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Earnings Results: Affirm beats on revenue, sees early recovery in travel spending

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Affirm Holdings Inc. topped revenue expectations Monday afternoon while delivering an optimistic forecast for the current quarter.

The buy-now-pay-later company posted a fiscal third-quarter net loss of $247.2 million, or $1.06 a share, compared with a loss of $85.6 million, or $1.80 a share, in the year-earlier quarter.

The company’s loss figure reflects an increase in stock-based compensation following Affirm’s
AFRM,
+5.56%

January initial public offering and a $78.5 million adjustment that reflects a change in the fair value of the contingent consideration liability associated with its acquisition of PayBright, which was driven by changes in the value of Affirm’s common stock.

Analysts tracked by FactSet had been modeling a loss of 31 cents a share.

Affirm’s revenue rose to $230.7 million from $138.3 million, while analysts were expecting $198.2 million. The revenue total includes a $3.5 million reduction to revenue that Affirm recorded due to the estimated impact of Peloton Interactive Inc.’s
PTON,
+4.39%

Tread and Tread+ recalls.

Gross merchandise volume rose 83% from a year earlier to $2.3 billion. Excluding Peloton, Affirm’s GMV doubled from the year-prior period. The FactSet consensus was for $1.9 billion in GMV, based on estimates from four analysts.

“Looking ahead, we believe the strengthening health of the consumer, Affirm’s deep and diverse merchant partnerships, and our unrivaled technology will position us to capture a substantial share of our expanding market opportunities,” Chief Executive Max Levchin said in Affirm’s release.

Affirm saw a near tripling of volume in its travel and ticketing category on a sequential basis, the company disclosed in its release.

The company expects fiscal fourth-quarter GMV of $2.2 billion to $2.25 billion and revenue of $215 million to $225 million. Analysts tracked by FactSet had been projecting GMV of $1.9 billion and revenue of $210 million.

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