Coming hot off the heels of its recently announced partnership with Amazon (AMZN), Affirm (AFRM) posted strong quarterly earnings — driven by a growth in sales, as well as an increase in merchant partnerships.
Affirm operates a buy now, pay later service where it earns money by charging merchants a fee to offer their customers interest-free installment loans with no credit checks required. Business is booming for Affirm, with transaction volumes rising by 106% and active consumers by 97%, for the quarter ending June 30th. Total revenues also grew to $261m, up from $153m a year prior.
why it matters
Shares of AFRM skyrocketed by 34% last Friday after Thursday's earnings beat. With its strategic partnerships with e-commerce giants Amazon and Walmart (WMT), it seems the sky is the limit for Affirm.