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What happened
Actions of Affirm holdings (NASDAQ: AFRM) surged 34.4% on Friday after payment network growth metrics for the fourth quarter of fiscal 2021 dazzled investors.
So what
Affirth’s revenue jumped 71% year-over-year to $ 261.8 million. The gains were fueled by a 106% increase in gross cargo volume (GMV) – the total dollar amount of all transactions made on the Affirm platform, net of refunds – to $ 2.5 billion .
Affirm’s flexible payment options are proving popular with buyers. Image source: Getty Images.
Businesses and consumers alike flock to the Affirm network. Active merchants soared 412% to nearly 29,000, in part thanks to Affirm’s partnership with the leader in e-commerce Shopify.
Meanwhile, active consumers jumped 97% to 7.1 million. People also use Affirm’s services more often, with transactions per active consumer increasing 8% to around 2.3.
Now what
Investors were undoubtedly pleased with Affirm’s optimistic outlook for the coming year. Management expects Afffirm revenue to grow approximately 35% to $ 1.2 billion in fiscal 2022, thanks to a 52% increase in GMV, to 12 , $ 6 billion.
Better yet, these numbers are likely to prove to be conservative, as they do not include any benefits of Affirm’s partnership with online retail-titan. Amazon.com. Both companies plan to offer Affirm ‘buy now, pay later’ services to Amazon customers in the coming months.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.
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