: 9,370,230 shares of Class A common stock and Class B common stock each. Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions that an active consumer has conducted on its platform during the 12 months prior to the measurement date. Affirm, Bessemer Venture Partners, FinTech Collective, FIS, Fiserv, MassMutual, Morgan Stanley, New York Life Insurance Company, WestCap Group, and Whistler Capital Partners. Affirm Header placeholder lorem ipsum dolor sit amet, consectetur adipiscing elit. During the fourth quarter, we increased the number of merchants on our platform by more than fivefold, more than doubled gross merchandise volume and grew active consumers by 97% year over year., Levchin continued, The secular shift toward flexible and transparent financial products continues to accelerate. I imagine that the partnership will further accelerate the growth of merchant partners who use Affirm to accelerate their sales performance. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate the business. The Company is intentionally prioritizing increased investments in both its product and engineering teams, while also increasing its brand and direct response marketing efforts. By building a new kind of payment network one based on trust, transparency and putting people first we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. At the end of the day, regardless of the specific classification of the company, Affirm shares will trade at some multiple of sales that is congruent to its growth rate and its free cash flow expectations. View source version on businesswire.com: https://www.businesswire.com/news/home/20210909006033/en/, Affirm Reports Fiscal Year 2021 Fourth Quarter Results. According to the press release, published by Affirm, the company has raised a $500 million series G round of funding.The funding round was led by GIC, a returning investor, and Durable Capital Partners LP. : Undisclosed, but listed as a 5 percent stockholder. AFRM Stock Valuation - Far From Cheap Affirm will finish fiscal 2022 with approximately 300 million shares outstanding, making its current market cap around $45 billion. In IPO Pop, Affirm Doubles In Value To $24 Billion - Forbes To ensure the most secure and best overall experience on our website, we recommend the latest versions of, Shopifys selection of Affirm as its exclusive partner to power Shop Pay Installments, bringing Affirm to hundreds of thousands of new merchants and their customers later this year, The introduction of Affirm Savings, a high-yield savings account, The launch of numerous merchant partnerships over the last month including. Others might suggest that these businesses are really gussied up financial institutions that should be evaluated on those standards. These amounts have, and will continue to vary based on the level of 0% ALR loans that are sold or purchased. Historically this company has seen substantial revenue contribution from merchant partners in the travel, hospitality and entertainment industries. Stock Price. Looking at Square in terms of an analytical construct is more difficult-partly because Square has 2 very different businesses, and partly because the company has been obliged to change how it reports revenue for one of those businesses. In dealing with Affirm, the analogs I will use are going to be Square (SQ) and Shift4 (FOUR). Affirm provides more than 5.6 million U.S. and Canadian consumers a better alternative to traditional credit cards, giving them the flexibility to buy now and pay over time at virtually any store. When choosing to pay biweekly with Affirm, consumers can check eligibility in seconds, without impacting their credit score or inputting their social security number. Fourth Quarter of Fiscal Year 2021 Financial Highlights:1 All comparisons are made versus the same period in fiscal year 2020 unless otherwise stated. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. I believe, therefore, that the growth opportunity for Affirm will be substantial and of long duration. The company reported net revenue of a bit greater than $3 billion last quarter. Sony Pictures Affirm Originals has struck a deal with author Karen Kingsbury to adapt her 2005 novel A Thousand Tomorrows as a TV series. Could the shares trade a substantial premium to that kind of valuation? Predictions were rife coming into 2023 that we would see a flood of M&A deals for venture-backed startups as funding and IPOs dried up. Not this writer. Revenue Less Transaction Costs - The Company defines revenue less transaction costs as GAAP total revenue less transaction costs, as defined above. American Express B2B Cross-Border Payments: Building Business Beyond The Card, First Republics Billions In Losses Show Why Bank Deposits Need More Protection, The Ascendancy Of AI In Asias Financial Services Industry, National Digital ID Is A Foundation For CBDC. Built In San Francisco Affirm Raises Half a Billion Dollars in Its Series G Funding Round News Sep 17, 2020 Crowdfund Insider U.S. Fintech Affirm Secures This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. My belief is that Affirm is likely to be a large and successful company with a high growth rate and above average profitability. The company earns interest on the balances of loans it holds for sale. We delivered another set of excellent results to close out our fiscal year with GMV and revenue growth continuing to accelerate, said Michael Linford, CFO of Affirm. Gross Merchandise Volume ("GMV") - The Company defines GMV as the total dollar amount of all transactions on the Affirm platform during the applicable period, net of refunds. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Prior to taking the helm of Affirm, Levchin was most known for co-founding, The San Francisco-based company raised about $1.5 billion in funding from investors including. Change in operating assets and liabilities: Purchases and originations of loans held for investment, Proceeds from the sale of loans held for investment, Principal repayments and other loan servicing activity, Acquisition, net of cash and restricted cash acquired, Additions to property, equipment and software, Net Cash Provided by (Used in) Investing Activities, Proceeds from issuance of notes and residual trust certificates by securitization trusts, Principal repayments of notes issued by securitization trusts, Proceeds from issuance of convertible debt, net, Proceeds from issuance of redeemable convertible preferred stock, net, Repurchases and conversion of redeemable convertible preferred stock, Proceeds from initial public offering, net, Proceeds from exercise of common stock options and warrants, Payments of tax withholding for stock-based compensation, Net Cash Provided by (Used in) Financing Activities, Effect of exchange rate changes on cash, cash equivalents and restricted cash, Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash, Cash and cash equivalents and restricted cash, beginning of period, Cash and Cash Equivalents and Restricted Cash, end of period. 9.86 -0.30 (-2.95%) At close: 04:00PM EDT. In the Risk Factors section of its S-1, the company notes that Peloton was its top merchant partner, representing 28 percent of Affirms total revenue for the fiscal year ended June 30, 2020 and 30 percent of its total revenue for the three months that ended on Sept. 30, 2020. That said, servicing revenues are still less than the cost of servicing and were just 2.3% of revenues in the September ending quarter. One of the things that has struck me in doing due diligence with regard to Affirm is that compared to most credit card purchases, Affirms lending is based on a specific consumer purchase. I am clearly not qualified to evaluate the Affirm algorithms that it has developed to determine credit for its borrowers. It can offer some consumers a 0% APR loan which has created lots of word of mouth excitement amongst consumers.