Affirm Holdings Inc (AFRM) 2025 Q3 法說會逐字稿

Good afternoon. Welcome to the Affirm Holdings third quarter fiscal 2025 earnings call. Following the speakers' remarks, we will open the lines for your questions. As a reminder, the conference call is being recorded and a replay of the call will be available on our Investor Relations website for a reasonable period of time after the call.

午安.歡迎參加 Affirm Holdings 2025 財年第三季財報電話會議。發言人演講結束後，我們將開放提問管道。提醒一下，電話會議正在錄音，電話會議結束後的合理時間內，我們將在投資者關係網站上提供電話會議的重播。

I'd like to turn the call over to Zane Keller, Head of Investor Relations. Thank you. You may begin.

我想將電話轉給投資者關係主管 Zane Keller。謝謝。你可以開始了。

Thank you, operator. Before we begin, I would 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 that 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.

謝謝您，接線生。在我們開始之前，我想提醒所有聽眾，今天的電話會議可能包含前瞻性陳述。這些前瞻性陳述受多種風險和不確定性的影響，包括我們向美國證券交易委員會提交的文件中所述風險和不確定性，這些文件可在我們的投資者關係網站上查閱。實際結果可能與我們今天所做的任何前瞻性陳述有重大差異。這些前瞻性陳述僅代表今天的觀點，除非法律要求，否則公司不承擔更新這些前瞻性聲明的任何義務或意圖。

In addition, today's call may include non-GAAP financial measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures. For historical non-GAAP financial measures, reconciliations to the most directly comparable GAAP measures can be found in our earnings supplement slide deck, which is available on our investor relations website.

此外，今天的電話會議可能包括非公認會計準則財務指標。這些措施應被視為 GAAP 財務措施的補充，而不是替代。對於歷史非 GAAP 財務指標，可以在我們的收益補充幻燈片中找到與最直接可比較的 GAAP 指標的對賬，該投影片可在我們的投資者關係網站上找到。

Hosting today's call with me are Max Levchin, Affirm’s Founder and Chief Executive Officer; Michael Linford, Affirm's Chief Operating Officer; and Rob O'Hare, Affirm’s Chief Financial Officer. In line with our practice in prior quarters, we will begin with brief opening remarks from Max before proceeding immediately into questions-and-answers.

與我一起主持今天電話會議的是 Affirm 的創始人兼首席執行官 Max Levchin； Affirm 首席營運官 Michael Linford；以及 Affirm 的首席財務官 Rob O'Hare。按照前幾季的慣例，我們將首先由 Max 致簡短的開場白，然後立即進入問答環節。

On that note, I will turn the call over to Max to begin.

關於這一點，我將把電話交給 Max 開始。

Thank you, Zane. The quarter's results of course speak for themselves. We are pleased to improve our outlook for the current quarter and the fiscal year. This quarter is a good example of us leaning into growth opportunities with excellent credit quality and LTV characteristics while hitting our targets. As we continue our journey as a soon-to-be-gapped profitable business, we'll continue to be judicious in how we spend our hard-earned dollars and as opportunities to take market share arise, we'll keep balancing growth and profitability.

謝謝你，贊恩。本季的業績當然不言而喻。我們很高興改善對本季和財年的展望。本季是一個很好的例子，我們在實現目標的同時，抓住了具有優良信用品質和 LTV 特徵的成長機會。隨著我們作為一家即將實現盈利的企業繼續前進，我們將繼續明智地花費我們辛苦賺來的錢，並且隨著佔領市場份額的機會出現，我們將繼續平衡增長和盈利能力。

Back to you, Zane.

回到你身邊，贊恩。

Great. Thank you, Max. With that, operator, we're ready for our question-and-answer session.

偉大的。謝謝你，馬克斯。接線員，好了，我們已經準備好進行問答環節了。

(Operator Instructions)

（操作員指示）

Andrew Jeffrey, William Blair.

安德魯傑弗瑞、威廉布萊爾。

Hi, good afternoon. Appreciate you taking the questions this afternoon. Max, I noticed the call again on the zero APR product in the shareholder letter where you're having excellent traction. Can you talk a little bit about sort of the, how you balance the economics of those loans versus interest bearing loans, and whether or not you're going to see or you think you can see more merchant sort of contribution to that product as you go forward, because I think you noted it's a little bit lower RLTC than interest-bearing? So, I'm just wondering about the mixed implications and any other comments on zero interest going forward.

嗨，下午好。感謝您今天下午回答問題。馬克斯，我注意到股東信中再次提到了零 APR 產品，該產品非常受歡迎。您能否稍微談談如何平衡這些貸款與有利息貸款的經濟效益，以及您是否會看到或認為在未來會看到更多商家對該產品的貢獻，因為我認為您已經註意到它的 RLTC 比有利息貸款略低？所以，我只是想知道未來零利率的混合影響和任何其他評論。

And it is a little bit responsive or reactive if you will versus proactive. So when a merchant shows up and says, hey, I'm thinking of doing a giant 0% promo this quarter, our answer is always going to be, absolutely, let's do this. Like, yes, it makes a little bit less money, but the brand halo that that drives for us, the conversion that the merchant sees and therefore attaches themselves to Affirm that much more, the incremental value to them is just like it's all goodness up and down.

如果你願意的話，它有點響應性或被動性，而不是主動性。因此，當有商家出現並說，嘿，我打算在本季度進行一次 0% 的大型促銷時，我們的回答永遠是，當然，我們這樣做吧。是的，它確實賺的錢少了一點，但它為我們帶來的品牌光環，商家看到的轉換率，以及因此更多地使用 Affirm 的因素，對他們來說增量價值就像是一切都好一樣。

And so part of what you see in my letter this quarter is me saying we had a handful of those opportunities come to us and we just couldn't get enough of them. You're totally right that the revenue and RLT content is a little bit light, but on the other side of it, the credit quality is significantly better. I think I quoted some numbers in my notes that it's basically prime and super prime content. And so we will continue reacting towards that. One of the really big things that is worth being clear about on the zeros, they are good today.

因此，您在本季度的信中看到的部分內容是，我說我們遇到了很多這樣的機會，但我們無法獲得足夠的機會。您說得完全正確，收入和 RLT 內容確實有點少，但另一方面，信貸品質明顯更好。我想我在筆記中引用了一些數字，它們基本上是質數和超素數內容。因此我們將繼續對此作出反應。關於零，真正值得明確的一件大事是，今天它們表現良好。

In fact, I think they're great today, but they're really fantastic tomorrow. The totality of Affirm card holders comes from the existing Affirm base. Every time we sign someone new through a 0% promo, some number of months or quarters from now, that is a prime candidate for card and that's a lifetime value booster. We haven't come up with a better one. So that's why we're so happy with that. And does create a little bit of delayed gratification if you will, but it's totally worth it.

事實上，我認為他們今天表現得很棒，但明天表現會更加出色。Affirm 卡持有者的總數來自現有的 Affirm 基礎。每次我們透過 0% 促銷活動簽下新客戶，從現在起的幾個月或幾個季度後，他們就是卡片的主要候選人，也是終身價值的提升者。我們還沒有想出更好的辦法。這就是我們如此高興的原因。如果你願意的話，這確實會產生一點延遲滿足感，但這完全值得。

That's super helpful. Thank you.

這非常有幫助。謝謝。

Dan Dolev, Mizuho.

瑞穗的丹‧多列夫 (Dan Dolev)。

Hey guys, excellent results as always. So, Max, and the team, can you maybe elaborate a little bit on the pockets of strength in GMV that we're seeing right now, and maybe some comments on Apple Pay and how much of this is sustainable on the April strength. We'd really appreciate some comments. Thank you.

嘿夥計們，結果一如既往地出色。那麼，Max 和團隊，您能否詳細說明我們目前看到的 GMV 強勢領域，並對 Apple Pay 進行一些評論，以及其中 4 月份的強勁勢頭在多大程度上是可持續的。我們非常感謝您的評論。謝謝。

Dan, this is Rob. Thanks for the question. The strength in GMV that we saw in the quarter, it really was incredibly broad-based. I think we had one category that declined, but otherwise we really saw strong growth across the board. And that was both growing with our largest merchants and partners but also you know growing across the merchant base.

丹，這是羅布。謝謝你的提問。我們在本季看到的 GMV 的強勁表​​現確實具有令人難以置信的廣泛性。我認為我們有一個類別有所下滑，但除此之外，我們確實看到了整體的強勁成長。這不僅與我們最大的商家和合作夥伴一起成長，而且你知道，也是在整個商家群體中成長。

Obviously, we called out in the letter that the strong growth in our direct-to-consumer services, those grew faster than the rest of the business at large and was led by card of course. But yeah, really it was strong growth. I mean the other thing that we called out in the letter was just that we did see growth accelerate across the quarter with March being our strongest month of growth at 40% GMV growth year-on-year.

顯然，我們在信中指出，我們的直接面向消費者的服務成長強勁，其成長速度超過了其他業務，當然是由信用卡業務引領的。但確實，成長強勁。我的意思是，我們在信中提到的另一件事是，我們確實看到整個季度的成長加速，其中 3 月是我們成長最強勁的月份，GMV 年成長 40%。

Got it. Excellent results. Thank you so much.

知道了。優異的成績。太感謝了。

Moshe Orenbuch, TD Cowen.

Moshe Orenbuch，TD Cowen。

Sorry about that. I was hoping you could perhaps flesh out the commentary on the 0%. You mentioned that there are generally much higher credit quality. And is this sort of the way to think about a kind of an acquisition channel for the Affirm card and just a different -- and if that's the case, then maybe could you talk a little bit about when you're going to be willing to do more of it and how we should kind of think about that?

很抱歉。我希望您能夠充實關於 0% 的評論。您提到，信用品質通常要高得多。這是不是可以作為 Affirm 卡的一種獲取管道的思考方式，只是有所不同——如果是這樣，那麼也許您能否談談什麼時候您願意做更多這樣的事情，以及我們應該如何看待這一點？

I'll start and undoubtedly Rob has much more precise contours around. The thing in promotional finance is everybody promises these zeros, no one except for us actually delivers on it. 99.99% of the time somebody says, hey, it's a 0% APR, there's an asterisk next to it. And if you read the fine print, it says, if you miss a payment or you're late or something happens or it rains or it's a Thursday, you will get screwed. And interest compounds attractively and it's the worst thing in the world.

我會開始的，毫無疑問 Rob 有更精確的輪廓。促銷融資的問題是每個人都承諾這些零，但除了我們之外沒有人真正兌現。 99.99% 的時間裡，有人會說，嘿，這是 0% 的 APR，旁邊有一個星號。如果你讀過細則，你會發現上面寫著，如果你錯過付款、遲到、發生其他事情、下雨或那天是星期四，你就會被騙。利息的複利成長非常誘人，這是世界上最糟糕的事。

We don't do any of those things when we tell you it's a 0% APR. It is in fact a 0% APR. At this point, we've actually earned our right brand. People know when Affirm says it's a 0% deal, it is in fact you will pay no interest for as long as the number of months says. And so people respond very positively. The conversion rate on those sort of things is better than it's ever been. Merchants come to us and say, hey, we want to really boost our top line. Let's run a zero.

當我們告訴您這是 0% 年利率時，我們不會做任何上述事情。事實上，年利率為 0%。至此，我們實際上已經贏得了正確的品牌。人們知道，當 Affirm 聲稱這是一項 0% 交易時，實際上您在規定的月份內無需支付利息。因此人們的反應非常積極。這類事情的轉換率比以前任何時候都要好。商家來找我們說，嘿，我們真的很想提高我們的營業額。讓我們運行零。

We'll pay the interest that consumers would have otherwise paid. Let's go for that. That typically results -- very, very rarely, in fact, I can't remember a time where we said, no, we're not interested. Any time this happens, we say, my God, of course. We would love to accommodate you. Let's go now and let's do it as often as possible. So in that sense, it's just a great thing right now. Yes, it has great credit externalities. It covers really well, et cetera, et cetera. It's also extremely on-brand for us.

我們將支付消費者原本需要支付的利息。我們去吧。這通常會導致——非常非常少見，事實上，我不記得我們什麼時候說過，不，我們不感興趣。每當這種情況發生時，我們都會說，我的天啊，當然了。我們很樂意為您提供協助。我們現在就開始，並盡可能地這樣做。從這個意義上來說，這現在是一件很棒的事。是的，它具有很大的信貸外部性。它的覆蓋效果非常好，等等，等等。這對我們來說也是非常符合品牌形象的。

So this is a really important brand deposit that we're making. It also drives GMV growth. And so generally speaking, I don't have a framework in my mind. At some point it's too much. The card user acquisition thing is a cherry on top. It's not a thing we do because we want more card users, even though of course we want more card users, it's the fact that when we do this, it results in a disproportionately higher percentage of qualified card users. The card credit quality requirements that we have are higher than the broad Affirm quality requirements. And so in that sense, the more zeros we run, the higher percentage of card eligible users we have. That's the qualitative answer. Now to Rob, for quantitative.

因此，這是我們正在進行的一項非常重要的品牌押注。這也推動了 GMV 的成長。一般來說，我腦子裡沒有一個框架。某種程度上來說，這實在是太多了。獲得卡片用戶是一件錦上添花的事。我們這樣做並不是因為我們想要更多的持卡人，儘管我們當然想要更多的持卡人，但事實是，當我們這樣做時，合格持卡人的比例會不成比例地高。我們對信用卡信用品質的要求高於廣泛的 Affirm 品質要求。從這個意義上來說，我們運行的零越多，我們擁有的卡片合格用戶比例就越高。這是定性的答案。現在輪到 Rob 進行定量分析了。

Yeah, and I would just say, Moshe, it really comes down to, for us, where is the portfolio profitability at large? And do we have maybe some surplus that we can invest through Mix, not necessarily by subsidizing the MDR for merchants, but just through Mix alone to help drive all of the beneficial things that come with zeros that Max alluded to, right? So, modestly better credit, higher growth, slightly better user acquisition, right? All those things are added benefits and we think that they drive really nice network effects for us as well.

是的，我只想說，Moshe，對我們來說，這實際上歸結為投資組合的盈利能力在哪裡？我們是否還有一些盈餘可以透過 Mix 進行投資，不一定是透過補貼商家的 MDR，而只是透過 Mix 來幫助推動 Max 提到的所有零帶來的好處，對嗎？那麼，信用稍微好一點，成長更快，用戶獲取率稍微好一點，對嗎？所有這些都是額外的好處，我們認為它們也能為我們帶來非常好的網路效應。

Rob Wildhack, Autonomous Research.

Rob Wildhack，自主研究。

Hey, thanks. I appreciate the commentary and the letter around your sensitivity to the recession scenario. I was wondering if you could unpack some of the assumptions that underpin that analysis? Obviously, be interested to know like what you considered for GDP and unemployment but also if you assumed anything in that scenario with respect to the business like 0% APR is increasing, decreasing or softening of the funding market, anything like that?

嘿，謝謝。我很欣賞您對經濟衰退情景的敏感性的評論和信件。我想知道您是否可以解釋一下該分析背後的一些假設？顯然，我很想知道您對 GDP 和失業率的考慮，但同時，如果您假設在這種情況下與業務相關的任何事情，例如 0% 的 APR 會增加、減少或削弱融資市場，諸如此類的事情？

Let's see. So, first of all, it's not a precise estimate. The numbers should give you a pretty good clue that this is, 50 and 10 are fairly general levels. What we've done is we've looked at past experience. So, during COVID, we had some changes we had to implement pretty quickly because of the extremely sudden nature of the furloughs and layoffs. And then in 2022, 2023, it was a little bit slower, but it was also a little bit of a fire drill. And so in both times, we had to estimate sort of what's the credit results we wanted in that period of time and empirically find our way to the right approval rates.

讓我們來看看。所以，首先，這不是一個精確的估計。這些數字應該能給你一個很好的線索，即 50 和 10 是相當普遍的水平。我們所做的就是回顧過去的經驗。因此，在 COVID 期間，由於休假和裁員的性質極其突然，我們必須非常迅速地實施一些變革。然後在 2022 年、2023 年，速度稍微慢了一些，但也有點像是消防演習。因此，在這兩次貸款中，我們都必須估計我們想要在那段時間內獲得的信用結果，並透過經驗找到正確的批准率。

The numbers I gave are roughly what we saw then. And then as we do our recession preparedness, which we always do, it's not a thing that we sort of started doing at some recent time, we just look at recession scenarios as a matter of habit, we model out what happens over what period of time as delinquencies and defaults go up. Basically, the process looks something like this. We just make assumptions about the existing back book and ask ourselves what are the changes we need to do to the front book to mix into the right returns for our investors so that we continue satisfying our capital markets obligations and feel good about the results overall.

我給的數字大致上就是我們當時看到的數字。然後，當我們為經濟衰退做準備時，我們一直在做，這不是我們最近才開始做的事情，我們只是習慣性地觀察經濟衰退情景，我們模擬出在拖欠和違約率上升的時期內會發生什麼。基本上，該過程看起來像這樣。我們只是對現有的後台帳簿做出假設，並問自己需要對前台帳簿做哪些改變才能為我們的投資者帶來正確的回報，以便我們繼續履行我們的資本市場義務並對整體結果感到滿意。

We deliberately do not make assumptions around things like, well, of course we'll do this and that and everything will get better. So there are pockets of improvements to be had after we make those credit cuts, but the assumptions are fairly black and white because that's the most conservative path to approach. And so that's the process. The numbers are empirically based from what we've seen as well as the models that we run here. I think capital markets sort of behaved in all sorts of erratic ways in the past. So, we have that you know empirically well-known at this point.

我們刻意不對某些事情做出假設，例如，當然，我們會這樣做，那樣做，一切都會變得更好。因此，在我們削減信貸之後，會有一些改善，但假設是相當黑白分明的，因為這是最保守的做法。這就是整個過程。這些數字是根據我們所見以及我們在此運行的模型得出的經驗。我認為資本市場過去的行為有些不穩定。因此，您現在已經從經驗上知道這一點。

Yeah, and Rob, this is Rob O'Hare. I think you'll find that because the loan book turns over so quickly in our business, we tend to look much more closely at early signs of stress in our own loan book more so than we peg our assumptions or our scenario planning around external factors like US unemployment rate or something like that. So it's really around if we saw repayment stress in our own loan book and we sprung to action, what would those actions look like and how much would we have to tighten underwriting or adjust our credit posture.

是的，羅布，這是羅布·奧黑爾。我想你會發現，由於我們業務中的貸款週轉速度非常快，我們傾向於更加密切地關注我們自己的貸款賬簿中壓力的早期跡象，而不是根據美國失業率或類似因素等外部因素來製定假設或情景規劃。因此，如果我們發現自己的貸款有還款壓力，並立即採取行動，那麼問題就在於，我們會採取什麼樣的行動，以及我們需要在多大程度上收緊承保或調整我們的信貸狀況。

Got it, okay. And then you've had a series of headlines recently highlighting integration and reporting back into the credit bureaus. And you do seem to be at the forefront of your industry in doing that. So, I just wanted to ask, why is that something that's so important to you? And then is it challenging from like a tech perspective to build out that reporting and integration?

知道了，好的。最近有一系列頭條新聞強調整合並向信用局報告。在這方面，您確實似乎走在了行業的前列。所以，我只是想問一下，為什麼這對你來說這麼重要？那麼從技術角度來看，建立報告和整合是否具有挑戰性？

It's a great question. We do believe we are at the forefront of the industry in this sense. And it is challenging at the front end. So there's a couple of somewhat conflicting considerations in the scenario of reporting. So there's a very small handful of people that will tell you, don't report my loans. I don't want to -- I like the optionality of not paying my bills on time and having my credit score unchanged.

這是一個很好的問題。我們確實相信，從這個意義上來說，我們處於行業領先地位。這對前端來說是一個挑戰。因此，在報告場景中存在一些相互矛盾的考慮。因此，只有極少數人會告訴你，不要報告我的貸款。我不想——我喜歡不按時支付帳單並且我的信用評分保持不變的可選性。

That is an extreme minority and some of our competitors love to speak to that minority but I think the vast majority of the world says, hey, if I'm borrowing money and I'm paying it back on time, I want that reflected on my permanent record. When I go to borrow money for a car or even get my credit check for an apartment rental, I want to know that if I borrowed from you, you help me build my credit history and ultimately help my credit score.

這是極少數人，我們的一些競爭對手喜歡針對這一少數人，但我認為世界上絕大多數人都會說，嘿，如果我借了錢，並且按時還款，我希望這能反映在我的永久記錄中。當我去借錢買車，甚至去檢查我的公寓租賃信用時，我想知道，如果我向你借錢，你是否能幫助我建立我的信用記錄，並最終幫助我提高信用評分。

And so that part is really important to us. We're absolutely not a socialist enterprise, but we do believe in doing the right thing for our consumer. And our consumer really cares about their credit rating. So helping them build it is really important. There are some downsides to it in the following areas. Some downsides in terms, sorry. You can't screw it up. If you go to a credit bureau and you tell them, here's a bunch of data, do what you will with it, that is irresponsible.

所以這一部分對我們來說非常重要。我們絕對不是社會主義企業，但我們確實相信為消費者做正確的事。我們的消費者確實關心他們的信用評級。因此幫助他們建立它非常重要。它在以下方面存在一些缺點。有一些缺點，抱歉。你不能把事情搞砸。如果你去信用局並告訴他們，這裡有一堆數據，你想用它做什麼就做什麼，這是不負責任的。

So we spend years literally testing what will happen to your credit score if the NPL data is included in it? What about monthly data? What about biweekly data? What if it combines with these other transactions that we see? And so we work very, very hard on making sure that we can stand up and say, we will report your data. If you pass on time, over time your credit score will improve, and it will not have weird consequences that you might be worried about, et cetera. And so that work was really significant. It took a lot of negotiating. It took some real effort with TransUnion and Experian. All these announcements you see is literally results of years and years of work.

因此，我們花費數年時間進行測試，如果信用評分包含不良貸款數據，您的信用評分會發生什麼變化？那麼月度數據呢？雙週數據怎麼樣？如果它與我們看到的其他交易結合起來會怎樣？因此，我們非常非常努力地確保我們可以站出來並說，我們將報告您的數據。如果您按時通過，隨著時間的推移，您的信用評分將會提高，並且不會產生您可能擔心的奇怪後果等等。所以這項工作確實意義重大。這需要經過很多談判。與 TransUnion 和 Experian 合作確實花費了一些精力。您看到的所有這些公告實際上都是多年工作的成果。

The actual process of gathering the repayment data and sending it to the credit bureaus is not especially technically challenging. You want to make sure you're formatted data correctly, but that's not the hard part. The hard part is making sure that it's incorporated accurately, represents the behavior truthfully, actually helps people build their scores, doesn't disproportionately benefit or punish them in strange unexpected consequences.

收集還款數據並將其發送給信用局的實際過程在技術上並不是特別困難。您要確保資料格式正確，但這不是最困難的部分。困難的部分是確保它準確地融入其中，真實地代表行為，真正幫助人們建立他們的分數，不會在奇怪的意外後果中不成比例地受益或懲罰他們。

Okay. Thank you.

好的。謝謝。

I'll use this one as the opportunity to pound the table. I invite all of our competitors to do the same thing. I think it's really important. I think this country is fueled by credit and it is irresponsible of them not to deliver information to the bureaus. And by the way, whatever regulatory regime we are in or heading to, the right thing to do is to help people not stack loans, which is the number one concern regulators of all types always have. If you're borrowing here and you're borrowing there, it is at least important to know the total size of your overall debt. And we'll lead the way, we'll always do the right thing first, but I think it's really important the industry embraces this practice.

我將利用這個機會來敲桌子。我邀請我們所有的競爭對手也這麼做。我認為這真的很重要。我認為這個國家是由信用推動的，他們不向各部門提供資訊是不負責任的。順便說一句，無論我們處於或即將採用什麼樣的監管制度，正確的做法是幫助人們不要堆積貸款，這是各類監管機構始終關注的首要問題。如果您在這裡借錢，並且在那裡借錢，那麼了解您的整體債務總額是很重要的。我們將發揮帶頭作用，始終首先做正確的事情，但我認為讓整個行業接受這種做法非常重要。

Adam Frisch, Evercore ISI.

亞當‧弗里施 (Adam Frisch)，Evercore ISI。

Thanks. Quick housekeeping, and then I have a question on the AC card. If zeros didn't grow so fast, we're more in line with the prior mix. What do you think RLTC would have been in the quarter?

謝謝。快速整理一下，然後我對 AC 卡有疑問。如果零成長速度沒有那麼快，我們會更符合先前的組合。您認為本季 RLTC 的表現會如何？

We haven't given precision around that, Adam, other than to say, zeros are profitable for us, they're profitable at the RLTC line, and they're just less profitable than an interest-bearing loan that's held. But just given the complexities of in-quarter funding mix and just taking a horizontal view of an asset that lends itself to a several quarters view, it's really hard to quantify that.

亞當，我們還沒有給出精確的答案，只能說，零息貸款對我們來說是有利可圖的，在 RLTC 線上是有利可圖的，只是比持有的有利息貸款的利潤要低。但考慮到季度內融資組合的複雜性，以及僅從幾季的角度來看待資產，因此很難量化這一點。

Okay, no worries. I just want to ask also about any specific initiatives or incentives that you can speak to in order to get people using the Affirm Card more like a debit card, so you see them more, get an even better understanding of their finances, et cetera? And if not, maybe provide some color on whether banking or debit or other financial services are on your roadmap. Max, I think you alluded to that very slightly in the last call. So, I was hoping maybe to get a little more color on that. Thanks.

好的，不用擔心。我還想問一下，您可以談談有什麼具體的舉措或激勵措施，以便讓人們像使用借記卡一樣使用 A​​ffirm 卡，這樣您就可以更多地了解他們，更好地了解他們的財務狀況等等？如果沒有，請提供一些關於銀行、金融或其他金融服務是否在您的路線圖上的資訊。馬克斯，我想你在上次通話中稍微提到了這一點。所以，我希望能夠對此有更多的了解。謝謝。

Good question. I'll try to keep it synced whilst I get in the preacher mode again. So, to get to top of wallet is a major effort. We basically have to build out all the functionality we have in mind and we're working pretty hard towards that but I would not Expect the pay now volume to just flip up to a crazy number very quickly. So it's going to be a gradual process, and we're seeing good attach rates in cohorts, but we are not, obviously, yet the predominant way for people to pay now. We're gaining traction pretty nicely in pay later as in we're taking up more and more off the consumer's credit spend.

好問題。當我再次進入傳教士模式時，我會嘗試保持同步。因此，要賺到最多的錢需要付出巨大的努力。我們基本上必須建立我們想到的所有功能，並且我們正在為此努力工作，但我不會期望現在的支付量很快就會上升到一個瘋狂的數字。所以這將是一個漸進的過程，我們看到了良好的群體附加率，但顯然，我們還不是現在人們支付的主要方式。我們在稍後付款方面取得了相當大的進展，因為我們在消費者信貸支出中所佔比例越來越大。

The goal is of course to go after all transactions. What it will take, I'm not sure this is the right place on which to pre-announce our product roadmap. And if I do, Michael will elbow me and it will hurt. But I think one of the things that we did in my notes, we just rolled out foreign transactions, which seems like a really minor thing, but I called it out because there's no network effects in payments geographically. People just don't travel that much. But nothing sucks more than pulling out your debit card in a foreign land and saying, I'm going to buy this thing, swiping it, and it doesn't work.

目標當然是追求所有交易。這需要什麼，我不確定這是否是預先宣布我們的產品路線圖的正確地點。如果我這麼做，麥可就會用手肘碰我，這會讓我很痛。但我認為我們在筆記中所做的事情之一就是推出了國外交易，這似乎是一件很小的事情，但我之所以提到這一點，是因為從地理上講，支付沒有網路效應。人們旅行的次數不多。但沒有什麼比在異國他鄉拿出借記卡並說「我要買這個東西，刷卡，卻無法使用」更糟糕的了。

And so fixing these gaping user interface or user experience holes is disproportionately important for things like pay now. Like, you just want it to be more bulletproof. As we clean up those things, I think you will naturally see increased pay now. We have a bunch of ideas on what might we do to create incentives. But what is worth the single most valuable consumer incentive we've come up with is the 0% APR.

因此，修復這些巨大的使用者介面或使用者體驗漏洞對於立即支付等功能至關重要。就像，你只是希望它更防彈。當我們解決這些問題時，我想你自然會看到薪水增加。關於如何創造激勵機制，我們有很多想法。但我們提出的最有價值的消費者激勵措施是 0% 的年利率。

Like, it sounds sort of pedestrian but we've run A/B tests of all sorts and kinds and we can offer you 10% off or 0% deal and nine out of 10 times the 0% is just much more compelling even though it costs the merchants less than 10%. And so just the economics of that trade are so powerful. We will continue leaning into APR reductions as a reason to use Affirm products in all sorts of ways and the card is certainly a giant driver of that. And obviously there's a bit of a rhyming where if you signed up through 0% promo, you'd like to see more of those. And so creating more of those in the card is pretty valuable.

這聽起來有點平淡無奇，但我們已經進行了各種各樣的 A/B 測試，我們可以為您提供 10% 的折扣或 0% 的優惠，而且 10 次中有 9 次 0% 的優惠更具吸引力，儘管商家的成本不到 10%。因此，這種貿易的經濟效益非常強大。我們將繼續依靠 APR 降低作為以各種方式使用 Affirm 產品的理由，而這張卡無疑是其中一個巨大的推動力。顯然，這其中有一點押韻，如果你透過 0% 促銷註冊，你會希望看到更多這樣的內容。因此，在卡片中創建更多這樣的內容非常有價值。

Got it. Okay, thanks guys.

知道了。好的，謝謝大家。

Andrew Bauch, Wells Fargo.

富國銀行的安德魯·鮑赫。

Hi guys, it's Lamar on for Andrew. On the recent headlines this week around student loan enforcement by the administration and the likely wage garnishment which potentially could affect 5.3 million defaulted student loan borrowers this summer, are you guys internally thinking about the potential implications for Affirm?

大家好，我是拉馬爾，代替安德魯。本週的頭條新聞圍繞著政府對學生貸款的強制執行以及可能的工資扣押，這可能會影響今年夏天 530 萬名拖欠學生貸款的借款人，你們內部是否考慮過這對 Affirm 的潛在影響？

It's something that we're very mindful of. I think we said two quarters ago that we have done a certain amount of back testing of presence of student loans, presence of student loan delinquencies and defaults which is obviously a really important signal. And so, all that is already factored into our underwriting in the right appropriate ways. And so, I can't say we are too concerned. That said, we'll obviously see if there are meaningful changes to repayment as a consequence of the actions of the administration, and we'll adjust appropriately.

這是我們非常注意的事情。我想我們在兩個季度前就說過，我們已經對學生貸款的存在、學生貸款拖欠和違約的情況進行了一定程度的回溯測試，這顯然是一個非常重要的信號。因此，所有這些都已經以正確、適當的方式納入我們的承保範圍。所以，我不能說我們太擔心。話雖如此，我們顯然會看看政府的行動是否會對還款產生重大影響，並會做出適當的調整。

Okay, makes sense. And then a quick follow-up. In your prior shareholder letter, you had mentioned work done around the redesign of the Affirm app, just focusing on increasing the utility there. And so I wanted to ask you if there's anything that you may be seeing so far in terms of the impact of these changes, maybe in terms of driving conversion and incremental user engagement? Thank you.

好的，有道理。然後進行快速跟進。在您先前的致股東信中，您提到了圍繞 Affirm 應用程式的重新設計所做的工作，只是專注於提高其實用性。所以我想問一下，到目前為止，您是否看到了這些變化的影響，例如推動轉換和增加用戶參與度的影響？謝謝。

It is improving. We strongly believe in continuous deployment. So, a meaningful percentage of the app changes haven't even rolled out yet. We're very careful. The reason for it, by the way, the single most important use of the app which gets insufficient airplay from my point of view is loan repayment. The number one reason, the reason we have the app and the number one reason it's used for is to pay your loan back. So as much as we love tinkering with user interface, the number one guardrail we run against is, has our repayment rate changed in a way that we don't like?

情況正在好轉。我們堅信持續部署。因此，應用程式更改中很大一部分甚至還沒有推出。我們非常小心。順便說一下，造成這種情況的原因在於，從我的角度來看，該應用程式最重要的用途是償還貸款，但其播放量卻不足。我們開發這款應用程式的首要原因以及使用它的首要原因是償還貸款。因此，儘管我們喜歡擺弄用戶介面，但我們遇到的最大問題是，我們的還款率是否以我們不喜歡的方式發生了變化？

And so you'll actually see us trickle out quite a number of incremental user interface changes, which every one of them moves some needle somewhere positively on the conversion side of things, always against the backdrop of are we improving or hurting repayment? And if it's ever hurting, those changes don't survive very long. We're very, very careful not to mess with our repayment rates. There's some really cool stuff coming in the app that's not visible yet. So, I would say ask me this question maybe next quarter, and you'll be able to ask, like, hey, you changed this thing and it looks cool. If you look through the Affirm Card pre-approval process or long pre-approval process, you'll see some really neat changes towards the end of the flow. That's a good breadcrumb if you wanted to go spelunk some user flows, see what we did. But it did improve conversion very nicely.

因此，您實際上會看到我們逐步推出相當多的增量用戶介面更改，這些更改中的每一個都會在轉換方面產生一些積極的影響，但始終以我們是在改善還是損害還款為背景？如果它真的造成了傷害，這些變化不會持續很長時間。我們非常非常小心，以免影響我們的還款率。該應用程式中有一些非常酷的東西尚未顯現。所以，我想說也許下個季度問我這個問題，你就可以問，比如，嘿，你改變了這個東西，它看起來很酷。如果您查看 Affirm Card 預先核准流程或長期預先核准流程，您會在流程結束時看到一些非常巧妙的變更。如果您想了解一些使用者流程，這是一個很好的線索，看看我們做了什麼。但它確實很好地提高了轉換率。

Okay, I'll take a look, Thanks.

好的，我會看看，謝謝。

Thank you.

謝謝。

Ramsey El-Assal, Barclays.

巴克萊銀行的拉姆齊‧埃爾-阿薩勒 (Ramsey El-Assal)。

Hi, thank you so much for taking my question. Could you comment on the online partnership with Costco, that announcement, maybe in terms of impact, timing of the implementation, and then could this move in-store at any point? Maybe that's wishful thinking, but thought I'd ask.

你好，非常感謝您回答我的問題。您能否評論一下與 Costco 的線上合作關係，以及該公告的影響、實施時間，以及這項合作是否會在任何時候轉移到店內？或許這只是一廂情願的想法，但我還是想問。

Let's see, if we can say, it's very cool. I'm very excited about this one. I can say that much. I think it's a brand renowned for its obsession with consumers. It's kind of the original consumer obsessed brand in many ways on the retail side of things. So very, very proud to be a provider to their members. I don't think we are announcing a timeline, but obviously we wouldn't talk about it if we didn't think that's a, I think that will be at some point in a reasonable future.

讓我們看看，如果我們可以說，這非常酷。我對此感到非常興奮。我只能說這麼多。我認為這是一個以專注於消費者而聞名的品牌。從零售方面來看，它在許多方面都是最初的以消費者為中心的品牌。我非常非常自豪能夠成為其會員的服務提供者。我認為我們不會宣佈時間表，但顯然如果我們不認為那是一個合理的未來某個時間點，我們就不會談論它。

We're definitely not updating any numbers as to its impact on our any metric. These things, as you know, always take a long time to get right. You need to launch, then you need to tune, then you need to A-B test, then you need to make sure it's profitable for all sides involved. So it definitely, don't model anything crazy in there. But like every one of our enterprise partnerships, we're very committed to it, which means that over time, we'll fine tune it to be a really great part of our business. So, I would just hold your horses a little bit, but we'll invest the right amount of effort into making it great.

我們絕對不會更新任何數字以表明其對我們的任何指標的影響。如你所知，這些事情總是需要很長時間才能做好。您需要啟動，然後需要調整，然後需要進行 A-B 測試，然後需要確保它對涉及的各方都有利。所以絕對不要在那裡模仿任何瘋狂的東西。但就像我們所有的企業合作夥伴一樣，我們對此非常投入，這意味著隨著時間的推移，我們會對其進行微調，使其成為我們業務中非常重要的一部分。所以，我只是稍微忍耐一下，但我們會投入適當的努力來使它變得更好。

Fair enough. A really quick follow-up from me. Any P&L impact from the Shopify renewal? I saw that was impressive that you renewed that through 2028. Was there any concessions on the economic front or any P&L impact we should think through on that renewal?

很公平。我對此進行了非常快速的跟進。Shopify 續訂會對損益產生任何影響嗎？我看到你將其續簽至 2028 年，這令人印象深刻。在經濟方面是否有任何讓步，或是在續約過程中我們是否應該考慮對損益的影響？

No economic concessions. The one housekeeping item is that it does elongate the amortization period for the warrants that were -- that Shopify received in the initial agreement. So we just, because those are tied to the life of the agreement, there is a longer amortization period now, but that's pretty small.

沒有經濟讓步。一個需要注意的是，它確實延長了 Shopify 在初始協議中獲得的認股權證的攤銷期。因此，由於這些都與協議期限相關，所以現在的攤銷期更長，但這個時間相當短。

Got it. Thank you very much.

知道了。非常感謝。

Will Nance, Goldman Sachs.

高盛的威爾·南斯。

Hey guys, appreciate you taking the question. Nice results as always. I also wanted to congratulate you on the Costco partnership. I thought that was great. I was wondering if you could provide any details on sort of your latest understanding about how the Walmart relationship will be evolving over the remainder of the year given some of the headlines out recently? Thank you.

嘿夥計們，感謝你們回答這個問題。一如既往的好結果。我也想祝賀您與 Costco 的合作。我認為那很棒。我想知道，鑑於最近的一些頭條新聞，您是否可以提供一些細節，說明您對今年剩餘時間內沃爾瑪與沃爾瑪的關係將如何發展的最新理解？謝謝。

We're currently live at Walmart. We think we're doing great work. We're actually actively investing in making sure that they are getting the absolute best possible value from our work together. The day we understand when that changes and how, we'll obviously notify you and the market. At the moment, I think we are being a good partner and a good vendor. Rob or Michael, want to add any more color?

我們目前正在沃爾瑪直播。我們認為我們做得很好。事實上，我們正​​在積極投資，以確保他們從我們的合作中獲得絕對最佳的價值。當我們了解何時以及如何發生變化時，我們一定會通知您和市場。目前，我認為我們是一個良好的合作夥伴和良好的供應商。Rob 或 Michael，想要增加更多顏色嗎？

No. I mean, we're still proud to power the program and we're there for Walmart consumers.

不。我的意思是，我們仍然為支持該計劃而感到自豪，並且我們為沃爾瑪消費者提供服務。

James Faucette, Morgan Stanley.

摩根士丹利的詹姆斯·福塞特。

Thank you very much. I wanted to go back to the app. Interesting comments there, asked about kind of using that to drive and make sure that you have good repayment engagement. But just wondering then how we should fit that together with some of the promotional and deal offers that come through the app. And I guess I would expect those to grow. So just help us think about it. I know that there are future improvements coming, but how should we think about the long-term objective of the app? Is it still a repayment engagement mechanism or it seems like there's also opportunity to go after kind of your better hire on quality customers that you're attracting initially is 0%. So just trying to help us think through the long-term scope of the app and that endeavor?

非常感謝。我想回到該應用程式。那裡有有趣的評論，詢問如何使用它來推動並確保你有良好的還款承諾。但我只是想知道我們應該如何將其與透過應用程式提供的一些促銷和交易優惠結合起來。我想我希望它們能夠增長。所以請幫助我們思考一下。我知道未來會有改進，但我們應該如何考慮應用程式的長期目標？它是否仍然是一種償還參與機制，或者似乎還有機會去追求您最初吸引的優質客戶的更好僱用率是 0%。那麼，您只是想幫助我們思考該應用程式和該努力的長期範圍嗎？

So you should think of the repayment functionality of the app as a key guardrail. In other words, whatever it is we do to the app in pursuit of other goals, we will not compromise repayment. This is sort of consistent with the creditors job number one thing that I love to repeat. We will never do something that harms repayment because it, one, hurts our capital partners, two, screws up our ability to sign more capital partners, et cetera, et cetera. So that's the guardrail and it's probably, the reason we don't talk about it is because it's understood, and we will not mess with repayment.

因此，您應該將應用程式的還款功能視為關鍵的護欄。換句話說，無論我們為了追求其他目標對應用程式做什麼，我們都不會妥協償還。這與債權人的工作重點是一致的，也是我喜歡重複的首要任務。我們絕不會做有損償還能力的事情，因為，第一，這會損害我們的資本合作夥伴；第二，這會破壞我們簽約更多資本合作夥伴的能力，等等​​。這就是護欄，我們不談論它的原因可能是因為它是可以理解的，而且我們不會幹擾還款。

That said, the app fundamentally is two more things. It's a catalog of merchants and their offers, most importantly 0% offers, that are currently available on the network. And it's really important in the sense that consumers do not come to the app to start their shopping journeys. What they do come to the app for, in addition to repaying their bills, is to check if a thing or a merchant they're interested in has a great financing offer, be it a 0% or a reduced APR or a longer period or increased purchasing power. There's many different kinds of promos that we know how to run and we know how to run very profitably both for our partners and for ourselves and delight consumers.

也就是說，該應用程式從根本上來說還有另外兩個功能。這是目前網路上可用的商家及其優惠的目錄，最重要的是 0% 優惠。這確實很重要，因為消費者並不是透過應用程式才開始購物之旅的。他們使用該應用程式的目的除了償還帳單外，還在於查看他們感興趣的商品或商家是否有優惠的融資方案，無論是 0% 利率還是降低的 APR、更長的期限還是更高的購買力。我們知道如何進行各種促銷活動，也知道如何為我們的合作夥伴和我們自己帶來豐厚的利潤，並讓消費者滿意。

And over time, we will send out more reasons to consumers to come to the app to check in on the offers available to them. One of the things that we rolled out within our adaptive checkout solution that lives on merchant sites is something that we've built for the app a little while ago called dynamic optimization which in real time figures out the best possible terms by that term lengths of the loans you might take out and APR offers for that single consumer given something we know about their current set of interests. Maybe the best possible approximation for the app which was a little controversial but actually think it probably is the best way I reason about it, it's a search engine that you come and query on the topic of, I have this thing in mind or I have this merchant in mind, what's the smartest financial decision I can make with Affirm as my tool to fulfill this financial objective.

隨著時間的推移，我們將向消費者提供更多理由來使用該應用程式查看他們可以獲得哪些優惠。我們在商家網站上推出的自適應結帳解決方案中的一項功能是我們不久前為應用程式建立的功能，稱為動態優化，它可以根據您可能藉出的貸款期限和針對單一消費者的 APR 報價即時計算出最佳條款，前提是我們了解他們當前的興趣。也許對於該應用程式來說，最好的近似值是有點爭議，但實際上我認為這可能是我推理的最佳方式，它是一個搜尋引擎，您可以來查詢主題，我想到這個東西，或者我想到這個商家，我可以使用 Affirm 作為工具做出的最明智的財務決策是什麼，以實現這個財務目標。

And we expect to lean into answering that question more and more and more. And you can sort of imagine some product ideas and maybe features that come out of that. The search engine that we have today is pretty good. We are working on improvements on that pretty relentlessly. I think if I'm allowed a super minor comment on the topic that's not come up yet, for which I'm somewhat thankful. If you look at how the world is changing in the context of Generative AI, every search is going to be an AI conversation. That's very, very apparent at this point. You should absolutely expect us to have an answer for that as well.

我們期望能夠越來越多地回答這個問題。您可以想像由此產生的一些產品理念和功能。我們今天擁有的搜尋引擎非常好。我們正在不懈地努力改進這一點。我想，如果允許我對尚未出現的話題發表一個非常小的評論，我會對此感到有些感激。如果你觀察生成式人工智慧背景下的世界是如何變化的，那麼每次搜尋都將成為一次人工智慧對話。目前這一點非常明顯。您絕對應該期待我們也能夠對此給出答案。

Got it. That's helpful context. Thanks, Max.

知道了。這是很有幫助的背景資訊。謝謝，馬克斯。

Thank you.

謝謝。

Matthew O'Neil, FT Partners.

馬修·奧尼爾（Matthew O'Neil），FT Partners。

Yeah, good afternoon. Thanks for taking my questions. I was curious if you could give us a little bit of an update on the international expansion, particularly in the UK, notably following the partnership with Adyen. Is that something you should expect to be somewhat step functional or maybe just kind of how to dimensionize that as well as other partnerships like the one with J.P. Morgan? Thanks.

是的，下午好。感謝您回答我的問題。我很好奇，您能否向我們介紹國際擴張的最新情況，特別是在英國，尤其是與 Adyen 合作之後。您是否應該期望它能夠逐步發揮作用，或者可能只是如何將其具體化，就像與摩根大通等其他公司的合作關係一樣？謝謝。

Adyen, similar to some of the other payment providers or payment processors, the most important value from that partnership, from a kind of partnership really, is speed to integration, speed to going live. So, it doesn't necessarily increase our pace of sales, but it moves our pace of implementation from whatever average is to much shorter because if you already plumped through with Adyen, you can just light up Affirm in the UK very, very quickly. So in the in the sense that whatever we have in a pipeline that we have signed going live, if they're an Adyen today, will be a faster process.

Adyen 與其他一些支付提供者或支付處理商類似，這種合作關係最重要的價值，實際上從某種合作關係來看，就是整合速度、上線速度。因此，它不一定會提高我們的銷售速度，但它會使我們的實施速度從平均速度加快到更短，因為如果您已經選擇了 Adyen，那麼您就可以非常非常快速地在英國點亮 Affirm。因此，從某種意義上說，無論我們簽署了什麼協議，如果他們今天是 Adyen，那麼流程都會更快。

And we have many of those relationships in the US. This one isn't the first one internationally, but it's definitely, I think, the most significant or the most visible one right now. In terms of the sense for things in the UK, just came back from London. I feel like I'm spending half my time in London at this point. Going well, doubling down on sales. I spend lots of time visiting merchants. Obviously, we are the upstart brand in the market, so I have to spend a lot of time just educating the market about who we are, how we do business, how we're a little bit different from the incumbents.

我們在美國有很多這樣的關係。這不是國際上第一次發生這樣的事情，但我認為，這絕對是目前最重大或最引人注目的事情。對於英國的事物的感覺，剛從倫敦回來。我覺得現在我有一半的時間是在倫敦度過的。進展順利，銷售額加倍。我花了很多時間拜訪商家。顯然，我們是市場上的新興品牌，所以我必須花很多時間向市場介紹我們是誰、我們如何經營、以及我們與現有企業有何不同。

Obviously, we already said out loud, so it's no surprise the big step function will come when we take Shopify live there and that's definitely on the horizon. We're working towards that. We won't get there before we get through the beta period with Shopify in Canada which is live now. Just limited number of engineers we can throw at this. But Canada beta is going well. I am confident UK beta will happen in reasonable time, very well as well.

顯然，我們已經大聲說過了，所以當我們將 Shopify 帶到那裡時，這一重大舉措的到來並不奇怪，而且這肯定即將實現。我們正在努力實現這一目標。在我們完成目前在加拿大上線的 Shopify 的測試期之前，我們無法實現這一目標。我們能投入的工程師數量有限。但加拿大測試版進展順利。我相信英國測試版也會在合理的時間內順利完成。

Thanks, Max. Maybe as a follow-up, speaking of large international incumbents, one that has a particularly aggressive posture on AI historically took a bit of a turn today. I was wondering if you can address where AI is working, I noticed in the note the dispute resolution process for example, but maybe where you found the most success and you've been a proponent of machine learning and AI for a long time and maybe where the human touch still reigns supreme. Thanks.

謝謝，馬克斯。也許作為後續，談到大型國際企業，歷史上在人工智慧方面採取特別積極姿態的一家企業今天發生了一些轉變。我想知道您是否可以談談人工智慧在哪些方面發揮作用，例如，我在說明中註意到了爭議解決過程，但也許是您在哪些方面取得了最大的成功，並且您長期以來一直是機器學習和人工智慧的支持者，也許人類的觸覺仍然佔據主導地位。謝謝。

That's a great question. I would spend a lot of time on it. So we are applying, and unfortunately the world has gotten really confused about what is and isn't AI under today's definition versus yesterday's definition. So, I'll try to be very precise. So we've used machine learning since the day of our founding. In fact, the idea was to build a credit score that was built on alternative data and modern machine learning techniques and obviously we've been pretty successful with it. S

這是一個很好的問題。我會花很多時間在這上面。所以我們正在應用，但不幸的是，世界對於今天的定義和昨天的定義下什麼是人工智慧、什麼不是人工智慧感到非常困惑。所以，我會盡力做到非常精確。自從公司成立以來，我們就一直在使用機器學習。事實上，我們的想法是建立一個基於替代數據和現代機器學習技術的信用評分，顯然我們已經取得了相當大的成功。秒

So we use that all the time, every part of the business, et cetera. So that's just the baseline. GenAI or LLMs, large language models, have been really, really helpful in a bunch of places. Internally, we use them in all kinds of ways, including, and we're actually quite actively investing into internal adoption of AI, where we have teams that are tasked with finding use cases for GenAI specifically inside their teams or increasing productivity, anything from we have literally hundreds of thousands of legal contracts with merchants, you need to find a clause that we need to modify for whatever reason, that's a great task for an LLM, read 435,000 contracts or whatever the current number is, find the clause that we need to change which is very subtly different contract to contract, summarize it, and construct a thing that we need to go out there and get re-signed.

因此，我們一直在使用它，業務的每個部分等等。這只是基線。GenAI 或 LLM（大型語言模型）在許多地方都非常有用。在內部，我們以各種方式使用它們，包括，我們實際上正在積極投資於人工智能的內部採用，我們有一些團隊負責在團隊內部尋找 GenAI 的用例或提高生產力，任何事情，我們與商家簽訂了數十萬份法律合同，你需要找到一個我們需要修改的條款，無論出於什麼原因，這對於法學碩士來說都是一項偉大的任務，閱讀 435,000份合約或當前的數量，找到我們需要更改的條款，合約之間有微妙的差異，總結它，並構建一個我們需要去那裡重新簽署的東西。

So that's the thing that humans would take thousands of hours for potentially can be done in minutes with AI. This isn't a made-up example, it's very real. The thing that I refer to in the letter, a big part of consumer delight is, at least for us anyway, is transparency and speed to resolution. And the ability to speak to a human and explain your case is really powerful. That's one thing that I don't think will ever go away, like, having empathy from someone who gets it and can actually speak to you with a human emotion in their voice. Machines aren't there yet, then it may actually be irreducible.

因此，人類需要花費數千小時才能完成的事情，透過人工智慧，可能只需幾分鐘就能完成。這不是虛構的例子，而是真實存在的。我在信中提到的是，消費者滿意度的很大一部分原因，至少對我們來說，就是透明度和解決速度。與人交談並解釋您的案例的能力確實很強大。我認為這種感覺永遠不會消失，就像對能夠理解你的人產生同理心，並且能夠用人類的情感與你交談一樣。如果機器還沒有出現，那麼它實際上可能是無法簡化的。

But if you kind of know what you want and you don't want to wait, and you have it all figured out, most importantly, you have the evidence that there's a dispute and it's just going to go a very specific way and we can use machine learning to adjudicate the outcome, you can package the entire thing with GenAI and say, all right, let's have an interaction. And you understand you're talking to a robot but this robot can take in all your evidence, process it, run it through machine learning model in a backend and say yeah this basically means you get a refund. We'll tell you right now, the refund is coming, you're going to be okay, we'll take care of the rest.

但如果你知道自己想要什麼，不想等待，而且你已經把一切都想清楚了，最重要的是，你有證據表明存在爭議，而且爭議會以非常具體的方式解決，我們可以使用機器學習來裁定結果，你可以將整個事情與 GenAI 打包在一起，然後說，好吧，讓我們進行互動。你知道你正在和一個機器人交談，但這個機器人可以收集你所有的證據，進行處理，並透過後端的機器學習模型運行它，然後說是的，這基本上意味著你可以獲得退款。我們現在就告訴你，退款即將到來，你會沒事的，我們會處理好剩下的事情。

That is a huge booster of customer satisfaction and so that's actually it -- that's what I'm referring to in the letter. That's also an example of both GenAI as a user interface and machine learning on a back-end as a resolution device. Machine learning is much more stable if you will, the models are highly, highly predictable and repeatable. That's why they're favored in precise things like credit underwriting and GenAI models are somewhat less predictable.

這大大提高了客戶滿意度，實際上這就是我在信中提到的內容。這也是 GenAI 作為使用者介面和後端機器學習作為解析設備的一個例子。如果你願意的話，機器學習會更加穩定，模型具有高度可預測性和可重複性。這就是為什麼它們在信用承保等精確領域受到青睞，而 GenAI 模型則不太可預測。

Everybody's heard about hallucinations, but they make for an amazing, very flexible user interface. And we use both very actively. I'll skip the part where I talk about how we have lots of engineers using lots of AI to write code and so on, but obviously we're doing that as well. So we don't spend a ton of time talking about it. We are very enthusiastic adopters of all this new stuff. But we also kind of think that it's a bit of a set of tools. You use what is available to you, and you try to find the very best ones, and you maybe don't make such a big story out of it.

每個人都聽說過幻覺，但它們卻創造了令人驚奇的、非常靈活的使用者介面。我們非常積極地使用這兩種方法。我將跳過談論我們有多少工程師使用大量人工智慧來編寫程式碼等的部分，但顯然我們也在這樣做。所以我們不會花大量時間討論它。我們非常熱衷於採用所有這些新事物。但我們也認為它有點像一套工具。你可以利用現有的資源，並嘗試找到最好的資源，這樣你就不會把它變成一個大故事。

Appreciate it. Thank you.

非常感謝。謝謝。

Yeah.

是的。

Kyle Peterson, Needham & Company.

凱爾彼得森（Kyle Peterson），Needham & Company。

Great. Good afternoon, guys, and nice results. I wanted to ask a little bit about credit and what you guys are seeing there. Obviously, the liquidity trends look to be pretty healthy, but I noticed you guys did take up the reserve on loan losses and balance sheet up a bit sequentially. So, was there anything in terms of like concern or is there mix or anything, like, just I guess how should we think about the allowance creeping up and how should we think about that?

偉大的。大家下午好，結果不錯。我想問一些有關信用以及你們在那裡看到的情況。顯然，流動性趨勢看起來相當健康，但我注意到你們確實連續增加了貸款損失準備和資產負債表。那麼，是否存在類似的擔憂，或者存在混合或其他什麼，例如，我想我們應該如何看待津貼的增加以及我們應該如何看待這一點？

Yeah, thanks for the question. I'll start and Max may have some color to add as well. We are seeing really healthy repayment rates come through. We do about $100 million of GMV a day and so we get a pretty fulsome data set every day as those cohorts are coming in for repayment 30 days later. So we're not seeing any signs of stress with the consumer in the repayment rates. One small thing that did happen during the quarter is we actually saw a slight uptick in prepayments.

是的，謝謝你的提問。我先開始，Max 可能也會添加一些顏色。我們看到還款率確實很健康。我們每天的 GMV 約為 1 億美元，因此我們每天都會獲得相當豐富的資料集，因為這些客戶會在 30 天後前來償還款項。因此，我們沒有看到消費者在還款率方面有任何壓力的跡象。本季度確實發生的一件小事是，我們實際上看到預付款略有增加。

And so we take that as a pretty positive credit signal, actually. There is some tax seasonality, but even adjusting for that, we saw an increase year on year in prepayments. So we think that's a modest positive and that does on the margin change the mix of loans that are still on the balance sheet and we still feel like the allowance rate, while up marginally, is still in a really healthy place. And I think delinquencies are a good leading indicator of where the credit box is and how the book is performing.

因此，我們實際上認為這是一個非常積極的信用訊號。稅收有一定的季節性，但即使經過調整，我們也看到預付款項同比增長。因此，我們認為這是一個適度的積極因素，並且確實在一定程度上改變了仍在資產負債表上的貸款組合，我們仍然認為，儘管撥備率略有上升，但仍處於非常健康的水平。我認為拖欠情況是信用額度和帳簿表現的良好領先指標。

Okay. That's helpful. Thank you.

好的。這很有幫助。謝謝。

Next question --

下一個問題--

Obviously, this is the snapshot -- sorry, I just wanted to comment that it's really important to be intellectually honest about credit. Like, in the current moment, the snapshot looks fantastic. Things could change. We are very attentive. We will change with things. The good news or the most important property of our business, we have a very, very short-term length. And so as the book goes through, we adjust our required credit quality on the front book as the back book mixes out and we will always get to the numbers that we need to have for our -- for us and for our capital orders.

顯然，這是快照——抱歉，我只是想評論一下，在信用問題上保持理智誠實非常重要。就像，在當下時刻，快照看起來很棒。事情可能會改變。我們非常細心。我們會隨著事物而改變。好消息是，或者說我們業務最重要的特性是，我們的期限非常非常短。因此，隨著帳簿的審閱，我們會調整前帳簿所需的信用質量，因為後帳簿會混合在一起，並且我們始終會得到我們和我們的資本訂單所需的數字。

Vincent Caintic, BTIG.

文森特凱恩蒂克（Vincent Caintic），BTIG。

Hi, good afternoon, Thanks for taking my questions. I wanted to get updates on two topics. I'll just ask both of them now. So the first one about competition, so kind of related to that discussion earlier related to Walmart, in this environment where maybe you have competition willing to give back economics to win merchants. Just wondering if you're seeing a lot of that sort of competition. And then second update, if you could talk about your funding structure and actually specifically, if you had any updated thoughts about becoming a bank. And the reason I asked is it does seem like the regulatory environment is more conducive to becoming a bank, whether it's build or buy. So just wanted to see if there's any updated thoughts there. Thank you.

嗨，下午好，感謝您回答我的問題。我想獲得兩個主題的最新消息。我現在就問他們兩個。第一個問題是關於競爭的，這與先前關於沃爾瑪的討論有點相關，在這種環境下，競爭對手可能願意付出經濟回報來贏得商家。只是想知道您是否看到過很多這樣的競爭。然後第二次更新，如果您可以談談您的資金結構，具體來說，如果您對成為銀行有什麼最新的想法。我之所以問這個問題，是因為看起來監管環境更有利於成為銀行，無論是自建還是收購。所以只是想看看那裡是否有任何更新的想法。謝謝。

I'm going to make Michael answer the competition question because I feel like I've been completely monopolizing airtime, but I'll answer the bank question first. There are three distinct things having to do with bank charters. Number one that really does not apply here, and it's important to just get that out of the way. Even if we woke up tomorrow morning with a bank charter in our back pocket, we would not be able to lend from deposits that that bank had. It would take a long time to gather deposits. It would be regulatorily encumbered in what's called the de novo period, where you really wouldn't be able to do all that much at all with it.

我要讓麥可回答比賽問題，因為我覺得我完全壟斷了播出時間，但我會先回答銀行問題。有三件不同的事情與銀行章程有關。第一點其實並不適用於此，重要的是解決這個問題。即使我們明天早上醒來，口袋裡有銀行執照，我們也不能用該銀行的存款放款。收集存款需要很長時間。在所謂的「從頭」時期，它會受到監管方面的阻礙，在此期間你實際上無法用它做太多的事情。

So a bank charter is just not a solution for our funding strategy. That's sort of full stop. And if we had a bank charter tomorrow five years from now, we could have a conversation about what is that doing for your funding cost and even then probably not. So that's not a thing. There are two other things. There's regulatory certainty where if you have your own charter, you can have a little bit more clarity as to how the regulators think of you. The bank partner model gets interrogated by the regulators both federal and state level fairly frequently. We have done really well. It obviously doesn't hurt that we look our bank partner, make our bank partners look good by not charging any late fees, by not doing any questionable anti-consumer things.

因此，銀行特許狀並不是我們融資策略的解決方案。這就像是句號。如果五年後的明天我們有了銀行章程，我們就可以討論這對你的融資成本有何影響，即使到那時也可能不會。所以那不是一回事。還有另外兩件事。如果你有自己的章程，那麼監管就有確定性，你就能更清楚地了解監管機構對你的看法。銀行合作夥伴模式經常受到聯邦和州級監管機構的質詢。我們做得非常好。顯然，透過不收取任何滯納金、不做任何可疑的反消費者行為，我們的銀行夥伴看起來不錯，這並沒有什麼壞處。

So our partnerships have been strong, and we've enjoyed a plurality of bank partnerships over the years. That said, there's some argument to be had there. The most important thing, and I've said it before and I'll say it again, we are regularitarily driven or motivated towards features or by features. In other words, if there were a feature that we just couldn't build without a bank charter, we would absolutely consider pursuing one. And there is a handful of those, there's no point in sort of rattling them off, but you could construct a straw man around. You would want to do this because it's great for consumers, it's on mission,

因此，我們的合作關係一直很牢固，多年來，我們與多家銀行建立了合作夥伴關係。話雖如此，仍存在一些爭論。最重要的事情，我以前說過，現在再說一遍，我們經常被功能或功能所驅動或激勵。換句話說，如果某個功能在沒有銀行特許的情況下我們就無法實現，我們絕對會考慮實現它。還有很多這樣的理由，沒有必要一一列舉，但你可以建立一個稻草人模型。你會想這樣做，因為這對消費者來說很好，這是一項使命，

Affirm would be good at it, and yet you can't because there's no bank charter. If and when we prioritize one of those things, bank charter will become part of the consideration. And that's where -- we've been in that mode for quite some time and you're totally right that the current regulators I think have publicly called for wanting to see more applications, so it's not lost on us but we would do it if we felt the need to pursue it for a product construct that we had in mind. Michael, now on competition.

Affirm 可以很好地做到這一點，但你做不到，因為沒有銀行執照。如果我們優先考慮其中一件事，銀行章程將成為考慮的一部分。這就是——我們已經處於這種模式很長一段時間了，你完全正確，我認為當前的監管機構已經公開呼籲希望看到更多的應用程序，所以我們並沒有忘記，但是如果我們覺得有必要為我們心目中的產品構造追求它，我們就會這樣做。邁克爾，現在參加比賽。

Yeah, look, on competition, the first thing I'd say is very competitive today, as it's been since the day we went public. The category will, we believe, remain competitive well into the future. Anytime a category is being defined like ours, where there's meaningful adoption of a new category, it attracts competition from pure players, but also attracts competition from the comments in the broader consumer credit space who would like to compete. That has been true for the past five years. We include in our supplement a chart that shows the trends of our merchant fee rates over the past five years -- or past several years, sorry. And the thing that jumps out to me and hopefully to investors is how consistent our pricing has been despite the extreme competitive environment. And the reason why is we don't win on price.

是的，看，關於競爭，我想說的第一件事就是今天的競爭非常激烈，自從我們上市以來一直如此。我們相信，該類別在未來仍將保持競爭力。任何時候，像我們這樣定義一個類別，當一個新類別被有意義地採用時，它就會吸引來自純粹參與者的競爭，同時也會吸引來自更廣泛的消費信貸領域中想要競爭的評論的競爭。過去五年來情況一直如此。我們在補充資料中附上了一張圖表，顯示了過去五年（抱歉，或過去幾年）我們的商家費率的趨勢。令我和投資人印象深刻的是，儘管競爭環境極為激烈，但我們的定價始終保持一致。原因是我們無法靠價格取勝。

We obviously have to put forward competitive pricing and our cost structure and ability to do things that we do in the capital markets allows us to be aggressive, but it's really important given the risk management mindset that we have in our business that we can generate enough profit to operate the business the way we want to operate it, which means we don't do the same thing that some competition might do with respect to pricing. We went on conversion, we went on impact, we went on putting ourselves out there for the consumers of the brands that we work with.

我們顯然必須提出具有競爭力的定價，我們的成本結構和在資本市場上做事的能力使我們能夠積極進取，但考慮到我們在業務中的風險管理思維，這一點非常重要，我們可以產生足夠的利潤來按照我們想要的方式運營業務，這意味著我們不會做與某些競爭對手在定價方面相同的事情。我們不斷轉化，不斷影響，不斷將自己展示給我們合作品牌的消費者。

And I think the track record we have on our distribution is evident to that. And I think the more successful we are in proving there's a really good business to be had here, the more competition it will attract. We've never thought about our contracts or our distribution as being something that cements our leadership. We have to earn it every day by driving real impact for our merchant partners and that's where our focus certainly lies. But make no mistake, we think the market is competitive and will remain competitive for as long as we're out changing the world.

我認為我們在分銷方面的業績記錄就足以證明這一點。我認為，我們越能成功證明這裡確實有好的生意，它就會吸引越多的競爭。我們從來沒有想過我們的合約或分銷能夠鞏固我們的領導地位。我們必須每天為我們的商家合作夥伴帶來真正的影響，從而贏得這份榮譽，而這當然也是我們的重點所在。但請不要誤會，我們認為市場是有競爭力的，而且只要我們繼續改變世界，市場就會一直保持競爭力。

Thank you.

謝謝。

David Scharf, Citizens Capital Markets.

大衛‧沙夫 (David Scharf)，公民資本市場。

Hey, good afternoon. Thanks for taking my questions as well. Hey, Max, just wanted to circle back to the 0% loan focus in mix. I appreciate the commentary that it's been more reactive to what partners are asking for as opposed to proactive. I guess the main question I have is maybe you can give us a little more color on just why. I mean, what do we generally take away in periods where you see particularly some of the larger enterprise partners want to lean into it? Is it a statement about what they're seeing on retail sales and worries and concerns, trying to drive more volume? Is it competitive in terms of playing you off of, let's say, another competitor? What should we basically take away from kind of this uptick in interest and promotional activity?

嘿，下午好。也感謝您回答我的問題。嘿，馬克斯，我只是想回到 0% 貸款的重點。我很欣賞這樣的評論：它對合作夥伴的要求採取的是被動反應，而不是主動出擊。我想我的主要問題是，也許您能給我們更詳細地解釋原因。我的意思是，當您看到一些大型企業合作夥伴特別想加入其中時，我們通常會得到什麼呢？這是他們對零售銷售情況的擔憂和顧慮，試圖推動更多銷售量的聲明嗎？就你和其他競爭對手之間的競爭而言，這是否具有競爭力？我們基本上應該從這種興趣和促銷活動的上升中得到什麼啟示？

Let me try to maybe add a little color here. I think it's important to think about the statement condition of our merchant partners when we think about these kind of programs. And in our experience, merchants who are wanting to do 0% promotions tend to be the ones who are most growth oriented. It's a reflection of strength in those merchants where they really want to go out and be front-footed and grow their businesses. It's an incredibly powerful growth tool for them. I think the truth is when we were dealing with a surge in rates and associated pressures to the merchant partners, it became very difficult to make the economics work for these. But when you're in a scenario that we were most of this quarter and certainly the prior couple quarters where the market conditions were favorable for the provider and Affirm and the brands really wanted to invest dollars in growth, it's a great lever to pull.

讓我嘗試在這裡添加一點顏色。我認為，當我們考慮這類計劃時，考慮我們的商業夥伴的聲明條件是很重要的。根據我們的經驗，想要進行 0% 促銷的商家往往是最注重成長的商家。這體現了那些真正想要走出去、搶先並拓展業務的商家的實力。對他們來說，這是一個非常強大的成長工具。我認為事實是，當我們面臨利率飆升以及隨之而來的商業夥伴壓力時，讓這些經濟措施發揮作用就變得非常困難。但是，當你處於這樣一種情況：本季度的大部分時間，當然還有前幾季度，市場條件對供應商和 Affirm 都很有利，而且品牌確實希望在增長上投入資金，那麼這是一個很好的槓桿。

Where I think merchants pull back on zeros is when they feel like they need to be less growthful and more focused on the cost structure of the business. So I've always thought about it as a real sign of strength for the merchants, knowing that that's a great way for them to grow their business. There's nothing defensive about it. The last thing to note that's really important, our merchant partners are reactive. I think that they are some of the best retailers in the world, but even with that, they don't react in minutes and days. These things take months to think about and plan and execute. And as a result, I think it'd be a big mistake to look at what we saw this quarter and associate it with anything you're reading in the news.

我認為，當商家覺得他們需要減少成長並更專注於業務成本結構時，他們就會減少零支出。因此，我一直認為這是商家實力的真正像徵，知道這是他們發展業務的好方法。這沒有什麼防禦作用。最後要注意的非常重要的一點是，我們的商業夥伴是被動的。我認為他們是世界上最好的零售商之一，但即便如此，他們也無法在幾分鐘或幾天內做出反應。這些事情需要花費數月的時間來思考、規劃和執行。因此，我認為，將本季看到的情況與您在新聞中讀到的任何內容聯繫起來是一個巨大的錯誤。

Yeah, and I would just add to what Michael said. Some of the largest merchants that chose to run zeroes this quarter really have business models where they're both selling direct to consumer, and then they're also selling into a distribution channel. And when you look at the unit level economics for that merchant, selling direct is the most profitable action they can do. And so while the MDRs that they're paying to Affirm might be higher than the credit card processing rate that they're paying on the direct channel, if they can drive more volume through direct, it's still really accretive to their gross margins versus selling into wholesale or selling into a channel.

是的，我只是想補充一下麥可所說的話。本季選擇經營零庫存業務的一些最大商家確實擁有這樣的商業模式：他們既直接向消費者銷售，也透過分銷管道銷售。當你觀察商家的單位層級經濟狀況時，你會發現直接銷售是他們能做的最賺錢的行動。因此，雖然他們向 Affirm 支付的 MDR 可能高於他們在直接管道支付的信用卡處理費率，但如果他們可以透過直接管道增加銷量，那麼與批發或通路銷售相比，這仍然能夠真正提高他們的毛利率。

Yeah, that is really, really important. I just want to underline what Rob just said. That is like a very, very key thing to understand about the business.

是的，這真的非常重要。我只是想強調一下羅布剛才說的話。這是了解業務的一個非常關鍵的事情。

That's terrific color. Thank you.

這顏色真棒。謝謝。

Giuliano Bologna, Compass Point.

朱利亞諾·博洛尼亞，指南針點。

Congrats on continued perfect overall results. One thing I was curious about asking you was when I looked at the outlook, it kind of implies a continued acceleration in GMV growth. And I'm curious to ask you if there's any, if you have any sense of any potential pull forward that may or may not have happened related to the whole discussion and how you think about that because you probably have a lot more insight being a month plus beyond that, and I'm curious how you think about that, and what you'll think about the outlook for the rest of the year, what that implies for GMV growth acceleration?

恭喜您繼續取得完美的整體成績。我很好奇想問您的一件事是，當我看前景時，它有點暗示著 GMV 成長將持續加速。我很好奇地想問您，您是否感覺到與整個討論相關的任何可能發生或可能沒有發生的潛在拉動，以及您如何看待這一點，因為您可能對此有一個多月的了解，我很好奇您是如何看待這一點的，以及您對今年剩餘時間的前景有何看法，這對 GMV 增長加速意味著什麼？

Yeah, thanks for the question. So I think at the high end of the GMV range, we're calling for 34% year-on-year growth, and that's down ever so slightly from the 36% growth that we saw this quarter. So we're not calling for an acceleration on that basis in the guide. And then we alluded to it in the letter, but we did see elevated growth rates in April. Those were roughly in line with what we saw in March, which we had called out as 40% year-on-year growth in the month. So we are expecting that growth will moderate from the levels that we've seen quarters to date.

是的，謝謝你的提問。因此，我認為，在 GMV 範圍的高端，我們預計將年增 34%，與本季 36% 的成長率相比略有下降。因此，我們並沒有在指南中呼籲在此基礎上加速。然後我們在信中提到了這一點，但我們確實看到四月份的成長率上升。這些與我們 3 月看到的情況大致一致，我們稱 3 月年增 40%。因此，我們預計成長將從迄今為止幾季的水平放緩。

That's very helpful. And then, you obviously set up a pretty incredible funding structure. But when you think about the percentage of loans that you might sell on a quarter-to-quarter basis, should we think about that running at the high end of the historical range for a while in the near future, just because of the volume of partnerships that are out there and the demand for private credit, and just how that should flow through, at least in the near term?

這非常有幫助。然後，你顯然建立了一個非常不可思議的融資結構。但是，當您考慮按季度出售的貸款百分比時，我們是否應該認為該百分比在不久的將來會處於歷史最高水平，這僅僅是因為存在的合作夥伴關係數量和對私人信貸的需求，以及至少在短期內這些百分比應該如何流動？

I mean, I think when you think about the funding mix, the biggest variable in any given quarter is whether or not we're going to do a non-consolidated ABS deal. We did just price a non-consolidated ABS deal last week and so that will have an impact on the mix of off-balance sheet funding that we see intra-quarter but we've also had really strong execution with on-balance sheet ABS too. So -- and we're fortunate to have really great funding partners in all of our channels, Forward Flow included. So, yeah, I think there will be a modest uptick in off-balance sheet funding as a result of the ABS deal that we did, but otherwise we really haven't commented on funding mix.

我的意思是，我認為當你考慮融資組合時，任何特定季度的最大變數是我們是否要進行非合併 ABS 交易。我們上週確實剛剛對一項非合併 ABS 交易進行了定價，因此這將對我們在本季度看到的表外融資組合產生影響，但我們在表內 ABS 方面的執行也非常強勁。所以——我們很幸運，我們所有的管道都有非常優秀的融資合作夥伴，包括 Forward Flow。所以，是的，我認為由於我們進行的 ABS 交易，表外融資將略有增加，但除此之外，我們還沒有對融資組合發表評論。

That’s very helpful. I appreciate it. I'll jump back in the queue.

這非常有幫助。我很感激。我會重新回到隊列中。

Reggie Smith, JPMorgan.

摩根大通的雷吉史密斯。

Hey, guys. Appreciate you taking the question. I've got, I guess one more, and I hate to beat a dead horse, but I have a question about the zero coupon offers. I'm specifically interested in the ones where you guys are doing the funding. I was hoping you could share, typically when I think about those zero financing, my mind always goes back to kind of the Peloton bikes. And I'm guessing that's not either the price point or the duration for those loans. So maybe if you talk a little bit about those loans in particular, the zero coupon loans that you guys are financing yourselves. And then again, just reading the note, it sounds like those are primarily showing up in your app. Maybe talk about where, like, how you deploy them a little bit. Thank you.

嘿，大家好。感謝您回答這個問題。我還有一個問題，我不想重複老生常談，但我對零優惠券優惠有一個疑問。我對你們資助的計畫特別感興趣。我希望您能分享一下，通常當我想到那些零融資時，我的思緒總是回到 Peloton 自行車。我猜這既不是這些貸款的價格點，也不是貸款期限。所以，如果您能具體談談那些貸款，即您自己融資的零息貸款，也許可以。再說一次，只要閱讀說明，聽起來這些主要出現在您的應用程式中。也許可以討論一下在哪裡、如何部署它們。謝謝。

Yeah, Reggie, to your question, about 10% of the 0% volume would come on what I would consider our surfaces. Either the Affirm Card is the best example and the largest example in the quarter, but also some of the wallet partnerships, right, we can dictate what the financing program is there and we're not, there's not a merchant necessarily that's part of the equation in that function. So those are the two best examples. Again, that was only about 10% of the 0% volume and we can dictate the exact cutoffs for when the 0% is presented and we can filter there either based on the credit quality of the consumers. It may be obvious but I'll say it anyway, higher credit quality consumers, there typically are lower costs for us elsewhere in the transaction, and so we can lean in by forgoing some of the interest revenue that we would get in an interest-bearing loan and present more zeros as a result. But yeah, that's really how we're thinking about it. I mean, we do, we've typically had some 0% in all of our own services. Card, again, is the best example. And we can play with the mix of zeros that we want to run in any given quarter and be thoughtful about the consumers we present zeros to and when and why.

是的，雷吉，對於你的問題，大約 10% 的 0% 體積會出現在我認為的表面上。Affirm Card 是本季最好和最大的例子，但也是一些錢包合作夥伴關係，對吧，我們可以決定那裡的融資計劃是什麼，但我們不是，商家不一定是該功能等式的一部分。這就是兩個最好的例子。再次強調，這僅佔 0% 交易量的 10% 左右，我們可以規定 0% 出現的確切截止值，並且可以根據消費者的信用品質進行篩選。這可能很明顯，但我還是要說，信用品質較高的消費者，通常在交易的其他地方的成本較低，因此我們可以透過放棄一些在有利息的貸款中獲得的利息收入來傾斜，並因此呈現更多的零。但是的，我們確實是這麼想的。我的意思是，我們確實如此，我們自己的所有服務通常都有 0% 左右。卡德再次成為最好的例子。我們可以嘗試在任何特定季度內使用我們想要的零組合，並仔細考慮我們向哪些消費者提供零以及何時提供以及為什麼提供零。

Got it. So it sounds like for those zeroes in particular, those are people that you know they already have the card. It's almost like a reward to them as opposed to in the case of you self-funding, those aren't you acquiring new customers. It's primarily people that you already know.

知道了。因此，聽起來對於那些數字為零的人，您知道他們已經擁有該卡了。這幾乎就像是對他們的一種獎勵，而不是像你自籌資金的情況那樣，你無法獲得新客戶。主要是你已經認識的人。

That's right, and again, I want to make sure we address the self-funding piece because when we look at the top 20 merchants that drove 0% volume, I mean, those are mostly negotiated 0% programs where there's a healthy MDR to cover the costs. And to the Peloton point that you raised, Peloton was obviously a very long-dated loan program and it had a very, very high percentage of 0% loans. And so it's altogether just a different equation. The zeros that we saw this quarter, clustered around roughly 12 months in term length. And so the MDR that we need to make the math work there is just, it's different than a three-year loan program like we had with Telaton.

沒錯，我再次強調，我們要解決自籌資金問題，因為當我們查看交易量為 0% 的前 20 名商家時，我的意思是，這些商家大多是協商好的 0% 計劃，並且有健康的 MDR 來支付成本。至於您提到的 Peloton 問題，Peloton 顯然是一個非常長期的貸款計劃，並且其 0% 貸款的比例非常高。所以這完全是不同的等式。我們本季看到的零利率期限大約集中在 12 個月左右。因此，我們需要進行數學運算的 MDR 與我們與 Telaton 合作的三年期貸款計劃不同。

Maybe just two exchanges. I think we're making, I think we have maybe, we talk about self-funding these things a little bit too much. It's not a binary thing, is it Affirm funded or not. We look at the merchant fees that we get either through the merchant discount rate in a negotiated deal or the interchange on the card, including Visa Flexible Credential interchange, and we make a financing offer based upon that revenue mix. There's always revenue in the picture.

也許只是兩次交流。我認為我們可能，我們談論自籌資金這些事情有點太多了。它是否得到 Affirm 資助並不是一個二元問題。我們會查看透過協商交易中的商家折扣率或卡片上的交換（包括 Visa 彈性憑證交換）所獲得的商家費用，並根據該收入組合提出融資報價。總有收入在裡面。

When we talk about self-funding it, what we mean is that we can intentionally direct a higher mix of offers to that consumer. And maybe that means we're intentionally accepting slightly lower margin. But we're not walking into situations and saying let's go acquire users by offering 24 months 0% promotional financing. That's just not the business model.

當我們談論自籌資金時，我們的意思是我們可以有向消費者提供更多種類的優惠。這也許意味著我們故意接受略低的利潤。但我們不會主動提出透過提供 24 個月 0% 促銷融資來吸引用戶。這並不是真正的商業模式。

Yeah, and again, we try to be really transparent with the merchant discount rates that we collect by product and you can see the consistency that we've driven there across each of the product lines in the earnings supplement.

是的，我們再次嘗試對按產品收集的商家折扣率做到真正透明，您可以在收益補充中看到我們在每條產品線上所追求的一致性。

That makes sense. I'm glad you guys clarified that because there may have been some confusion about that. So, thanks.

這很有道理。我很高興你們澄清了這一點，因為對此可能會有一些混淆。所以，謝謝。

Jeff, Seaport Research.

傑夫，海港研究。

Hey, thanks for allowing me to join these calls. Most of my questions I'm going to ask, let's have a quick clean on one maybe for Rob, which is how are you thinking about that sales and marketing line going forward? It looks like it stepped down this quarter, $74 million, just trying to get a sense of, a, what got into that number this quarter, and b, what the right level is for your sales and marketing. And maybe just touch on qualitatively any initiatives that are worth calling out. Thanks.

嘿，謝謝你允許我參加這些電話會議。我要問的大多數問題，讓我們先快速清理一下，也許其中一個是針對 Rob 的，那就是您如何看待未來的銷售和行銷路線？看起來本季的數字下降了，為 7,400 萬美元，只是想了解一下，a，本季度這個數字是多少，以及 b，對於您的銷售和行銷來說，合適的水平是多少。或許只是從品質上談一下值得呼籲的任何舉措。謝謝。

Yeah, I think the biggest change there was just that the amortization of warrant expense from one of our large partners came to the end of its amortization period in the December quarter. And so, this was the first quarter without that expense flowing through that line. So there was a step down in the non-cash war on amortization and that'll be the case going into this current June quarter as well. That was the biggest change.

是的，我認為最大的變化就是我們的一個大合作夥伴的認股權證費用攤銷在 12 月季度結束了。因此，這是第一個沒有該項費用流入該線路的季度。因此，非現金攤銷戰爭減弱，進入今年六月季度的情況也將如此。這是最大的改變。

Got it. And so that flows through going forward, or how should we think about that? I'm just trying to get a sense of it.

知道了。那麼這將如何繼續下去，或者我們應該如何看待它？我只是想了解它。

The amortization period has ended there, so the run rate that you saw this quarter will be roughly what you should expect in the June quarter.

攤銷期已經結束，因此您本季看到的運行率大致與您在六月季度預期的運行率相同。

Got it. Great, thanks very much.

知道了。太好了，非常感謝。

I would like to turn the floor over to Zane for closing remarks.

我想請 Zane 做最後發言。

Okay, thank you everybody for joining the call today. We look forward to speaking with you again next quarter.

好的，感謝大家今天參加電話會議。我們期待下個季度再次與您交談。

This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.

今天的電話會議到此結束。此時您可以斷開您的線路，感謝您的參與。