- REINHARDT KRAUSE
- 05:18 PM ET 05/12/2022
Consumer financing firm Affirm Holdings(AFRM) on Thursday reported a smaller-than-expected loss in the March quarter while revenue topped Wall Street targets. AFRM stock, one of 2022's worst technology performers, surged in extended trading.
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The San Francisco-based company reported fiscal third-quarter earnings after the market close. AFRM stock rose 17.5% to 21.20 in extended trading on thestock market today.
In the Affirm earnings report, the company reported a 19-cent per share loss for the three months ended March 31. That compared with a $1.23 per-share loss in the year-earlier period. Analysts polled by FactSet had projected a loss of 46 cents per share.Affirm said it had an adjusted operating loss of $54.7 million vs. estimates of a $67 million loss.
AFRM Stock: Revenue Tops Estimates
Affirm said revenue climbed 54% to $354.8 million vs. estimates of $344 million. Revenue minus transaction expenses came in at $182.4 million vs. estimates of $152 million.
The company said gross merchandise volume rose 73% to $3.9 billion vs. estimates at $3.85 billion.For the June quarter, Affirm said it expects revenue of $350 million at the midpoint of its outlook, just below estimates of $352 million.
"As we advance our strategy to drive growth, maintain attractive unit economics, and deploy superior risk management, we plan to achieve a sustained profitability run rate on an adjusted operating income basis by July 1, 2023," Chief Executive Max Levchin said in the earnings news release.
Affirm on Thursday said it has extended a partnership with e-commerce firmShopify(SHOP).Amazon.com(AMZN) is another partner.
Buy Now, Pay Later Services
Affirm is one of the biggest providers of buy now, pay later installment payment services.The initial public offering for AFRM stock in January 2021 raised $1.2 billion. Affirm gets most of its revenue from transaction fees paid by online retailers. In addition, Affirm gets about one-third of its revenue from interest income paid by consumers.
AFRM has dived 82% in 2022. Heading into Affirm's earnings, the stock had a Relative Strength Rating of 1 out of a best-possible 99, according toIBD Stock Checkup.
source：IBD
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