Shares of Chime Financial, Inc. (NASDAQ: CHYM) tumbled 8.45% in after-hours trading on Thursday following the release of its second-quarter earnings report. The financial technology company reported a significant loss that surpassed analysts' expectations, overshadowing its better-than-anticipated revenue figures.
Chime posted a quarterly loss of $7.29 per share, substantially missing the analyst consensus estimate of a $4.64 loss. This represents a 57.11% wider loss than what Wall Street had projected. However, the company's sales performance offered a silver lining, with quarterly revenue reaching $528.149 million, surpassing the analyst consensus estimate of $503.908 million by 4.81%. Notably, this marks a 37.46% increase in sales compared to the same period last year, when the company reported revenue of $384.214 million.
The market's negative reaction to Chime's earnings report underscores investors' concerns about the company's profitability path, despite its robust top-line growth. As Chime continues to navigate the competitive fintech landscape, the focus will likely remain on its ability to narrow losses while maintaining its strong revenue momentum. The after-hours plunge may also reflect adjusted expectations for the company's near-term financial performance and growth trajectory.
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