Q3 2024 Affirm Holdings Inc Earnings Call Transcript
Key Points
- Affirm Holdings Inc (AFRM) demonstrated strong GMV growth, up 36% this quarter, indicating robust business performance.
- The company has successfully implemented pricing initiatives that are expected to yield majority of benefits by the end of this fiscal year, contributing positively to volume growth.
- Affirm Holdings Inc (AFRM) has maintained positive unit economics despite increased funding costs, showcasing effective financial management.
- The introduction of the Affirm Card has been met with increasing usage, particularly in newer cohorts, suggesting strong product adoption and potential for future growth.
- International expansion, particularly into the UK, is planned with careful credit performance monitoring, showing strategic growth while managing risk.
- The company faces challenges in quantifying the direct impact of pricing initiatives on volume growth, indicating potential uncertainty in future revenue projections.
- Seasonal fluctuations in delinquency rates are expected, particularly in the summer, which could impact credit performance.
- Affirm Holdings Inc (AFRM) is still in the early stages of optimizing the Affirm Card, indicating ongoing adjustments and potential initial user experience issues.
- Despite strong growth, the company must invest in localized funding and adapt to new markets, which could present unforeseen challenges and risks.
- The competitive landscape is intensifying, with major players like Capital One and Discover potentially impacting the industry dynamics and Affirm Holdings Inc (AFRM)'s market position.
Good morning, and welcome to the Affirm Holdings' Third Quarter fiscal 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded, and a replay of the call will be available on our Investor Relations website for a reasonable period of time after the call.
I'd now like to turn the call over to Zane Keller, Director, Investor Relations. Thank you. You may begin.
Thank you, operator. Before we begin, I would like to remind everyone listening that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our Investor Relations website. Actual results may differ materially from any forward-looking statements that we make today. These forward-looking statements speak only as of today, and the company does not assume any obligation or intent to update them, except as required by law.
In addition, today's call may
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