Affirm Holdings Shares Plunge 17% Following Q2 Miss
<p>Today, shares of <a href='https://financialmodelingprep.com/financial-summary/AFRM'>Affirm Holdings, Inc. (NASDAQ:AFRM)</a> experienced a significant drop of over 17% due to the company announcing plans to lay off 19% of its employees and the release of quarterly results that did not meet expectations. </p>
<p>The company reported a Q2 loss per share of ($1.10), which was worse than the predicted ($1.00), and revenue of $400 million, falling short of the estimated $416.49 million. </p>
<p>For Q3/2023, the company anticipates revenue to be in the range of $360-380 million, compared to the expected $418 million, with full-year revenue projections being $1.475-1.55 billion, compared to the estimated $1.64 billion.</p>
<p>The company is now signaling a willingness to compromise on GMV growth to protect credit quality. Profitability was impacted by delayed execution of merchant pricing increases, higher funding costs, and higher provisioning from retaining loans which resulted in RLTC coming below expectations. However, management is addressing challenges by executing a headcount reduction, increasing emphasis on interest-bearing loans, higher loan retention and benefits from pricing initiatives.</p>

NASDAQ:AFRM