Affirm Holdings Inc (NASDAQ:AFRM) shares are trading lower Wednesday after Upstart Inc (NASDAQ:UPST) shares tumbled on worse-than-expected financial results. Affirm is due to report its quarterly results after the bell.
What To Know: Upstart missed analyst estimates on both the top and bottom line. Revenue of $134.56 million missed estimates of $140.26 million. A loss of 5 cents per share missed estimates for a loss of 2 cents per share.
Total revenues were down 14% year-over-year. Fee revenue was down 18%.
Upstart said lending partners originated 114,464 loans across its platform in the quarter, down 34% year-over-year. Conversion on rate requests was 9.5% in the quarter, down from 9.7% in the prior year’s quarter.
Both Upstart and Affirm offer lending services. Upstart operates an AI lending platform partnering with banks and credit unions to expand access to affordable credit. Affirm offers a platform for digital and mobile-first commerce.
Affirm is set to announce its third-quarter results Wednesday after the close. The company is expected to report a loss of 70 cents per share and revenue of $444.44 million, according to estimates from Benzinga Pro.
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AFRM Price Action: Affirm shares were down 5.7% at $20.67 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Affirm.
