Affirm Holdings Inc (NASDAQ:AFRM) on Monday provided an update on its business performance and raised full year and fiscal third-quarter guidance.
What Happened: Affirm said it expects third-quarter revenue to be at least $335 million, which is up from previous guidance calling for revenue between $325 million and $335 million.
Affirm also raised full-year guidance from a range of $1.29 billion to $1.31 billion to at least $1.31 billion.
Why It Matters: Affirm was facing several headwinds in recent quarters, but now those challenges are behind the company, and moreover, tailwinds are starting to build, according to Affirm CEO Max Levchin.
"We're doing really well. We're executing on the strategy and, you know, it made sense to come out and say hey we're doing pretty great," Levchin said Monday on CNBC's "Squawk On The Street."
He told CNBC he has a responsibility to update shareholders when things change, and things have really improved for Affirm. In the face of rising inflation, the U.S. economy remains strong, and Affirm is seeing that resonate in its business.
"We are seeing ... all metrics that we track very, very carefully, perform to our models as predicted," Levchin said.
Affirm's business remains healthy and demand is increasing, which is why the company decided to raise guidance, Levchin explained.
He told CNBC that Affirm's partnership with Amazon.com Inc (NASDAQ:AMZN) is also showing strong early results.
"It's only been a couple of months, but the results we are seeing are really excellent. There's just unbelievable demand for this product," Levchin said.
"Inflation robs you of your spending power, literally, and we bring it back," he added.
See Also: Morgan Stanley Gains Conviction On Affirm Post Its TMT Conference
AFRM Price Action: Affirm is making new 52-week lows Monday.
The stock was down 10.3% at $27.66 at time of publication.
Photo: courtesy of Affirm.
