Affirm drops 10% on weaker-than-expected guidance for current quarter

PayPal Inc. co-founder and Affirm’s CEO Max Levchin on center stage during day one of Collision 2019 at Enercare Center in Toronto, Canada. Affirm , the provider of buy now, pay later loans, gave a revenue forecast for the current quarter that trailed analysts' estimates even as profit for the prior quarter was better than expected. The stock fell 10% in extended trading on Thursday. Here's how the company did, compared to analysts' consensus estimates from LSEG: Earnings per share: 1 cent vs. an expected loss of 3 cents 1 cent vs. an expected loss of 3 cents Revenue: $783 million vs. $783 million expected Affirm reported gross merchandise volume, or GMV, of $8.6 billion, topping the average estimate of $8.2 billion, according to StreetAccount. GMV, a key metric that helps gauge the total value of transactions, increased 36% from a year earlier. Revenue in the quarter rose 36% from $576 million a year ago. The company's key margin metric — revenue less transaction costs, or RLTC ... Read full article.