The latest earnings reports are trickling in across the FinTech IPO Index, with more losers than gainers, which in turn helped the index fall 2.4% this week.
OneConnect published results that were viewed Total revenue fell 9.1% year-on-year to RMB925.9 million (US$130.8 million) in the most recent quarter. The company noted in its earnings filings with the Securities and Exchange Commission that the decline in revenue was due to a decline in transaction-based and support revenue. Shares fell 21.4% for the week.
The latest version of Lufax Holding Detailed quarterly earnings report a nearly 26% decrease in the outstanding loan balance to RMB495.2 billion (US$70 billion) as of March 31, 2023. The cumulative number of borrowers increased by 9% to about 19.4 million at the end of the latest quarter. New loans originated in the quarter were down 65% year over year.
The delinquency rate of more than 30 days for all loans originated by the company was 5.7% at the end of the March quarter, up from the rate of 4.6% at the end of 2022. The delinquency rate of more than 90 Days for Secured Loans Lending was 1.9% at the end of March this year, compared to 1.2% as of December 31, 2022.
Lufax CEO Yong Suk Cho said on the conference call with analysts, “It is clear that the macro and operating environment remains challenging for many small business owners.” shaped recovery is cautiously optimistic.” Lufax shares lost more than 18% over the week.
InsurTechs get some ink in the journal
Hippo Insurance shares fell 13.7%, and Lemonade shares were virtually flat in a week during which that happened The Wall Street Journal report that the promise to revolutionize the insurance industry has not been kept.
The Journal noted that Lemonade, Root Insurance, and Hippo “each lost tens of millions of dollars in recent quarters and have seen their share prices plummet in recent years.”
One of the weaknesses, the article states, is the fact that collecting and analyzing data to create effective pricing models is difficult, and profits do not come with the efforts to create these models.
Paysafe shares are down 9% over the past five sessions. As mentioned in our own coverage In the most recent earnings report, sales rose 7%, which was accompanied by a double-digit percentage point increase in digital wallet usage. Paysafe revenue was $387.8 million in the first quarter, compared to $367.7 million in the same quarter last year. Digital wallet revenue increased 2% on a reported basis and 6% on a constant currency basis.
Those declines outpaced the flat-to-moderate gains of several other names throughout the week, and more than offset the week’s most notable winner: XP Inc., which saw its stock rise 11.9%. The company’s shares continued their upward trend on earnings reported earlier in the month. The company reported first-quarter earnings that showed a 9% increase in assets under management to 954 billion reais ($189.4 billion) in Brazil. Active customers grew 13% year over year to 3.9 million.
For more information, see: Featured News, FinTech IPO Index, Hippo Insurance, InsurTech, Lemonade, Lufax, News, oneconnect, Paysafe, Root Insurance, XP
Comments are closed.