Affirm Holdings Inc at Nasdaq London Investor Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: John Hecht - Jefferies - Analyst : So first, again, welcome, Rob. First is the key take from the quarter. You guys recently reported a strong quarter. Maybe can you talk about what were the positive surprises and other worthy callouts from the last quarter of operating trends?

Question: John Hecht - Jefferies - Analyst : Okay. So that's a good kind of high-level intro. We'll get into some of those topics a little bit more deeply. But you did talk about GMV upside and good GMV trends overall. Can you talk about where -- like where you're seeing that upside? Is there certain channels or transaction types or transaction characteristics that you're seeing? Or is it generally been fairly broad in terms of the momentum there?

Question: John Hecht - Jefferies - Analyst : Okay. And then just touching on margins in the quarter, your product level margins or the gross margin or we call it the RLTC, revenue less transaction costs, that has trended nicely, but also had upside relative to our expectations. Similarly, but I think from different sources, the operating income margin has also trended nicely. Maybe you can take us through what you -- in terms of the product level mix or efficiencies or scales, what you're doing to enhance margins there? And then similarly at the operating income level.

Question: John Hecht - Jefferies - Analyst : Okay. Thanks very much. You talked about, Rob, earlier, just general market -- general expansion of the TAM, but then also we noted that Affirm has been gaining share in the current environment. Maybe on the TAM, I'm sure there are certain products you guys believe you're taking share from like credit cards. Maybe talk about that. At the first part of the question, just talk about where do you think buy now, pay later is really taking share from. And then with this since you're growing faster than the market within the market, who are you taking share from amongst your competitors?

Question: John Hecht - Jefferies - Analyst : Okay. And I want to turn to the consumer now. I think that's a big topic, just spend trends, credit trends. How are the -- it seems like in the US, predominantly the consumer has been more resilient than maybe we would have expected. How do you guys see spend trends, payment trends? And maybe just give us kind of an update of the flavor of the consumer from your perspective.

Question: John Hecht - Jefferies - Analyst : And then consumption trends, has there been a shift to or from discretionary worth noting? Or has it been fairly stable the past few quarters?

Question: John Hecht - Jefferies - Analyst : Okay. And turning to funding balance sheet consideration, just to touch on that briefly. Maybe first question on that is talk to us about how interest rates impact the business. Can you kind of give us sort of some high-level framework to think about sensitivity to changes of rate?

Question: John Hecht - Jefferies - Analyst : And then funding markets, like you've got a lot of capital raising within private credit. It seems like the asset-backed securitization markets are relatively strong now. You guys have announced some good off-balance sheet funding partnerships like with Sixth Street. Talk about how these constructive funding markets, do they impact your thinking or your strategy in terms of which way you're going to take the balance sheet? Or is that just a function of what's in the market at that time?

Question: John Hecht - Jefferies - Analyst : Okay. We've only got a couple of minutes left. So if anybody in the crowd has a question, go ahead and raise your hand and Turpin, I'll let you -- let me know if anybody is raising their hand because I can't see the audience.

Question: John Hecht - Jefferies - Analyst : Great. With the session, actually, we're at the end of our time. And Rob, I don't want to put you on the spot, but I didn't really get to ask about all your new growth endeavors, which includes the card product that you mentioned direct-to-consumer, entering the UK and maybe some other European markets and then the Apple Pay partnership. Maybe just since we have a limited time, like maybe just give us the state of the union on those and what kind of KPIs or growth objectives we might be looking at over the next couple of years.

Question: John Hecht - Jefferies - Analyst : All right. Well, we've gone up a little over our limit. I really want to thank you, Rob. And Turpin, thanks for co-hosting this with me and thanks, everybody, for participating. Have a good evening.