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Wednesday, May 25, 2022

‘U.S. consumer is alive and well’ — Affirm CEO says market turbulence has no impression on enterprise

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Affirm Holdings Chairman and CEO Max Levchin informed CNBC that regardless of the market’s poor efficiency this 12 months, U.S. shoppers – and Affirm’s prospects – are spending healthily.

“The U.S. consumer is alive and well. They’re shopping, they’re buying, they’re paying their loans, at least to Affirm quite well. Generally speaking, things are going according to plan, the upheaval in stock markets does not seem to have an actual impact on our underlying business which is performing really, really well,” Levchin stated in an interview on Thursday night on “Mad Money.”

Shares of Affirm rose greater than 20% to round $22.50 on Friday, the day after the buy-now, pay-later lender’s newest quarterly earnings report, which noticed a smaller-than-expected loss. Affirm additionally beat top-line estimates and stated it is extending its partnership with Shopify.

“We’ve been the partner of choice, if you will, to all these really, really great companies that fuel the American e-commerce and we’ve done well there. That’s where all our growth comes from, that said, we also have a fantastically-well growing program … a merchant self-service,” Levchin stated, noting that Affirm additionally has partnerships with Walmart and Amazon.

Affirm opened Friday close to $25 per share. But that is nonetheless down 85% since its all-time excessive of $176.65 again in November.

Affirm has not launched its full fiscal 12 months 2023 outlook or full-year steering but. It plans to ship these numbers within the firm’s subsequent earnings report.

Still, Levchin, Affirm’s founder, gave the impression to be bullish concerning the firm’s progress prospects.

“Some of our competitors have just recently posted their 15% annual growth rates, some of them are not public so I don’t really know. You can see from my numbers that we’re doing just fine and doing so with really, really high quality revenue, really good unit economics,” he stated. “Everyone should be switching to buy now, pay later.”


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