Affirm Reports Fiscal Year 2022 First Quarter Results
November 10, 2021
Exceeds First Quarter Financial Outlook and Raises Outlook for Gross Merchandise Volume (GMV), Revenue, and Revenue Less Transaction Costs
for Fiscal Year 2022
Expands Network by Increasing Active Merchants from 6,500 to 102,000 and Active Consumers by 124% to 8.7 million Year Over YearGrows Year-Over-Year GMV by 84%, or 138% Excluding Largest Merchant
Expands Amazon Relationship to All Eligible U.S. Purchases; Affirm to be Embedded as Payment Option in Amazon Pay's Digital Wallet in the U.S.
SAN FRANCISCO--(BUSINESS WIRE)--Nov. 10, 2021-- Affirm Holdings, Inc. (NASDAQ: AFRM) (“Affirm” or the "Company”), the payment networkthat empowers consumers and helps merchants drive growth, today reported financial results for its fiscal 2022 first quarter ended September 30,
2021.
“Our strong quarter once again demonstrates the continued momentum across Affirm as more people embrace the transparency, flexibility and value
our solutions provide,” said Max Levchin, Founder and CEO of Affirm. “Our unrivaled technology, industry-leading talent and the investments we aremaking are delivering results. Over the last year, we expanded our network by increasing the number of active merchants on our platform to over
100,000 and more than doubling the number of active consumers. These deep connections and our partnerships with merchants drove growth in
GMV, frequency of engagement, and revenue.”
Levchin continued, “We are pleased with our performance and proud of the contributions of our nearly 2,000-strong Affirm team. At the same time,
there is a lot more for us to build to achieve our objectives, and we are even more excited about the opportunities ahead. We remain focused oncontinuing to delight and grow both sides of our network by giving people even more reasons to choose Affirm with more products and in moremarkets.”
First Quarter of Fiscal Year 2022 Operating Highlights:
All comparisons are made versus the same period in fiscal year 2021 unless otherwise stated.

Gross merchandise volume ("GMV") for the first quarter of fiscal 2022 was $2.7 billion, an increase of 84%, or 138%
excluding the Company's largest merchant
Active merchants increased from 6,500 to 102,000, with the substantial majority coming from the adoption of Shop Pay
Installments by merchants on Shopify's platform
Active consumers grew 124% to 8.7 million and increased by 1.6 million, or 22%, compared to the period ended June 30,
2021
Transactions per active consumer increased 8% to 2.3 as of September 30, 2021
First Quarter of Fiscal Year 2022 Financial Highlights:1
All comparisons are made versus the same period in fiscal year 2021 unless otherwise stated.

Total revenue was $269.4 million, a 55% increase, driven primarily by increases in interest income related to growth inloans held for investment, network revenue driven by GMV growth, and gains on sales of loans
Total revenue less transaction costs1 was $112.1 million, compared to $55.3 million in the first quarter of fiscal 2021,
primarily as a result of the strong revenue growth, as well as slower growth in transaction costs as we achieved scaleefficiencies. In the period, provision for credit losses increased by $34.7 million from the first quarter of fiscal 2021. This
increase was driven by a release of excess loan allowance in the prior year period and a more normal credit environment
in the quarter ended September 30, 2021 compared to the prior year
Operating loss was $166.1 million compared to $33.3 million in the first quarter of fiscal 2021, and includes a $87.0 million
increase in stock-based compensation following the Company's January 2021 initial public offering, as well as investments
in product and engineering talent and marketing to deliver on the Company's growth opportunities
Adjusted operating loss for the first quarter of fiscal 2022 was $45.1 million, compared to the adjusted operating loss of$7.9 million reported in the first quarter of fiscal 2021
Net loss for the first quarter of fiscal 2022 was $306.6 million compared to $3.9 million in the first quarter of fiscal 2021,
and includes the above-mentioned increase in stock-based compensation following the Company's IPO, as well as $141.6
million of additional expense recognized based on the change in fair value of the contingent consideration liability

associated with the Company's acquisition of PayBright driven by increases in the value of its common stock
Recent Business Highlights

Today, the Company announced that it has expanded its relationship with Amazon. Affirm will be generally available tosupport all eligible purchases of $50 or more on Amazon.com and the Amazon shopping app in the United States.
Consumers will have the option to split the total cost of eligible purchases into monthly payments at checkout with no lateor hidden fees, ever. As part of an amended agreement, Affirm will serve as Amazon's only third party, non credit card, buy
now, pay later ("BNPL") option in the U.S. Until January 2023, Amazon will be subject to certain restrictions on providing
other installment products in the U.S. by other BNPL providers. Affirm will also be integrated into Amazon Pay’s digitalwallet in the U.S. In conjunction with the amended agreement, Amazon will receive multiple tranches of warrants topurchase shares of Affirm's Class A Common Stock, some of which are subject to satisfaction of certain performanceobligations and vesting conditions. Additional details are included in a Form 8-K filing that will be available here
On November 3, the Company announced the expansion of its successful partnership with Peloton to provide Affirm's 0%
APR offering to consumers in Australia on Peloton's Bike and Bike+ over 12, 24, 39 or 43 months with no late or hidden
fees
Today, the Company successfully completed a $247 million securitization of its long-duration 0% APR point-of-saleinstallment loans, achieving the lowest credit spread in this program to date. Similar to the Company's most recent 0%
APR point-of-sale installment securitization, this transaction qualifies for non-consolidated accounting treatment. This marks
the Company's seventh overall asset-backed security transaction since launching the program in 2020
Michael Linford, CFO of Affirm, commented, “During the first quarter, we continued to scale our two-sided network, delivering robust top-line growth,strong unit economics and even greater capital efficiency. We are seeing traction across all products and verticals, and deepening our trusted
relationships with merchants and consumers alike. As we continue to capitalize on our hyper growth phase, we are strongly positioning ourselves forthe long-term by investing in our key competitive advantages in technology and talent.”
Financial Outlook
The following table summarizes Affirm's financial outlook for the fiscal second quarter and full year 2022 periods.
Fiscal Q2 2022
GMV
Revenue
Transaction Costs
Revenue Less Transaction Costs
Adjusted Operating Loss as a Percentage of Revenue2
Weighted Average Shares Outstanding

Fiscal Year 2022

$3.55 to $3.65 billion $13.13 to $13.38 billion$320 to $330 million $1,225 to $1,250 million$143 to $148 million $645 to $655 million$178 to $183 million $580 to $595 million(7) to (5) percent
285 million(14) to (12) percent
290 million

The Company's financial outlook for the fiscal second quarter and full year 2022 assumes the following:

The Company's outlook does not include estimates of potential contributions to GMV, revenue, or transaction costs from its
partnership with Amazon. However, certain technology and marketing expenses associated with the onboarding andramping of the expanded Amazon partnership are included in the Company's outlook for adjusted operating margin for
Fiscal Year 2022. Beginning with its fiscal third quarter, the Company plans to begin including estimates of the GMV,
revenue, and transaction costs related to the Amazon partnership in its financial outlook
The Company's outlook assumes no material impact to GMV, revenue, or transaction costs from the rollout of its Affirm
Debit+ card or its recently announced partnership to enter the Australian market
Conference Call
Affirm will host a conference call and webcast to discuss first quarter fiscal year 2022 financial results on Wednesday, November 10, 2021, at 5:00 pm
ET. Hosting the call will be Max Levchin, Founder and Chief Executive Officer, and Michael Linford, Chief Financial Officer. The conference call will be
webcast live from the Company's investor relations website at https://investors.affirm.com/. A replay will be available on the investor relations website
following the call
Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators
Three Months Ended September 30,
2021
GMV (in billions)
Total Revenue, net
Total Revenue as a % of GMV
Transaction Costs (Non-GAAP)
Transaction Costs as a % of GMV
Revenue Less Transaction Costs (Non-GAAP)

2020(in millions, except GMV and percent data) (unaudited)
$
2.7
$
1.5
$
269.4
$
174.0
9.9 %
11.8 %
$
157.3
$
118.6
5.8 %
8.0 %
$
112.1
$
55.3

Revenue Less Transaction Costs as a % of GMV (Non-GAAP)
Operating Loss$
Operating Margin
Adjusted Operating Loss (Non-GAAP)$
Adjusted Operating Margin (Non-GAAP)Net Loss$

4.1 %(166.1)(61.6) %(45.1)(16.7) %(306.6)

3.7 %(33.3)(19.1) %(7.9)(4.6) %
(3.9)

$
$
$

September 30,
September 30,
2021
June 30, 2021
2020
Active Consumers (in millions)
Transactions per Active Consumer
Active Merchants (in thousands)
Total Platform Portfolio (Non-GAAP) (in billions)$
Equity Capital Required (Non-GAAP) (in millions)$
Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP)
Allowance for Credit Losses as a % of Loans Held for Investment

8.7
2.3
102.2
5.0
140.2
2.8%
6.8%

$
$

7.1
2.3
29.0
4.7
178.1
3.8%
5.8%

$
$

3.9
2.2
6.5
2.9
220.4
7.6%
8.7%

Key Operating Metrics

Gross Merchandise Volume ("GMV") - The Company defines GMV as the total dollar amount of all transactions on theAffirm platform during the applicable period, net of refunds. GMV does not represent revenue earned by the Company.
However, the Company believes that GMV is a useful operating metric to both the Company and investors in assessing thevolume of transactions that take place on the Company's platform, which is an indicator of the success of the Company's
merchants and the strength of that platform.
Active Consumers - The Company defines an active consumer as a consumer who engages in at least one transaction on
its platform during the 12 months prior to the measurement date. The Company believes that active consumers is a usefuloperating metric to both the Company and investors in assessing consumer adoption and engagement and measuring thesize of the Company's network.
Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions
that an active consumer has conducted on its platform during the 12 months prior to the measurement date. The Company
believes that transactions per active consumer is a useful operating metric to both the Company and investors in assessing
consumer engagement and repeat usage, which is an indicator of the value of the Company's network.
Non-GAAP Financial Measures

Transaction Costs - The Company defines transaction costs as the sum of loss on loan purchase commitment, provision
for credit losses, funding costs, and processing and servicing expense. The Company believes that transaction costs is a
useful financial measure to both the Company and investors of those costs, which vary with the volume of transactions
processed on the Company's platform.
Transaction Costs as a Percentage of GMV - The Company defines transaction costs as a percentage of GMV astransaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that transaction
costs as a percentage of GMV is a useful financial measure to both the Company and investors as it approximates thevariable cost efficiency of transactions processed on the Company's platform.
Revenue Less Transaction Costs - The Company defines revenue less transaction costs as GAAP total revenue lesstransaction costs, as defined above. The Company believes that revenue less transaction costs is a useful financial
measure to both the Company and investors of the economic value generated by transactions processed on the
Company's platform.
Revenue Less Transaction Costs as a Percentage of GMV - The Company defines revenue less transaction costs as apercentage of GMV as revenue less transaction costs, as defined above, as a percentage of GMV, as defined above. The
Company believes that revenue less transaction costs as a percentage of GMV is a useful financial measure to both theCompany and investors of the unit economics of transactions processed on the Company's platform.
Adjusted Operating (Loss) Income - The Company defines adjusted operating (loss) income as its GAAP operating loss,
excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) theamortization of its commercial agreement asset; and (d) certain other costs as set forth in the reconciliation of adjusted
operating (loss) income to GAAP operating loss included in the tables at the end of this press release. Adjusted operating(loss) income is presented because the Company believes that it is a useful financial measure to both the Company andinvestors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's
results of operations as the items excluded generally are not a function of the Company's operating performance.
Adjusted Operating Margin - The Company defines adjusted operating margin as its adjusted operating (loss) income, as
defined above, as a percentage of its GAAP total revenue. Similar to adjusted operating (loss) income, the Company
believes that adjusted operating margin is a useful financial measure to both the Company and investors for evaluating its

operating performance and that it facilitates period to period comparisons of the Company's results of operations as theitems excluded generally are not a function of the Company's operating performance.
Total Platform Portfolio - The Company defines total platform portfolio as the unpaid principal balance outstanding of allloans facilitated through its platform as of the balance sheet date, including loans held for investment, loans held for sale,and loans owned by third-parties. The Company believes that total platform portfolio is a useful financial measure to both
the Company and investors in assessing the scale of funding requirements for the Company's network.
Equity Capital Required - The Company defines equity capital required as the sum of the balance of loans held forinvestment and loans held for sale, less the balance of funding debt and notes issued by securitization trusts as of thebalance sheet date. The Company believes that equity capital required is a useful financial measure to both the Company
and investors in assessing the amount of the Company's total platform portfolio that the Company funds with its own equity
capital.
Equity Capital Required as a Percentage of Total Platform Portfolio - The Company defines equity capital required as apercentage of total platform portfolio as equity capital required, as defined above, as a percentage of total platform
portfolio, as defined above. The Company believes that equity capital required as a percentage of total platform portfolio isa useful financial measure to both the Company and investors in assessing the proportion of outstanding loans on the
Company's platform that are funded by the Company's own equity capital.
Supplemental Performance Indicators

Active Merchants - The Company defines an active merchant as a merchant which engages in at least one transaction on
its platform during the 12 months prior to the measurement date. The Company believes that active merchants is a usefulperformance indicator to both the Company and investors because it measures the reach of the Company's network.
Total Revenue as a Percentage of GMV - The Company defines total revenue as a percentage of GMV as GAAP total
revenue as a percentage of GMV, as defined above. The Company believes that total revenue as a percentage of GMV isa useful performance indicator to both the Company and investors of the revenue generated on a transaction processed on
the Company's platform.
Allowance for Credit Losses as a Percentage of Loans Held for Investment - The Company defines allowance for credit
losses as a percentage of loans held for investment as GAAP allowance for credit losses as a percentage of GAAP loans
held for investment. The Company believes that allowance for credit losses as a percentage of loans held for investment isa useful performance indicator to both the Company and investors of the future estimated credit losses on the Company's
outstanding loans held for investment.

Use of Non-GAAP Financial Measures
To supplement the Company's condensed consolidated financial statements, which are prepared and presented in accordance with generally
accepted accounting principles in the United States ("GAAP"), the Company presents the following non-GAAP financial measures: transaction costs,
transaction costs as a percentage of GMV, revenue less transaction costs, revenue less transaction costs as a percentage of GMV, adjusted operating
loss, adjusted operating margin, total platform portfolio, equity capital required, and equity capital required as a percentage of total platform portfolio.
Definitions of these non-GAAP financial measures are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental
Performance Indicators" above, and reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial
measures are included in the tables below.
Summaries of the reasons why the Company believes that the presentation of each of these non-GAAP financial measures provides useful
information to the Company and investors are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance
Indicators" above. In addition, the Company uses these non-GAAP financial measures in conjunction with financial measures prepared in accordancewith GAAP for planning purposes, including the preparation of its annual operating budget, and for evaluating the effectiveness of its businessstrategy. However, these non-GAAP financial measures are presented for supplemental informational purposes only, and these non-GAAP financial
measures have limitations as analytical tools. Some of these limitations are as follows:

Revenue less transaction costs and revenue less transaction costs as a percentage of GMV are not intended to bemeasures of operating profit or loss as they exclude key operating expenses such as technology and data analytics, sales
and marketing, and general and administrative expenses;
Adjusted operating loss and adjusted operating margin exclude certain recurring, non-cash charges such as depreciation
and amortization, although the assets being depreciated and amortized may need to be replaced in the future, andshare-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant
recurring expense and an important part of the Company's compensation strategy; andOther companies, including companies in the same industry, may calculate these non-GAAP financial measures differently
from how the Company calculates them or not at all, which reduces its usefulness as a comparative measure.
Accordingly, investors should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of the Company's financial
results as reported under GAAP, and these non-GAAP measures should be considered along with other operating and financial performancemeasures presented in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliations ofthese non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure toevaluate the business.

Cautionary Note About Forward-Looking Statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “SecuritiesAct”), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. All statements other than statementsof historical fact are forward-looking statements, including statements regarding: the Company's strategy and future operations, including theCompany's partnerships with Amazon, Peloton and Shopify; the development, innovation, introduction and performance of the Company's products,
including the Debit+ Card; acquisition and retention of merchants and consumers; the Company's future growth, investments, network expansion,
product mix, brand awareness, financial position, gross market value, revenue, transaction costs, operating income, provision for credit losses, andcash flows; and general economic trends and trends in the Company's industry and markets. These forward-looking statements involve known andunknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materiallydifferent from any future results, performance or achievements expressed or implied by the forward-looking statements.
Risks, uncertainties and assumptions include factors relating to: the Company's need to attract additional merchants, partners and consumers andretain and grow its relationships with existing merchants, partners and consumers; the highly competitive nature of its industry; its need to maintain aconsistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue with a single merchantpartner; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; the terms of its agreement with one of its
originating bank partners; its existing funding arrangements that may not be renewed or replaced or its existing funding sources that may be unwillingor unable to provide funding to it on terms acceptable to it, or at all; its ability to effectively underwrite loans facilitated through its platform andaccurately price credit risk; the performance of loans facilitated through its platform; changes in market interest rates; its securitizations, warehousecredit facilities and forward flow agreements; the impact on its business of general economic conditions, the financial performance of its merchants,
and fluctuations in the U.S. consumer credit market; its ability to grow effectively through acquisitions or other strategic investments or alliances; andother risks that are described in its Annual Report on Form 10-K for the fiscal year ended June 30, 2021 and in its other filings with the U.S. Securities
and Exchange Commission.
These forward-looking statements reflect the Company's views with respect to future events as of the date hereof and are based on assumptions andsubject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The
forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does not intend to update these forwardlooking statements.
About Affirm
Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network — one based on trust,transparency and putting people first — we empower millions of consumers to spend and save responsibly, and give thousands of businesses thetools to fuel growth. Unlike credit cards and other pay-over-time options, we show consumers exactly what they will pay up front, never increase thatamount, and never charge any late or hidden fees.
AFRM-F

AFFIRM HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(in thousands, except share and per share amounts)
September 30,
2021
AssetsCash and cash equivalents
Restricted cash
Securities available for sale at fair value
Loans held for sale
Loans held for investment$

Allowance for credit losses
Loans held for investment, net
Accounts receivable, net
Property, equipment and software, net
Goodwill
Intangible assets
Commercial agreement assets

Funding debt
Total liabilities

1,439,531 $ 1,466,558
236,282
226,074456,266
16,1701,808
13,0302,244,826
2,022,320(152,021)(117,760)
2,092,805
100,951
84,925
540,770
71,378207,431
169,952

1,904,560
91,57562,499516,515
67,930227,377
274,679$

5,402,099$ 4,866,967$

425,854
38,462
3,304
450,662
1,621,638
484,821$

Other assets
Total Assets
Liabilities and Stockholders’ Equity
Liabilities:
Accounts payable
Payable to third-party loan owners
Accrued interest payable
Accrued expenses and other liabilities
Notes issued by securitization trusts

June 30,2021

3,024,741

57,75850,0792,751
323,578
1,176,673
680,6022,291,441

Stockholders’ equity:
Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 200,336,842 shares issued
and outstanding as of September 30, 2021; 3,030,000,000 shares authorized, 181,131,728 shares issued andoutstanding as of June 30, 2021
Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 77,380,330 shares issued andoutstanding as of September 30, 2021; 140,000,000 shares authorized, 88,226,376 shares issued and outstanding asof June 30, 2021
Additional paid in capital
Accumulated deficit
Accumulated other comprehensive gain
Total stockholders’ equity$

Total Liabilities and Stockholders’ Equity

AFFIRM HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)(in thousands, except share and per share amounts)
Three Months Ended September
30,
2021
Revenue
Merchant network revenue$

Virtual card network revenue
Total network revenue
Interest income
Gain on sales of loans

173,978$

51,67863,647
16,75325,20178,01363,960136,204$

65,86828,931
10,352
13,49833,76822,58232,273435,456

207,272$(166,071) $(33,294)(140,373)

29,445(306,444) $(3,849)

$

171

97

$

(306,615) $(3,946)$(3,802) $
(279)

405
—

(4,081)

405

Income Tax Expense

Unrealized gain (loss) on securities available for sale, net
Net Other Comprehensive (Loss) Income

99,22354,237
16,434
4,084$

Other (expense) income, net

Net Loss
Other Comprehensive Income (Loss)
Foreign currency translation adjustments

93,265
5,958

269,385

General and administrative

Loss Before Income Taxes$$

Total Operating Expenses
Operating Loss

92,244
19,395
111,639
117,30230,9799,465

Servicing income
Total Revenue, net
Operating Expenses
Loss on loan purchase commitment
Provision for credit losses
Funding costs
Processing and servicing
Technology and data analytics
Sales and marketing

2020$(310,696) $(3,541)
Comprehensive Loss
Per share data:
Net loss per share attributable to common stockholders for Class A and Class B:
Basic$(1.13) $(0.06)
Diluted$(1.13) $(0.06)
Weighted average common shares outstanding
Basic271,677,516
64,778,024
Diluted
271,677,516
68,256,189

AFFIRM HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)22

1
3,579,763(1,205,100)
2,692

1
3,467,236(898,485)
6,772

2,377,358

2,575,526

5,402,099$ 4,866,967

(in thousands)
Three Months Ended September 30,
2021
Cash Flows from Operating Activities
Net Loss$
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Provision for credit losses
Amortization of premiums and discounts on loans, net
Gain on sales of loans
Changes in fair value of assets and liabilities
Amortization of commercial agreement assets
Amortization of debt issuance costs
Stock-based compensation
Depreciation and amortization
Other
Purchases of loans held for sale
Proceeds from the sale of loans held for sale
Change in operating assets and liabilities:
Accounts receivable, net
Other assets
Accrued interest payable
Accounts payable
Accrued expenses and other liabilities(306,615)

Other investing cash outflows
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
Proceeds from funding debt
Payment of debt issuance costs
Principal repayments of funding debt
Proceeds from issuance of notes and residual trust certificates by securitization trusts
Principal repayments of notes issued by securitization trusts
Proceeds from issuance of redeemable convertible preferred stock, net
Proceeds from exercise of common stock options and warrants
Repurchases of common stock
Payments of tax withholding for stock-based compensation
Net Cash Provided by Financing Activities
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents and restricted cash, beginning of period
Cash and Cash Equivalents and Restricted Cash, end of period$$(3,946)

63,647(35,708)(30,979)
139,884
18,971
5,231
93,18910,541
4,002(896,786)
888,580

28,931(11,123)(16,434)(30,202)
14,261
1,083
6,203
3,720
608
(346,878)
338,926(12,076)
78,086553
368,096(11,848)(11,618)

10,175(64,412)798
6,110
63,669(3,793)365,150(2,304)(1,847,458)
195,039
1,486,099(5,999)(16,347)(443,560)
889
4,827(3,000)(1,177,769)
75,049749,128—(4,169)————(629,510)(357,761)

682,106(6,609)(873,778)
499,789(55,204)—
37,470(4)(39,817)773,938(4,617)(890,556)
518,232(14,777)
434,434
1,741
(584)
—

243,953
3,588

817,811—(16,819)
1,692,632

457,746
328,128

Payable to third-party loan owners
Net Cash Provided by (Used) in Operating Activities
Cash Flows from Investing Activities
Purchases and origination of loans held for investment
Proceeds from the sale of loans held for investment
Principal repayments and other loan servicing activity
Acquisition, net of cash and restricted cash acquired
Additions to property, equipment and software
Purchases of securities available for sale
Proceeds from maturities and repayments of securities available for sale
Other investing cash inflows

2020

1,675,813$

785,874

AFFIRM HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT.
(Unaudited)(in thousands)
Three Months Ended September 30,
2021

2020

Supplemental Disclosures of Cash Flow Information
Cash payments for interest$
Cash paid for income taxes
Cash paid for operating leases
Supplemental Disclosures of Non-Cash Investing and Financing Activities
Stock-based compensation included in capitalized internal-use software$
Additions to property and equipment included in accrued expenses
Issuance of warrants in exchange for commercial agreement
Conversion of convertible debt
Issuance of common stock in connection with acquisition

10,195
72
4,475

$

6,934
—
3,148

11,69056——
10,000$972
1567,64588,559—Reconciliation of Non-GAAP Financial Measures
The following tables present a reconciliation of transaction costs, revenue less transaction costs, adjusted operating loss, adjusted operating margin,and equity capital required to their most directly comparable financial measures prepared in accordance with GAAP for each of the periods indicated.

Three Months Ended September 30,
2021

2020
(in thousands, except percent data) (unaudited)

Operating Expenses
Loss on loan purchase commitment
Provision for credit losses
Funding costs$

51,67863,647
16,75325,201$

65,86828,931
10,352
13,498$157,279$

118,649

Processing and servicing
Transaction Costs (Non-GAAP)
Technology and data analytics
Sales and marketing

78,01363,960136,204

General and administrative

33,76822,58232,273

Total Operating Expenses$

435,456$

207,272

Total Revenue$

269,385(157,279)$

Less: Transaction Costs (Non-GAAP)
Revenue Less Transaction Costs(Non-GAAP)

173,978(118,649)$

112,106$

55,329$(166,071)
10,541$(33,294)
3,720

Operating Loss
Add: Depreciation and amortization
Add: Stock-based compensation included
in operating expenses
Add: Amortization of Shopify Inc.
commercial agreement asset

93,1896,203

17,03914,261

Add: Other costs3

209

Adjusted Operating Loss (Non-GAAP)Divided by: Total Revenue, net

1,191

$

(45,093)$(7,919)$269,385$

173,978(16.7)

Adjusted Operating Margin (Non-GAAP)

%

(4.6)

%

September 30,
September 30,
2021
June 30, 2021
2020
Loans held for investment
Add: Loans held for saleLess: Funding debt$

Less: Notes issued by securitization trusts
Equity Capital Required (Non-GAAP)$(in thousands) (unaudited)
2,244,826 $ 2,022,320 $ 1,414,157
1,808
13,0304,085(484,821)(680,602)(698,892)(1,621,638)(1,176,673)(498,921)
140,175$

178,075$

220,429______________________________
1 Information about Affirm's use of non-GAAP financial measures is provided under "Key Operating Metrics, Non-GAAP Financial Measures andSupplemental Performance Indicators" and "Use of Non-GAAP Financial Measures" below, and reconciliations of GAAP results to non-GAAP results
are provided in the tables at the end of this press release.
2 A reconciliation of adjusted operating loss as a percentage of revenue to the comparable GAAP measure is not available on a forward-looking basis
without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future.
3 Other costs consists of one-time expenses incurred in the period associated with the Company's initial public offering and its acquisitions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006346/en/
Investor Relations
ir@affirm.com
Mediapress@affirm.com
Source: Affirm Holdings, Inc.