Affirm Stock (AFRM) Earnings Call | FYQ2 Breakdown

Summary

このスクリプトは、アフィルム（Affirm）の財務結果と今後の展望について詳しく説明しています。アフィルムは、後期取引で株価が15％下落したにもかかわらず、強力な四半期を報告しました。売上高は前年比で48％増加し、利益は93百万円のプラスになりました。アフィルムカードの利用は700,000枚に達し、売上高に対する割合も前年比で増加しました。また、アフィルムは、今後も支払いやクレジットカード、そしてフルサービス金融プラットフォームへの転換を目指していると述べています。

Takeaways

• 📉 株価が15%下落したが、四半期の業績は非常に強調的。
• 💹 売上高は5.91億ドルで、前年比48%の増加。
• 📈 総商品取引量（GMV）は75億ドルで、前年比32%の増加。
• 💳 Affirmカードの発行枚数は70万枚に達し、前回の5倍。
• 🛍️ 旅行・チケットの売上高は前年比56%増加し、全体の成長に貢献。
• 📊 売上高から取引コストを引いた利益は1億8700万ドルで、前年比68%の増加。
• 🔄 返済能力は良好で、30日以上の遅延返済率は年々と四半期ごとに同じ水準を維持。
• 🚀 Affirmは、PayPalの共同創業者であるMax Levchinによって創設された。
• 🌐 Shopifyとの提携が加速し、GMVの成長はAffirm全体の2倍速で進んでいる。
• 💰 四半期の予想GMVは58億から60億ドルで、売上高は53億から55億ドル。
• 🔄 資金調達能力は69%で、他の金融テクノロジー企業よりも低水準。

Q & A

アフィルムの株価がどのように変動しましたか？

アフィルムの株価は、アフターアワーズで15%下落しました。これは悪質な四半期報告ではなく、前の四半期で株価が大きく上昇したためです。

アフィルムの四半期の業績はどのようでしたか？

アフィルムは、実際には非常に強い四半期を発表しました。総商品取引量は75億ドルに達し、Buy Now Pay Laterの取引量は32%増加しました。

マックス・レブチンはどのような人物ですか？

マックス・レブチンはPayPalの創設者であり、オンライン決済をデジタル化した重要な人物です。彼はElon Muskと一緒にPayPal Mafiaを形成しました。

アフィルムの売上高はどのくらいになりましたか？

アフィルムの売上高は5億9100万ドルで、前年比で48%増加しました。

アフィルムのオペレーション利益はどのくらいでしたか？

アフィルムのオペレーション利益は1億8700万ドルで、前年比で大きく改善されましたが、まだ赤字です。しかし、オペレーション利益を調整すると、9300万ドルの利益ができました。

アフィルムの株主への書簡でどのようなコミットメントが再確認されましたか？

アフィルムは、信用性能、ボリューム成長、またはイノベーションを犠牲にしないで運営リーバレッジを築くことを再確認しました。市場は当初は納得していませんでしたが、12ヶ月後には彼らが約束したことを達成しました。

アフィルムのカードの成長はどのようでしたか？

アフィルムのカードは、前回の報告以来、500,000枚から700,000枚に増加しました。これは彼らのビジネスの一部として非常に急速に拡大しています。

アフィルムの将来の展望はどのようなものですか？

アフィルムは、今後の四半期のGMVを5.8億から6億ドル、売上高を530億から550億ドルと予測しています。これは前回の結果と比較して、成長を続けています。

アフィルムの取引コストはどのようになっていますか？

アフィルムの取引コストは、総取引コストの350億ドルから325億ドル～335億ドルの範囲で予測されています。これは前回の四半期よりも高くなる可能性があります。

アフィルムの株主への書簡でどのような戦略が説明されていますか？

アフィルムは、少ないリソースでより多くのことを学び、より良い会社になることができると強調しています。彼らは、金融テクノロジー投資家のワークスペースの上にこのステートメントを置くべきだと述べています。

アフィルムの旅行・チケットの成長はどのようでしたか？

アフィルムの旅行・チケットの成長は56%で、総成長に重要な貢献をしました。しかし、スポーツ用品やアウトドア、ホーム・ライフスタイル、電子製品などの自己流儀のカテゴリーは、総成長率の向上に引き続き影響を与えています。

Outlines

00:00

📉 股市动态与公司业绩

介绍了一家公司股价在盘后交易中下跌15%的情况。尽管公司季度业绩强劲，但由于股价在上一季度大幅上涨，市场对此季度的业绩预期过高。提到了Max Levin，PayPal的创始人，以及他与Elon Musk的合作历史。强调了公司在运营效率、信用表现和产品创新方面的承诺，并提到了公司在假日季度的总商品交易额（GMV）和购买后支付（buy out pay later）的增长。

05:00

📈 公司业绩与市场反应

讨论了公司在不同业务领域的业绩，包括旅行和票务、体育用品和户外家居电子产品等。提到了公司活跃客户数量的增长，以及公司收入和交易成本的变化。还提到了公司对未来业绩的展望，包括预计的GMV和收入，以及与上一季度的比较。强调了公司在股票补偿和信用表现方面的积极变化。

10:01

🔍 业绩分析与未来展望

分析了公司在不同业务领域的业绩，包括B2B产品和国际增长的预期。提到了公司在加拿大的业务表现，以及公司股票的表现。讨论了公司成为全方位服务平台的潜力，以及公司在“买现在，以后付”（buy now pay later）模式上的可持续性。强调了公司在信用账户和国际扩张方面的策略。

15:04

📞 投资者电话会议

描述了公司与投资者的电话会议内容，包括公司的前瞻性声明、非GAAP财务措施的解释，以及公司管理层对公司业绩的讨论。提到了公司创始人兼首席执行官Max Levin和首席财务官Michael Lenford的发言，以及他们对公司未来业绩的展望和策略。

20:05

📊 业绩细节与市场动态

详细讨论了公司的业绩细节，包括GMV的增长、不同业务领域的业绩、以及公司在信用和风险管理方面的表现。提到了公司在Shopify平台上的合作成果，以及公司在产品开发和市场扩张方面的努力。强调了公司在信用卡和账户持有者方面的增长策略。

25:08

💳 信用卡业务与用户行为

分析了公司信用卡业务的表现，包括用户使用频率、信用卡发行量以及公司在信用卡业务上的策略。提到了公司在信用卡业务上的增长计划，以及公司如何通过信用卡业务来提高用户参与度和交易频率。强调了公司在信用卡业务上的长期目标和策略。

30:09

📉 股市反应与投资者情绪

讨论了公司股价在财报发布后的反应，以及投资者对公司业绩和未来展望的看法。提到了公司在股市中的表现，以及投资者对公司业绩的预期。强调了公司在股市中的表现与公司业绩之间的关系，以及投资者对公司未来业绩的期待。

Keywords

💡アフィルム (Affirm)

アフィルムは、このビデオの主題である金融テクノロジー企業です。ビデオでは、アフィルムの株価動向や業績、特に「アフィルムカード」の成長と、オンラインショッピングにおける「今月の支払い」機能について説明されています。アフィルムは、消費者金融サービスを提供し、購入時の支払いを後延させることができるサービスを提供しています。

💡株価 (Stock Price)

株価は、企業の価値を市場で評価した金額です。ビデオでは、アフィルムの株価が15%下落したことや、過去の株価動向が説明されています。株価の変動は、企業の業績や市場の期待に応じて大きく変わることがあります。

💡Q2 (Second Quarter)

Q2は、財務報告において第二四半期を指します。ビデオでは、アフィルムのQ2の業績が強調されており、売上高や利益の向上が報告されています。Q2は通常、7月1日から9月30日までの3ヶ月間を指し、多くの企業にとって重要な業績評価の時期です。

💡GMV (Gross Merchandise Volume)

GMVは、企業が扱う商品やサービスの総取引額を指す指標です。ビデオでは、アフィルムのQ2のGMVが7.5億ドルに達し、前年比で32%の成長を示したことが触れられています。GMVは、企業の市場シェアや成長力を評価する際に重要な指標となります。

💡PayPal

PayPalは、オンライン決済サービスを提供する企業です。ビデオでは、アフィルムの創業者であるマックス・レブチンがPayPalの共同創業者であったことや、その背景が説明されています。PayPalは、アフィルムのビジネスモデルやデジタル決済の進化に影響を与えた重要な企業の一つです。

💡フィンテック (Fintech)

フィンテックは、金融サービスとテクノロジーを組み合わせた業界の総称です。ビデオでは、アフィルムがフィンテック企業であることや、その業界における位置づけが説明されています。フィンテックは、伝統的な銀行業界に新しい技術やビジネスモデルを導入し、より効率的で便利なサービスを提供することを目指しています。

💡アフィルムカード (Affirm Card)

アフィルムカードは、アフィルムが提供するクレジットカードサービスです。ビデオでは、アフィルムカードの成長やその利用状況が詳細に説明されています。アフィルムカードは、消費者が小額の支払いを簡単に行えるように設計されており、アフィルムのサービスの一環として重要な役割を果たしています。

💡マクシミリアン・レブチン (Max Levchin)

マクシミリアン・レブチンは、アフィルムの創業者であり、ビデオで彼の貢献やビジネスの歴史が触れられています。レブチンは、PayPalの共同創業者としても知られており、デジタル決済の分野で重要な役割を果たしています。

💡Earnings Call

Earnings Callは、企業が四半期ごとの業績を公開し、投資家やアナリストに説明する電話会議です。ビデオでは、アフィルムの業績発表後のEarnings Callの内容や、その重要性について説明されています。Earnings Callは、市場に情報を提供し、企業の将来性や戦略を理解する上で重要な場です。

💡Shopify

Shopifyは、オンラインストアを簡単に作成できるプラットフォームを提供する企業です。ビデオでは、アフィルムとShopifyのパートナーシップが強調されており、その成長がアフィルムの業績にも寄与していることが説明されています。Shopifyは、アフィルムのサービスをさらに広める上で重要な役割を果たしています。

Highlights

Stock is down 15% in the after-hours due to the stock having run so much in the last quarter.

The quarter was strong, with gross merchandise volume (GMV) hitting $7.5 billion and buy now, pay later volume up 32% year-over-year.

Revenue was $591 million, up 48%, and revenue less transaction cost was up 68%.

Operating income was $187 million, still in negatives, but adjusted to operating income, it was $93 million in the positive.

The company reiterated its commitment to building operating leverage without sacrificing credit performance, volume growth, or innovation.

The company has the fastest year-over-year GMV growth rate and increased funding capacity.

The Affirm card has scaled to 700,000 cards, up from 500,000, and is growing as a percentage of their business.

Analyst Dan Dolv, who covers fintech at Mizuho, has Affirm as his number one pick and believes it's a $50-$60 stock.

The company has been tightening its belt, improving efficiency, and focusing on becoming a better, more competitive firm.

Travel and ticketing grew 56% year-over-year and continued to contribute significantly to overall growth.

Active customers increased by 133% year-over-year to 17.6 million.

The company is expecting GMV of $5.8 to $6 billion and revenue of $530 to $550 for the next quarter.

The company is not expecting B2B products and international growth outside of America to be material contributors during fiscal year 2024.

The company has been managing credit very actively and has not made any major changes to its credit posture in the last year and a half.

The company's ability to become a full-service platform might attract more investors, as it moves beyond just buy now, pay later.

The company is excited about the growth opportunities with the Affirm card and has a long roadmap of features to come.

The company is not planning to allocate marketing dollars towards distributing the card in the foreseeable future.

The company's partnership with Shopify is going extraordinarily strong, with growth accelerating for the fourth consecutive quarter.

The company is managing through a rate environment that's substantially lower than the previous year, and as those conditions abate, they will begin to see the benefit.

The company's net charge-off rate ticked up slightly in the quarter, but they don't see a fundamental change in credit outcomes due to the Affirm card.

The company is focused on growing the Affirm card cautiously to ensure they can handle various conflicts that occur in commerce.

Transcripts

ladies and gentlemen I hope we're live

good to see you all hoping you guys are

doing

well immediately this caught me off

guard so if you guys don't know a firm

stock this is why we're all here stock

is down 15% in the after hours right now

it's not actually that they put out a

bad quarter the quarter is really strong

the problem is is that the stock had ran

so much in the last quarter uh that that

you know people are just sort of

disregarding this if we even just look

to this company uh back in October okay

early October this stock was trading

around the 17 to18 range now it's

upwards of $50 a share okay so to sort

of prove that conviction they need to

put out a stellar quarter we're going to

go through that right now just before

the call uh but Max Levin who is what

what what's so funny some people are

saying hopefully the earnings call

cannot be as bad as PayPal Max levchin

is the founder of PayPal it's kind of

funny just a little bit of history for

you guys uh so the man of a firm also

revolutionized and digitized payments

online he's the original he's the

OG um a lot of people contribute it to

Elon Musk that's actually not true Elon

must was starting a company called X at

the time uh and this guy actually worked

in the same building as him and then

they ended up merging their two

companies which created the PayPal Mafia

uh but anyway that's a little bit of

nerdy fintech news for you guys let's

talk about this quarter so gross

merchandise volume for the quarter hit

7.5 billion dollar in buy out pay later

uh you know volume up 32% year-over-year

and these are holiday quarters okay they

call it Q2 but these are fiscal quarters

rather than uh

actual you know uh quarterly times it's

still the same although that's fiscal

year or fiscal quarter 2 it still is

December 31st was the end of the quarter

uh it's just a matter of when they start

their um their accounting anyway Revenue

$591 million up

48% Revenue less their transaction cost

up 68% which actually Max Levin has a

good uh thing that he talks on that that

I really want to read uh operating

income up $187 million still in uh deep

negatives but adjusting uh to operating

income we have 93 million in the

positive which it was not before okay I

want to go to a shareholder letter

because I thought that that was really

nice um okay I I'll touch on some of

this stuff we just covered a lot of

this this time last year we reiterated

our our commitment to building operating

leverage without sacrificing credit

performance volume growth or innovation

the market wasn't exactly convinced then

but 12 months later we have done exactly

what we said we would we hope that for

PayPal as well now uh posting the

fastest year-over-year gmv growth rate

in over a year we increased our funding

capacity and we'll talk about the

percentage of that it's actually looking

very positive five billion in the last

year kept an unblinking eye on credit

delinquencies also looked uh you know

fine here um and continuous improvements

on the affirm card so look at this last

time that I actually touched on a firm

card they were at

500,000 cards now they're at

700,000 okay gmv they actually have a uh

a chart here that I was looking at look

at how fast they're uh you know directed

consumer gmv so this is the this is the

affirm card look how fast this has been

scaling as a percentage of their

business so Dan dolv who is the uh

analyst that covers fintex at mizuo he

has been talking that a firm is his

number one pick okay he thinks that this

is a $50 $60 stock all day long and the

reason that he believes in this is not

only because of a firm card he thinks

that it's going to go absolute Blitz

scale kind of what cash app did with the

cash app card but then through a firm's

transition into savings accounts and

actually taking direct deposits he

thinks that this is going to transition

over to a full service Financial

Services

platform but let's uh let's continue

reading here I wanted to touch on some

things as

well so that says percentage of gmv

where was

um yeah why don't we talk about

delinquencies here for a second we

continueed to deliver strong credit

outcomes with 30 plus day delinquencies

for monthly installment loans flat both

year-over-year and quarter over quarter

that's pretty incredible considering uh

you know the how much the market has

changed year over year I actually think

that's that's pretty exciting but I

wanted to that's not what I wanted to

touch on um was it Max Levin okay here I

wanted to touch on this for a sec

learning to do more uh with less made us

a better company this is like this

should be the statement above every

fintech investors's uh you know above

their workspace because this is exactly

how all of these companies are going to

benefit right coinbase included you know

a bunch of a bunch of companies that

I've been pretty critical on have really

really tightened the belt um and as the

sort of years go on and and macro

lightens up and we get out of some of

these worst conditions these will be

tighter companies at the end so uh from

a firm's executive leadership to our IND

individual contributions this is the

very best team we've had since our

founding committed uh competent cohesive

we will continue to be um judias

Jud I can't read that in a growing team

going forward calendar 20123 was the

year of tough of tough choices and our

ability to navigate deliberately and

quickly improved with each decision

we've

made um I deeply am grateful okay that's

just him being

nice uh travel and ticketing grew 56%

year-over-year and continued to be a

meaningful contrib to overall growth

discretionary categories that performed

well during the pandemic such as

sporting goods and outdoor home

lifestyle Electronics showed signs of

improvement but continue to be headwinds

to our overall growth

rate active customers increase 133%

year-over-year to 17.6 million uh

excluding return Le customers active uh

I'm pretty sure by the way returnly if

I'm if I'm not mistaken was a Shopify

company that

sold I got to look that up I'm I'm

curious

now

[Music]

um No Maybe I'm Wrong maybe they just

acquired this company

okay

um Revenue less transaction cost grew

68% year-over-year to $242 million or

3.2% of gmv compared to 2.5% of gmv uh

in fiscal Q2 2023 last

year increased about 70 basis points

year-over year return 3 to 4% long-term

target

range

interesting okay sorry some of this I

haven't even read yet yet just because

uh I've been a little bit busy so um

okay let's look at outlook for a second

then we'll get into the earnings

call Shopify owned 4% I think okay okay

maybe that's where I'm getting it

from um okay so they're expecting gmv of

5.8 million to uh 6 million I wish I

could bring up two different uh charts

right here but uh 5.8 to6 million

Revenue 530 to 550 okay now let's go

ahead and compare that to their last

quarterly uh results so we'll do

this I'll share my spreadsheet really

quick okay so gmv of five uh 5.8 billion

to6 billion doar a little bit higher

than q1

um it's not going to be as high as the

the holiday but you know potentially

people were expecting even better than

expected results that's why we're seeing

such a pullback on the stock right now

14% uh call in five minutes by the

way uh transaction cost where's

transaction cost here total transaction

cost 350 million they expect 325 to

335 uh so even higher than q1 as a

percentage that actually is probably

higher uh if I'm just looking at Simple

Math here

so

um Revenue as a percentage of gmv is

going to continue to climb next

quarter

uh oh this is for the rest of the

year weighted average shares outstanding

where are we right

now no I only have stock based

compensation

I got to get outstanding shares on this

chart I don't I don't follow a firm as

close as I do like a a Sofi Technologies

or something like

this yeah down down 14% still

um I'm as far as I'm as far as I'm

concerned it's just not as such a

disgusting beat as what it needed to be

however um can I throw this over here

and can okay

perfect assumptions embedded within the

Outlook

uh remain 5% for the remainder of the

Year upon Uh current forward interest

rate curve which is embedded in our

Outlook the year-over-year change from

higher Benchmark rates will uh diminish

during the remainder of the fiscal year

and no longer be a headwind as the exit

the fiscal year

yeah

uh affirm money accounts the B2B

products and international growth

outside of America are not expected to

be material contributors during fiscal

year 2024 uh so that's probably the B2B

products that they're talking about

International growth um a firm money

account if I'm if I'm aware won't even

be launching in their fiscal year which

is in the next six months as far as I'm

uh as far as I can

remember these are some of the uh just

quick notes let me just make sure I have

the webcast actually pulled

up yes sir yes

sir okay I'm going to listen to a little

bit of background noise I'm going to

drop this music off real quick just so I

can listen to their

call um active accounts continue to grow

they actually have a pretty large base

of overall accounts of just people that

don't use a firm quite often I think

it's in the 40 Millions 44 million or

something like that um but obviously not

all of those are used all the

time transactions per account don't be

too deceived by this like if you guys

saw on my spreadsheet uh the the average

transaction size actually continues to

go down which is perfectly okay but it's

just a transition from um you know their

uh you know affirm as a main checkout

button to the affirm card making smaller

purchases potentially you know uh buy

now pay lering your freaking coffee in

the

morning bear with

[Music]

me uh this is actually what I did think

was very uh very interesting so in terms

of them ring running a tighter ship they

have been doing that for sure including

stock based compensation I hope that

there's a a a chart on that I was I was

charting it out on my own it's it

continues to drop it was pretty high so

I think it's still at

15% um they call it share based payment

expense yeah well this is also

including yeah that that's this is the

full account but I was just looking at

their own employee expenses which is

kind of hard to determine just looking

within here but it is actually dropping

quarter over quarter so it's at the

lowest percentage of Revenue that

they've had since they've been a

company I think it's 15% last quarter

was like 22%

however okay

interesting yeah like like I'm looking

at their their delinquencies and you're

not actually seeing anything that's like

too crazy compared to even whenever

you're looking at Rising delinquencies

versus uh you know Sofi or another one

of these you know personal lenders this

is pretty consistent on a on a quarter

over quarter basis it's actually uh

pretty exciting to

see funding capacity is is you know

pretty decent 69% comparatively to you

know some of these other companies that

we look at that

are much more deployed than they are

that's for

sure yeah

wow

okay how many of you guys by the way how

many are actually in a firm uh and where

do you see that stock going because I am

not uh I am not invested in this

company their ability to become a full

service platform might get me in there

because it's you know an area that I

know much much more but buy now pay

later on its own is not something that I

think is sustainable for for a firm and

I think that companies like PayPal will

do much

better

yeah and also what's funny is like I I I

use a firm I have like you know uh use

them a couple times but if there's ever

any amount that is REM like even if it

has 1% interest I won't touch

it if they do offer a Zer perc then then

I like it it's fine

but not if they're trying to charge any

interest this is unbelievable though

this I think is like the very exciting

thing is is how big can this affirm card

actually get will they bring it to

Canada that's the one thing that AFF

firm's done very differently than a lot

of other fintechs they've been very

positive in Canada too

so a firm is in most retail

stores stock is down uh just

12.6% now um one thing that I do like is

I do find that the uh the earnings calls

are very informative

oh we got the call coming in now I will

switch over right right

now 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

I'd now like to turn the call over to

Zan ker director investor relations

thank you you you may

begin thank you operator before we begin

I would like to remind everyone

listening that today's call may contain

forward looking statements these

forward-looking statements are subject

to numerous risks and uncertainties

including those set forth on our filings

with the SEC which are available on our

investor relations

website actual results May differ

materially from any forward-looking

statements that we make today these

forward-looking statements speak only as

of today and the company does not assume

any obligation or intent to update them

except as required by

law in addition today's call may include

non-gaap Financial measures these

measures should be considered as a

supplement to and not a substitute for

Gap Financial

measures for historical non-gaap

Financial measures reconciliations to

the most directly comparable Gap

measures can be found in our earnings

supplement slide deck which is available

on our investor relations

website hosting today's call with me are

Max lein a firm's founder and chief

executive officer and Michael lenford

the firm's Chief Financial

Officer in line with our practice in

Prior quarters we will begin with brief

opening remarks from Max before

proceeding immediately into questions

and answers on that note I will turn the

call over to Max to

begin thank you Zane thank you all for

joining us today we're excited to share

the results from another great quarter

as is our custom the better the results

the fewer words we used to comment on

them this time around I feel good enough

to go directly to the Q&A back

Tu thank you Max with that we will now

take your questions operator please open

the line for our first

question thank you we will now be

conducting a question and answer session

if you would like to ask a question

please press star one on your telephone

keypad the confirmation to will indicate

that your line is in the question q and

you may press star two if You' like to

remove your question from the queue for

participants using speaker equipment it

may be necessary to pick up your hand

handset before pressing the star Keys

our first question comes from the line

of Ramsey elsol with Barclays please

proceed with your question hi thanks for

taking my question this evening um I was

wondering if you could help us think

through rltc for the remaining Q

quarters of the Year sort of what of the

drivers puts takes variables that could

impact rltc and uh you know drive

underperformance or outperformance you

know how should we think about those

kind of variables

yeah I think you know obviously um if

you're thinking in terms of percentage

of gmv there's there's a number of

factors mix and macro at the top of the

list if you're thinking about total

dollars then gmv on the platform was

going to be the biggest driver um of of

results there um in terms of the rltc

rate the the take rate on a percentage

of gmv it's really mix and macro so the

the mix of business across our Merchant

basee and um and the products that we

offer there and from a macro perspective

everything going on with consumers and

rates would would be there we really

like the environment we're in right now

um that's why we've updated our full

year guidance like we have so we feel

good about the back half of year rltc

margins uh as a percentage of gmv and

and feel good about that because of the

of the macro environment that we're in

um we as as per the usual we take the

current macro signals current levels of

unemployment current forward curve and

bake those into our assumptions um but

obviously there's scenarios where those

could could move one way or the other

that would change the outcome for

us okay and um a followup from me on

slide 10 where you list out your gmv

vertical mix it looks like general

merchandise is picked up quite a bit and

Tra you know from travel and ticketing

or travel and ticketing has has gone

down and and General Merchandise gone up

are there any drivers to call out there

and I guess more broadly can you just

comment on performance across you know

key verticals in

there so so travel and ticketing is a

very seasonal category um so a lot of

folks book um summer vacation travel and

the first two calendar quarters last two

fiscal quarters of our year and it tends

to be lowest in terms of bookings in

calendar quarters like Q2 and so we

think there's a huge seasonality Factor

um there and for general merchandise you

know some of our largest Merchant

Enterprise Partners fall in that bucket

and as we continue to scale those we we

will see lots of purchases there and

it's not unusual for that to be a

category that spikes in around holiday

season as a lot of holiday shopping is

done in those

channels got it makes perfect sense

thank

you thank you our next question comes

from the line of Andrew Jeffrey with

truest Securities please proceed with

your

question hi appreciate you taking the

question Max uh brevity is indeed the

sister of talent make that very clear uh

so uh I've got a couple questions just

on gmv growth and and uh tender share um

as I recall uh you tightened the credit

Box about a year ago and and and

obviously the the back half of the

fiscal year looks looks strong can you

comment EI either Max or Michael just on

kind of how underwriting and and risk

are factoring into that strength and

then the the coral are I guess or the

foll on would be around uh tender share

your Enterprise customers and it was it

it appeared to be elevated during the

holidays and I just wonder if that's a

sign of accelerating tender share to

come or aspirational Tender share

grow um appreciate the compliment first

of all um

the

underwriting

settings so single

most I would say accelerated change

we've conducted to our as they call it

box was really more of a year and a half

ago than a year ago April of 22 is when

we saw real stress on a consumer and we

reacted to that sort of within the next

60 days or so

um we've since really not done an

enormous amount of significance steering

we change marginal cut off on a merchant

by Merchant category by category product

by product basis all the time and also

change things

like allowed terms uh as in durations um

required down payments Etc so we we

managed credit very very actively since

the beginning of time for us but there's

not been a major change to our posture

in the last year and a

half

the numbers that we printed just now are

not an accident we we drove them to be

what they are very very

deliberately and I don't want anybody to

sort of assume that you know we're we're

hands off and the numbers just print

themselves like it's a lot of work and

we care quite a lot where they end up we

have a certain expectations we set with

capital markets and we intend to

continue delivering those expectations

and so that that that's first and

foremost and that that governs a lot of

our metrics as outut to that the tender

share um share wallet as we call in

internally has done really well over the

holidays um we've generally been gaining

wall here

although the stories are different

category to category uh and some cases

Merchant to

Merchant feel very good about some of

the things that we announced obviously

offline we were not a noticeable player

until recently and between the card and

some of the um online offline self

checkout kiosks was really powerful uh

and

then just sort of call out one

particularly strong performance over the

holidays especially and overall in the

last quarter Shopify has just continued

to perform extraordinarily uh the growth

of that particular partnership is

accelerating three plus years into the

partnership U that set of products grew

about twice the speed of the rest of a

firm so it's just been you know story of

success to success and we still have a

lot of things that we have not scaled

out they have their own offline

aspirations that we're obviously very

excited to be a part of Etc and so it's

a little bit of a and I'm giving a very

long-winded answer here but uh you know

frequency for us is being where consumer

shops and Sheriff tender comes as a

consequence of being available and being

able to support the the various consumer

needs that as we encounter them and the

only thing I'd add is is we did um with

the 36% APR caps that we were able to

get in place we were able to be more

expansionary in a number of places that

that is completely done now and so we

wouldn't expect any more volume benefit

there although there is still some

margin benefit we think that will come

um as the program continues to roll out

and scale but we wouldn't expect any

more volume there because of

36 thank you appreciate

it thank you our next question comes

from the line of Reggie Smith was JP

Morgan please proceed with your

question yeah good afternoon and

congrats um on the quarter I guess um

you kept your comments short but I guess

where where were you most surprised um

this was a pretty big be um and then had

a followup after

that um we try to run a tight chip so uh

surprises are rarely a welcome thing if

they are to the good um I think I mean I

already called it out but I thought

Shopify as a company appears to have

done a fantastic job with their product

and we stand to support our partners

there and have done well

together

um let's see what other

surprises don't like surprises Reggie

feel like anytime somebody surprises me

there I'm not gonna like the uh the

outcome um actually I I'll give you one

very surprising fact which is a little

bit of an inside uh inside view but we

had very noticeably accelerated our

ability to ship software and I had

anticipated some of that but I'm quite

surprised but how productive the team

have been on the engineering side on

product side on design side you know

sort percolates down to revenue so

generally

speaking I expected that we would rally

around the goals especially from sort of

the the low point of this time last year

but the you know if it's a turnaround

it's a much faster and more aggressive

turnaround than I myself

expected got it and then just looking at

the seasonal patterns of your your

margins the the back half of the Year

tends to be better than the front half

of the year and when I look at your your

full year guidance for your operating

margin I guess it implies um and even

third quarter I think it implies a

pretty substantial sequential increase

in and expenses below the rlcc line like

what um what's driving that and kind of

where should we see that show up is it a

marketing thing is it technology um my

rough math was almost like 20 million

and a sequential increase there I'm not

sure if that's uh right or not but if

you can comment on that a little bit

that would be uh

helpful yeah we don't provide a specific

guidance number for there so sometimes

the the way in which we build our

guidance can can lead to a little bit of

um uh exaggeration on that on as you

calculate it but but that's right and

there's there's couple factors to think

about firstly we and this this will

sound very trivial but I promise you it

does actually

end up becoming pretty big we do expect

there to be a lot more payroll tax

associated with stock-based compensation

in our first quarter both because people

have reset their tax obligations to um

with the new year but also because the

share price is higher and both those two

things will create a little bit of the

sequential uh bump from quarter to

quarter and then we remain really

excited about the opportunities that are

ahead for us and so we're continuing to

be thoughtful around where we should be

adding resources to go build new

products and Chase the new opportunities

and I think the strength in this

quarter's results um with respect to our

united economics and operating

efficiency give us license to to be

willing to add a little operating

expense whereas I think we've been very

cautious to do that until we could

demonstrate

it um congratulations great

quarter thank

you thank you our next question comes

from the line of Dan Dove with mizuo

please proceed with your

question hey guys uh great results uh

congrats Max and uh Mike and the team

quick question I have two questions the

one first one is on the guide obviously

the knee-jerk reaction uh which we

disagree with was that the gmv guide is

conservative you you know you quote

unquote beat by 700 million you're you

know increasing the guide by a billion

for gmv like you sound very upbeat about

the the macro is it just

conservatism yeah I mean just like we

have all year long for the full year

we're only providing a floor for our

full year guide and so we did take our

floor up by a billion dollars which we

think is a pretty pretty big step up in

what we would expect for the year we

remain very upbeat and excited about the

opportunity got it yeah I know that's

that's what it seems like and then maybe

one other question on kind of the direct

deposit opportunity you know you've had

tremendous success with the card can you

maybe talk a little bit about what

you're seeing in terms of the usage and

frequency for the people that are um

doing the direct deposit into the card

or into the affirm

app a little early uh we we gave the the

feature in name uh about 60 something

days ago so it's a little early to uh to

brag about the results but uh feel very

good about it uh

it's it's it's done in the early early

versions that it is about as well as we

could hope for um we have a lot more

things coming for that product working

on a couple of very specific things that

are just required before you can really

call yourself an account uh but feel

great uh it it's definitely uh and I

think I mentioned this before but

there's kind of three stages of a firm

usage if you are a not card holder not

account holder regular user your

frequencies four and a half transactions

a year grew again you know 20 plus

percent year on year but um if you have

a card that goes up quite a lot goes up

about 4X and then it grows again again

fairly significantly if you are an

account holder so very excited to give

more accounts to people because that's

ultimately a frequency driver for us as

well got it well sounds like a huge

opportunity and congrats again

than our next question comes from the

line of Rob wildpack with autonomous

research please proceed with your

question hey guys uh maybe I'll ask a

question on volume um in a different way

you know I think the shareholder letter

called out three quarters of

accelerating volume growth and then

within the December quarter each month

accelerated to the updated outlook for

the rest of the year seems to point to a

pretty healthy slowdown in the second

half you know half over half so wanted

to get your thoughts on what might be

driving that slowdown if there's

anything specific that you're

seeing so again I think the the F year

outlook for us is is is just a a floor

and so we've not given even a range or a

ceiling to where we'd expect so any

calculation being done on Q4 is probably

not getting to a midpoint and and any

math you're doing on that number

inclusive of our Q3 range is is taking

is is probably squeezing that number uh

quite a

bit separate from that we had a really

good Q2 right and so the really strong

second quarter um isn't something that

we would ever take and say that's a

fundamental change in the business

that's something we would take credit

for be very happy with but we'd be

pretty cautious about how we would build

up the outlook for the balance of the

year and want to be mindful of all of

the factors that can go into that um but

there's nothing in our business that

would suggest that we're slowing down

right

now okay thanks and then your picture

and appreciate this may not be in play

for this fiscal year but how would you

expect potential interest rate cuts to

flow through to funding costs and then

strategically you know would you want to

drop those savings to the bottom line

via higher rltc margin or do something

different that's a great question so so

uh when whenever we we think about a

change in rates we we need to understand

why the rates are moving um certainly if

the rates are moving in response to

other stress in the economy specifically

employment then it's not a one forone

benefit but if you hold all other

factors constant then a decline in rates

would would help us on the rltc line um

we we would seek to continue to run the

business in the 3 to 4% range that we've

talked about really since we've gone

public and if we were a to be earning at

the high end or above that we would seek

to reinvest that in uh products to

engage and re-engage acquire new users

and re-engage

them okay thanks

guys thank you our next question comes

from the line of Jason copperberg with

Bank of America please proceed with your

question thank you um so you highlighted

in the shareholder letter I think uh

about 2third of the revenue growth in

the quarter was from interest interest

income um is it fair to say that's also

the revenue line item that surprised you

most to the upside relative to your

guidance and just curious how much of

the revenue guidance range for the

fiscal years coming from the interest

income line you guys have obviously been

doing a really good job um you know on

that side of of the

equation no I I um certainly we're we're

happy to have the unit economics we do

have but I think we were probably more

surprised with the healthy Merchant fee

growth when never Merchant fees outpace

gmv growth it creates a pretty good flow

through to the full p&l in a way that's

outsized so I think some of the the

strong performance we had above our

expectations around rltc and the flow

through for the full p&l was actually

driven by the really healthy Merchant

fee

line yes the total aggregate Revenue

growth wasn't there but remember against

that interest income growth is a pretty

steep rise in funding cost um and that's

driven by both the balance sheet growth

as well as the higher Benchmark rate

rates that we in this year and in fact

interest funding costs grew faster than

interest income and so while that was

important for us to be able to get the

business where it is it's also the case

that um we don't see that as the real

Tailwind here we're we're still managing

through a a rate environment that's

substantially lower last year than this

year and as those things Abate then we

will begin to see the benefit of that

into the

future okay no that makes sense and then

um just like a two-part question on on

gmv what's your latest expectation for a

firm card gmv this this fiscal year and

then any comments you might have around

um January gmv Trends I'm kind of

curious because we heard from others

that card present volumes suffered

because of the severe weather so just

wondering if your business benefited at

all from that thank

you so we've we've not given any outlook

for the card and and I won't now what I

would say in the letter we talked

briefly about the seasonality of the car

and I think this is a really important

thing

for uh everybody to pay attention to

which is the the card had really strong

growth from um q1 to Q2 we would

estimate that about half of that growth

in card volume was actually underlying

seasonality and the other half was

growth in the card which just means as

you think through where the volume

should be for the card the balance of

the year just keep in mind the the Q2

starting point is benefited by a pretty

big step up from q1 to Q2 from a

seasonality as consumers do spend more

in the holiday season and and we're

we're still early enough with the card

fortunately we're not seeing things like

WEA impact our card

performance thank you our next question

comes from the line of Jill Shay with

ubf please proceed with your

question good evening thanks for taking

the question I was wondering if you

could provide us an update on on the

Shopify partnership and any stats that

you could share with us that would be

great

thanks it's uh one of the highlights of

this last quarter is going unbelievably

strong um it accelerated for the fourth

consecutive quarter um the program is

over three years old and the fact that

it's still picking up steam is just

great and they've been extraordinary

Partners to us

and nothing but wonderful things to say

about Toby and KAS and and Harley and

the entire team there and they're

they're just

than nothing but excellent in both their

execution and the partnership that we

had uh I think I already dropped that

stat but uh the program at Shopify grew

twice the speed of the overall affirm

growth on gmv side of things um they

have aspirations Offline that they're

going after quite strongly and there a

lot of synergies and what we're doing

now there we have a whole host of

programs we're contemplating going

forward so lots of wood to chop feeling

very good the fact that it's

accelerating suggests that this just

more more growth to be had for for both

of us this is a Shopify earnings call I

swear very helpful thank

you thank you our next question comes

from the line of James faucet with

Morgan Stanley please proceed with your

question my second largest holding I

don't care great thank you very much um

this afternoon guys for for all the time

I wanted to ask on 0% promotions uh it

seemed like at least anecdotally those

increase some um particularly towards

the end of the December quarter and I

think in your supplements you showed

that 0% long uh duration um Merchant

rates had had picked up you talk a

little bit about like what's driving

that Merchant rate tick up is it just

longer duration generally within within

that long group and how should we think

about that both in terms of impact on

rltc margin but also so just in terms of

the um type of customer and and that

you're bringing in with those promotions

just wondering if if that's enough to

move the needle on on some of these

other

metrics yes that's a good question the

you know as rates have gone up any of

our longer term 0% programs um have

needed higher Merchant fees and I really

think there's really not much more to it

than that so it's the mix and and tied

The Benchmark rates in terms of the

customers we bring in it does skew a

little bit higher on the credit Spectrum

when you do those kind of products but

given the high levels of repeat it's not

really going to change the average as

much at a firm um we of course have been

we're very active we're meeting our

Merchant Partners where we could in

providing anything promotionally in the

second quarter and we' continue to do

that but it's it didn't change an awful

lot from the prior quarter in terms of

its total mix so wouldn't don't really

think there's a fundamental

there got it got it and then wanted to

ask maybe it's a little bit convoluted

question but you're you're obviously

growing the affirm card really nicely um

you know kind of that run rate that you

talked about seems to be around 100,000

cards a quarter or I'm sorry a month how

should we think about is

a I'm wondering how we should think

about the

availability or the credit pool

available and how that's growing by

comparison right because as you send out

cards people will use it you said most

of it of that is interest bearing so

some of that available credit gets

absorbed but then there's new credit

growth in that pool as you add more

cards so just how should we think about

that that potential to buy pool growing

Visa the the growth in cards hopefully

that question makes

sense I'm going to try to answer but

feel free to tell me that I'm answering

their wrong question James um so I think

you're asking I guess the way I'm

interpreting this or at least try to

answer is does the

card availability to

Consumers create new pools available

transactions for us to take on and the

answer is

yes yeah so our offline usage with the

card versus without the card is

drastically different and so all of

those transactions are entirely

incremental you know it's not really all

that magical why transactions of the

card holders are significantly higher

than average transactions for nonc card

holder from User it's because these

people are first of all they're more

committed because they they requested a

card and two they're bringing it to

stores so it it's it it just touches a

larger open field of opportunity um in

terms of underwriting and sort of you

know our exposure and a credit side Etc

there's no change in a sense that we and

we talked about this before but for for

the longest time our sort of calling

card in the uh underwriting world was

this thing called ITX which is the

internal transactional firm credit score

and uh that allowed us to do really

precise underw writing at the

transactional level some number of

quarters ago we have augmented that with

a user credit score which allows us to

underwrite both sort of a more holistic

consumer in addition to every individual

transaction we still underwrite every

transaction we still reserve the right

to say we cannot lend money to you but

we have a score that we feel very good

about in our ability to say you know

what's the overall capacity to borrow

and pay us back and willingness to do so

and we lend on the card and off the card

using the same set of scores and the

same set of variables and limits and so

you can borrow from a firm using an

integrating Point of Sales solution you

can borrow on the card with two

different modalities of borrowing on a

card but all of it goes against the same

set of variables and same set of

observed behaviors that governs our

ability to approve the next transaction

the thing that's great about the card is

that it's optimized for convenience

everything like multi-on checkout

environments all the way to um online

shopping so it's an expansion of

opportunity but not an expansion of uh

our willingness to take on more risk I

think that answers it but I'm happy to

provide lots more details if feel like

one I think the other thing to say is I

don't think we're anywhere near the

limits on what we think um we would

think about exposure limits for these

users and and we're nowhere near some

sort of cap there for the population we

think there's a lot of frequency that we

can drive with the existing

users yeah great great appreciate that

Max thanks

Michael thank you our next question

comes from the line of John hect with

Jeff please proceed with your

question afternoon guys thanks for

taking my questions like just thinking

about kind of the appetite for selling

versus retaining um you know the loans

that you guys generate this year I mean

you you have interest rate at least the

the curve is going down it looks like

sale execution is is getting better but

you guys had an ABS transaction I think

yesterday and the execution there was

good so how do we just think about kind

of balance sheet uh movement versus

Marketplace movement over the course of

the year yeah thanks for the question so

we did price uh an ABS deal and we did

so um at an all-in cost Capital 100

basis points lower than a deal we we did

in December so in a very short period of

time you're seeing the market really

give us credit for that um and that we

think is a really healthy sign for the

capital system and ecosystem overall um

and we think is a reflection of both uh

an improved macro outlook for everybody

but for us more specifically the

disciplined approach to credit that

we've taken over the past year is is

getting valued uh we we think in the

debt Capital markets and so we feel very

strong about that when we do the

revolving ABS deals like the one we just

did our 24a a deal those do end up on

the balance sheet um and so while we do

think about that as um and a really

important funding Channel it isn't off

balance sheet our off balance sheet

strategies involve mostly selling Whole

loans although we do some some

non-revolving some term

securization with respect to the whole

loan sale we feel really excited about

both the existing Partners expanding and

the pipeline of new opportunities that

we have um those conversations um have

gone very well I think very consistent

with the reaction that the ABS Market

has had There's real value being given

to us for the the kind of credit

outcomes that we've driven and frankly

the yield that we've put into the asset

has allowed us to continue to to be able

to sell at at prices that are really

good for us um as is always the case and

we've said since day one we don't have

one strategy that's better than the

other the things that we do are first

and foremost enable the growth in the

business and I'm extremely proud of the

way the team has been able to support

the capital program over the past year

through all the volatility remaining you

know enabling all the growth that we've

delivered the second priority is to

deliver our our unit economics clearly

if we're renting in the three to four

percent range like we did this past

quarter we feel very strong about that

and then we begin to want to manage the

capital efficiency of the program that's

the third piece and obviously whole loan

sales are more efficient um but it's the

third of the three priorities and so we

wouldn't really want to overuse that

lever um and then the last last comment

is each of our Capital strategies really

exist and reinforce one another and so

um you really won't see us pivot to one

or the other we're going to continue to

scale all of our channels that means

continued ABS execution continued

forward flow and continued use of our

warehouse

lines okay my other question was asked

and answered and I appreciate the callor

thanks very

much our next question comes from the

line of Kevin Barker with Piper Sandler

please proceed with your

question thanks for taking my questions

um you know I so there was a little bit

of a tick up in the net charge off rate

in the quarter um it seems like you

built reserves last quarter that may

have preempted the charge off coming

through um or could be partially

seasonality as well um is there anything

to point out there and would you expect

that charge off to drift lower just

given you're seeing a larger portion of

gmv being driven by a firm card

thanks no I don't think the card is

going to drive different credit outcomes

for the whole portfolio I think the

level of repeat usage might where you do

see better credit outcomes on repeat

users overall but I don't think the card

is big enough really to affect the total

portfolio numbers yet um obviously when

it gets much larger um it will begin to

have a more material impact but for now

I think it's small enough um and yeah

there there's really nothing nothing to

point to specifically on the the charge

offs you know again think about our

charge off policy we charge off at 120

days the linqu once they get to past 60

or 90 days are are overwhelmingly likely

to go towards charge off so we have a

pretty good sense of that full allowance

at all times to handle the future charge

offs that we

estimate I think you mentioned that you

were um leaning in a little bit last

quarter are you you know opening up the

credit box to attract more users it

seems like it's an opportune time to do

that just given your acceleration here

and profitability that that's being

generated yeah I think the the strong

units give us permission to do that more

than anything so we talk about 3 to

four% in the revenu less transaction

cost as a percent of gmv that's the real

constraint for us and so if we're if

we're in that range we can continue to

be very aggressive about acquiring and

re-engaging new users um and and that's

that's really the constraint much more

so than anything

else thank

you thank you as a reminder if you would

like to ask a question please press star

one on your telephone keypad our next

question comes from the line Michael ING

with Goldman Sachs please proceed with

your

question hey good afternoon uh thanks

for the question I just have two uh

first a housekeeping question um could

you just help explain the uptick in the

merchant uh fee rates for the uh Long

Core zeros and you know are there any

initiatives or mixed dynamics that may

affect that going forward and then

second um just a a bigger picture

question you know transactions per

active have obviously been growing you

know 4.4 this last quarter you're also

seeing you know really strong repeat

customers you know what does that tell

you about the you know loyalty engage or

engagement of of customers and the

durability about the uh install base of

users um you know are these customers uh

using this because it's become more

habitual and you know it's a better

experience or um is it you know out of a

NE of of credit thank

you so on the on the first question

really is just a function of the mix in

our business and um that's that's always

been true for merchant fee rates we

always talk about Merchant fee rates as

being mixed driven that's why we began

breaking it out in the supplement the

slight tick up you see on one of the

categories is really just a function of

mix within that category but also as

duration goes up so does the the price

especially in this rate environment

where it's pretty duration sensitive in

terms of the prices that you charge I

don't again I don't think there's a

broader Trend to be read into there um

and on the the frequency question I'll

let Max answer

that um you know I

think it's a reflection of the fact that

the product is becoming more widely

available more than anything I think as

we sign up some of the Partnerships and

expand them like the Shopify reference I

made

earlier it does result in wider

availability the product is popular it's

well- liked by the users uh one of our

top questions in customer service is why

brand why isn't Brand X supporting a

firm right now and we work very hard to

make sure there are fewer and fewer of

those and so as we become more available

also as we become available

offline in the form of the card as well

as some of the Integrations that we've

done you'll naturally see more

transactional velocity and frequency

increase

the product

is a better product in my highly biased

opinion than that of a credit card and

as credit utilization goes up broadly I

think we are the unfair beneficiaries of

of that usage you know given a CH chance

or Choice consumers opt in for more

affirm spend than credit card spend and

uh they're rewarded by having no late

fees no compounding interest all the

good things that would bring

Thanks Max thanks

Michael thank you our next question

comes from the line of Andrew B with

Wells Fargo please proceed with your

question hey thanks for taking the

question um and excuse me if this has

already been asked but just want to get

an update on on what you've seen with

AFF firm card usage and anything that's

surprised you you know another three

months into its Evolution around

behaviors or categories um just anything

broadly around that would be

great it's going really well uh you can

see in the supplement that we are

continuing to grow it uh from my point

of view for what it's worth we're

growing it cautiously for a couple of

good reasons

one it's a new mode of operation which

means that the downstream services such

as customer service the speed resolution

Merchant disputes Etc also has to scale

so we're going to grow

deliberately for a little while longer

before we feel that we've learned all

the uh important muscle memories of how

to handle various conflicts that

inevitably occur in Commerce Etc and so

feel very good about the growth um you

know we still we'll have have many many

more turns on you know potentially

increasing that in terms of

surprises things until generally gone to

plan um there is plenty more to do on

reasons to use the card more often we

talked about uh at the investor event

last year we're dangerously close to

actually making good on it we have

reward programs in mind that give people

reasons to use the card for all

transactions not just considered

purchases uh there's plenty to do with

tighter integration between a firm card

and a firm account which we've done a

couple of things with but there's still

more more features to come so and from

my point of view the card is still very

very early there's just a long road map

of of things to do there both on the

frequency of use basis as well as just

modalities making sure the consumers

really understand the full power that it

brings and then once we feel that that's

really all figured out we have a lot

more growth to enable there when we see

that that it's the right time to do

it and is that next leg of growth just a

function of you know then you finally

get the green light to you know put the

the extra leg of sales of marketing

dollars into into the card and the

Really the solution in order to kind of

find that next L of growth or is it just

moving you know further into

that it's really there's I I don't

anticipate any marketing dollars

allocated towards Distributing the card

in any foreseeable future it's not any

budget that that is not how it's going

to get grown so today to get the card

you have to have been an affirm

transactor before you have to be in good

standing you have to be fairly far down

the affirm journey and then you have to

react to one of the now fairly visible

sort of adverts when we say hey do you

want to use the affm card we we really

think you should try it you're eligible

so we we've marketed it without too much

restraint although it's still being kept

to a higher credit quality standard than

the overall affirm so we're still

tilting the uh scale a little bit on our

favor in terms of consumers that get the

card offers are not quite at the same

level of cuto off as as everybody else

uh and so that that's one obvious way of

opening up the funnel but you can

imagine a much more aggressive approach

where for example right now you have a

choice between taking out a loan on a

one-time virtual card number or you can

go down the rabbit hole of applying for

a card obviously taking away the former

will naturally increase the ladder so

there there's several of non-dramatic

but meaningful levers of growth that we

have chosen not to pull on just yet and

then ultimately if you sign up for a

firm at some point you're just G to get

a card and uh that that's certainly not

not a thing we're going to do tomorrow

but uh that that is a uh you know a

meaningful trajectory changer so still

sounds like it's gonna be pretty

targeted for a while here great thank

you not not forecasting any anytime that

that stops or goes but uh I I feel very

good about the car growth for

now thank you there are no further

questions at this time and I would like

to turn the floor back over to Zay Coler

for closing

comments well thank you everybody for

joining the call today we look forward

to speaking with you again next

quarter they really kept their comments

very

short I didn't realize how messed up my

my hair was after putting that hat on um

okay yeah I mean it was a it was a good

quarter they saw they saw good results

it wasn't the greatest guidance that

everyone wanted to see even you know Dan

doof came on and was like hey what's

with the shockingly low uh guidance that

you guys had but uh I don't actually

think the stock is moving all that crazy

as people are predicting like going into

earnings the stock had ran 10% on the

day and then just completely evaporated

it in a little bit more um but even the

day before you know the day ended at $44

now it's at 43 right now at the end of

at the end of the day it's not a crazy

uh thing to see it's just a little bit

shocking whenever you see a big run into

earnings and then I think it catches a

little bit of fomo because maybe some

people think that uh earnings results

got leaked or something came out some

big block buy came in um and then

obviously people go oh wait nothing like

it it was great earnings but people have

to realize okay so I'm seeing a lot of

comments in the chat going why is it

selling I thought I thought this was a

great quarter they beat

expectations but like zoom out guys okay

like I said back in uh October this

stock was $16 a share okay over the next

three months there were a bunch of

indicators to show that earnings would

be amazing and then they were that was

already baked into the price that's why

they went from 1716 a share up to 50 so

the continued Beats from there have to

continue to compile onto each

other um so no the stock reaction is not

something that I think is unheard of or

or uncommon it's just they they didn't

guide

extremely excitingly and and I thought

that those comments from Max levchin at

the end were uh a little bit hard to

hear but but very very true where said a

firm card is not just about giving the

card out to everyone who wants it like

like you can't just Blitz scale this

thing because as that happens it's it's

more stress on our systems it's more

stress on customer service it's more SC

more stress on all of these other

factors that that that we haven't

actually built out so just because we

have a great product doesn't mean that

it's uh unlimited scaleability

so uh he didn't want to comment on it

but it's still a very targeted card for

now you have to be quite embedded into

the system um the only thing I really

did take away from this earnings call

was holy crap Shopify is going to have

an amazing quarter I think they're Blown

Away by shopify's growth right now it's

doubling their growth gmv wise uh than

any of their other platform

Merchants so what the heck is happening

there was some other news I don't want

to get into it I got a call again for

for people that are watching right now

that aren't future investing subscribers

if you guys don't know me we do an 8:30

PM Eastern Standard Time live stream

every single weekday talking about uh

fintech companies lots of Sofi lots of

PayPal um affirm if it continues to drop

if guidance was that weak I might

actually build a position um because

full service you know financials is

right in my circle of compet uh circle

of competence and that's something that

I really try to advocate for um big fan

of Max levchin and if they can just get

out of just buy now pay later it really

does change that thesis for me because I

don't think that that's a product that

you can build a full company on but it

is a product that could be um you know a

singular product for example if if

you're going to be like a new bank or

something like this one of these amazing

financial services companies you need a

secondary product that seen scale faster

than your first right and that could be

a firm card and then that could be cup

with uh you know deposits

through uh you know their money accounts

which could lower their cost of funding

so um very exciting but yeah I think I

think Shopify is going to be Bonkers um

I posted how excited I am that my

portfolio is doing well and Shopify has

been a great part of that um but I think

it's going to continue on for a long

time there was actually some Shopify

news today about their pricing strategy

but that's for tonight ladies and

gentlemen so if you guys want some more

news later on or want to catch up on

that news make sure you just hit that

subscribe button down below but until

next time wish you guys all a great day

and I'll see you in uh less than three

hours bye for

now