Max Levchin reports Affirm Holdings fiscal fourth-quarter earnings and revenue that exceeded Wall Street expectations
Max Levchin, CEO of Affirm Holdings, reported that the company's fiscal fourth-quarter earnings and revenue surpassed Wall Street estimates. The fintech firm reported revenue of $1.17 billion, beating the $111 billion LSEG estimate, and net income of $4.62 per diluted share, which significantly outperformed the $0.85 expected by analysts. Gross merchandise volume (GMV) also saw a significant jump of 36% to $14.1 billion. Levchin noted that while the consumer is generally healthy, high gas prices and inflation are weighing on shoppers. He highlighted that the company's addressable merchant base still offers significant growth opportunities, with Affirm currently available at only 10% of e-commerce merchants. Despite these results, some analysts have downgraded the stock to a 'Hold' rating due to the performance of the second quarter. The company reported a 21% year-over-year increase in active consumers, reaching 27.8 million. Affirm also saw growth in its Affirm Card segment, with GMV rising 124% to $2.8 billion.
Sources
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Affirm (AFRM) Q4 Earnings Report: Revenue, GMV, Credit Quality, and Stock Outlook
Barron's
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CNBC
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Investor's Business Daily
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Seeking Alpha
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Yahoo Finance