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Affirm's lifts FY gross merchandise volume outlook, still misses consensus

Published 08/02/2024, 22:26
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AFRM
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Affirm Holdings (NASDAQ:AFRM) raised its gross merchandise volume (GMV) forecast for the full year, however the outlook still trailed analysts' consensus.

Shares fell 4.7% in after-hours trade.

The buy-now-pay-later (BNPL) company is anticipating its FY GMV to exceed $25.25 billion, up from the previous projection of over $24.25 billion. However, analysts were expecting a raise to $25.45 billion.

For the third quarter, Affirm anticipates revenue in the range of $530 million to $550 million, surpassing the estimate of $491.6 million. GMV for the quarter is forecasted to be between $5.8 billion and $6 billion, in line with the consensus.

In the second quarter, Affirm reported a loss per share of 54 cents, better than the expected loss per share of 73 cents. Revenue for the quarter reached $591 million, marking a significant 48% year-on-year increase and beating estimates of $519.2 million.

“This time last year, we reiterated our commitment to building operating leverage without sacrificing credit performance, volume growth, or innovation. The market wasn’t exactly convinced then, but 12 months later, we have done exactly what we said we would,” said Max Levchin, founder and CEO of Affirm.

The company's GMV for the quarter hit $7.5 billion, exceeding the estimated $6.95 billion.

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