Affirm Holdings Inc - Ordinary Shares - Class A

Strong Q3 Performance and Upward Guidance: Affirm Holdings reported strong third-quarter results, demonstrating broad-based growth in GMV, which increased by 40% year-on-year in March. The company raised its outlook for the current quarter and fiscal year, indicating its confidence in continuing growth while maintaining good credit quality.

Zero APR Product Traction: The company is experiencing excellent traction with its zero APR promotional products, which, while slightly lower in revenue per loan compared to interest-bearing loans, lead to better credit quality. The adoption of this product is seen as a long-term customer acquisition strategy, boosting LTV through future card sign-ups from new customers.

Credit Quality and Loan Loss Reserves: Despite the robust repayment rates and healthy consumer behavior, Affirm increased its loan loss reserves, indicating a cautious approach amidst potential economic headwinds. The management expressed that while there are no current signs of stress in consumer repayment, they remain vigilant in monitoring portfolio performance, especially concerning macroeconomic factors.