Affirm (AFRM) 8 May 242024 Q3 Earnings call transcript

Good morning, and welcome to the Affirm Holdings' Third Quarter fiscal 2024 earnings call. [Operator Instructions] As a reminder, this conference 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. I'd now like to turn the call over to Zane Keller, Director, Investor Relations. Thank you.

You may begin.

Thank you, operator.

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

be financial addition, financial a considered call should include These In a measures. GAAP as non-GAAP to for measures. not today's and supplement measures may substitute

the For found directly historical non-GAAP slide on financial measures, earnings our Relations GAAP reconciliations deck, be to can Investor is available most our measures supplement which comparable in website.

Affirm's Michael our begin Officer; into Founder and the Max Hosting to note, Max call we begin. prior remarks today's Chief over from I Linford, to will line proceeding with Chief before Levchin, and Financial practice Officer. In in brief opening will quarters, immediately with me with Max call that Affirm's Executive Q&A. On turn are

Thank joining [indiscernible] mission. us for you, Thank our today. Zane. you

do, Manhattan. can see of earnings work had York But week. you you tell, damned, excellent a person as remote can premarket office our you live to we from another As trying New something call, and well-attended very this later be We're awesome we're excited in new, open in some for now, quarter.

all I note. think it's in our

Zane. to Q&A. into you, So Back straight let's jump

first please Thank the you, Max. With our now questions. we that, question. open your will line for take Operator,

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

wondering out from by fiscal in you pricing initiatives end recent could been near how too. the initiatives one then of will be But have all the Maybe quantify this volume if term, benefit quarter bigger pricing one and periods. helping majority the the of That sense. called growth slides the question, makes much But that year. the realized picture on

these to decide measures don't quantify, thing other. very completely super tightly honest. one be it's couple dangerous to We because the that hard It's to to leads

obviously, the wider us We a et underwrite increased have transaction's in every serves it rates, APR well which we decide of on, So going still range, cetera. but we transaction. still world

struggle wouldn't to management number in a And make the the distinct well. any about to want business very growing. growing risk put nicely. Obviously, future we we it, We here. are certainly We're from would really prognostications on ultimately, But measurement I benefit so keen on and pricing quite still are the impact.

harm that And so we no to do grow. as we will, first foremost, and

letter, And that funding you only I'd thing if can the less transaction growth is we revenue here the real add, other positive sure we transaction us at roughly you offset you cost post look year-over-year And costs, the revenue that Maybe see the measure. in for increase the bridged change the cost. governor costs the economics. provision unit incremental for our in and making

us in to And allows usual. the to And what business. like think was as be needed it revenue business the back in to is so to the done we've feel offset change the we about way rates we more that

kind picture, bigger up lot credit a card. the the got Capital you've in credit Okay. And Max, then Discover but One card, you've about elsewhere unbundling with the industry, and of a talked tying rebundling of

impact way? a could Affirm you as rebundling thoughts this kind also, And get in to your see love on or you unique then the broadly? industry I'd if more any how competitor So think that new to of

XX years. think that the all, most the of that's thing interesting impactful I services, is probably in singularly and happened financial First in last

to on foreseeing there One hotspot the go but for being having kudos leadership the huge it opportunity nothing, executing -- like team for the and like extreme do So Capital this. to respect

reach Discover's of especially that. given to creating lots is I do their sort view, from and think point to good another so of think, powerful network things -- of I

meant incremental network open creates market frankly, entirely there's us the -- it's with a and another plurality validates think even to in more I That's investors for the building, it or a whether any that because not just build good open thing giant network. idea, chance certainly is to business our newly, on still run Visa is that from the here. and any Capital what be we're the of intended happens to name Discover, to have this sure trying I'm different network, going the to top One are whatever products not is Mastercard. currently be on

level of at importantly, bandwidth underwrite equally with offer integrate is much consumers to ours make to at motivate SKU subsidies As fundamentally We know, directly sure a different. transactions and merchants purchasing. APR and you to that can data degree look richer we

view. So is network do One itself little profoundly the I more I that is actual deal a the a think thing, the of but of bit think certainly from Capital same, point the interesting

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

coming GMV just here the strong So performance up off of quarter, ahead growth well XX%. guide, obviously, very in your

is but a midpoint like you might perspective, seasonal in comps think fourth a XX%. typically expect I than QX what's implied Year-over-year the implying in the guide. quarter-over-quarter in little from quarter think the I GMV stronger for more growth bit harder,

would Or or more the color consumer? any plans So cautious particular tighten additional great. just any or to any there's to just wondering there be you if on underwriting call-outs

initiatives measured well. growth carefully, to to I'm on planned to boundary to Like has grow. It a next that that do I on sure to a have you trying we're run XXX time for wrong sure Michael quarters. that second, from business payments you make to share take way don't most risk. forecast me in importantly, be to we not share the really you some fairly will or just feel. grow quarter, on now. a But guide Yes, basis. at trying with we tell in We're around we get next fact what impact with have how quarter-by-quarter We chosen randomly but fundamentally is some look a a the is little that company our years you let quarter wants words a

think it's I a think is the product definitely numbers from that -- do about how of other risk, in certainly point to it cetera, -- like that's measured view. important know care QX I about not et of So important, point you years, growth like really growth numbers view, that's we think certainly and of through but from really just

of the couple a just then And about quarter. things Yes.

is So seasonally our see stronger strength We travel see guide. reflected categories that like quarter. in fiscal in you ticketing, and QX a

this growth last year. in at we of in high Our had does year end the than faster guide imply year-on-year QX

quite growth. So in from in out, a that's year-on-year point last of because acceleration year it comp was a course, it you grew And QX, tough QX. quickly pretty as

like yes, hard. APR merchants we we there, really merchants. XX% Pacific caps merchants with in our And to strong as adoption many and those Caribbean. called Booking.com. last like context Royal contributed new some the QX And we shareholder expansion year. with things letter a travel have projects the Cathay last Some We out did in also All deals comp very had launched some making of year,

of X-year our rate, a QX, high really from all growth the the If isn't but you higher a slight is look end which XX% guide decel growth, that at implies about -- material.

to wanted good ask that's I Affirm just Card. also on No, Okay. color.

the more letter the some initial the said that in cohorts product recent actually the it are shareholder than think of I using cohorts.

thoughts in we any conceptually, on would of And heaviest the just thought but you have Max. how then to card that might get might QX. kind the take think trend just adopters might on have I that, be GMV early curious users, your guys

great just by conversation that for So, is this I card where week, time. definitely This my last by question. measure. before was one closer give to my I walked a quarterly a than into this week something that much on I you leaders even day spend right one with day, eye outside of a is our sense room, And keep

are modalities that perhaps some new And of not the I product. Every launch So but people to which new totally people market unique you some at just necessarily happened. that reason but has that top it's simple. and would for to a a card time way, It that I'm latter, go a -- of in it, there, and former you anyway, put convert one wallet yet, didn't is their have in sometimes you're for experienced our reason analysts right. said their it normalization a vision put you the tool or some say teaching predicted category, adopters early of card trying the not and teaching and product, but a the I they bunch seem they're would the see is that I didn't should the now a hope pursue. for consumer too.

lots experiences most last use quarter, consumer made have the As out now it, end. you an very to people people feedback you have just easier X million user the and easy offer of and and and to. The tweaks and interface, are comprehensible lots launched love importantly, more to we attentive market, the we've we than and get more user to unaccountable and and some And the just of surprise cards some fixes card number which product eliminating issues, there and feedback. understand to with

do now where we I gas a in another find okay, another this station what now "Oh, supposed usage to as of people so that, I'm do point, And to points restaurant". supposed a we in so I'm do get or X say,

a restaurant real bit these might get trickier is examples a tip. because a are pay like you like little mode And later

is And cetera. so bill number, not et you on same et the your the see number cetera,

We find the That's think X% paying capture certainly still wallet that's And make closing on go more that's clip, of quarter. are top this to growing were think numbers, like card interesting so going smoother, we are that's for. usage. keep now. a we we why and quarter, and until and more. we Last to what Still and good a roughly incidentally, lot stat, not card those increased. One really consumer in XX% we usage we're as the but from we are out get we pay spend there's climbing, smoother aiming the just new

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

it's I'm pretty how resilient GMV resiliency? going I is have rising With amazing to that. to this rates, see surprised driving mean is margins interest and just what Like see up. I actually question. are one

That's a Thank complement. very you. nice

we my maybe tweet sure a is, longer, but Higher it sometimes it, thing. us. with So for about I'm okay, good people not said I before, tweets, read

just not resilience the minor that all are business secret, rates way. subtle it's our our as And dramatic down to We movements. XX ultimately increments, super cost a so up or change in doesn't fact is of the not capital sensitive isn't rate-sensitive bps long just move that rate in

I differently. lending think other businesses speaking

And rate-sensitive. at comfortable that are not that cuts. just are at set business we with very, the where the this property very without we the continue growth, rate growing and nice really for this us, rates or has has Ours operating we'll Fed

of Our comes Keane next Deutsche from line question Bryan Bank. the with

do the think card, the to sense pipeline trying Max, Just have a just mostly how given seasonality. it was bit like. you it the about I of about Affirm I what longer card adoption the was Card. Card? get volume just about will know want idea we trajectory good to of sounds sequentially, what of Affirm pretty down but and you picture of look little a like trajectory looks that a like the ask growth And probably as think the on

correct It is That's entirely assumption. seasonal. the certainly

more just not last it sure because, with as the not bunch be Very and nearly a as about quarter, We're so just we do promoting a talked said, interface we we of in product still it I to should not any have clip. on surprise. specific curve I for user shape happy we way it aggressively as improvements. I'm the huge will feel just the offer card could think still the a growth given I be stage, ship actively it's experimenting this so that very room about. We still we but easier of of a want there. to in that Obviously, But wrong that we're with we careful hyper-growth just have be lots it's very grow. We're rewards. of lots than and has right. feel kinds excited number to product now a margins, with to various it's to things

a to wanted I you bit it you -- trending squarely good a business. like think if really ago, just narrowly it wanted started years sort just of offer take it's now a multibillion sort widely measure, ago, towards dollar we one it if to of stretch little more X to very year

that at financial first end like can any dollars So other time within in been, from have where services just to a sure figure XX there are going. I'm if pure a for XX are where months. the launch you multibillion that up companies and product you not card

out. myself won't, got of I'll a on to have things cool never I roll lot we pre-announce but coming. I calls, features so really we've And stuff so these promised some

Bryan, Yes. pretty seasonality, on I'd we thing only cancel healthy capture increasing at to per QX. to a spend some is And the if look clip basis out add, a of a saw XX-month actually you QX at spend that from trailing user

very, very product right feel about engagement good we the on the now. So

year? are Got margin? it. and the off point jumping on of Got fourth keeps Or puts is And Can talk margin we I about? other you And some as to a think the beating the takes operating XX% you're XX%. seeing of it. think go to next about kind in there good guiding just quarter, that what adjusted we're And into expectations.

great a the us flat year pretty think where in and able been drive even strong or really operating in costs this revenue less we've driving with are I year expenses. of That's been a unit transaction meaningful question. fixed growing has economics leverage reducing quickly the to very Yes, growth real It's operating function a business. our

those so to And out. play trends some expect would of we

ahead we of still very However, opportunities optimistic feel do the about us.

So there's will on resources. need things that we're lots exciting working of that

we our folks expect put gave live above we to income there have numbers that we're investors that to November. out we to XX% the And that want growth be think continue -- within November. November. we that operating us so We definitely much revenue think out to our in we rate adjusted not are in going operating that above And put we well framework in threshold framework

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

on you're it Thanks some near-term and increasing should be there GMV versus framework right seems create the go to credit credit the DQs doing look is how a that of prior a appreciate now, which the like generating watermark. But we now? your there's some like a could way the at we of seems exposure this It potential yields given right for thinking morning. performance wondering, to that still call delinquency I plus increases. about high it out if I'm for deals fair on XX-day

credit these how should just some balance volume move? delinquency measures we measures of about may So think where other that of driving growth and versus

you, Good James. question, thank

earning, that loosening. note that we So is what I meant in would in Michael put not my That to means have it, invest over we capital which are does as growth. mean necessarily

time. In particular, is high delinquency in fact, rate summer, a seasonally

borrowers credit could create mean, and so the let's more so go invest important here. But you in more hand credit that, at bit always a it very, for delinquencies having And What undoubtedly mean fluctuations that job doesn't extra bias in quality will down. towards portfolio. there APR because time be little but of of higher the also up single which given any selection part on subsidies, just invest delinquencies, than to the take very little concerned that's most money does risk. likely with a seasonal in example, We're positive

And gains. the so reinvest we'll definitely extra

vigilant We credit. will over watch extremely still maintain an

don't bit, and about, the As entirely behave, we we've always tighten conversation thing credit not growth or just slow we'll continue limiter. discretely. don't we a say Credit little a we to want said and use well, a manage will driver is as we down, a if There's and growth that.

markets importantly, not credit growth we most want that our We like, results like. we can have as handle responsibly much as we but partners capital and before

look to grow. a don't offer we we'll at, be to can and possibly ways but framework double that, should there's coupling think manage stress, want intelligent coupling And all I just supposed and we'll I that not no we'll so we're for find And that separately entirely the there there, there.

called where and interface think Max. process the reducing you've out of down there, ask support have be Great. and want we're you're and bring a the are answer that done versus what the hear systems even of on customer at improve That's using upfront service friction. where Affirm into work that costs. I things usage great and I customer to the doing cost help comments, you're I kind user additional Card, on talked a support that some going those points to that can from you, side, then reduce where also things In the wanted about to AIS clearly, just like previous And on to can lot at and of of process? you feel friction on you follow-up

diving spend like minutes to XX I question talking stuff. next what complex about. Great, That's into that all the

card, so these come surprise, the but I things before, we whole this shouldn't think I a -- So we think on in streams. work as have mentioned a it of

So so have is surprises experience. and want mentioned And do we on. surprise a new our have card card that we the user product, of to now, I've with SUX, called work a the consumers as stream not plenty just there's

we've have like very, refund, It's edges. a if example, a are sometimes we've So some will very and to wants bit of more over the our sophisticated, runs And transaction card just own, polishing what Visa a match long a apparent the rough see over busy but this. done it cetera. to rails, somebody, sometimes glimpse some give you Because runs into little situations a you et -- just that's list. partial or you where there very for the And been card, it of is you there. use is

to you as and can have described. saying, ] going et calls transaction transaction CAPS it, XX with [ intelligent are serve transaction, sometimes this cancel fairly a your you I up not days, you who I whatever". more showed "Hey, the somebody, And matching, somebody better a logic matching And back so cetera, complicated. is chargeback, just in have the around

and you exactly it go consumer If be is, know what will call the happier. the faster will

thing, major sounds a dozen cost reducer, like for example. more they where there's it's that so X but from. small came a And like And

I'm of right sure that is nerd, the at PR, a terrified a pure of try least because side technology industry encountering lot sounding which much because of AI things, real we're is versus is am, in always or On make like too strategy our now AI what I we PR. to

investing idea and And calling the have versus so this GenZ really quieting problem we've been in chatting most chatting intelligent. really about they been, generally consumers dismiss AI, we've if -- heavily love with speaking, But certainly, fairly no especially it. an AI that is

question where There's lots solutions issue we satisfy hallucination et and complex have hallucination you lots you industry not can that a or One what problem, of is is or cetera. a a us, do and a sort of really consumer, I an things. problem, if very very, really certainly a policy to do very query careful. up obviously, smart of AI, the in thing of be is, a have come including or with, what bunch there's do in quickly people But a do everybody around what's I your have and as knows

And be that's really their by to a very to No lose there. more at replaced it's has expect to -- one the And been well. working job like do we firm. robot really, a lot early, yet

be as more over AI So the our certainly more, scale a in a going next saving X, terms of base short-term our to years. and we that's X, saving. X service and not customer ability employ cost to But that's

expect always to be for human. able We to reach a consumers

want what's they who of a time that But get think account, may with really really who's expert, hear understanding particular important. a dispute by that questions they happening transaction, an or whatever that's to have. the has to I human, someone they deep

lot prework can that AI. of you And with a

and lot try spending little we tech, it's is we're where like just AI-powered about talk much now. deployed. low our super to that. excited it's exciting not we're of But too cacophony that's so a too of it really a cycles right everybody because super And and a being [indiscernible] the Again, about

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

questions. had I on two the quarter. Congrats

that? this, but to a there's about way The I Card like first, was you're you seeing so with, And base, the particular if question. where about to credit your kind resonating have there about if I'm I then not talk Affirm customers of and or your income curious within in a in have thinking type way Were sure guys you're follow-up you disclosed talk or of segment? traction a Is any seeing band. given

transactor Two card questions. a this essentially Obviously, is transaction revolver. habitual or a card for

to fit best that's think describe perfect card. market I probably product with the near the the way

that many predict. a in the bands idea to of very want to say, do of the credit. someone can't some card. not our all tell way card. debt do marketing things and designs That's story I That's be like we the when finance message. have of to why -- expectations "I the the others I other and But explicitly", don't to address that the in to the We to they saying, finance consumers the ability I is have purpose a need

see have interest user. The the need need the buyer. pay on paid some comingle that over that's the user stats. right and I is not the what is things to we all time two. says, to for That be paid it hey, want don't and And going you be now. can I'm in a cup today, coffee. so of things And to some to And

it's if platforms I acquiring is [ user about probably that guess, if on in, adoption? volume. certain Okay. from doesn't whether helpful. your piece give impact was website, provider quarterly slippage of of impact, then then how solution sense. terms that any number And a cases being, guess, of thinking curious, is, about guys new for you there new where and in break volume I X or not mix? And or kind like you're were ] out it BNPL only customers, question core guess also exclusive mix you the new does think that BNPL your a the makes intents have the Is that paying my you That's transactors, customers mix. in the that where your new But of what's track installment, second to of I on of come

question, good to is may, some It's Yes. willing as will Michael that this. start not. lot my stats of I'll a to a guess share, depth have he maybe

In of exclusivity not, need terms don't win. versus to we exclusivity

comfortable other right because products alongside that we quite offer being BNPL very very, providers are unique. are We

so user And to good up, and customer checkout speaking, wherever be active what an is shows generally that particular needs base so that ability cetera. what really best that and our for predict is, might et cetera, et

in We also million XX have underwritten people States alone. the United

the itself. speaks for So brand

We mostly that which don't don't have or this late actually compound we fees, the deferred at we is unique are interest, interest. to unique et We cetera. good point, charge don't

are, knows there Affirm but customer point. our out. the now ones that there's takes think us fees, even stands that we're for. saying not And And this account seek no Affirm a so are I the meaning a yet, seems don't lying And an are haven't what kidding who market to we at long not persuade when be hidden or we it really time working to that they to

confident a through of in door. love competing important that product thing. exclusivity, so terms I'm And brand their probably go people who hugely X not that

alone us. us, are seem our So our not love in I'm but the users sure users of feeling we do love to

anybody. I my scripted better. say, a to Michael than it has side about and of if little a store you're numbers, familiar competitors I we like and the the trip was to my anything this else very gushing from from She a us couldn't market and read letter, "Oh, with you up from in have bit choice." the the woman by the god, specifics users? recent don't So and so story you're pick dramatic where of suffer think a have if made new comparing was know we just, everybody of I anecdotally so better being on with much side And us don't we add sort you where

No.

Every to reengage is we're have product that chance a think display. definitely launched site. user, every the existing acquire add we checkout, third new on understand the page, And currently quickly I the it's on there. when seeing only have do we distributed And distribution because incremental would shown products also time time oftentimes, we I that. case a a of is to that adding merchants or higher users. The where we're We it thing maybe on but that in a it side-by-side, a chance that our display that's rates merchant really there. second product us repeat as BNPL are power I is an see network of think tracks

Actually, Visa, of ever you underwritten not obviously, a really fundraising should used this, of least large you it add said being probably competitor". And that first "Hey, that I've large that we're again, deck it the our the like the a say of featured another to this I put showed a us say, Affirm Amex, for before company, earlier, one the one be we've and into thing mockup expects some to are, people, player do, of said in store together I grocery what should of of Mastercard, do percentage I'll goal alongside of be of this that exclusive have ultimate we property that and Yes. telling that other sort of a is a as to company barge just to but everybody store niceties we door door. checkouts sort convenience brand as have is at ability the million XX

by yes, where to lot we're the certainly there, is future and quarter, you I business in that a Affirm". trying now We're there's to place want And quarter back because we're the we're starting guys know next we yet, We're But use there. thing. add people quite not of to. probably who say, there I should get to if merchants "Well, going just a don't if get don't not to be run go to the we

guys I compete that sense, thing. we, that. of ]. own And even it's introducing or the I with No, reason good Walmart brand lot product how just obviously, and makes to The I viable [ about competing then a a is questions hear you think appreciate button and got their and how ask is we've

So I color appreciate the there.

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

at Just looking AOV.

now quarters really you've I'm now, of any Now seeing the tells for trends if using partners in usage point buy know for the wondering you're several sale in AOV at last shift are impacted kind from the what I seeing had. by transaction the over relative has to recent been some what quarters later larger future. users of and and about you're But water that you now to what pay a of mix that

disappoint where important sale going know we are this being and tricky trends based to to on the that see ebb where. I to you sold AOV those it, I'm have wanted correlate who is things flow any you'd it if like you I which stable, launched don't to note one. It's offer. pretty do, to and obviously what observations like and new outliers, X% segment are we on something if what

the sort I Affirm like want be your more more And That's so trending to for think, to business. is that it's say. with most, transaction. generally a but us somewhat down -- typical it's Card, AOVs and approaching a are things compute, a bit profound good AOV a would it's the thing not down, I Obviously, metric people that to daily our using debit suggests look speaking, purchases. Obviously, that to that I of of ratio have a think, we is

maybe I that dynamics? that's over guess quarters mix, recent sense of you the And going customer gives there on Okay. product That's a anything evolving changing is helpful. there

really. not No,

possible. I a think to serve ambition we transactions to as as lot many of continue have

that position I alluding downward higher in think the a strong Max function intentional a more is considered of value, is purchases, effort. clearly, a to lot the trend of order we average have

that where of as types, to card shows many transaction up like pay the products Some want including in we serve now.

Some shows higher allows of the order to us kind we're that that of average pursuing, in up frequency distribution serve transactions. lower value, which

rising bit -- moderated little steadily. you've not that I frequency as a the think AOV downward, the a has surprise quite seen

transaction size. up opportunity serving a know more strong have we purchases we some smallest are position so in where in continued And the and have higher ones really continued we that the

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

guess, you continue time on the of Andrew. provide to kind a some time. Is is follow-up off-line card you've a that can segments? been sustained certain Lamar from and to these seeing Maybe as the to commerce Card. increasing color you And there and then vertical I any It's improvements. one on like specific over making to I case this over improvements perspective as make specific Affirm penetrating relates strength some maybe on on, update it usage that for of like of the you're kind use where strength have

Sure.

which different fully speaking, mentioned are So we're obviously steady increase seeing three Pay that connected and swipe card, cetera. which product now, and the opening good. up That's now, are modalities split I that in generally pay is the to more swipe pay better. is There for a preplanned are now, as comprehending people now accounts. later. just just transaction, are et accounts, increasing connecting their to suggests money people They maybe

pretty it the gas and we're that restaurants, card think be good. We really, groceries and the to to in transactions, cetera. you a is really consumer of kind focused and all et sure is making valuable as that's day-to-day on useful So

to And a we to transaction so of to work what work do close is are device, type in forget checkout, and you cetera. some multi-line very of sure et that do there a which lot there's just expect make fire to

what on. So we're working that's

little stat a I bit. -- restaurant trying out seeing usage took of are that the the were letter, I how we We on up is to flash but think a picking

that we're not these about changing understand it long long invent with for just type happy to spec it it, time with make it's been that risk various a it. introducing I time. It's debit, sure card. results, talking to sort we've trending long credit a well. to so headline of again, of comfortable new long way important with It's know takes took is And early. the neither it that the time time modalities card a in quite the It are us us a a very, really long very now are we're it took really domain. But things takes a to nor but going time to build, we're

very early. still We're

of curve. the And first I to it's important S most lot of doing terms a what would probably features it's have in part of the no the in the thing. add. lot to and that's card room judge of when grow a Like just longer We

the El-Assal Our next comes Barclays. question from of Ramsey with line

model international As period credit current more about of into to you a geographies? markets? different model move performance you top your partners? And in U.S.? of on agnostic is roll intelligence it that, these U.S. funding Do out when of roll Or season look I a guess the of to what new as there geographies? the need lot geographic-specific will find you sort markets, is operating in sort out Is outside transferable comes to into models your where as have you then to

order. We'll take reverse into it

right, States. you to performance that's we some it negative, bureaus loan [ see Western formats you can behaviors and there, our data of and expect what similar credit is to Obviously, has put U.K. underwriting. data positive back. be same period venture built yes, out a reporting, announced a you earliest some pay similar ], learning, use apply, for around the volume capitalists in work cannot where democracy market and one absolutely of pays regulations called there, how work United both our types, It's similarities So next credit there intuition credit the The

good be are is the And another Canada, the so will really border. transport in our across success suggests U.K. to that able which good, models we test.

of careful. terms to to Kingdom going see time about volume make operate United in will roll and good We're $X feel our breath and of It to we'll very But happens. will We we hold what be ability in sure good. still it's trillion credit the take out to be that not gradual. performance, our

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Great. And follow-up for a me. quick

further of where general gone up us rising about there? the tide seeing quarter, Is they've quarters. additions new nicely with is in-store? type you're merchant merchant situation commentary verticals, a Can you success prior driver? New additions? nicely went Or in just particular give versus any is up digital this it What it

tide. We brand the I out I what sort letter. name didn't I of of stopped calling more bunch people of I felt brands rising practice down shareholder It's because a next like some the was flash cool in -- letting

So we convince but a and name time it always on their understand them can you couple, I'm to use shareholder have a effort sure takes to letter.

I So stopped.

logos a them great quite chasing lot. adding are We down and still

that them it, in businesses. And is in merchants awesome everybody midsized most through very businesses, sleuthing for do will because million $XX growth-centric faster. app, $XX If some excited to grow they search. acronym our we probably you are but million GMV frankly, a you when has different businesses have I'm But grow, where find are

to any event Affirm, midsized merchant sign independent a One exceeds majority that their want to when posture They of they economic growth that grow theirs. the of always up GMV variable and we've for of larger become of of And sized within interest our things rates want in that's times noticed exactly merchants merchants to do. what almost have in independent merchants.

spend time they their sales as budgets those of a about for we trying we to budget. channel-based what of to are my to direct a competing thinking are and CEOs what -- well are for How And bit talking really their so little always need? lot understand both they looking growth those folks. as their I advertising kind

us. so such don't how And figuring think, X% is like all that Affirm to out offer they really of APRs, really, as offer important sales, just use discount,

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and said with I something to successful to addition get that a the really harder have. invest in And to to now logos, just in are our want our that more distribution we product force who we that are can continue direct new we strategy sales, Max some that's distribute people help gain for us. is acquiring in which been has important a really to sales partnering of small pockets with reemphasize also

I'd the to no back floor time. like over Keller this closing questions There further for are Zane comments. at turn to

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

This concludes today's teleconference.

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