Reporting season is just over.
But there have been a few final reports in our FinTech IPO pantheon just before the next earnings season kicks off next week.
From mid-April onwards, the big banks will start publishing their first-quarter earnings reports — and that will give us a sense of how financial services in general are holding up in the face of ongoing inflationary headwinds. Details on card issuance and loan defaults can be a precursor to the FinTech players we track.
The aforementioned fourth quarter reports still trickling in pushed the index up (slightly) for the week, up 0.3% over the last five days.
nCino and dLocal take part in the winning parade
nCino rallied 4.3%. The company posted results that showed up Total revenue for the fourth quarter of fiscal 2023 was $109.2 million, a 46% increase from $75.0 million for the fourth quarter of fiscal 2022. Subscription revenue for the fourth quarter was 92 $.8 million, up from $62.8 million last year, up 48%. This income includes the results of SimpleNexus. Organic subscription revenue, which excludes SimpleNexus revenue, was $77.0 million, a 30% increase from the fourth quarter of fiscal 2022.
Merit materials that accompanied the Report show that the company’s customer base was 1,858 in fiscal 2023, up from 1,775 a year earlier. Last fiscal year, there were 465 customers with more than $100,000 in subscription revenue, compared to 271 last year.
In other earnings news is Uruguayan payments company dLocal reported its own fourth quarter results It showed that total payment volume grew 78% annually to a record $3.3 billion and was up 21% sequentially. Revenue rose 55% to $118.4 million. Management said on the conference call with analysts that 67% of payment volume comes from non-credit card payment methods, including non-traditional payment methods like local debit cards, bank transfers, digital wallets and mobile payments. According to the conference call commentary, other payment methods have stood the test, including PIX and Boleto in Brazil, mobile money in South Africa, UPI in India and Oxxo in Mexico. Shares of the company fell 13.1% over the week.
Apple and the BNPL movement
Affirm’s shares rose 1.4%.
As reported last week, Apple has launched Apple Pay Later, its Buy Now, Pay Later offer.
The payment option, geared toward Apple Pay users, will be rolled out on an invite-only basis, at least for now.
Apple’s foray into rates puts the tech giant head-on against BNPL providers like Affirm.
As we have found here, Apple’s Pay Later customers are subject to eligibility and approval, and the installment plan will be integrated with Apple Wallet. Apple’s credits range from $50 to $1,000.
Paysafe shares lost 3.9%.
The company announced this at the end of the month that it expanded into the new mobile sports betting market in Massachusetts.
Paysafe said the Massachusetts sports betting market, which Legal Sports Report says will generate over $295.25 million in first-year revenue, is the 26th jurisdiction in which the company operates in terms of online payments supports. The new market entry also extends Paysafe’s existing relationship with DraftKings.
SoFi was up 0.5%.
News came this week that SoFi has acquired Wyndham Capital Mortgage to expand its offering to prospective homeowners. The cash purchase, according to the announcement, enhances the digital mortgage experience while reducing the company’s use of third-party partners and processes.
SoFi said in the press release that the Wyndham purchase “is not expected to be material to the company’s 2023 financial outlook,” although “it is expected to increase within six months.”
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