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Affirm posts blowout quarter as higher gas prices weigh on shoppers
Affirm said gas prices are squeezing the consumer, even as it reported revenue up 33% to $1.17 billion for the fiscal fourth quarter ended June 30.
Affirm Holdings reported a fiscal fourth-quarter beat alongside a caution from its CEO about consumer pressure tied to higher gas prices, according to Yahoo Finance.
For the three months ended June 30, the buy now, pay later company posted revenue of $1.17 billion, up 33% and ahead of the $1.11 billion analysts expected. Gross merchandise volume rose 36% to $14.1 billion versus a $13.39 billion estimate, with adjusted operating income reaching $353 million and a 30% margin.
Affirm also highlighted improving credit trends, including a 30-day delinquency rate of 2.5%, improving from prior quarters in the 2.7% to 2.8% range. Active consumers increased 21% to 27.8 million, and transactions per active consumer rose 20% to 7.0.
CEO Max Levchin told CNBC that shoppers cannot ignore higher gas prices and that consumers are turning to Affirm to manage costs across multiple inflationary pressures. The article also notes Affirm extended its Shop Pay Installments partnership into Australia and that newly appointed president Michael Linford cited an 11th straight quarter of GMV growth above 30%.