NASDAQ$AFRM

Affirm · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Affirm's Q2 2022 financial results exceeded expectations, driven by network scale and GMV growth.

Affirm reported a strong second quarter with significant growth in GMV, active merchants, and active consumers. Total revenue increased by 77% year-over-year, driven by growth in network revenue, interest income, gains on sales of loans, and servicing income.

  • GMV increased by 115% to $4.5 billion.
  • Active merchants grew to 168,000 from 8,000.
  • Active consumers increased by 150% to 11.2 million.
  • Transactions per active consumer increased 15% to 2.5.

Headline financials

Total Revenue

$361M

Previous: $204M+76.9%
EPS (adj)

-$0.57

Previous: -$0.45-26.7%
GMV

$4.5B

Previous: $2.1B+114.3%
Active Consumers

11.2M

Previous: 4.5M+148.9%
Tx per Consumer

2.5

Previous: 2.2+13.6%
Active Merchants

168.0K

No prior period
Capital Expenditures

-$38.2M

Previous: -$7.06M-440.3%
Free Cash Flow

-$198M

Previous: -$38.6M-412.4%
Net Income

-$160M

Previous: -$31.6M-406.2%
Operating Income

-$196M

Previous: -$31.7M-518.6%
Gross Profit

$308M

Previous: $187M+65.3%
Cash & Equivalents

$2.57B

Previous: $521M+393.0%
Total Assets

$6.95B

Previous: $2.71B+156.7%
Stock-Based Comp

$88.5M

Previous: $6.52M+1257.7%

Revenue & EPS history

Affirm · Revenue · Quarterly

$361M

Q2 2022+76.9%vs Q2 2021
Beat estimate in 6 of 10 quarters(60%)
ActualEstimate

Forward guidance

Affirm provided financial outlook for the fiscal third quarter and full year 2022, including estimates of GMV, revenue, and transaction costs related to its rollout at Amazon. The outlook assumes no material impact from the rollout of its Affirm Debit+ card.

Tailwinds

  • GMV for fiscal Q3 2022 is expected to be $3.61 to $3.71 billion.
  • Revenue for fiscal Q3 2022 is expected to be $325 to $335 million.
  • GMV for fiscal year 2022 is expected to be $14.58 to $14.78 billion.
  • Revenue for fiscal year 2022 is expected to be $1.290 to $1.310 billion.
  • The Company's financial outlook for the fiscal third quarter and full year 2022 now includes estimates of GMV, revenue, and transaction costs related to its rollout at Amazon.

Headwinds

  • Adjusted operating loss as a percentage of revenue for fiscal Q3 2022 is expected to be (21) to (19) percent.
  • Transaction Costs for fiscal Q3 2022 is expected to be $187 to $192 million
  • Adjusted operating loss as a percentage of revenue for fiscal year 2022 is expected to be (14) to (12) percent.
  • Transaction Costs for fiscal year 2022 is expected to be $705 to $715 million
  • The Company's outlook assumes no material impact to GMV, revenue, or transaction costs from the rollout of its Affirm Debit+ card.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.6%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

35%

9 / 26 earnings

Positive

+62.1%

Q3 2022

Best reaction

-37.7%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-1.2%-6.2%-5.6%
Q2 2026-4.0%-4.8%-13.0%
Q1 2026+11.7%+19.7%+3.1%
Q3 2025-14.7%+4.2%+8.6%
Q2 2025+21.8%+22.5%-15.8%
Q1 2025-7.0%+15.2%+43.8%
Q4 2024+28.1%+35.4%+26.6%
Q3 2024-0.3%-8.3%-13.9%
Q2 2024-1.7%-10.9%-13.1%
Q1 2024+12.5%+3.6%+90.4%
Q4 2023+22.6%+32.0%+39.1%
Q3 2023+2.6%+1.1%+57.9%
Q2 2023-22.8%-26.2%-39.7%
Q1 2023-22.6%+8.8%-25.7%
Q4 2022-18.7%-22.1%-36.2%
Q3 2022+62.1%+72.5%+39.7%
Q2 2022-37.7%-40.0%-58.7%
Q1 2022-3.8%-6.2%-27.3%
Q4 2019-8.4%-3.0%+24.8%
Q4 2021+41.3%+23.4%+61.3%
Q3 2020-4.4%-1.2%+24.8%
Q3 2021+2.7%+0.0%+11.6%
Q1 2021-11.4%-12.0%-35.1%
Q4 2020-11.4%-12.0%-35.1%
Q2 2020-11.4%-12.0%-35.1%
Q2 2021-7.6%-12.5%-41.6%
Q1 2020

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