Affirm Holdings, Inc. (NASDAQ:AFRM) shares plummeted more than 21% on Friday following the company’s strong Q4 results, but soft guidance.
EPS came in at ($0.65), in line with the Street estimate. Revenue was up 39% year-over-year to $364.1 million, beating the Street estimate of $354.66 million.
However, while the company reiterated its timeline to sustainable profitability by the end of fiscal 2023, revenue and GMV (Gross Merchandise Volume) guidance for 2023 came in well below expectations as the company acknowledged difficult comps and a level of conservatism due to the macro environment that is just beginning to weaken.
For Q1/23, the company expects revenue in the range of $345-365 million, compared to the Street estimate of $386.02 million. GMV is anticipated to be in the range of $4.20-$4.40 billion.
The company expects full 2023-year revenue to be in the range of $1.625-1.725 billion, compared to the Street estimate of $1.91 billion. GMV is anticipated in the range of $20.50-$22.00 billion.