Affirm Holdings, Inc. shares powered 26% higher to $17.36 in early Friday trading after the buy now, pay later fintech platform announced fourth-quarter 2023 revenue of $445.83 million, up from $364.13 million a year ago, surpassing the Zacks consensus forecast by 10.3%.
The company attributed the increase to sequentially improved credit results and accelerated growth.
Affirm also saw its quarterly loss widen to $0.69 per share from $0.65 during the same period last year, but it exceeded expectations for a loss of $0.86.
The company also reported a stronger-than-expected $5.5 billion in gross merchandise volume (GMV), or the total dollar amount of all transactions on its platform, during the quarter, which was 25% higher than a year earlier.
In June, Affirm and Amazon.com Inc (NASDAQ:AMZN) announced that US retailers using the Amazon Pay service can now offer pay-over-time options for purchases of over $50.
The company also inked new deals during the quarter with firms such as Cathay Pacific and Booking.com and expanded projects with Royal Caribbean Group and Priceline.
Affirm was founded by its CEO Max Levchin, who was a co-founder of PayPal Holdings Inc (NASDAQ:PYPL) and a former colleague of Elon Musk.
Shares of Affirm have gained 94% year to date.
Contact Sean at sean@proactiveinvestors.com