May 12 (Reuters) - Affirm Holdings Inc raised its
annual revenue forecast and said it has extended a multi-year
partnership with Shopify in the United States, sending
shares of the buy now, pay later (BNPL) firm up 23% aftermarket
San Francisco-based Affirm's third-quarter revenue surged
54%, surpassing the company's estimates, as it benefited from
higher interest income and loan sale volumes as well as a surge
"Our strong performance demonstrates our ability to drive
growth with attractive unit economics, despite volatile market
conditions," Chief Financial Officer Michael Linford said in a
The company's results are in sharp contrast to fintech firm
Upstart Holdings, which lowered its annual revenue
outlook on Tuesday in a sign of declining loan demand as
interest rates rise amid decades-high inflation.
Affirm said active merchants on its platform grew to 207,000
from 12,000 last year, while active consumers increased 137% to
BNPL firms like Affirm earn from charging merchants a fee to
offer their customers small, point-of-sale loans which are paid
back in interest-free installments over a period of time,
bypassing credit checks.
"Affirm is well-positioned for continued growth and
long-term value creation ... We plan to achieve a sustained
profitability run rate on an adjusted operating income basis by
July 1, 2023," Chief Executive Officer Max Levchin said.
Affirm raised its full-year revenue forecast to between
$1.33 billion and $1.34 billion, up from $1.29 billion to $1.31
The company also narrowed its loss to $54.7 million, or 19
cents a share, from $287 million, or $1.23 a share, a year ago,
as it recognized a $136.2 million gain in the third quarter.
Analysts had expected a loss of 51 cents a share, according
to data from Refinitiv.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika