Earnings are rolling in and a relief rally could be in the works for the fintech IPO group.
To that end, the FinTech IPO Index rose 8.8% this week, driven by double-digit percentage points in several names tracked by PYMNTS.
Just a few trading days into August and the group is up 13.4% for the month. But overall performance was still dismal, down 35.2% for the year.
And in terms of performance over the past few days, gains have been led by the likes of SoFi, which are up almost 28%.
SoFi makes profits
SoFi released earnings this week showing that SoFi had the second-highest membership growth and second-highest product growth since records began for the period ended June of this year. The company said that the number of new members exceeded 450,000, bringing the total number of members to 4.3 million by the end of the quarter, an increase of nearly 1.8 million, or 69%, from the end of the second quarter of 2021.
Technology platform accounts grew to 117 million from 79 million last year. Total net lending income was $257 million, up 55% from a year ago. Total lending increased 9% year over year to $3.2 billion. The average loan balance for personal loans rose 13% to just over $24,400.
Flywire’s 27% gain closely followed SoFi’s gain. The company’s surge follows news last month that Flywire acquired international education payments platform Cohort Go to bring students, agents and student services onto the Flywire platform.
Billtrust’s 22.5% surge came this week as the sector highlighted that the B2B receivables (AR) automation company could be put up for sale by its owner, BTRS Holdings. The parent company went public in 2021 via a Special Purpose Acquisition Company (SPAC) merger.
Remitly shares are up 19.7% over the past five sessions as the company released its latest earnings results this week. The company reported that its active customers grew to 3.4 million from 2.4 million, up 43%. Send volume grew from $5 billion to $7 billion, up 40%. Those gains help boost revenue by 42% year over year to $157.3 million.
Robinhood was up 15% and rebounded as the company announced this week that it will lay off nearly a quarter of its workforce. The results also showed a 34% year-over-year decline in active users to 14 million, which in turn contributed to a 44% year-over-year decline in revenue to $318 million. Complementary data from the company also showed that total assets under custody were $64 billion, up from $94 billion in the first quarter and well below the $102 billion a year ago.
Opendoor Labs was up just over 1% on news that the Federal Trade Commission fined the online homebuying company Monday for $62 million. As reported here, the fine was imposed because the FTC alleged that the company had approached potential sellers with misleading and deceptive information. Most customers who sold to Opendoor made thousands less than they would from a more traditional approach, the FTC said.
There were a few names that didn’t post any gains over the past week. Most notable among the detractors was OneConnect Financial Technology Co., which this week announced the launch of OneCosmo, which it bills as “a one-stop omni platform for all-in-one digital banking solutions.” This platform is being developed jointly with Brazil-based technology company Pismo.
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NEW PYMNTS SURVEY FIND 3 OF 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS
Around: The results of PYMNTS’ new study, The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy, a collaboration with PayPal, analyzed the responses of 9,904 consumers in Australia, Germany, the UK and the US and showed a strong demand for a single multifunctional super app instead of using dozens of individual apps.
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