Affirm Reports In-Line EPS and Revenue Beat, But Plummets 13% on Weak Outlook
2022.08.26 01:13
Affirm Reports In-Line Q4 Revenues & EPS Beat, But Shares Plummet 13% on Weak Outlook
By Davit Kirakosyan
Affirm Holdings Inc (NASDAQ:AFRM) shares plunged more than 13% after-hours following the company’s reported Q4 results. While EPS of ($0.65) was in line with the consensus estimate and revenue of $364.1 million (up 39% year-over-year) beat the consensus estimate of $354.66 million, the company’s outlook missed expectations.
“Affirm delivered strong performance in the fourth quarter. We grew GMV by 77% and set a new record for consumer re-engagement with 85% of transactions coming from repeat users, all while prudently managing risk,” said Max Levchin, founder and CEO of Affirm.
Active merchants grew from 29,000 to 235,000, driven primarily by the adoption of Shop Pay Installments by merchants on Shopify’s platform. Active consumers were 14.0 million, representing a 96% year-over-year growth. Total transactions increased 139% year-over-year to 12.0 million.
The company expects Q1/23 revenue to be in the range of $345-365 million, worse than the consensus estimate of $386.02 million. GMV (Gross Merchandise Volume) is expected in the range of $4.20-$4.40 billion.
For the full 2023-year, the company expects revenue in the range of $1.625-1.725 billion, again worse than the consensus estimate of $1.91 billion. GMV is expected to be in the range of $20.50-$22.00 billion.
The company also announced that Noel Watson has been appointed to its Board of Directors, effective September 1, 2022. Mr. Watson, who currently serves as CFO of LegalZoom.com, Inc., previously served as a member of the Board of Directors of Zynga (NASDAQ:ZNGA), CFO of TrueCar (NASDAQ:TRUE), and Chief Accounting Officer of TripAdvisor (NASDAQ:TRIP).
