|
Delaware
(State or other jurisdiction of incorporation or organization) |
| |
7389
(Primary Standard Industrial Classification Code Number) |
| |
84-2224323
(I.R.S. Employer Identification Number) |
|
|
Gregg A. Noel, Esq.
P. Michelle Gasaway, Esq. Skadden, Arps, Slate, Meagher & Flom LLP 525 University Avenue Palo Alto, California 94301 Telephone: (650) 470-4500 |
| |
Sharda Caro del Castillo
Chief Legal Officer Affirm Holdings, Inc. 650 California Street San Francisco, California 94108 Telephone: (415) 984-0490 |
| |
Byron B. Rooney, Esq.
Emily Roberts, Esq. Davis Polk & Wardwell LLP 450 Lexington Avenue New York, New York 10017 Telephone: (212) 450-4000 |
|
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ (Do not check if a smaller reporting company) | | | Smaller reporting company ☐ | |
| Emerging growth company ☒ | | |
Title of each class of securities to be registered
|
| |
Shares to be
registered(1) |
| |
Proposed maximum
aggregate offering price per share(2) |
| |
Proposed maximum
aggregate offering price(1)(2) |
| |
Amount of
registration fees(3) |
| ||||||||||||
Class A common stock, $0.00001 par value per share
|
| | | | 28,290,000 | | | | | $ | 38.00 | | | | | $ | 1,075,020,000 | | | | | $ | 117,284.68 | | |
| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 18 | | | |
| | | | 21 | | | |
| | | | 24 | | | |
| | | | 66 | | | |
| | | | 68 | | | |
| | | | 70 | | | |
| | | | 71 | | | |
| | | | 72 | | | |
| | | | 75 | | | |
| | | | 78 | | | |
| | | | 81 | | | |
| | | | 122 | | | |
| | | | 152 | | | |
| | | | 159 | | | |
| | | | 171 | | | |
| | | | 176 | | | |
| | | | 180 | | | |
| | | | 189 | | | |
| | | | 193 | | | |
| | | | 195 | | | |
| | | | 205 | | | |
| | | | 205 | | | |
| | | | 206 | | | |
| | | | F-1 | | |
| | |
Fiscal Year Ended
June 30, |
| |
Three Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2019
|
| |
2020
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Consolidated Statements of Operations Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Merchant network revenue
|
| | | $ | 132,363 | | | | | $ | 256,752 | | | | | $ | 36,389 | | | | | $ | 93,265 | | |
Virtual card network revenue
|
| | | | 7,911 | | | | | | 19,340 | | | | | | 3,601 | | | | | | 5,958 | | |
Interest income
|
| | | | 119,404 | | | | | | 186,730 | | | | | | 40,168 | | | | | | 54,237 | | |
Gain (loss) on sales of loans
|
| | | | (440) | | | | | | 31,907 | | | | | | 5,725 | | | | | | 16,434 | | |
Servicing income
|
| | | | 5,129 | | | | | | 14,799 | | | | | | 2,064 | | | | | | 4,084 | | |
Total revenues, net
|
| | | $ | 264,367 | | | | | $ | 509,528 | | | | | $ | 87,947 | | | | | $ | 173,978 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss on loan purchase commitment
|
| | | $ | 73,383 | | | | | $ | 161,452 | | | | | $ | 19,961 | | | | | $ | 65,868 | | |
Provision for credit losses
|
| | | | 78,025 | | | | | | 105,067 | | | | | | 24,844 | | | | | | 40,267 | | |
Funding costs
|
| | | | 25,895 | | | | | | 32,316 | | | | | | 8,128 | | | | | | 10,352 | | |
Processing and servicing(1)
|
| | | | 32,669 | | | | | | 49,831 | | | | | | 9,695 | | | | | | 13,498 | | |
Technology and data analytics(1)
|
| | | | 76,071 | | | | | | 122,378 | | | | | | 25,368 | | | | | | 33,768 | | |
Sales and marketing(1)
|
| | | | 16,863 | | | | | | 25,044 | | | | | | 5,219 | | | | | | 22,582 | | |
General and administrative(1)
|
| | | | 88,902 | | | | | | 121,230 | | | | | | 27,704 | | | | | | 32,266 | | |
Total operating expenses
|
| | | | 391,808 | | | | | | 617,318 | | | | | | 120,919 | | | | | | 218,601 | | |
Operating loss
|
| | | $ | (127,441) | | | | | $ | (107,790) | | | | | $ | (32,972) | | | | | $ | (44,623) | | |
Other income (expense), net
|
| | | | 7,022 | | | | | | (4,432) | | | | | | 2,273 | | | | | | 29,445 | | |
Loss before income taxes
|
| | | $ | (120,419) | | | | | $ | (112,222) | | | | | $ | (30,699) | | | | | $ | (15,178) | | |
Income tax expense
|
| | | | (36) | | | | | | (376) | | | | | | (96) | | | | | | (97) | | |
Net loss
|
| | | $ | (120,455) | | | | | $ | (112,598) | | | | | $ | (30,795) | | | | | $ | (15,275) | | |
| | |
Fiscal Year Ended
June 30, |
| |
Three Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2019
|
| |
2020
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Processing and servicing
|
| | | $ | 132 | | | | | $ | 82 | | | | | $ | (5) | | | | | $ | 26 | | |
Technology and data analytics
|
| | | | 13,913 | | | | | | 12,285 | | | | | | 3,327 | | | | | | 2,213 | | |
Sales and marketing
|
| | | | 4,179 | | | | | | 4,040 | | | | | | 1,291 | | | | | | 760 | | |
General and administrative
|
| | | | 22,647 | | | | | | 13,682 | | | | | | 3,812 | | | | | | 3,204 | | |
Total stock-based compensation expense
|
| | | $ | 40,871 | | | | | $ | 30,089 | | | | | $ | 8,425 | | | | | $ | 6,203 | | |
|
| | |
As of September 30, 2020
|
| |||||||||||||||
| | |
Actual(4)
|
| |
Pro Forma(1)(4)
|
| |
Pro Forma as
Adjusted(2)(3)(4) |
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Consolidated Balance Sheet Data | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 684,423 | | | | | $ | 684,423 | | | | | $ | 1,508,451 | | |
Loans held for investment
|
| | | | 1,414,157 | | | | | | 1,414,157 | | | | | | 1,414,157 | | |
Total assets
|
| | | | 2,250,549 | | | | | | 2,453,483 | | | | | | 3,275,203 | | |
Notes issued by securitization trusts(5)
|
| | | | 498,921 | | | | | | 498,921 | | | | | | 498,921 | | |
Funding debt
|
| | | | 698,892 | | | | | | 698,892 | | | | | | 698,892 | | |
Redeemable convertible preferred stock
|
| | | | 1,327,163 | | | | | | — | | | | | | — | | |
Total stockholders’ (deficit) equity
|
| | | | (348,112) | | | | | | 1,181,985 | | | | | | 2,005,960 | | |
| | |
Fiscal Year Ended
June 30, |
| |
Three Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2019
|
| |
2020
|
| ||||||||||||
| | |
(in thousands, except per consumer and percent data)
|
| |||||||||||||||||||||
Gross Merchandise Volume (GMV) ($)(1)
|
| | | | 2,620,059 | | | | | | 4,637,220 | | | | | | 861,306 | | | | | | 1,475,929 | | |
Active Consumers(2)
|
| | | | 2,045 | | | | | | 3,618 | | | | | | 2,383 | | | | | | 3,882 | | |
Transactions per Active Consumer (x)(3)
|
| | | | 2.0 | | | | | | 2.1 | | | | | | 2.0 | | | | | | 2.2 | | |
| | |
As of September 30, 2020
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma As Adjusted
|
| |||||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 684,423 | | | | | $ | 684,423 | | | | | $ | 1,508,451 | | |
Notes issued by securitization trusts(1)
|
| | | | 498,921 | | | | | | 498,921 | | | | | | 498,921 | | |
Redeemable convertible preferred stock, $0.00001 par value
per share: 151,573,897 shares authorized, 148,384,433 shares issued and outstanding, actual; no shares authorized, issued and outstanding, pro forma and pro forma as adjusted |
| | | | 1,327,163 | | | | | | — | | | | | | — | | |
Stockholders’ deficit: | | | | | | | | | | | | | | | | | | | |
Common stock, $0.00001 par value per share, 287,000,000
shares authorized, 53,031,446 shares issued and outstanding, actual; no shares authorized, no shares issued and outstanding, pro forma and pro forma as adjusted |
| | | | — | | | | | | — | | | | | | — | | |
Class A common stock, par value $0.00001 per share: no shares authorized, issued and outstanding, actual; 3,030,000,000 shares authorized, 96,746,330 shares issued and outstanding, pro forma; and 3,030,000,000 shares authorized, 121,346,330 shares issued and outstanding, pro forma as adjusted
|
| | | | — | | | | | | 1 | | | | | | 1 | | |
Class B common stock, par value $0.00001 per share: no
shares authorized, issued and outstanding, actual; 140,000,000 shares authorized, 121,400,441 shares issued and outstanding, pro forma; and pro forma as adjusted |
| | | | — | | | | | | 1 | | | | | | 1 | | |
Additional paid-in capital
|
| | | | 114,226 | | | | | | 1,660,898 | | | | | | 2,484,873 | | |
Accumulated deficit
|
| | | | (462,442) | | | | | | (479,019) | | | | | | (479,019) | | |
Accumulated other comprehensive loss
|
| | | | 104 | | | | | | 104 | | | | | | 104 | | |
Total stockholders’ (deficit) equity
|
| | | $ | (348,112) | | | | | $ | 1,181,985 | | | | | $ | 2,005,960 | | |
Total capitalization(2)
|
| | | $ | 1,477,972 | | | | | $ | 1,680,906 | | | | | $ | 2,504,881 | | |
|
Initial public offering price
|
| | | | | | | | | $ | 35.50 | | |
|
Historical net tangible book value (deficit) per share as of September 30, 2020
|
| | | $ | (7.64) | | | | | | | | |
|
Increase per share attributable to pro forma adjustments
|
| | | $ | 11.87 | | | | | | | | |
|
Pro forma net tangible book value per share as of September 30, 2020
|
| | | $ | 4.23 | | | | | | | | |
|
Increase in pro forma net tangible book value per share attributable to new investors participating in this offering
|
| | | $ | 2.96 | | | | | | | | |
|
Pro forma as adjusted net tangible book value per share after this offering
|
| | | | | | | | | $ | 7.19 | | |
|
Dilution per share to new investors participating in this offering
|
| | | | | | | | | $ | 28.31 | | |
|
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average Price
Per Share |
| |||||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Existing stockholders
|
| | | | 218,146,771 | | | | | | 89.9% | | | | | $ | 1,414,126 | | | | | | 61.8% | | | | | $ | 6.48 | | |
New investors
|
| | | | 24,600,000 | | | | | | 10.1% | | | | | $ | 873,300 | | | | | | 38.2% | | | | | $ | 35.50 | | |
Total
|
| | | | 242,746,771 | | | | | | 100.0% | | | | | $ | 2,287,426 | | | | | | 100.0% | | | | | $ | 9.42 | | |
| | |
Fiscal Year Ended June 30,
|
| |
Three Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2019
|
| |
2020
|
| ||||||||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||||||||
Consolidated Statements of Operations Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Merchant network revenue
|
| | | $ | 132,363 | | | | | $ | 256,752 | | | | | $ | 36,389 | | | | | $ | 93,265 | | |
Virtual card network revenue
|
| | | | 7,911 | | | | | | 19,340 | | | | | | 3,601 | | | | | | 5,958 | | |
Interest income(1)
|
| | | | 119,404 | | | | | | 186,730 | | | | | | 40,168 | | | | | | 54,237 | | |
Gain (loss) on sales of loans(1)
|
| | | | (440) | | | | | | 31,907 | | | | | | 5,725 | | | | | | 16,434 | | |
Servicing income
|
| | | | 5,129 | | | | | | 14,799 | | | | | | 2,064 | | | | | | 4,084 | | |
Total revenues, net
|
| | | $ | 264,367 | | | | | $ | 509,528 | | | | | $ | 87,947 | | | | | $ | 173,978 | | |
Operating expenses(2) | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss on loan purchase commitment
|
| | | $ | 73,383 | | | | | $ | 161,452 | | | | | $ | 19,961 | | | | | $ | 65,868 | | |
Provision for credit losses
|
| | | | 78,025 | | | | | | 105,067 | | | | | | 24,844 | | | | | | 40,267 | | |
Funding costs
|
| | | | 25,895 | | | | | | 32,316 | | | | | | 8,128 | | | | | | 10,352 | | |
Processing and servicing
|
| | | | 32,669 | | | | | | 49,831 | | | | | | 9,695 | | | | | | 13,498 | | |
Technology and data analytics
|
| | | | 76,071 | | | | | | 122,378 | | | | | | 25,368 | | | | | | 33,768 | | |
Sales and marketing
|
| | | | 16,863 | | | | | | 25,044 | | | | | | 5,219 | | | | | | 22,582 | | |
General and administrative
|
| | | | 88,902 | | | | | | 121,230 | | | | | | 27,704 | | | | | | 32,266 | | |
Total operating expenses
|
| | | | 391,808 | | | | | | 617,318 | | | | | | 120,919 | | | | | | 218,601 | | |
Operating loss
|
| | | $ | (127,441) | | | | | $ | (107,790) | | | | | $ | (32,972) | | | | | $ | (44,623) | | |
Other income (expense), net
|
| | | | 7,022 | | | | | | (4,432) | | | | | | 2,273 | | | | | | 29,445 | | |
Loss before income taxes
|
| | | $ | (120,419) | | | | | $ | (112,222) | | | | | $ | (30,699) | | | | | $ | (15,178) | | |
Income tax expense
|
| | | | (36) | | | | | | (376) | | | | | | (96) | | | | | | (97) | | |
Net loss
|
| | | $ | (120,455) | | | | | $ | (112,598) | | | | | $ | (30,795) | | | | | $ | (15,275) | | |
Excess return to preferred stockholders on repurchase
|
| | | | (14,113) | | | | | | (13,205) | | | | | | — | | | | | | — | | |
Net loss attributable to common stockholders
|
| | | $ | (134,568) | | | | | $ | (125,803) | | | | | $ | (30,699) | | | | | $ | (15,275) | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (2.84) | | | | | $ | (2.63) | | | | | $ | (0.63) | | | | | $ | (0.24) | | |
| | |
Fiscal Year Ended June 30,
|
| |
Three Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2019
|
| |
2020
|
| ||||||||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||||||||
Weighted-average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 47,345,328 | | | | | | 47,856,720 | | | | | | 48,403,021 | | | | | | 64,778,024 | | |
Diluted
|
| | | | 47,345,328 | | | | | | 47,856,720 | | | | | | 48,403,021 | | | | | | 68,256,189 | | |
Pro forma net loss per share attributable to common stockholders (unaudited):
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | | | | | | $ | (0.73) | | | | | | | | | | | $ | (0.09) | | |
Diluted
|
| | | | | | | | | $ | (0.73) | | | | | | | | | | | $ | (0.23) | | |
Pro forma weighted-average common shares outstanding (unaudited):
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | | | | | | | 171,764,609 | | | | | | | | | | | | 206,495,264 | | |
Diluted
|
| | | | | | | | | | 171,764,609 | | | | | | | | | | | | 209,973,429 | | |
| | |
Fiscal Year Ended
June 30, |
| |
Three Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2019
|
| |
2020
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Balance at the beginning of the period
|
| | | $ | 5,201 | | | | | $ | 13,068 | | | | | $ | 13,068 | | | | | $ | 28,659 | | |
Additions from loans purchased, net of refunds
|
| | | | 70,700 | | | | | | 157,426 | | | | | | 20,890 | | | | | | 58,143 | | |
Amortization of discount
|
| | | | (21,833) | | | | | | (35,251) | | | | | | (7,406) | | | | | | (14,770) | | |
Unamortized discount released on loans sold
|
| | | | (41,000) | | | | | | (106,584) | | | | | | (12,682) | | | | | | (15,997) | | |
Balance at the end of the period
|
| | | $ | 13,068 | | | | | $ | 28,659 | | | | | $ | 13,870 | | | | | $ | 56,035 | | |
| | |
Fiscal Year Ended
June 30, |
| |
Three Months Ended
September 30, |
| ||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2019
|
| |
2020
|
| ||||||||||||
| | |