Affirm buys cashflow management12/30/2023 ![]() ![]() Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. TipRanks makes no warranties about the completeness, accuracy, or reliability of such information. Hence, Affirm's expertise is truly hard to replicate in the industry at this point, apparently.ĭisclosure: At the time of publication, Nikolaos Sismanis did not have a position in any of the securities mentioned in this article.ĭisclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. Amazon could have built that from scratch at its current phase. Affirm will be commonly available to facilitate all eligible purchases of $50 or more on .įurther, consumers will have the option to divide the total cost of eligible purchases into monthly payments at checkout with no late or hidden fees, ever.Īs per the agreement, "until January 2023, Amazon will be subject to certain restrictions on providing other installment products in the U.S. by other BNPL providers." This is massive news because it speaks volumes about the platform's strength. Fiscal 2022 revenue is guided to $1.23 billion to $1.25 billion versus the $1.2 billion consensus estimate.Īmong the company's other announcements, the most interesting one concluded the company's expanded relationship with Amazon. The company is also seeing Q2 revenue reaching $320 million to $330 million, well above the consensus estimates of $296 million. Transactions per active consumer also improved 8% to 2.3 as of the period's end. ![]() Active consumers increased 124% to 8.7 million, or 22% sequentially. The company just recently released its FQ1 results, with revenues skyrocketing 54.8% year-over-year to $269.4M. This is powered by Affirm's rich data and analytics, such as consumers' purchase patterns. One such example includes Affirm having the ability to increase AOVs (Average Order Value) and encourage higher sales conversion for merchant businesses. Affirm's customers also benefit from the platform's innovative tools, which allow them to build personalized and scalable products, boosting sales prospects. What differentiates Affirm’s business model is that the company benefits from self-reinforcing network forces, which bolster with every transaction. Technology-driven solutions such as those of Visa ( V) and Mastercard ( MA) also compete with Affirm. Legacy payment methods such as credit and debit cards provided by major banks still account for a significant chunk of the market. (See Analysts’ Top Stocks on TipRanks) What's the Better Mousetrap?Īs most investors are likely well aware, the "buy now, pay later" (BNPL) space is very crowded nowadays. This is certainly the case over the past few years, anyhow. AFRM also tries to be as transparent as possible in its product offerings.įor this reason, the company has been well set up for long-term, sustainable success. Since the company's founding, Affirm has charged $0 in late fees for missed payments, meaning it never profits from consumers’ mistakes. ![]()
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