Shares of Affirm Holdings (AFRM) are up 20% after the buy now, pay later loan company reported financial results that topped Wall Street’s consensus forecasts.
Affirm, which is not yet profitable, announced a quarterly loss per share of $0.14 U.S., which was much better than the $0.51 U.S. loss expected among analysts.
Revenue of $659 million U.S. came in well ahead of the $604 million U.S. that was estimated on Wall Street. Sales were up 48% from a year earlier.
Additionally, Affirm reported gross merchandise volumes of $7.20 billion U.S., which was up 31% from a year ago.
Management said they remain on track to achieve profitability within a year.
The company attributed its strong results to a new relationship with Apple (AAPL), as well as ongoing partnerships with Amazon (AMZN) and Canada’s Shopify (SHOP).
In June of this year, Affirm and Apple announced plans for U.S. Apple Pay users on iPhones and iPads to be able to apply for loans directly from Affirm.
Affirm also plans to launch its buy now, pay later loan business in the United Kingdom by year’s end.
In terms of forward guidance, Affirm said it expects revenue of $640 million U.S. to $670 million U.S. in the current third quarter. Analysts were calling for Q3 revenue of $625 million U.S.
Prior to today’s (Aug. 29) big move higher, Affirm’s stock had declined 32% this year and was trading at $31.58 U.S. per share.