Affirm Holdings (NASDAQ:AFRM) shares moved lower in pre-market Wednesday despite the buy-now-pay-later firm raising its full-year outlook.
Affirm posted a loss per share of $0.69 on revenue of $381 million, which compares to the analyst consensus for a loss per share of $0.92 on revenue of $369.9M.
Gross merchandise volume (GMV), a key financial metric for BNPL companies, came in at $4.60B, above the $4.45B consensus.
For this quarter, Affirm expects revenue and GMV of $402.5M and $5.275B. Analysts were expecting $390M and $5.18B.
On a full-year basis, Affirm raised its GMV forecast to a range of $19.89-20.04B, up from the prior $19-20B. Revenue is now seen at $1.545B, an increase relative to the prior forecast of $1.515B.
Morgan Stanley analysts reaffirmed the neutral rating on the stock and cut the price target to $14 per share.
“We're encouraged by improvements on initiatives like APR hikes and Debit+, as well as by solid credit trends in F3Q. While lower RLTC in F4Q may cause concern, we think it's largely a timing issue. We stay EW as we'd like to see AFRM take more action to capitalize on the demo opp with Gen Z/Y,” they said.
BofA analysts said the company delivered “solid results, but the limited visibility on F24 keeps us cautious.”