Affirm Holdings, Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Affirmed Holdings fiscal year 2022 first quarter earnings conference call. At this time, all lines have been placed on mute to prevent any background noise. Following the speaker's remarks, we'll open the lines for your questions. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Ron Clark, Vice President of Investor Relations, to begin.

Thanks, Operator. Before we begin, I'd like to remind everyone listening that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our investor relations website. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of today and the company does not assume any obligation or intent to update them except as required by law. In addition, today's call may include non-GAAP financial measures. These measures should be considered as a supplement to, but not as a substitute for, GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found in today's earnings press release, which is available on our investor relations website. Hosting today's call are Max Levchin, Affirm's founder and chief executive officer, and Michael Linford, Affirm's chief financial officer. And with that, I'd like to turn the call over to Max to begin.

Welcome, everyone, and thanks for joining us on today's call. Q1 was yet another record quarter for Affirm as we continued to rapidly grow both sides of our network. We increased GMV to more than $2.7 billion during the period, which we closed with some really great momentum. We achieved our first-ever billion-dollar GMV month in September and had over 102,000 active merchants and 8.7 million active consumers at the end of the first fiscal quarter. That said, we measure a firm's results and impact in years and decades, not months and quarters. This allows us to think strategically about delighting consumers and delivering value to our merchant partners while building an exciting brand on a foundation of trust. The seeds we planted years ago are just beginning to bear fruit. The growth of our network is accelerating, and my confidence in a firm's market position has never been stronger. Deep, tech-powered partnerships with exceptional partners form a key part of our multi-year growth strategy. These are beginning to scale up, and we are continuously investing in delivering even more value for our partners with new ideas and products. Our partnership with Shopify is showing really strong signs of scale and impact. We'll touch on the exact numbers in a moment, but glance at the active merchant number to get a good sense for how that is starting to take shape. We continue to rapidly expand our partnership with Walmart. As recently announced, Affirm is providing Walmart's consumers an efficient alternative to layaway for the holiday shopping season. In November, Walmart and Affirm will be marketing together across a variety of digital and physical channels, including TV walls in over 3,900 Walmart stores. Our deep engagement with this all-important partner helped meaningfully accelerate our GMV with Walmart over the last year. We see even more opportunities to serve Walmart and its consumers in the year ahead. On the strength of our test results, we're also deepening our relationship with Amazon to help accelerate the growth of our network. Affirm will now serve as Amazon's only credit card alternative in the buy now, pay later space through the next two holiday seasons in the United States. Eligible Amazon customers will have the opportunity to use Affirm at checkout on Amazon, providing them with a transparent and flexible way to pay at their own pace. Affirm will also be embedded as a payment method in Amazon Pay's digital wallet and become available to all consumers and merchants that use Amazon Pay at checkout in the U.S. Finally, we continued to close, launch, and expand our enterprise partnerships, broadening our network reach. We launched American Airlines and Apple Canada, re-signed three-year deals with Priceline and Signet, launched a deeper integration with Target, which more than doubled our current Target business, and closed brand new partnerships with Newegg and Michaels. Platform and merchant partnerships and the strong growth of our consumer platform represent an incredible opportunity to expand the potential reach of our mission to hundreds of millions of people, and we are excited to bring them access to our honest financial products. On a lighter note, I'm excited to share that we've launched our consumer holiday campaign just this week. You might catch it on social media while streaming TV and on billboards in several markets. The campaign explores the stupid and stressful things that can happen around the busy holiday season, from questionable gifts to regrettable behavior, and juxtaposes that with Affirm, the smart choice for paying at your own pace, with no late fees, no gotchas, and no regrets. There's a lot to be proud of this quarter, and even more to be excited about in the years to come. Affirm's core strengths line risk management, capital markets execution, and putting our ability to solve hard technical problems toward building great products and creating consumer delight. With the context of the great unbundling of the credit card, we gave you a sneak peek into parts of our product roadmap at our investor forum in September. Let me update you on the progress we've made on these products since. After being put through its paces by hundreds of affirmers, our DebitPlus card is out in the wild being further tested by consumers as we make our way through our waitlist and get it ready for Genpop launch in the new year. We also shipped the first version of our super app. While it's still very early days and many versions will follow this one, I'm excited to see the meaningful increase in consumer engagement that it has already driven across products, particularly our shopping platform. Cashback rewards and crypto savings are both live in a pilot mode, which you may have already seen in your app or will soon. We also launched a firm in Australia last week with our longtime enterprise partner, Peloton. Extending our international reach by partnering with our merchants wherever they do business is an important facet of our growth strategy, and we see many more markets to come. Stay tuned. Finally, Adaptive Checkout, the reinvention of our core business, is fully live in the market, has delivered an over 25% conversion lift, and has already been adopted by 44% of eligible merchants. Let me go back to something I touched on briefly a moment ago. A firm's core strength can be summed up to one thing, our extraordinary team. It's hard to overstate just how much of our success to date is rooted in the exceptional level of talent and sheer grit of our people. The key strategic insight leading to the creation of the great unbundling thesis was the fear and loathing of the credit card by the millennial generation as they came of age after the financial crisis. Related to this was the dramatic rerouting of the flow of intellectual capital. In the prior decade, the best and brightest technical minds flocked to Wall Street to learn and earn. Suddenly, they craved something else professionally. They needed a mission, a chance to fix the problems of the financial system that had failed their families. Our mission is at the very core of who we are. Combined with a firm belief that any solution to societal problems must be self-sustaining and profitable to stand the test of time, it has allowed us to attract amazing talent since the very early days of Affirm, many of whom are still here today, a decade later. The output of our engineering team is the key reason why we have become the partner of choice for so many giants of commerce. Our partners rely on us to show up with solutions for scale, speed, and reliability, and to work tirelessly and intelligently to deliver results. Our risk and data science teams were founded on the belief that traditional credit scoring excluded far too many people from access to credit and the conviction that alternative data sources can be utilized in creative and compliant ways to dramatically expand this access without compromising risk performance. A very similar origin story is alive and well today in our legal and compliance team. Several of them hail from key supervising regulators like FDIC, the Fed, and the CFPB. Our commitment to winning the right way with no fine print and no late or hidden fees is what brought them to Affirm. This update will become prohibitively long if I were to properly highlight each team and their contributions to our many successes so far. So I hope you will indulge me with just one anecdote featuring a great many Affirmers. As we readied the rollout of ShopPay installments powered by Affirm, in the late spring of this year, we needed a way to onboard several hundred thousand Shopify merchants to review them for eligibility, identify and solve corner cases, vet them for regulatory and compliance issues. Of course, eventually, this would all be done by machine learning models, examining the site content and scoring it, but to build this type of model, you need reasonable prior knowledge from previously approved merchants, and we hadn't yet accumulated enough of that at the time. At the regular reviewer capacity, merchant ops would take several months, and we wanted to launch in three weeks. We had about 1,000 employees at the time. If a large percentage would manually review a few hundred shops each, we would be ready to launch within the time allotted and collect an excellent training set of data to build the models for automated approval. Within a day, we had organized robust online training classes for our quote-unquote volunteer reviewers, a leaderboard for those competing on review productivity, and Operation Shopapalooza was up and running. Execs and interns alike would finish their already busy workdays, pick up their next batch of Shopify merchant URLs, and get reviewing. Meanwhile, our machine learning team shipped new software tools every day to help automate more and more of the reviewer tasks. I maintained a respectable top 20-ish position on the productivity leaderboard, but got completely overrun by Michael and his team a few days before the wrap, only to watch him get left behind by the machine learning folks who had automated the review process after two weeks. We had the data, we built the models, and we were ready to launch. It's easy to dismiss this episode as a pandemic-era Zoom adult startup antic, but I think it's very revealing. We have assembled perhaps the most formidable fintech team ever. And in addition to talent, even 10 years in, we have maintained the startup grit and are never afraid to roll up our sleeves to achieve our goals. I want to thank Affirmers for another excellent quarter and a great beginning to an important year for our company. It's a privilege to lead this team and an honor to work with all of you. Now off to Michael, who will take us through the numbers.