Affirm Holdings (AFRM) delivered mixed Fiscal Q2 2022 results characterized by an increase in gross merchandise volume (GMV) and active consumers. Revenue topped consensus estimates, but earnings missed forecasts as net losses increased significantly. AFRM shares fell 21.42% to close at $58.68 on February 10.
Affirm offers a platform that enables digital and mobile-first commerce. It also provides point-of-sale payment solutions for consumers and merchants.
Affirm Earnings
Total revenue in the quarter increased 77% year-over-year to $361 million, exceeding consensus estimates of $332.66 million. The increase is attributed to growth in network revenue due to gross merchandise volume growth.
Gross merchandise volume was up 115% year-over-year to $4.5 billion as active merchants increased 2,030% to 168,000. Active consumers increased 150% to 11.2 million.
A net loss in the quarter increased to $159.7 million from $26.6 million in the same quarter last year. A loss per share landed at $0.57, worse than the expected loss of $0.31.
Affirm Holdings expects third-quarter gross merchandise volume to range between $3.61 billion and $3.71 billion and between $14.58 billion and $14.78 billion for the full year. Revenue in Fiscal Q3 is expected at between $325 million and $335 million and between $1.29 billion and $1.31 billion for the full year.
Stock Rating
Yesterday, Barclays analyst Ramsey EL Assal reiterated a Buy rating on Affirm stock and a $105 price target, implying 78.94% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 8 Buys, 6 Holds, and 1 Sell. The average Affirm Holdings price target of $99.54 implies 70% upside potential to current levels.
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