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Affirm rides buy now, pay later wave to beat revenue estimates, shares surge

Affirm Holdings Inc beat Wall Street estimates for quarterly sales on Thursday, helped by a growth in volumes of goods sold through its buy now, pay later (BNPL) platform, coupled with a rise in the number of merchants and active consumers.

Shares of the company jumped 19per cent to US$109.61 in extended trade.

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.

The company's gross merchandise volume (GMV), a metric used in the e-commerce sector to measure transaction volumes, rose 106per cent to US$2.5 billion during the quarter.

Active consumers surged by 97per cent to 7.1 million during the quarter while active merchants grew 412per cent, Affirm said.

Total revenue rose to US$261.8 million during the fourth quarter ended June 30, from US$153.3 million, a year earlier.

Analysts on average had expected revenue of about US$225 million, according to IBES data from Refinitiv.

(Reporting by Sohini Podder and Akanksha Rana in Bengaluru; Editing by Shailesh Kuber)

Source: Reuters


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