Affirm shares jump 9% on earnings beat, strong guidance

Affirm Holdings reported strong fourth-quarter earnings that surpassed analyst expectations, with adjusted earnings per share at $4.62, surpassing estimates by $3.77. Revenue reached $1.17 billion, a 33% year-over-year increase, with gross merchandise volume growing 36% to $14.1 billion. The company's net income for the quarter was boosted to $1.6 billion after a valuation allowance was placed on most domestic deferred tax assets.

CEO Max Levchin highlighted the company's continued profitable growth across the entire profit and loss statement, noting that revenue less transaction costs increased 39% to $589 million. Affirm also announced organizational changes and plans to launch ShopPay Installments in Australia with Shopify.

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