The last few names are coming in with their earnings reports – and even though the end of the September quarter seems long and far away, investors were mostly cheering the FinTech IPO names that reported results.
The FinTech IPO Index rose 5.1% last week.
MoneyLion is a leader
MoneyLion is up 22% in the last five sessions.
MoneyLion said it reported increasing sales this quarter after developing new personal finance tools. Revenue was $110 million, up 24% from the year-ago quarter.
Co-founder and CEO Dee Choubey said the results demonstrated the “strength and resilience” of MoneyLion’s business. The company said it diversified its product mix this quarter and expanded into non-credit verticals such as high-yield savings. As we previously reported, personal lending revenue now accounts for 55% of MoneyLion’s corporate market revenue, compared to 85% in the previous quarter.
Affirm Holding, which rose by 19.4%, said it expected Demand for short-term consumer loans increases when interest rates remain high for an extended period of time. In the quarter ended Sept. 30, the company reported a 28% year-over-year increase in gross merchandise volume to $5.6 billion. Revenue also rose 37% to $496.5 million, while net loss fell to $171.8 million from $251.3 million. In addition, creditworthiness improved, with the proportion of delinquent customers falling from 2.7% to 2.4%.
XP’s recent earnings sent the company’s shares up 6.9%.
The Company’s third quarter The results noted that the Brazilian company’s gross sales in the most recent period were 4.4 billion reals ($904 million), up 17% quarter-on-quarter (QoQ) and 14% year-on-year (YoY). It said there was a “strong recovery” in the QoQ of corporate and issuer services. Revenue from these latter segments totaled R519 million ($106.7 million), up 83% quarter-on-quarter and 19% year-on-year.
Paysafe shares rose 22%.
As reported here, Paysafe plans to launch a digital wallet for small and medium-sized businesses (SMEs). CEO Bruce Lowthers noted in the company’s most recent earnings release that “over time, the range of cash-in-transit capabilities and services will expand with a longer-term product vision to combine essential capabilities with meeting the underserved needs of our SMB customers.”
The company’s earnings report showed that digital wallet volume was $5.6 billion in the third quarter, up 18% year over year. Digital wallet revenue was $182.9 million in the third quarter, up 12% year over year and up 5% on a constant currency basis.
OppFi quarterly profit The report showed last week that Total revenue increased 7.2% to $133 million, while net originations were $195.7 million, up from $181.8 million in the same period last year. The proportion of new loans by banking partners was 98%, compared to 94% in the same period last year. The net charge-off rate as a percentage of total revenue decreased 23% year-over-year to 42% in the third quarter of 2022. OppFi shares gained 13.4%.
Nu Holdings saw its share price fall 1.9%. The last quarter announced that revenue increased 53% year-over-year to $2.1 billion. Nu said it was adding 1.5 million new customers every month in Brazil. In Mexico, Nu’s customer base grew to 4.3 million, “driven by the launch and expansion of the Cuenta Nu savings account product, which currently has over 2.4 million customers.” According to the company, there are over 1 million active insurance policies and over 12 Millions of actively investing customers.
BILL rejects Melio deal
BILL shares fell 4.9%.
The movement came in the wake of the reports and a denial by the company that it wanted to buy Melio Payments.
“Although it is BILL’s general policy not to comment on market rumors or media speculation, BILL is not currently pursuing such an acquisition,” the company said in a press release provided to PYMNTS last week. A spokesperson for Melio also told PYMNTS that the company “does not comment on rumors or speculation.”
The disclosure followed a report from Bloomberg News that the company was working on a cash-and-stock deal that would value Melio at $1.95 billion.
Lufax said in his Third quarter report that outstanding loan balances decreased. The balance of loans extended was 366.3 billion yuan ($50.5 billion) as of Sept. 30, compared with 636.5 billion yuan last year, a decline of 42.5%. The cumulative number of borrowers rose by 6.8% to around 20 million in the September quarter. The number of new loans in the third quarter was 50.5 billion yuan, down 59.2% year-on-year. Lufax shares fell 5.7%.
For more information, see: Affirm, bill, Featured News, Fintech Investments, FinTech IPO Index, Lufax, Melio, MoneyLion, News, Nu Holdings, OppFi, Paysafe, PYMNTS News, XP
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