Affirm Raises GMV Outlook as Shares Fall After Results

The buy now, pay later company now expects full-year GMV to exceed $65.25 billion, up from its previous forecast of more than $64 billion. First-quarter GMV reached $14.4 billion. While consensus estimates were near 30% growth, some buy-side investors had looked for an increase of about 37%, Morgan Stanley analysts said in a note last month.

Affirm reported profit of $164.2 million, or 47 cents a share, compared with $80.7 million, or 23 cents a share, a year earlier. Analysts had expected 38 cents a share. Revenue climbed 35% to $1.26 billion, ahead of the $1.21 billion forecast by analysts surveyed by FactSet.

The company said it is seeking to spread volume across more merchants and platform partners and grow its direct-to-consumer card business. GMV from its five largest partners fell by four percentage points to 40%. The Affirm Card generated nearly a quarter of GMV: card volume more than doubled to $3.3 billion, as did the number of active cardholders.

Transactions increased 34%, while average order value slipped 1% to $258. Delinquencies of 30 or more days, excluding Peloton and Pay-in-X loans, rose 0.09% year over year and 0.35% from the previous quarter. Investors monitor delinquencies as an indicator of whether consumers are having trouble making debt payments on time.

For the current second quarter, Affirm forecast GMV of $17.8 billion to $18.2 billion and revenue of $1.44 billion to $1.47 billion. Analysts’ estimates were $17.74 billion in GMV and $1.43 billion in revenue.