Affirm Hits $1B Revenue

You know, it's a number of things in terms of the pieces that sum up, but the fundamental trend here is a consumer preference away from revolving credit accounts into better alternatives to still get the things that matter to them in a way that's honest and transparent and good for them.

You know, we've learned the hard way over 5 years of being public not to spend too much time thinking about the short term on the stock price. If you look back over the past 5 years, we've certainly seen lots of highs and lows. We're focused on building the best business and we know that if you do that, the stock price will eventually reflect that. The things going on in this business right now are just really incredible. The past 90 days have really been a clinic in just making big leaps forward in what we're building. Everything from our new distribution opportunities with Intuit in North America to VMO2 in the UK, as well as the business that continues to just post some killer metrics. Not to mention our card which continues to be a real bright spot in the business.

The card is the best way for consumers to transact on Affirm. It gives all of the benefits of the financial product that we have built that provides certainty and control to the consumer and we deliver on a piece of plastic. Consumers find us at the point of sale and then they're given an opportunity to onboard to the card and they're taking it up in really strong numbers. The growth in the card was 160% year-over-year this quarter. We now have 3.7 million active cardholders and all that's done just leveraging the existing network. We're not doing anything to go out and acquire these users that's inorganic or an acquisition-based approach to it. We're literally engaging the consumers we've already seen with a better product in the card. It's been a huge driver of growth and re-engagement with consumers in the platform. And it's really cool to see consumers' preference for these honest financial products showing up in their preference for using the Affirm card.

No, it's very different. It is a piece of plastic and so you can walk into a store and just put your chip in there and the modality feels a lot like you're using a card that you're used to, but the financial products behind it are fundamentally different. It has two modes. You can pay now with a linked bank account or with the Affirm Money account, or you can pay over time and we turn those transactions, whether you're buying a jacket in the mall, we turn that transaction into an installment loan like any other loan that we have in our portfolio. And so the consumer can walk into a transaction and understand that they have complete certainty over the cost of credit of that transaction by asking for approval before they swipe the card. The consumer knows exactly what they're going to be paying to complete that transaction. And it's fundamentally different than what a consumer does with a credit card where you kind of swipe it and you maybe don't exactly know what's going to happen in the future. You're playing a little bit of roulette with your financial life. With our card, we give you complete certainty.

I think it's definitely the former. I think if you think about the total balance of revolving debt in the United States, $1.3 trillion of revolving balances. It's a gigantic number. And consumers are desperate for alternatives that don't force them into this compounding and revolving treadmill that the credit card business models are built on. And they're preferring alternatives, alternatives that give them certainty, control, and yeah, we are really intentional around making sure we're able to give credit to a wide set of folks. It's important to us in our mission that we're serving a wide set of consumers, but the vast majority of our consumers are people who have credit cards available to them and they're preferring Affirm over their revolving credit accounts.