Affirm (AFRM) 8 Feb 242024 Q2 Earnings call transcript

Good afternoon. Welcome to the Affirm Holdings, Inc.

Second Quarter Fiscal 2024 Earnings Call.

Following the speakers' remarks, we will open the lines for your questions.

As a reminder, this conference call is being recorded, and a replay of the call will be available on our Investor Relations website for a reasonable period of time after the call. turn over to Director, Zane like Relations. Investor now the to call Keller, I'd you. Thank

begin. may You

Thank operator. you,

and Before make I These today's including only the call subject Actual we SEC, from listening numerous assume those or may any that required everyone today, we begin, to available materially our contain as would set like not which forth results forward-looking speak forward-looking by filings and statements differ today. are company statements. may website. forward-looking risks forward-looking any Relations in are remind statements intent uncertainties Investor to with that them, These our does to law. the of except statements obligation update as on

In addition, today's call may include measures. non-GAAP financial

be a as and considered financial measures. to supplement substitute GAAP should not a These for measures

Officer. Hosting to available non-GAAP be can deck in GAAP On a historical will measures, the opening line before For our begin. Founder Chief call immediately Max to remarks are Financial financial and and on most with Executive Investor call prior which directly comparable In Officer; supplement Chief measures the website. and will Max Levchin, our today's I slide Linford, Michael is in with from with our Affirm's earnings brief me found questions into Max to proceeding that quarters, we note, firm's answers. practice begin over reconciliations turn Relations

us you joining another share all today. Thank quarter. results Zane. for great excited you, We're of Thank the to

feel Back Zane. to directly the fewer around, comment results, them.This words enough the we As go I to is on Q&A. our to the used time to the you, better custom, good

El-Assal from of Ramsey first the question comes with [Operator Instructions] Our line Barclays.

the could think you year. if remaining help for us wondering quarters of was the X RLTC through I

puts outperformance. kind variables drivers, think RLTC drive our and should takes, could of How those of underperformance and the variables? or that impact are we what Sort about

Yes.

a there's of list. macro mix in number you're of and terms if GMV, obviously, of at thinking think, the of I the percentage top factors,

the If platform there. you're thinking on the be to GMV driver results going biggest was about total dollars then of

terms In of a RLTC mix GMV, the on rate take and of percentage macro. it's the really rate,

So the now. across offer perspective, and rates updated with That's from would consumers we've we a there. everything And products year base of we the that business going have. why macro we're merchant like environment really like guidance be our right in on mix our full and the there. We

the that margins And feel usual, that we as a of about back good year. RLTC feel percentage macro outcome other, good so current because take the the signals change levels the bake macro assumptions. And move of about forward half that goes obviously, as per one environment we're there GMV and could for we the the curve way into current or are of us. scenarios in. unemployment, -- our those where of current and the we But would

or like travel up ticketing follow-up me. out picked bit a list GMV Slide you where merchandise vertical XX, And Okay. has travel from any across performance call gone a merchandise key general to And just ticketing there can out has and up. comment verticals down more Are guess, there? and in gone mix, looks it quite On for general on I there? you your and broadly, drivers

is travel category. ticketing seasonal So and very a

calendar terms X like and in lowest summer tends to our quarters, folks QX. book lot it a vacation bookings in in of quarters, fiscal last of year, X travel calendar So the first of quarters be

done will as scale factor a fall there's think in there. a it's those, we not to that And and some our for has around And lot huge general category shopping of a we that channels. holiday spikes so be merchandise, for of in lots those partners largest unusual And there, is to merchant seasonality season see we purchases in and enterprise of bucket. that continue holiday

Securities. with next of Jeffrey line Andrew the comes question from Our Truist

of brevity sister indeed Max, is make talent, the I'll that clear. very

tender just I've a share. So GMV and of growth got couple questions on

I I growth? box then would the looks obviously, of appeared corollary, and I to ago, guess, come your enterprise be around tightened either to the credit holidays, a just of if back customers, fiscal elevated on a tender tender the the or share you half sign into that's or about Can it of end of or and strength? factoring that you've strong. year risk or and and be share the Max just follow-on wonder Michael, recall, during As accelerating year share underwriting aspirational how comment kind the And are

consumer, Appreciate days merchant-by-merchant by change time the payments, done of of say, a the XX April really so. and accelerated cetera. of or like first allowed our, change required it by we I single X.X The ago cutoffs sort was basis category product the amount more We would settings, as a of call 'XX to conducted that so it, most reacted next not on on product all. than really stress et we've the and steering. durations things since Box, comments, enormous terms a saw when marginal we to within as ago. real underwriting we year years also changed down category, is an significant We've the all

very, of where anybody numbers been since And the It's numbers a in off print and The for credit printed themselves. an time be they care quite the X.X I the last a to accident. of want change not to are We managed just our very, and sort lot major hands we of of work, very them we a lot very posture that we beginning there's years. So drove just up. what they we're deliberately. sort but to now us assume actively that not end are don't

expectations delivering We we those and markets, we expectations. to have capital intend with certain set continue

metrics our a of that And And lot put so that. that foremost. to and that's first governs

not merchant. done wallet wallet internally merchant We've holidays. that some gaining The just Feel recently And go of card been were especially in holidays, overall to the between perform the We of announced. self-checkout good about particularly over to the powerful. tender really some offline Shopify in And share sort of quarter, then -- very different noticeable in just are kiosks Obviously, over and stories share although really online has as extraordinarily. the we the well the things the some call a player has share, offline. generally on we until of performance -- continued cases, category. out strong one, and last

the grew partnership years Affirm. X-plus particular of accelerating that the set about partnership. rest of speed the of twice growth into That is of The products

their story And we offline a we're of we so just lot success. success out. excited been And things scaled that it's very obviously to to that They cetera. a a have of still not part be et aspirations own have of, have

long-winded and little of frequency where a And as of to of a tender being here, And very answer a -- consumer us bit I'm for various being support is available being and them. consequence as we comes giving encounter that able a so it's but consumer shops. share needs the

number that did able done in places able APR to we I'd thing And the cap to is in were only we is a that get place, completely now. of were with XX% more we the be add expansionary

to and will there wouldn't still but is And out come XX%. we there think so program because that we continues the we there, some any any margin benefit expect roll wouldn't as expect although more more benefit, scale of volume volume

Our next question comes JPMorgan. Smith from of with Reggie the line

follow-up surprised But most guess and this Congrats comments pretty on where that. were after a your the you had And short. quarter. a I I guess big beat. you I kept is then

We a are the and ship, run tight welcome try good. so surprises are to a to if rarely thing they

it company, Shopify to job I have we that with done a our out, together. all partners products, stand I there a to already think years -- as I their have called and support and but thought fantastic done

on had down I of but to been side, some sort any anticipated see productive a by engineering revenue. view, one surprise. other have [indiscernible] I'm bit design side, which that, surprises. teams an product and outcome. of percolates very little software noticeably had quite is the ability Like I'm not the on Let's like the the about surprising surprised our to give ship accelerated you to but how Actually, going of fact, what I'll inside and very side we sense

sort So I speaking, generally the low year. turnaround, around from it's of and the of that expected. point But this expected time last especially a faster goals, than more we it's I would rally a aggressive turnaround much if the

where in that be math almost that kind increase for just RLTC the below a then when to better pretty line? not year. at My expenses right patterns full half year -- think the your of Is back it like half I in not. Is I can And looking should rough And if of your I the comment a and on Got Like I'm we you But to be sure margin, driving it bit, the year margins, what's And it your of million implies show that's guess technology? $XX implies the see or marketing sequential helpful. guidance was tends increase front it little a would sequential thing? seasonal of of operating the third at than that up? quarter, look that? it. the if

number guidance provide don't for specific a We Yes. there.

exaggeration our guidance that can in factors to So think you on But little right. calculate which sometimes of as to that's a way And build lead the it. bit about. we of couple there's a

the trivial, it to tax because end first bit remain and higher. from excited there pretty stock-based will compensation things are Firstly, our new that both us. a quarter-to-quarter. And this year, we the then in with will -- quarter, ahead for is sound share really create about becoming those two have of the also a you -- we lot their up promise does reset with people but do to opportunities I obligations little tax more actually because big. price payroll expect And We sequential associated both the be bump but very

be think give to to and where build and I whereas strength in do until to license operating efficiency, cautious think quarter's to resources could our very to operating add we be expense, us been it. that with unit be And we've economics to continuing go demonstrate the chase new a I the little results respect willing products we around should thoughtful this opportunities. adding we're so And new

comes Mizuho. question the next with Our of Dan line from Dolev

-- questions. Congrats, the and team. two Great results. have Mike Quick and Max question I

disagree one guide. GMV guide we the reaction, is the was that knee-jerk conservative. the Obviously, first The which on with is

beat $XXX million. by You

and You're by GMV, increasing you macro. $X very upbeat billion Is conservatism? about it like the the for just -- guide sound

all full a floor we providing only year, have I long our just Yes. mean, or the guide. we're year full like for year

pretty big we a floor up year. we . excited did our remain for upbeat the We up which in expect billion, so what we step very opportunity. is take $X And the by think and about would

question then it. No, seems that's other the like. opportunity. Got Yes. deposit maybe And on direct of kind what it one

had tremendous terms with people the You've you card. deposit success and that usage the talk about app? doing direct a little or what for the bit into of card you're Affirm are the the seeing into frequency in maybe the Can

future We little the about days gave A XX-something name early. ago.

the is to But about versions about it. feel very for. done it early as So that brag hope it's as a well It's little about we good could in early the we results.

account. working have an required But more of of there's mentioned before of very things think that product, before, great. for stages coming definitely kind Affirm you It's things but We specific just couple -- a are usage. three feel this can a call really that I and lot I yourself on

X.X are frequencies percent user, cardholder, If holder, a a non-account XX-plus year-on-year. transactions and regular you again grew year not

a that holder. fairly But it and have goes about again, significantly card quite if are if is an lot, you grows you Xx, a up then account

because driver So that's accounts for us well. frequency excited to give as very people to a more ultimately

comes next question Wildhack Rob from Research. line Our with the of Autonomous

different Ask volume a a on in question way.

seems accelerated second half to within shareholder for December the the of updated half, called accelerating pretty to rest X out outlook over each quarter then and half. point growth slowdown in month, to the I the healthy a think the the volume letter year quarters of

seeing? So might be I your on slowdown wanted driving if to there's that get anything that you're thoughts what specific

think outlook for I just is floor. full year again, us a So the

number and would getting the that the something would any suggest a second change with, happy QX down we we'd And for a can midpoint. good done not credit right you're our something squeezing fundamental calculation is That's would how of we'd factors doing probably Separate or cautious a even quite inclusive go had be range of -- really strong a but that be isn't bit. we taking all to from we range of QX, pretty math ceiling so not being the where probably business. outlook And is very into QX expect given number And the is nothing in about we've that take a so any on mindful to that, a we balance on quarter there's to be business that right? would for, the up ever really take But say build year that. and of that want now. we're slowing our that's that of

you the to Okay. to line but flow appreciate fiscal how potential cuts want to you be costs? would in bottom something I those would this RLTC play to higher through your and this do then or year, And via picture, savings rate not drop margin then funding may strategically, expect And interest for different?

question. great a That's

So users about help constant, are understand factors moving. to us other benefit. line. the -- that if in rates, response public. or rates whenever a to high really about and a them. a it's at hold in business to we reengage range We we've not if employment, rates new But And then in talked in all rates that, would acquire to other why be earning in engage if to decline we stress able seek the economy, change the would would are one-for-one reengage specifically since seek think were then and run gone to need that you RLTC continue we the to reinvest above the moving to in we the X% Certainly, we've end products the X%

of of Jason Our line next with America. Kupferberg question Bank comes the from

Is obviously of guidance? So shareholder item you the you range that's on the coming the side is curious line just in have fiscal income from letter, quarter much income. that to say the doing also it the really you for revenue from highlighted a I been how that interest And was fair line, that revenue job X/X your think relative year to the most growth to equation. revenue the good the in interest the upside of surprised of guys guidance

fee outpaced the that's flow good No. Certainly, creates the unit Whenever we probably have in growth, surprised merchant growth. it we're more happy economics P&L healthy think but I have, fees we're outsized. do to the GMV way merchant to full pretty with a through

think RLTC strong merchant expectations I of had some P&L the we for really the performance line. by the full actually our above around and the healthy driven flow-through was

rates interest by wasn't Yes, costs, in is And that, the growth the funding in as a that's faster than as revenue growth driven higher this total against aggregate interest income remember, sheet steep interest funding well pretty growth both fact, the we're and balance income. rise benchmark that there. in grew costs But year.

is, substantially that here. -- it's And tailwind don't where it was see so that real to get managing that's rate this to then those year. be the still than the a to through also the we of for benefit last we business lower while We're the the see us as end will future. as year that abate, able things And important case begin environment

then And that fiscal card latest makes No, like curious severe I'm suffered on the because Affirm that GMV. volumes because trends. might have heard GMV this others a X-part GMV you of for any year? And just your January Okay. weather. expectation of card-present we around then What's from question kind sense. comments

all if at wondering that? just your business from So benefited

I QX card from for where growth half seasonality estimate now. the that in seasonality is talked of card growth the briefly about year. for half really thing had strong volume actually would that for think the means was the not card the growth I you the everybody through important in card, QX. balance was pay the and should card a We other letter, in to as the underlying this is say which of just volume the the of outlook I think in we've So about won't attention the and What to and be we card, given any really to, which would

pretty in we're as mind QX up season. a card. the from benefited is keep by do in Just from still point consumers early the And big to spend more starting seasonality QX holiday QX enough the with step

Fortunately, we're not card our seeing things impact like weather performance.

Our next question line from Shea the comes UBS. Jill of with

that and an partnership you on stats share I update was you us could us, could any with if be Shopify that wondering provide great. would the

nothing quarter. and strong. over it's last Tobi consecutive they've ] just [ our but the unbelievably CAS is us had. old things partners picking there, It's there's just going program is this extraordinary is ] say for one execution and [ fact still of about of been both X but the fourth nothing The accelerated great, to highlights Arlington that steam and team It we up the partnership in and quarter that the wonderful in and to years been and excellent

drop I think stat. that already

the But on there's strongly quite things. of and aspirations there. a speed Affirm program twice now they're Shopify what we're lot GMV growth the side the doing still of of at after overall synergies the They and off-line grew going that have

we're host of going whole programs contemplating forward. a have We

that job there's The of very lots just with us. to be that for accelerating fact feeling the So of more good. it's suggests both had growth

line Our Morgan James next question Stanley. Faucette the from comes with of

X% long should type had that you metrics. driving like, end like those Can just on on little up. all particularly how quarter. needle that duration long promotions. December I very And ask guys, generally within some about it think And of but rates the think Just Is X% It talk terms on some, Thank the other you customer wondering wanted and time. that duration to in bit supplement, I that those towards impact a that's up? tick Great. in terms of for we in enough picked promotions? seemed you're what's the margin, rate bringing these the anecdotally, at you the of if longer increase also group? much in both this merchant to afternoon, move that showed merchant your of of about RLTC with least

to really good think gone longer-term it's have The programs have I merchant that. question. much of than not as more X% our rates and there's Yes, up, needed higher a fees any really it

mix benchmark to So it's and rates. the tied

course, We're prior to the have very skew a as it in, credit In in that that. to lot much terms little bring quarter, on been, you we of high it customers the higher partners active. kind could We, change from mix. do change awful total average the we merchant Affirm. we at repeat, do the those bit when given we of quarter and an were promotionally our second products. does anything the terms of really where continue But the levels the in in going it's not meeting didn't spectrum of But providing it's of

really there's there. So I a don't wouldn't I trend fundamental -- think

out and XXX,XXX that by ask, And growing How availability as it, I'm that to of interest Got really right? it's or how we you kind I bearing. but a we you think use said about available it. the I'm think talked to people it. then a cards, will around pool rate maybe the how is, nicely of Got should you're credit comparison, should the convoluted obviously run that's about send is wanted Affirm that it seems most a, wondering or little about quarter Because card month. a bit you sorry, be of cards question, growing

in credit gets cards. new So you growth pool add available absorbed, some then there's that as that but more of credit

think buy sense. in should growing how we Hopefully, makes vis-a-vis that question that just So potential pool growth cards. the to about

tell I'm I'm going to answer, their but to to me try own answering free feel that questions.

is, us to least I I consumers the the I'm create to interpreting answer for card to asking guess is this availability overall, yes. So -- way available does And answer think you're the take try new transactions pools on? at

the card the Our versus different. with is off-line card without drastically usage

bringing It's of than really of because cardholders transactions not And from more so significantly the are transactions magical they're it's that for, entirely card. those all non-cardholder people these all transactions they And for incremental. because requested higher it to why two, a they're committed average stores. are are user,

a So touches it's open just it larger opportunity. field

of sort for no in there's and sense on credit that terms this the before, et cetera, In time, the we -- our of talked but underwriting exposure and change we of do about calling score. longest side, internal the called sort which us underwriting that world credit this really our precise in transactional And ITAC, underwriting allowed the level. transactional the is thing at to Affirm card was the

a user every still we underwrite holistic we augmented say to Some borrow to number very credit with feel to that that of the our right have traction. to a allows and the but to addition score us transaction, what's which you. score money so. ability to sort underwrite lend a reserve overall more do still have quarters capacity and individual of cannot we every we pay we consumer ago, willingness back say both to us in about in good We

we the the card and off using the limits. same And same on variables of the scores and of set card set and lend

the next borrowing point-of-sale ability of against transaction. you all can to can of same set card borrow using with the you it behaviors approve observed variables our that same so modalities the solution from set of of on on different an Affirm and And the card, but two borrow integrated governs goes the

the that's the in all optimized checkout online The way thing for created like is to that multiland shopping. it's everything about card convenience environments

provide a to expansion expansion but willingness not I'm you take happy if more our of think So lot details that an on risk more it's an it, like. of I answers to but opportunity,

can say near existing of users. the exposure what We there we there's and we other on drive for we would I nowhere population. lot limits the cap we're don't the these to think think with a the near for about frequency thing think that think anywhere we're is think sort I some limits users of

of comes with from Jefferies. John Hecht line next Our the question

selling just least I generated interest had was down. have versus the for I kind going is good. but like you that year, the appetite and guys of execution is an ABS you thinking loans sales yesterday transaction, retaining curve getting execution Like think, you looks this the mean, about there It guys the rate, better, at

we of just balance about how movement think the kind marketplace do sheet versus the course over So of movement year?

Yes. the question. Thanks for

So we and price deal, so lower cost XXX an an did basis deal of December. than we did we ABS in a at did points all-in capital,

So the credit market reflection capital macro very a a outlook of in short and but really for everybody, is And over that, disciplined markets. think, think, healthy period for think of ecosystem give time, the improved taken we really approach you're is seeing sign And system us, in that. us specifically, for debt valued the we the getting the capital credit that we past for we've is a an to year more both overall.

just ABS deals we feel the do revolving we do ] When about the strong the end those our [ like that. on one sheet. so we And did deal, up balance very XXX

it while off sheet. so about channel, do And isn't that funding balance think a important really as we

involve of that gone the although Our both existing expanding to well. some the off-balance sales, whole the really Those some excited strategies whole opportunities feel sheet new loan term we mostly very respect pipeline securitizations. non-revolving have do loans, conversations we With have. we selling and partners about

the to value frankly, There's we've continue And us. that asset real good put us outcomes kind that yield for credit driven. had. for sell be we I that think ABS into the has at allowed given very to the to that able being has to us prices really consistent aren't of market with the reaction the

that's X, is able and don't since the proud the capital The enable way volatility remaining As said the I'm that and program first of the past in enabling all year has the extremely we we growth been that than team growth the over delivered. all and through the we've to support the business, foremost, one things strategy we've case, are other. day always have the do the better

efficiency quarter, The is And to we're that. running deliver second very if economics. the priorities. this to unit piece. about did of priority want we like our the loan efficient but more to the the obviously, of capital then That's strong And manage to X% third Clearly, we past range it's feel whole X% program. begin third we sales three the the are

lever. so want that wouldn't we And really to overuse

And exists and strategies then is each our really of another. reinforce last the one comment capital

And other. going continue us to execution, continued means and one continued won't use our pivot lines. really see to our to all so forward or you the scale flow That ABS of warehouse We're of channels. continued

Our from Kevin the Piper line with comes Sandler. Barker of next question

the larger portion preempted charge-off a GMV by partially drift up would be you're bit reserves rate point was a there of to of well. last there charge-off rate lower that quarter. as being driven tick little just given built So could quarter seems a seasonality or coming Is to anything like seeing in Affirm have out you net there? And card? charge-off the you in It through expect may that the

portfolio. credit drive No. going is different whole I card don't outcomes to the think for the

to on on but I might more card think enough much don't users small larger, portfolio you yes, gets the it overall, and it's the I of when now, have credit specifically it begin the will Obviously, yet. the level better really to numbers big see think point nothing do But is material to affect there's outcomes where repeat really enough a charge-offs. I to repeat impact. usage total for think

at days. to towards likely XX XX to they or Delinquencies charge about we charge-offs. Again, days I get once off go policy, our past think overwhelmingly charge-off are XXX

to So the charge-offs handle we that have a all pretty estimate. good future sense at of full that allowance we and times

quarter. and here last leaning time a do users. generated? bit little to you you credit seems given to the in opportune that's attract profitability up that more being think I mentioned an it's acceleration that like were your you Are just opening It box

Yes.

units us strong give more than permission anything. that the think to I do

So in us. X% the for of we as percentage real talked about X% to That's less cost GMV. transaction constraint the revenue a

new reengaging continue that range, very we're we And aggressive and else. anything if so acquiring so the users. constraint can And more much be to in that's really than on

question Michael from comes Goldman next Sachs. line with the of Ng Our

housekeeping long uptick affect forward? I zeros fee active just have have explain question. for And second, bigger-picture obviously rates a a core dynamics help first, the this X.X% may just two, that last the that mix and been in you quarter. the any just there Transactions going then per or initiatives question. growing merchant Could are

the You're because it's about these the necessity of using seeing installed customers. out customers does that become and .== credit? of strong or durability is What more of Are habitual it's this it and customers a experience? tell of a really the also repeat loyalty about you engagement better Or base users?

don't be does don't And there. So on true also answer a think it mix in in the about been That's And of where this I'll charge. we function really there's merchant We rates Max driven. price, slight goes that the especially so rates. the tick-up one is of of the it rate categories really the merchant supplement. the I -- frequency again, being sensitive mix fee of always function in category, as I it's The question, but talk always pretty business. for mix terms first let began the question, see as broader you read you into trend in on our is that's to out why that. a duration just on environment, within up, a just duration breaking price

the of available than reflection that anything. a becoming product more it's fact think is more the I widely

popular. reference of I by as it the think liked the expand in availability. It's them, sign product earlier, Shopify some does The and made result wider partnerships up we users. I is well the

right X top Brand of we make and hard supporting to Affirm questions are service sure those. and there is of fewer now, work fewer isn't very One why customer our in

no for in the private by highly up available, would more and they're as I we And more are also the having than so we available as unter naturally is increase. form card interest, chance that become the become we a late as Affirm of good card offline that credit in usage credit goes consumers or better choice, transactional beneficiaries things more we've broadly, card frequency as no in fees, utilization opt the of product that product that velocity spend a think the rewarded and compounding opinion of well The all you'll given spend my biased and integrations some than the done, see bring. of

from comes Wells with of the Bauch Andrew question Fargo. next Our line

me card or just broadly if usage. update asked, already X anything an been seen around its around that evolution months has this get but And I Affirm that Excuse a with want on what you be to would categories? behaviors another surprised into you've great. Just anything

It's going well. really

supplement continuing grow of are worth, growing the point it's of of view, in we which reasons. scale. et mode a my service, means You new can cetera, customer for such as good a From we're services also to cautiously One, see merchant it's resolution, that operation, downstream it. dispute that couple what for the it has disputes, to

handle grow of in various memories all for longer So little feel how we've cetera. commerce, that it conflicts learned to before muscle occur a to the we're important while et going deliberately inevitably we that

we the very good growth. so And feel about

have on many, that. many We increasing potentially turns more

do gone dangerously to it. We all at investor there event is In making were good more actually to card on use to plenty year surprises, more plan, terms reasons last on the often. close of about to the things talked generally

all programs just do Affirm features to to still the a We plenty not considered integration mind come. have card people Affirm which we've more give with there's to There's purchases. of reward transactions, between done account, in things but couple and tight reasons use that card with, for

And very just making feel of things as do modalities power so is card enable really to brings. there, as basis that There's the we map point early. road view, very, see of the sure the understand consumers there use do of once the both right then we well on a And that's to -- frequency of it and that we from my all long figured that, have is to growth a that lot it. more full now really out, when still

into it next of is and order further function get [indiscernible]. then the a the just Or just finally green kind find the leg the to light growth of card dollars -- you extra the leg put leg marketing growth? moving to next into of of that sales really of that the to solution and is And in

That distributing card to -- it's really allocated -- foreseeable not any It's get I any budget. how grown. the future. in going towards don't marketing is dollars there's anticipate any not It's

the a And in been so card, have you today, before. to get to transactor have Affirm

being standing, to adverts -- to overall to "Hey, We marketed the one we say, try fairly So be than quality credit the to eligible react you're have sort affirmed we've journey restraints, good and you still use you visible to without down when have no, you of should higher do You " in although the the be Affirm want really think fairly it, kept far too you much standard of to then a it's it Affirm. have card?

the tilting still get in favor we're card that are a not little the in of cutoff consumers scale everybody same terms level offers of else. bit our as at quite So the

one much opening approach a loan a remote between increase you taking or But go applying you the away have number the former a naturally taking aggressive obvious card. of out of on funnel. more the up for that's for a so the can card And now, can latter. onetime way you Obviously, down imagine right a virtual example, will choice

meaningful levels just certainly that meaningful are of that's if Affirm, a not non-dramatic several to get And on you thing have there but do So a is tomorrow, a to change. to with ultimately, And not up trajectory we that just going got sign card. yet. chosen point, growth some then for we're you at pull

So it it's while still pretty a for sounds going here. be like targeted to

I for about stops goes, feel card that time good now. the growth any but forecasting very Not or

the to you. turn are back floor I for time. no over this like Thank questions There to further closing Keller Zane And would comments. at

call speaking you, with joining We to thank today. for forward Well, look next everybody, the quarter. again you

This teleconference. concludes today's

your you Thank for You disconnect participation. may your this lines at time.