AFRM Nasdaq· Affirm Holdings Inc.
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AFRM Nasdaq· Affirm Holdings Inc.
Earnings report Q4 2023

AFRM Sees Significant Revenue Growth Across Multiple Segments

Segments of Revenue

AFRM's revenue for the latest quarter was $591.11 million, a 48% increase from the previous year's $399.56 million. This revenue was generated from several sources. Merchant network revenue was $188.36 million, up from $134.02 million. Card network revenue stood at $39.27 million, a rise from $29.12 million. Interest income was the largest contributor at $288.35 million, a significant increase from $155.32 million. Gain on sales of loans was $52.70 million, a decrease from $59.61 million. Lastly, servicing income was $22.44 million, slightly up from $21.49 million.


The firm's strength lies in its diversified revenue streams, with significant growth in merchant network revenue, card network revenue, and interest income. The company's revenue model, which includes earning a fee from merchants when a sale is converted and a transaction is facilitated, has proven effective.


Despite the impressive revenue growth, AFRM reported an operating loss of $172.15 million and a net loss of $166.90 million. The company also saw a decrease in gain on sales of loans, which could indicate challenges in this area.


The company's Pay-in-4 and Core loans offerings are noteworthy, as they provide short-term payment plans with four biweekly 0% APR installments, indicating a unique approach to lending.


AFRM's latest quarter saw substantial revenue growth across multiple segments, with interest income being the largest contributor. Despite this, the company reported an operating loss and a net loss, indicating that costs are outpacing revenue. The decrease in gain on sales of loans is a potential area of concern. However, the company's unique lending offerings could provide opportunities for future growth.

Source documents

Form 10-Q  filed on Feb 08, 2024
13 pages scanned

Reference data

Company financials Q4 revenue 591M
Analyst estimates Q4 EPS missed by -11.55%
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