Shares of financial tech company Affirm (AFRM) soared 98% to close at $97.24 on its first day of trading. The stock opened on Wednesday at $90.90 a share after the lender priced its IPO at $49 each, above its range of $41-$44.
The debut marks a strong start to the 2021 IPO market. Affirm is the first major tech listing of the year, following the most notable recent debuts in December, Doordash (DASH) and Airbnb (ABNB). Other companies which are slated to go public this year include Petco Animal Supplies and second-hand shopping platform Poshmark.
According to Affirm’s S-1 filing, its payment platform allows “consumers to pay for purchases in fixed amounts without deferred interest, hidden fees, or penalties.”
“Since our founding in 2012, we have charged $0 in late fees for missed payments, we never profit from consumers’ mistakes, and we are transparent in our product offerings,” the filing stated.
The company says as of September 30, 2020, more than 6.2 million consumers have completed approximately 17.3 million transactions with over 6,500 merchants the platform.
The company reported revenue of $509.5 million for fiscal year ending June 30, 2020, compared to $264.4 million a year earlier, representing year-over-year growth of approximately 93%.
Affirm’s net loss shrank to $112.6 million for its latest fiscal year, compared to $120.5 million for fiscal year ending June 30, 2019.
At-home equipment company Peloton (PTON) is listed as a top merchant partner, representing approximately 28% of its total revenue for fiscal year ended June 30th, 2020.
The company notes the reliance on Peloton has increased as a result of consumer spending trends on home fitness equipment.
“A large percentage of our revenue is concentrated with a single merchant partner, and the loss of this merchant partner or any other significant merchant relationships would materially and adversely affect our business, results of operations, financial condition, and future prospects,” according to the filing.
Affirm was founded in San Francisco by PayPal (PYPL) co-founder Max Levchin.
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre