On Friday, Affirm stocks soared as the company reported upbeat fourth-quarter fiscal year 2021 results.
Accordingly, Affirm Holdings Inc. surged 5.16% or 4.52 points to $92.06 per share.
The fintech company offers a platform for digital payment transactions in the United States and Canada.
Moreover, Affirm is a financial lender of instalment loans to finance purchases of consumers.
Accordingly, the buy now, pay later platform allows customers to split their purchases into instalments.
In addition, the company has a current capitalization of $24.40 billion and shares outstanding of $2.65 million.
Recently, Affirm reported upbeat fourth-quarter fiscal year 2021 data.
Furthermore, the company’s sales revenue hiked $261.80 million from $153.30 million last year.
Subsequently, the posted report also succeeded the expected $225.00 million.
Likewise, Affirm’s gross merchandise revenue edged up to $2.50 billion from $1.20 billion.
Then, the Q4 GMV exceeded the forecasted number of $2.20 billion.
Affirm also posted 7.10 million active customers in the fourth quarter, hiking 5.40 million from the last period.
Consequently, the company reported positive guidance for the first quarter of the fiscal year 2022.
Affirm expects revenue from $240.00 million to $250.00 million.
Moreover, this exceeded the analysts’ estimates of $233.90 million.
Additionally, the company expected the gross merchandise revenue to climb between $2.42 billion to $2.52 billion.
Then, market participants expected $2.20 billion in the GMV.
In the whole fiscal year of 2022, Affirm estimated revenue in the range of $1.16 million to $1.19 million.
Whereas the forecasted revenue for the full year of 2022 is $1.16 million.
Furthermore, the gross merchandise revenue ranges from $12.45 billion to $12.75 billion from the expected $12.00 billion.
Amazon Teams Up with Affirm
In addition, Amazon Inc. teamed up with Affirm for its first partnership with an instalment payment company.
Moreover, Affirm currently works under 12,000 firms, including Peloton and Walmart.
The Amazon partnership is attributed to the recent blockbuster earnings of the buy now, pay later company.
Consequently, the deal will allow US Amazon customers to split $50 or more purchases into smaller, monthly instalments.
Accordingly, Affirm’s interest rates on loans range between 0.00% and 30.00%, with no charge for late fees.
Also, it mentioned that the plan is currently in a test mode with selected customers and will broaden in the coming months.
Meanwhile, on Friday trading, Amazon shares edged down 1.17% or 41.34 points or $3484.16 per share.