Affirm Holdings Inc Q4 2023 Earnings Call Summary

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

Question: Rayna Kumar - UBS Investment Bank, Research Division - Analyst : Good quarter. I just want to ask you about your loan delinquency rate, it came in better than expected in the fourth quarter. You saw a sequential decline in 3Q versus 4Q. What makes you think that there will be an increase in the first half in '24?

Question: Rayna Kumar - UBS Investment Bank, Research Division - Analyst : Got it. Okay. And then I just want to ask you about the CFPB and the credit reporting bureaus they, of course, continue to push for greater reporting of purchases financed through the BNPL. And you've been a proponent of greater reporting transparency. But this could also be at odds with your strategy of increasing the frequency and usage of your financing solutions. Do you think greater credit reporting will drive down consumer usage of BNPL? Or if you can just talk about your thoughts on that.

Question: Eugene M. Simuni - MoffettNathanson LLC - Analyst : Wanted to ask about GMV growth. It looks like it came in better than expected this quarter, at 25% year-over-year. So it would be very helpful to hear what are some of the factors that helped it grow faster whether it's macro or kind of Affirm specific? And then as a follow-up, does that -- would love to hear a bit on how you thought about your GMV guide for next year because I realize that $24 billion is the floor but that floor, if I'm doing the math correctly, implies a deceleration from that level. So why would you not be able to achieve that -- the growth rate that you achieved this quarter with GMV, next year?

Question: Eugene M. Simuni - MoffettNathanson LLC - Analyst : Got it. Okay. That's very helpful. And then if I can squeeze in just one more on -- related to uncertainty and economic environment next year. I don't know if I missed it, but what is your assumption about unemployment rate for next year just because it's such an important driver of credit as you often point out.