Affirm reports 34% revenue spike in latest earnings

Growing now, and apparently, growing even more later. Momentum isn’t waning for buy now, pay later business Affirm. The company’s fiscal first quarter report showed a 34% revenue increase to $933 million.

Gross merchandise volume (GMV), the total dollar amount of all transactions on the Affirm platform, grew 42% YoY to a record $10.8 billion. Figures like this will be validation for an often criticized sector (COO Michael Linford took it upon himself to pen this rebuttal last year).

The business is not resting on its laurels as pressure from competitors grows. GMV for Affirm’s debit card, a relatively new offering and a key component of its revenue strategy, grew to $1.4 billion, a 135% increase. Cardholders more than doubled YoY to 2.8 million.

Another win was the 24% increase in active consumers—the seventh consecutive quarter of accelerating YoY growth—bringing that total to 24.1 million. This is in no small part due to the company’s effort to grow its merchant network to become more accessible (merchant transaction fees are an important component of Affirm’s business model).

Partnerships are the other critical part of the revenue mix for Affirm. It extended its deal with Amazon for an additional five years and expanded its lucrative global partnership with Shopify to the UK.

“Compared to a year ago, we’ve added nearly 100,000 new merchants, our active consumer base has grown about 25%, and more people are choosing Affirm more often—in part due to the rapid growth in the availability of 0% APR offers,” Affirm CRO Wayne Pommen said in a statement to Revenue Brew.

The key takeaway: Affirm’s fiscal first quarter net income hit $81 million, and the company projects continued growth in the current quarter between $1.03 billion and $1.06 billion.