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Affirm Shares Surge Over 20% on Q3 Beat, Extended Partnership with Shopify -Breaking

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© Reuters. Shopify Extended Partnership With Shopify: Affirm shares rise by 20% in Q3 Beat

Affirm Holdings Inc (NASDAQ:) shares surged around 29% after-hours following the company’s , with EPS of ($0.19) coming in better than the consensus estimate of ($0.53).

Revenue increased 54% to $354.8 Million year-over year, against the consensus of $344.03million. The growth in Gross Merchandise Volume was sustained (up 73% annually) and merchant revenue growth. Also, there were higher interest income from mix shifts towards short term loans and lower relative loan discount. There were also larger sales gains due to larger loan volume and greater servicing income.

Shopify’s Shop Pay Installments enabled merchants to increase their active merchants from just 12,000 to 207,000. The number of active consumers was 12.7 millions, an increase of 137% over the previous year. Total transactions reached 10.5 million which is up 162% from the prior year.

The company also announced it extended its multi-year partnership in the U.S. with Shopify (NYSE:), giving all eligible U.S. merchants offering Shop Pay Installments access to Affirm’s Adaptive Checkout™ beginning this summer.

According to consensus estimates of $2251.9 million, the company anticipates revenue for Q4/22 in the $345-355 millions range. The company anticipates that revenue will be between $1.33 and 1.34 billion for the entire 2022-year, as opposed to $1.33 billion.

Affirm’s shares fell 82% from the previous year, according to the results.

By Davit Kirakosyan

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