Affirm's Latest Financial Results Show Impressive Gains, Exceed Market Predictions

Affirm Holdings Inc AFRM reported fiscal third-quarter financial results on Wednesday. The stock price gained after the results.

Affirm said fiscal third-quarter revenue increased 51% year over year to $576 million, beating the consensus estimate of $549.42 million. 

The company reported an EPS loss of $(0.43), which beat analyst loss estimates of $(0.67).

Gross merchandise volume grew 36% year-over-year to $6.3 billion as growth accelerated for the fourth straight quarter, beating analysts' estimate of $6 billion, Barrons reported. Revenue minus transaction costs was up 38% year-over-year to $231 million.

Affirm noted that it had crossed 1 million active Affirm card consumers at the end of the quarter. Affirm card gross merchandise volume came in at about $374 million.

Outlook: Affirm expects fiscal fourth-quarter revenue of $585.00 million-$605.00 million, significantly higher than the estimates of $576.34 million. The company expects a gross merchandise volume of $6.75 billion-$6.95 billion.

Prior reports indicated Walmart Inc WMT-backed fintech startup One, a direct Affirm rival, offering buy now, pay later options for big-ticket items in some U.S. stores.

Analysts consider Affirm a long-term winner in the domestic BNPL space with significant opportunities to scale internationally, especially given the success of Klarna (private). Still, they expect the headwinds to keep the shares range-bound over the next 12 months.

Price Action: AFRM shares were down 8.6% at $31.88 at last check Wednesday.

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