Why Shares of Affirm Holdings Fell Today
Shares of the buy now, pay later (BNPL) company Affirm Holdings (NASDAQ: AFRM) fell more than 15% today after the company raised its guidance but also had to reportedly halt a bond sale last week.
Affirm today raised its outlook for the third fiscal quarter of 2022 (the current quarter) and the full fiscal year of 2022, which ends on June 30. For the third quarter, Affirm essentially just said that it plans to at least hit the top end of the guidance it previously provided on Feb. 10.
Management now expects Affirm to see third-quarter gross merchandise volume (GMV) of at least $3.71 billion, revenue of at least $335 million, and revenue less transactions costs of at least $148 million, which is $5 million more than the top end of its previous guidance. The adjusted operating loss as a percentage of revenue in the third quarter is expected to come in around 15%, which is a solid improvement from the 19% loss at the top end of previous guidance.
Source Fool.com
