September 14, 2021: -Affirm reported better-than-expected financial results of the fourth quarter after the bell on Thursday, which includes solid guidance and 71% revenue growth. The stock soared over 20% in extended trading following the report.

Affirm is the leading player in the burgeoning buy now, pay later space, which allows people to split their purchases into installments. Founded in the year 2013 by PayPal co-founder Max Levchin, Affirm made its stock market debut in January, with shares starting trading at $90.90 after listing at $49 apiece.

Affirm gave upbeat guidance for the current quarter. It expects revenue for the first quarter of 2022 to come in at $240 million to $250 million, which surpassed analysts’ estimated $233.9 million.

The company already had 7.1 million active customers as of the fourth quarter, up from 5.4 million in the previous period.

The blockbuster earnings report came after Affirm announced it’s teaming up with Amazon to launch the e-commerce giant’s first partnership with an installment payment player last month. The partnership permits Amazon customers in the U.S. to split the $50 or more purchases into smaller, monthly installments.

When asked how the partnership with Amazon came together, Levchin said on a call with investors that large retailers realize the buy now, pay later trend is not just a fad or a feature. “They look to us as a provider,” Levchin said.

In the earnings report, Affirm said its guidance for the entire year and fiscal first-quarter does not factor in any potential contributions to revenue or gross merchandise volume from the partnership with Amazon, which is being tested with select customers before rolling out more broadly in the future months.