Affirm shares fell as much as 26% today after the company accidentally leaked its own earnings on Twitter hours ahead of schedule. The "buy now, pay later" company's stock price was up 10% before the tweet.
The company decided to release its
full earnings report early, before the markets closed. Trading was briefly halted by an automatic circuit breaker before resuming. The report showed a 77% year-over-year increase in revenue for the quarter to $361 million, and a net loss of $159.7 million as compared to $26.6 million in Affirm's second fiscal quarter last year. Investors seemed to react most strongly to the outlook for the third quarter and full year.
One big question mark over Affirm is its partnership with Peloton, which has long been the company's top merchant but has faced a number of problems recently, including scrapping plans for its own bike factory as it faces an oversupply of exercise equipment. Peloton accounted for between 20% to 30% of Affirm’s revenue in recent years.
Affirm sidestepped questions on Peloton in its last earnings call, pointing instead to its new partnerships with Amazon, Shopify and Walmart as potentially diversifying its revenue base.