Q2 23 EPS
$N/A
Est. $-0.98
Q2 23 Revenue
$399.6M
MISS 4.02%
Est. $416.3M
vs S&P Since Q2 23
+344.1%
BEATING MARKET
AFRM +421.1% vs S&P +77.0%
Market Reaction
Did AFRM Beat Earnings? Q2 2023 Results
Affirm delivered a disappointing fiscal second quarter, with revenue of $399.56 million missing the consensus estimate of $416.30 million by 4.02%, even as the top line grew 10.7% year-over-year. The core culprit was a sharp deceleration in consumer … Read more Affirm delivered a disappointing fiscal second quarter, with revenue of $399.56 million missing the consensus estimate of $416.30 million by 4.02%, even as the top line grew 10.7% year-over-year. The core culprit was a sharp deceleration in consumer discretionary spending, with electronics declining 11% and Peloton-weighted sporting goods falling 49%, pressuring gross merchandise volume to $5.70 billion despite a 27% year-over-year gain. Revenue Less Transaction Costs slid 21% year-over-year to $144.20 million, hurt by delayed implementation of pricing increases and deteriorating funding market conditions. The company's GAAP net loss widened to $322.44 million from $159.74 million a year ago, and shares fell roughly 17% in after-hours trading following the print. In response, Affirm announced a 19% workforce reduction expected to generate annualized savings of $77.00 to $83.00 million. Looking ahead, the company guided fiscal third-quarter revenue of $360.00 to $380.00 million and trimmed its full-year FY'23 revenue outlook to $1.48 to $1.55 billion, while reiterating its target to reach adjusted operating income profitability as it exits the fiscal year.
Key Takeaways
- • Record GMV of $5.7 billion driven by 27% year-over-year growth (35% excluding Peloton)
- • 67% of GMV came from interest-bearing loans, highest quarterly ratio in company history
- • Active consumers grew 39% YoY to 15.6 million with transactions per active consumer up 38% to 3.5
- • 86% of transactions from repeat users
- • Sequential improvement in 30+ day delinquency rates during the quarter
- • Non-GAAP sales and marketing expenses declined 36% year-over-year
AFRM YoY Financials
Q2 2023 vs Q2 2022, source: SEC Filings
AFRM Revenue by Segment
With YoY comparisons, source: SEC Filings
“We delivered a decisive display of Affirm's advantage in controlling credit outcomes, reducing delinquencies on a sequential basis. This performance and an ongoing constructive dialog with our capital partners enabled us to add significant funding capacity in January.”
— Max Levchin, Q2 2023 Earnings Press Release
AFRM Earnings Trends
AFRM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AFRM EPS Trend
Earnings per share: estimate vs actual
AFRM Revenue Trend
Quarterly revenue: estimate vs actual
AFRM Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 MISS | $0.84 | $0.37 | -55.83% | $1.12B | +6.38% |
| Q1 26 MISS | $0.62 | $0.23 | -62.69% | $933.3M | +5.66% |
| Q4 25 BEAT FY | $0.12 | $0.20 | +62.87% | $876.4M | — |
| FY Full Year | $1.99 | $0.15 | -92.47% | $3.22B | +1.28% |
| Q3 25 MISS | $0.32 | $0.01 | -96.83% | $783.1M | +0.02% |
| Q4 24 BEAT FY | $-0.51 | $-0.14 | +72.55% | $659.2M | +9.20% |
| FY Full Year | — | $-1.67 | — | $2.32B | — |
| Q2 23 | $-0.98 | — | — | $399.6M | -4.02% |