Affirm Holdings ( NASDAQ: AFRM ) stock slumped 17% in Tuesday after-hours trading after cutting its fiscal year guidance on the expectation for reduced revenue from Peloton and due to the impact of higher interest rates on its funding costs.
The provider of Buy Now, Pay Later financing now expects FY2023 revenue of $1.60B-$1.675B vs. its previous range of $1.63B-$1.73B and vs. consensus. The company guides to gross merchandise value of $20.1B-$21.5B for the year, down from its prior guidance of $20.5B-$22.0B.
For fiscal Q2, Affirm ( AFRM ) guided for revenue of $400M-$420M, less than the $436.8M consensus; adjusted operating loss as a percentage of revenue is expected to be 16%-20% vs. 5.1% adjusted operating loss margin reported for the quarter ended Sept. 30.
Affirm ( AFRM ) said it has made progress in its goal to become operating income profitable by the end of FY2023. In its fiscal Q1 ended Sept. 30, 2022, the company delivered $182M of revenue less transaction cost compared with costs of ~$200M.
Fiscal Q1 EPS was -$0.86, trailing the -$0.78 consensus, widened from -$0.65 in Q4 and narrowed from -$1.13 in Q1 2021.
Q1 revenue of $361.6M, topping the $360.5M consensus, fell from $364.1M in the prior quarter and increased from $269.4M in the year-ago quarter.
Gross merchandise volume of $4.4B increased, unchanged from the prior quarter and up from $2.7B in the year-ago quarter.
The number of active consumers was 14.7M, up from 14.0M at June 30, 2022. Transactions per active customer were 3.3, up from 3.0 in the previous quarter.
Allowance for credit losses, as a percentage of loans held for investment was 5.7% at Sept. 30, 2022 vs. 6.2% at June 30, 2022.
Conference call at 5:00 PM ET.
Earlier, Affirm ( AFRM ) GAAP EPS of -$0.86 misses by $0.08, revenue of $361.6M beats by $1.15M
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Affirm Holdings stock drops after FY2023 guidance cut, soft fiscal Q2 outlook