Affirm predicts lower sales volume, stocks fall
(Reuters) – Affirm Holdings Inc forecast lower sales volume for the current quarter on Thursday, signaling a slowdown in the pandemic-induced online shopping boom that helped it cut its loss in its first results as a listed company.
The company said it expects a third-quarter gross cargo volume of between $ 1.80 billion and $ 1.85 billion, lower than the $ 2.1 billion reported for the previous three months. dropping its shares 8.6% after the bell.
Affirm was founded in 2012 by PayPal Holdings Inc co-founder Max Levchin to provide small loans to people with no credit history or savings accounts for items ranging from a new mattress to an outfit for an interview. hiring.
So-called “buy now, pay later” services – offered by providers such as Affirm, Klarna, Afterpay Ltd and PayPal Holding Inc’s “Pay In 4” – flourished on retail websites during the pandemic then that people have turned more to online shopping.
Affirm’s active customers increased 52% to 4.5 million in the second quarter ended December 31.
It reported a net loss attributable to common shareholders of $ 31.6 million, or 45 cents per share, compared with a loss of $ 44.2 million, or 92 cents per share, a year earlier.
Affirm allows buyers to select its services at checkout, decide on a payment schedule ranging from six weeks to four years, and then confirm their loan. It shows customers how much a dollar loan will cost and doesn’t charge late fees or compound interest.
For example, a purchase of $ 500 would ultimately cost the buyer $ 512.82, under a three-month payment plan based on an annual percentage rate of 15%.
(Reporting by Noor Zainab Hussain in Bangalore; Editing by Aditya Soni)