Management has always tagged Q1 as its seasonally weakest. QoQ growth from Q4 to Q1 was -18% in 2019 and 2% in 2020. 2021 was the outlier. The after hours reaction suggests (to me as least) the market isn’t shocked or disappointed in this Q1 guide, especially because the FY guides implies the usual upward QoQ trend from Q2-Q4.
following on stocknovice’s point,
On the earnings call they referred to the “seasonal contraction” from Q4 to Q1, saying that business slows in Q1 for “tax return season”.
So I guess they are saying that when people get tax refunds in Q1, they don’t need to borrow as much at that time, compared to in other quarters
-mekong