The shares of Affirm Holdings After the increase in FY revenue, (NASDAQ) were up over 30% Friday premarket trading

Fintech company suffered a Q3 loss of 19c per share, which was compared with a $1.06 loss per share in the same time last year. The quarter’s revenue was $354.8 million, an increase of 54% YoY. This is higher than the consensus estimate of $344.3 millions. While analysts expected $3.86 trillion, the gross merchandise volume for the company was reported at $3.9 Billion.

AFRM is expecting revenue to range between $345million and $355m for its fourth quarter. That’s compared with the analyst consensus estimate of $353.1 million. The firm anticipates that gross merchandise volumes will be in the region of $3.95 to $4.05 Billion, as opposed to analysts’ estimates of $3.95B.

Affirm anticipates FY revenues in the $1.33-$1.34 billion range, which is higher than the $1.31 billion forecast by analysts. Analysts were anticipating $1.33 trillion.

The full-year gross merchandise value is estimated to be between $15.04 billion and $15.14 billion. This figure is higher than the $14.78 billion guidance, but still lower than the $15 billion expected.

Affirm announced that it has extended its multi-year agreement with Shopify (NYSE 🙂 in America. This will make the fintech company the only pay-over time provider of Shop Pay Installments.

“We plan to achieve a sustained profitability run rate on an adjusted operating income basis by July 1, 2023,” the company said.

Jason Kupferberg from BofA reiterated a Buy rating on AFRM stock with a $77.00 price target.

“After a major pullback in shares, AFRM’s F3Q print was a sight for sore eyes along multiple dimensions and should be well-received… We continue to see credit (where performance beat internal plan in F3Q) as manageable, while AFRM remains differentiated in the Buy Now Pay Later (BNPL) market,” the analyst said in a client note.

Andrew W. Jeffrey, a Truist Securities analyst reiterated a Buy rating. He said Affirm does a better job on BNPL than its competitors. The company has the potential to grab a large share of the US debit market.

By Senad Karaahmetovic