Thread by @investing_city

Notes from Affirm's earnings call:

1. BNPL value prop
2. Very excited about the new debit card
3. New savings product
4. Decrease of Peloton concentration
5. Not as many multi-year 0% APR deals
6. No Amazon GMV embedded in guidance

1/ "Our core insight was that the generations coming of age after the financial crisis of 2008 were no longer willing to tolerate getting into permanent debt by putting it all in the card, or getting burned by late fees and deferred interest"

2a/ Affirm Debit Card

"The next frontier of unbundled payment is daily spent, groceries restaurants, incidental purchases. This is why we're so excited to be rolling out the very first card of its kind, the Affirm Debit+ card."

2b/ "The Affirm Debit+ card connects seamlessly to their existing bank account, and no new checking account is required. Once you swipe or tap your card, you can use the intuitive debit plus companion app to turn any eligible transaction into an Affirm pay-over-time product."

2c/ "The beauty of our card is that it's powered by software, which means that you can expect us to regularly add new features and functionality via app update. I believe Debit+ is a revolutionary idea that can truly help millions of people enjoy life with a lot less anxiety..."

2d/ "So, again, without -- I realized I'm sounding a little bit like a child high in a pile of sugar, but I think this bed is busting -- it's pretty awesome. And we wanted to be the primary transactional device for our consumers."

2e/ "But I am tempering my excitement for the product because I know our lawyer is watching. But it is hard to tempering, it’s a great product."

3/ "By simply adding savings to the Affirm app, we've attracted total deposits of approximately $300 million, with no fanfare and no promotion, simply through organic engagement and a great product offering"

4/ "Owing to the strong growth of our business, merchant concentration continues to decline, as Peloton contributed 9% fourth quarter GMV compared to 32% in the prior year's fourth quarter"

"Excluding Peloton, we expect GMV growth of 70% to 75%"

5/ "Turning to the mix of our offering, we derive 38% of GMV from our 0% APR product, down from 54% in the fourth quarter of 2020."

"Loans with a term length of greater than 12-months accounted for 22%, down from 43% last year."

6/ "Additionally, we have not included any GMV or revenue from the Amazon partnership we have recently announced."

End/ Affirm has some exciting partnerships with Amazon and Shopify and it seems like they are doing a great job of onboarding new merchants.

They are also extremely excited about their new debit card.