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Affirm Holdings Inc (NASDAQ: AFRM) tumbled more than 22% on Friday after the buy-now-pay-later lender’s full-year revenue forecast missed Wall Street estimates.
The company on Thursday said it expects full-year 2023 revenue between $1.63 billion and $1.73 billion, which was below Wall Street’s estimation of $1.9 billion.
“In light of the uncertain macroeconomic backdrop, we are approaching our next fiscal year prudently,” said Chief Financial Officer Michael Linford.
Rising interest rates, geopolitical turmoil and a sector-wide sell-off in high-growth technology stocks have shaved off Affirm’s market cap, with shares down nearly 70% so far this year.
Red hot inflation has also put the BNPL company in a tight spot as surging costs dampened the purchasing power of Americans, especially those in the lower income bracket.
The company said it expects its first-quarter revenue to be between $345 million and $365 million, missing analysts’ expectations of $386 million.
Affirm’s loss in the fourth quarter ended June 30 widened to $186.4 million compared with $123.4 million a year earlier.
Picture Credit: PYMNTS
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