Affirm Holdings (AFRM) Reports Q3 Earnings: What Key Metrics Have to Say

For the quarter ended March 2024, Affirm Holdings (AFRM) reported revenue of $576.16 million, up 51.2% over the same period last year. EPS came in at -$0.43, compared to -$0.69 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $548.07 million, representing a surprise of +5.13%. The company delivered an EPS surprise of +38.57%, with the consensus EPS estimate being -$0.70.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Affirm Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Gross Merchandise Volume (GMV): $6,294,000 versus $5,963,502 estimated by three analysts on average.
  • Active Consumers: 18 compared to the 18 average estimate based on two analysts.
  • Revenue- Merchant network: $159.29 million versus the four-analyst average estimate of $147.21 million. The reported number represents a year-over-year change of +33.8%.
  • Revenue- Virtual card network: $35.68 million compared to the $36.28 million average estimate based on four analysts. The reported number represents a change of +21.1% year over year.
  • Revenue- Interest income: $315.71 million versus the four-analyst average estimate of $301.93 million. The reported number represents a year-over-year change of +77.1%.
  • Revenue- Servicing income: $25.29 million versus the four-analyst average estimate of $23.86 million. The reported number represents a year-over-year change of +18.1%.
  • Gain (loss) on sales of loans: $40.18 million versus the four-analyst average estimate of $38.45 million. The reported number represents a year-over-year change of +22.5%.
View all Key Company Metrics for Affirm Holdings here>>>

Shares of Affirm Holdings have returned -1.3% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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