Fintech
The deluge of earnings helps lift the FinTech IPO Index by 4%.
Earnings were all over the place last week, pushing the FinTech IPO Index up 4% during a week of volatile trading.
Buy now, pay later Momentum
Sezzle shares rose 52%. The latest results of the company explained that revenue growth was 35.5% year-on-year (year-on-year), while total subscribers rose to 371,000 from 142,000 a year ago. Quarterly purchase frequency increased on average from 1.5x to 4.5x during the quarter. The provision for credit losses was 1% of underlying commercial sales, down from 1.7% in the fourth quarter.
Additionally, within the BNPL space, Affirm shares are up 1% in five sessions.
THE the company reported earnings that saw gross merchandise volume (GMV) increase 36% year over year to $6.3 billion, marking the fourth consecutive quarter of accelerating growth.
Breaking down the segments, the general goods category leads with an increase of 49%, followed by travel and ticketing with 35%. Direct-to-consumer GMV also saw a significant increase, growing 49% year over year to reach $1.6 billion. Affirm’s active consumer base grew 13% year over year to 18.1 million, and the number of its active merchants increased 19% to 292,000. Total revenues grew 51% year-over-year to $576 million.
Somewhere else, Toast earnings noticed in the first quarter, annual recurring revenue as of March 31 was $1.3 billion, up 32% year over year. Gross Payment Volume (GPV) increased 30% year-over-year to $34.7 billion. Total locations increased 32% year over year to approximately 112,000. Toast shares rose 15.4%.
MoneyLion’s March quarter results have been shown total customers grew 98% year-over-year to 15.5 million in Q1 2024. Total products grew 73% year-over-year to 25.3 million in Q1 2024. Total originations grew by 42% year over year to $717 million for Q1 2024.
MoneyLion shares rose 19%.
Emerging market stocks were higher
Upstart shares gained more than 11%. The company’s report this week March quarter results indicated that 119,380 loans were originated using Upstart during the most recent quarter, totaling $1.1 billion on the company’s platform and up 13% from the same quarter last year . Conversion on fare requests was 14% in the first quarter of 2024, compared to 8% in the same quarter last year.
Upstart reported that 90% of loans were fully automated – a new record – and that 91% of automated approvals converted to funded loans. Upstart’s revenue rose to $128 million, up from $103 million in the same period last year.
Marqeta’s latest results and the comments showed momentum in the company’s transaction processing operations and opportunities in nascent markets such as access to earned wages.
CEO Simon Khalaf noted that during a single day during the quarter, Marqeta processed more than $1 billion in total payment volume (TPV), which he called “a significant milestone.”
In terms of headline numbers, net revenue of $118 million was 46% lower year-over-year, with a 58 percentage point decrease tied to a change in revenue presentation with the Cash App contract minimum.
CFO Mike Milotich said on the call that TPV was up 33% with “broad outperformance, particularly in BNPL, on-demand delivery and financial services.” Non-Block TPV grew about 15 points faster than Block growth, he said.
“On-demand delivery growth remained in the double digits, accelerating quarter after quarter as our customers expanded into new merchant categories and geographies,” Milotich said.
During the Q&A session with analysts, Khalaf said the company’s pipeline is “growing strongly, both in FinTech and embedded solutions.”
Marqeta shares rose 6.1%.
Amid the downturn, Flywire shares fell 12.7%.
The company’s most recent earnings release noted that revenue increased 21% to $114.1 million in Q1 2024. Total payment volume increased 23% to $7 billion in Q1 2024.
Paymentus shares lost nearly 8%. As detailed in the company’s latest earnings reportPaymentus processed 135.3 million transactions in Q1 2024, an increase of 24.7% compared to Q1 2023.
BILL reported itAccording to its latest earnings report, the number of small and medium-sized businesses (SMBs) using BILL solutions to digitize their operations and adopt electronic payments has increased by 10,000 over the past year. According to the company, the number of transactions processed by BILL increased 20% to 26 million, and the total volume of payments made by BILL customers increased 10% to $71 billion.
BILL shares are down 8.8% over the past five sessions.
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