Affirm Shares Surge Over 20% on Q3 Beat, Extended Partnership with Shopify

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Revenue grew 54% year-over-year to $354.8 million, compared to the consensus of $344.03 million, driven by continued Gross Merchandise Volume (up 73% year-over-year) and merchant network revenue growth, higher interest income related to mix shift towards shorter term loans with greater relative loan discount, larger gains on sales of loans due to higher loan sale volume, and higher servicing income as the loan portfolio held by third-parties scaled.

Active merchants grew to 207,000 from 12,000, mainly due to the adoption of Shop Pay Installments by merchants on Shopify’s platform. Active consumers were 12.7 million (up 137% year-over-year), and total transactions were 10.5 million (up 162% year-over-year).

The company also announced it extended its multi-year partnership in the U.S. with Shopify (NYSE:SHOP), giving all eligible U.S. merchants offering Shop Pay Installments access to Affirm’s Adaptive Checkout™ beginning this summer.

The company expects Q4/22 revenue in the range of $345-355 million, compared to the consensus estimate of $251.9 million. For the full 2022-year, the company expects revenue to be $1.33-1.34 billion, compared to the consensus estimate of $1.33 billion.

Shares of Affirm were down 82% year-to-date going into the results.

By Davit Kirakosyan