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Affirm Reports Fourth Quarter and Fiscal Year 2022 Results




















Active Merchants Increase from 29,000 to 235,000 and Active Consumers Grow 96% Year over Year

Gross Merchandise Volume (GMV) Increases 77% and Total Revenue Grows by 39% Year over Year for the Quarter

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 25, 2022-- Affirm Holdings, Inc. (NASDAQ: AFRM) (“Affirm” or the "Company”), the payment network that empowers consumers and helps merchants drive growth, today reported financial results for its fourth quarter and fiscal year ended June 30, 2022.

“Affirm delivered strong performance in the fourth quarter,” said Max Levchin, Founder and CEO of Affirm. "We grew GMV by 77% and set a new record for consumer re-engagement with 85% of transactions coming from repeat users, all while prudently managing risk. We remain focused on scaling our network, maintaining attractive unit economics, capturing greater share, and helping our partners grow."

Levchin continued, "While the growth of online commerce is falling back to pre-COVID levels, the secular trend toward adopting honest financial products is gaining momentum. Not only does this make our mission more important but it also plays directly into Affirm's strengths. With our breadth of product offerings, risk management expertise and superior technology, we stand ready to meet the moment by making money more efficient for all of our network's participants.”

Fourth Quarter and Fiscal Year 2022 Operating Highlights:

All comparisons are made versus the same period in fiscal year 2021 unless otherwise stated.

  • GMV for the fourth quarter of fiscal 2022 was $4.4 billion, an increase of 77%; GMV for fiscal year 2022 was $15.5 billion, an increase of 87%.

  • Active merchants saw an increase from 29,000 to 235,000, driven primarily by the adoption of Shop Pay Installments by merchants on Shopify's platform.

  • Active consumers grew 96% to 14.0 million and increased by 1.2 million, or 10%, on a sequential basis compared to as of March 31, 2022.

  • Total transactions grew to 12.0 million for the quarter, an increase of 139%.

  • Transactions per active consumer increased 31% to 3.0 as of June 30, 2022, and 85% of total transactions during the fourth quarter were from repeat Affirm consumers.

Fourth Quarter of Fiscal Year 2022 Financial Highlights:1

All comparisons are made versus the same period in fiscal year 2021 unless otherwise stated.

  • Total revenue was $364.1 million, a 39% increase, driven primarily by continued GMV growth as well as higher interest income and greater servicing income as the loan portfolio held by third parties scaled. The impact from this higher GMV growth and increased income was offset by mix shift towards lower take rate programs such as Split Pay and large enterprise partnerships in the general merchandise category, which saw GMV growth of 477%.

  • Total revenue less transaction costs increased 25% to $184.3 million primarily as a result of strong revenue growth and a decrease in loss on loan purchase commitment, offset by increased processing and servicing costs and provision for credit losses. Provision for credit losses grew to $72.7 million compared to $25.5 million a year ago, a period which saw the release of COVID-related allowances. In comparison to our more normalised fiscal third quarter of 2022, provision for credit losses grew just 10%, and provision for credit losses as a percentage of GMV declined by 4 basis points sequentially to 1.65%. Excluding the provision for credit losses, revenue less transaction costs increased by $83.8 million or 48%.

  • Operating loss was $277.2 million compared to $114.3 million in the fourth quarter of fiscal 2021, which includes $108.0 million of expense related to warrants granted to Amazon in November 2021 and an increase in stock-based compensation expense of $10.7 million to $110.9 million.

  • Adjusted operating loss was $29.3 million compared to adjusted operating income of $14.2 million for the fourth quarter of fiscal 2021. Adjusted operating margin was (8.0)%, compared to 5.4% for the fourth quarter of fiscal 2021.

  • Net loss was $186.4 million compared to $123.4 million in the fourth quarter of fiscal 2021.

Fiscal Year 2022 Financial Highlights:1

All comparisons are made versus fiscal year 2021 unless otherwise stated.

  • Total revenue was $1.3 billion, a 55% increase, driven by continued growth in GMV, expansion of the active merchant base, deepening of enterprise partnerships, higher interest income related to mix shift towards shorter term loans with greater relative loan discount, greater gains on sales of loans due to higher loan sale volume, and greater servicing income as the loan portfolio held by third-parties scaled.

  • Total revenue less transaction costs was $662.4 million, a 35% increase compared to $431.6 million in fiscal year 2021, primarily as a result of strong revenue growth, funding cost efficiencies, and a decrease in loss on loan purchase commitment, offset by increased provision for credit losses. During fiscal year 2021, stronger than expected repayment performance against COVID-related allowances resulted in a decrease in the provision for credit losses of $39.2 million compared to fiscal year 2020. Fiscal year 2022 saw a return to a more normalised credit environment, which resulted in an increase in the provision of $189.4 million. Excluding the provision for credit losses, revenue less transaction costs increased by $420.2 million or 84%.

  • Operating loss was $866.0 million compared to $383.7 million in fiscal year 2021, which includes $281.0 million of expense related to warrants granted to Amazon in November 2021 and an increase in stock-based compensation expense of $98.5 million to $391.0 million.

  • Adjusted operating loss was $78.3 million compared to an adjusted operating income of $14.3 million in fiscal year 2021. Adjusted operating margin was (5.8)% compared to 1.6% in fiscal year 2021.

  • Net loss was $707.4 million compared to $441.0 million in fiscal year 2021.

Recent Business Highlights

  • On June 22, 2022, the Company successfully completed a $371.5 million securitization of its long-duration 0% APR point-of-sale installment loans from its "Z" issuance series - AFFRM 2022-Z1. Similar to the Company's recent 0% APR point-of-sale installment securitizations, this transaction qualified for non-consolidated accounting treatment. This marks the Company's tenth overall securitization transaction since launching its program in 2020.

  • During the fourth quarter of fiscal 2022, the Company added $1.6 billion in net new funding capacity, bringing total funding capacity to $10.6 billion as of June 30, 2022 and total platform portfolio as a percentage of funding capacity down to 67%, a three-year low.

  • The Company continued to see strong GMV growth in the Travel and Ticketing category during the fourth quarter of fiscal 2022, which grew by 87% from the fourth quarter of fiscal 2021, and 40% on a sequential basis from the third quarter of fiscal 2022.

“We closed out our fiscal year very strongly, growing GMV by 87% and revenue by 55%,” said Michael Linford, CFO of Affirm. “Our outperformance demonstrates that our strategy and investments are delivering results. Affirm achieved impressive growth rates as we expanded and diversified our merchant base while also demonstrating significant traction with our higher-frequency Split Pay offering. We believe that we are well-positioned to continue scaling our network while maintaining attractive unit economics."

Linford concluded, “In light of the uncertain macroeconomic backdrop, we are approaching our next fiscal year prudently while maintaining our focus on driving responsible growth and continuing to invest in strengthening our leadership position. We continue to expect to achieve a sustained profitability run rate, on an adjusted operating income basis, by the end of fiscal 2023.”


Financial Outlook

The following table summaries Affirm's financial outlook for the fiscal first quarter and full year 2023 periods.



  • The Company assumes the current forward interest rate curve as well as early signs of macroeconomic stress persisting through the fiscal year;

  • The Company expects holiday-driven seasonality in the second quarter driving a seasonal decline in revenue as a percent of GMV and revenue less transaction costs as a percent of GMV;

  • The Company has not included any material impact to GMV or revenue from the rollout of its Affirm Debit+ card; and

  • The Company expects equity capital required as a percent of total platform portfolio to remain below 5% throughout the fiscal year.

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