Affirm Holdings, Inc. (NASDAQ:AFRM) Q2 2023 Earnings Conference Call February 8, 2023 5:00 PM ET

Company Participants

Zane Keller – Director, Investor Relations

Max Levchin – Founder and Chief Executive Officer

Michael Linford – Chief Financial Officer

Conference Call Participants

Ramsey El-Assal – Barclays

Rob Wildhack – Autonomous Research

Dan Perlin – RBC Capital Markets

Jason Kupferberg – Bank of America

Rayna Kumar - UBS

Andrew Jeffrey – Truist Securities

Bryan Keane – Deutsche Bank

Moshe Orenbuch – Credit Suisse

Chris Brendler – D.A. Davidson

James Faucette – Morgan Stanley

Eugene Simuni – MoffettNathanson

Andrew Bauch – SMBC Nikko Securities

Operator

Good afternoon. Welcome to Affirm Holdings Second Quarter 2023 Earnings Conference Call. Following the speakers' remarks, we will open up the lines for your questions. As a reminder, this conference call is being recorded, and a replay of the call will be available on our Investor Relations website for a reasonable period of time after the call.

I'd now like to turn the call over to Zane Keller, Director, Investor Relations. Thank you. You may begin.

Zane Keller

Thank you, operator. Before we begin, I would like to remind everyone listening that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our Investor Relations website. Actual results may differ materially from any forward-looking statements that we make today. These forward-looking statements speak only as of today, and the company does not assume any obligation or intent to update them, except as required by law.

In addition, today's call may include non-GAAP financial measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures. For historical non-GAAP financial measures, reconciliations to the most directly comparable GAAP measures can be found in our earnings supplement slide deck, which is available on our Investor Relations website. Hosting today's call with me are Max Levchin, Affirm's Founder and Chief Executive Officer; and Michael Linford, Affirm's Chief Financial Officer.

With that, I would like to turn the call over to Max to begin.

Max Levchin

Thank you, Zane. We appreciate everyone taking the time to join us. I hope you've had a chance to review our letter to shareholders as it contains a great deal of detail. Amidst increased macroeconomic headwinds, our fiscal Q2 had mixed results. Revenue was at the low end of our expected range and adjusted operating income came in better than expected. On the other hand, gross merchandise volume was short of expectations as was revenue less transaction costs as our mix shifted to more interest-bearing loans and we retain more loans on the balance sheet.