finance
Affirm Raises Full-Year Guidance After 35% GMV Increase
Affirm CEO Max Levchin said U.S. consumers remain resilient despite a record low in the University of Michigan's May consumer sentiment survey. The buy now, pay later provider reported better-than-expected quarterly results with revenue up 33% and cited strong spending in travel, ticketing and home goods. Levchin appeared on CNBC's Mad Money on Friday following the earnings release.
May 8, 6:44 PM·1m read1 source
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Affirm reported better-than-expected quarterly results on Thursday, with gross merchandise volume rising 35% and revenue increasing 33%. The provider of buy now, pay later loans also raised its full-year forecast. Affirm CEO Max Levchin appeared on CNBC's Mad Money on Friday.
"The American consumer is unbelievably resilient," Levchin said on the program. Levchin's comments came after the University of Michigan's consumer sentiment survey for May touched a fresh record low. Inflation worries were a common factor cited by respondents.
U.S. "They're shopping. " Affirm saw healthy spending trends in travel, ticketing, and home goods. "We saw a huge rise in travel and ticketing this quarter," he said, noting that consumers are increasingly financing expensive concert tickets and summer travel purchases.
Affirm has not seen signs of deterioration in spending activity or credit quality. "Generally speaking, no, we're not seeing any decline either in financial health or in interest in shopping," Levchin said. Home-related spending improved after lagging in prior quarters.
"We saw a really nice rise in homewares," Levchin said. Cnbc reported that Levchin's appearance followed the earnings release by one day. The CEO said every metric pointed to consumer strength even as broader sentiment measures declined.
