Affirm (AFRM) Q4 2024 earnings summary

Executive summary

• Achieved strong growth and profitability for the quarter and fiscal year, with GAAP profitability reached in Q4 FY24 and notable operational momentum, including leadership changes and a planned CFO transition.

• GMV reached $7.2B in Q4 FY24, up 31% year-over-year, and revenue grew 48% to $659M, with active consumers up 19% to 4.9M and transactions per active consumer up 22%.

• Repeat customers accounted for 93% of transactions, with total quarterly transactions up 42% year-over-year.

• Adjusted operating income for FY24 was $381M, with a net loss narrowed to ($45M) from ($206M) year-over-year.

• Active merchant count surpassed 300,000, and Affirm Card active cardholders approached 1.2M, up 30% sequentially.

Financial highlights

• Annual GMV for FY24 was $26.6B, up from $20.2B in FY23, and FY24 total revenue was $2.32B, a 46% increase from $1.59B in FY23.

• Revenue as a percentage of GMV was 8.7% for FY24, up from 7.9% in FY23, and RLTC for FY24 was $994M, up from $676M in FY23.

• Adjusted operating income for FY24 was $381M, compared to $8.6M in FY23, and adjusted operating margin reached 23% in FQ4'24, up from 3% YoY.

• Operating loss improved to ($73M) from ($244M) YoY, and net loss narrowed to ($45M) from ($206M) YoY.

• RLTC (Revenue Less Transaction Costs) exceeded the target range due to a non-recurring $30M benefit from a securitization; underlying RLTC rate remains stable.

Outlook and guidance

• Fiscal 2025 GMV expected to exceed $33.5B, with revenue and RLTC as a percentage of GMV at least 10 basis points higher than FY24.

• Adjusted operating margin projected above 18.4% for FY25, with Q1 FY25 GMV guidance of $7.1B–$7.4B and revenue of $640M–$670M.

• Targeting GAAP operating income profitability in Q4 FY25 and ongoing profitability thereafter.

• Fiscal 2025 guidance is set conservatively, with upside potential from new initiatives like B2B and wallet partnerships not included in the base outlook.

• Guidance does not factor in unlaunched or uncertain initiatives, ensuring a high degree of confidence in targets.