Affirm Reports Strong Earnings Amid High Gas Prices Impacting Consumer Spending
Buy now, pay later company Affirm reported strong fiscal fourth-quarter earnings with revenue of $1.17 billion, surpassing estimates and signaling robust demand amid inflationary pressures. CEO Max Levchin noted that high gas prices are affecting U.S. consumers' spending habits, prompting them to seek budget-friendly solutions like Affirm's services. Affirm also provided a better-than-expected outlook for the first quarter of fiscal 2024, forecasting revenue between $1.19 billion and $1.22 billion compared to an estimated $1.16 billion. The company reported gross merchandise volume (GMV) of $14.1 billion in Q4, exceeding expectations. The national average gas price is currently at $4.09 per gallon, down from a peak above $4.50 but still significantly higher than pre-war levels. Levchin emphasized that while the U.S. consumer remains resilient overall, sustained inflationary pressures could pose long-term challenges.
Topics: BNPL consumer_spending inflation