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Affirm Posts Mixed Q4 Results; Stock Surges 20.7%

Affirm Holdings (AFRM) has reported mixed results for the fourth quarter of Fiscal Year 2021 with earnings missing but revenue beating consensus estimates. Shares of the payments network provider gained 20.7% in extended trade on Thursday.

The company reported a net loss per share of $0.48, wider than the analysts’ expectations of a loss of $0.29. Affirm had reported earnings of $0.17 per share in the year-ago period.

Total revenues came in at $261.8 million, up 70.7% from $153.3 million a year ago. Also, it surpassed analysts’ expectations of $225.3 million. The upside can be attributed to the rise in network revenue and interest income.

Gross merchandise volume (“GMV”) for the quarter stood at $2.5 billion, up 106% year-over-year. Also, active consumers grew 97% to 7.1 million. (See Affirm stock charts on TipRanks)

For Fiscal Year 2021, the company reported a 71% rise in revenues. However, Affirm delivered a net loss of $2.88 per share, compared to a loss of $2.63 in Fiscal Year 2020.

The Founder and CEO of Affirm, Max Levchin, said, “With our superior technology, Affirm is strongly positioned to build a more valuable two-sided network for consumers and merchants. We remain focused on extending our leadership position with our core products, while capitalizing on our vast opportunities to empower more people with the new ones we continue to launch.”

For the first quarter of Fiscal Year 2022, the company expects revenue between $240 million and $250 million. Adjusted operating loss is anticipated to be in the range of $68 million to $63 million. Affirm expects revenues for Fiscal Year 2022 to be in the range of $1.16 billion to $1.19 billion.

Following the release, Mizuho Securities analyst Dan Dolev maintained a Buy rating on the stock with a price target of $110 (upside potential of 19.5% from current levels).

Dolev noted, “While management revealed that the AMZN partnership was non-exclusive, this is unlikely to hurt the significant growth opportunity ahead, especially given that FY22 guidance does not include any AMZN contribution.”

Based on 6 Buys, 3 Holds and 1 Sell, the stock has a Moderate Buy consensus rating. The average Affirm price target of $90 implies 2.2% downside potential from current levels.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Affirm with 14.7% of investors on Tipranks increasing their exposure to AFRM stock over the past 30 days.

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