Affirm (AFRM) shares rose to their third highest level since its public offering after releasing the company’s earnings report. The buy now, pay later company beat both the top and bottom lines of earnings. The company released its fiscal fourth quarter report late Wednesday.
Affirm reported revenue of $659 million in its fiscal fourth quarter, a 48 percent increase compared with the same quarter last year. It also decreased its net loss to $45.1 million, compared to $206 million a year ago in the same quarter.
Affirm reported a loss of 14 cents per share, while analysts expected a higher loss of 51 cents per share. The company reported a loss of 69 cents per share in the same quarter a year ago.
The company reported that gross merchandise value (GMV) grew to 7.2 billion, an increase of 31 percent. GMV is the total number of sales made during a given time.
Affirm CEO Max Levchin told shareholders that the company is expected to achieve operating profitability on a GAAP basis by the fiscal fourth quarter of 2025.
Affirm also predicts revenue for the current quarter between $640 million and $670 million, while analysts polled by LSEG estimate $625 million.
Affirm was founded in 2012 by Max Levchin. The San Francisco-based company was established after Levchin, co-founder of PayPal, faced a negative experience while paying off debt arising through a credit card.
Affirm will partner with Apple Pay later this year. After it goes live, the partnership is expected to add up to $12 billion to Affirm’s addressable market, making the stock more valuable.
Analysts, including those at CWEB, consider the stock either a hold or a buy despite Affirm’s shares declining by roughly 15 percent this year while Nasdaq shares have risen by 19 percent.
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