The data: Affirm’s gross merchandise volume (GMV) grew 62% year over year (YoY) in its fiscal Q1 2023 (ended September 30, 2022), compared with an 84% YoY increase in the same period last year, per its shareholder letter.
The company’s revenues jumped 34% YoY, slowing from 55% YoY growth a year ago.
How we got here: Two factors helped spur GMV and revenue growth during the quarter.
Despite inflation and other economic challenges, Affirm said its transaction-based underwriting technology lets it approve customers without hurting credit quality—something CEO Max Levchin touted as a major strength over the summer.
What’s next? Affirm said it’s on track to turn its adjusted operating income profitable by the end of fiscal year 2023 (ending June 2023).
Here are the company’s three priorities to achieve that:
Related content: Check out our US Buy Now, Pay Later Forecast 2022 to learn about the factors that will affect growth in the space this year.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.