Affirm Holdings surges 35% after fiscal-Q4 earnings

Affirm Holdings (AFRM.US) is surging almost 35% and is the best performing Wall Street stock today. Share price surge was triggered by release of fiscal-Q4 2024 earnings report (calendar April - June 2024 quarter), that turned out to be better than expected. 

Affirm Holdings reported a 48% YoY jump in fiscal-Q4 revenue, as well as bigger than expected gross profit. While company reported losses on operating and net income level, they were smaller than expected by analysts. Fiscal-Q4 gross merchandise volume, or GMV, came in in-line with market expectations. 

Speaking of GMV, Affirm now expects full-year fiscal-2025 GMV to exceed $33.5 billion, while analysts expected it to reach around $33.05 billion. Affirm also issued upbeat fiscal-Q1 2025 forecast and expects GMV to reach $7.1-7.4 billion (exp. $7.18 billion) with revenue of $640-670 million (exp. $632 million).

Affirm Holdings fiscal-Q4 2024 results

• Revenue: $659.2 million vs $605.1 million expected
• Gross merchandise volume: $7.2 billion vs $7.18 billion
• Gross profit: $309.4 million vs $264.1 million expected
  • Gross margin: 46.9% vs 42.9% expected
• Operating expenses: $732.6 million vs $787.9 million expected
• Operating income: -$73.5 million vs -$165 million expected
  • Operating margin: -11.1% vs -24.5% expected
• Net income: -$45.1 million vs -$150.8 million expected
  • Net margin: -6.8% vs -24.9% expected
• Diluted EPS: -$0.14 vs -$0.47 expected

Better-than-expected results from Affirm Holdings triggered a surge in the share price, with the move higher being further supported by comments from Affirm's CEO, who said that the company may turn in a positive operating income in the final quarter of fiscal-2025 (calendar Q2 2025). Company is surging almost 35% today, marking the biggest single-day jump in over 2 and half years.

Source: xStation5