72.55%, while revenue of $659.18 million topped the $603.66 million estimate by 9.20% and climbed 47.9% year over year. The primary engine behind the results was a dramatic improvement in operating leverage, with adjusted operating income scaling to $150 million in the quarter and $381 million for the full fiscal year, as adjusted operating margin swung from negative 5% in FY'23 to 16% in FY'24. Revenue less transaction costs grew 70% to $309 million, reaching 4.3% of GMV and exceeding the company's long-term target range. GMV expanded 31% to $7.2 billion, with the Affirm Card alone generating $507 million. Looking ahead, Affirm guided Q1 FY'25 revenue of $640 million to $670 million and full-year GMV above $33.5 billion, and CEO Max Levchin set a public target of achieving GAAP operating profitability by Q4 FY'25 and sustaining it thereafter.

Key Takeaways

  • GMV grew 31% YoY to $7.2 billion, outpacing overall e-commerce growth
  • Revenue as a % of GMV improved to 9.1% from 8.1% driven by pricing initiatives
  • RLTC grew 70% YoY to $309 million, reaching 4.3% of GMV
  • Interest income grew 57% YoY driven by pricing initiatives and growth in loans held for investment
  • Gain on sales of loans grew 116% YoY as more loans were sold with favorable market conditions
  • Technology and data analytics expenses declined $28 million YoY as infrastructure costs were reduced
  • Transactions per active consumer increased to 4.9 from 3.9 YoY
  • Total transactions grew 42% YoY to 24.7 million
  • Adjusted operating margin expanded to 22.7% from 3.3% in FQ4'23
  • General merchandise category grew 45% YoY and was the largest category
24/7 Wall St

AFRM YoY Financials

Q4 2024 vs Q4 2023, source: SEC Filings

24/7 Wall St

AFRM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 23 Q2 26

“We delivered excellent results in both the fourth fiscal quarter as well as full 2024 fiscal year.”

— Max Levchin, Q4 2024 Earnings Press Release