Fintech
The FinTech IPO index rises by 1.7%.
Call it Platform Week.
Earnings reports from companies that focus on matching supply and demand – in lending, for example, or in modernizing payments between merchants and consumers – have dominated headlines.
With stocks remaining volatile in the wake of these earnings reports, the FinTech IPO Index is up 1.7% this week.
CatapultShares rallied 18.5% over the week. Katapult pays gross originations grew more than 150% year-over-year last quarter to $55.6 million, and 55.9% of gross issuance for Q1 2024 came from repeat customers. Total revenue was $65.1 million, an increase of 18.1 percent
Mixing laboratories shares gained just over 15%. Agency earnings Materials said the company’s total revenue in the first quarter of 2024 was $34.9 million, comprised of Blend Platform segment revenue of $23.8 million and Title segment revenue of $11.1 million. dollars. In the Blend Platform segment, mortgage suite revenues decreased 15% year-over-year to $15.1 million. Consumer banking suite revenue was $6.7 million in the first quarter, up 29% from last year. Professional services revenue increased 21% year-over-year to $2.1 million.
PaysafeShares rose 15.2%. The company’s earnings proved it income from the Merchant Solutions segment increased 11%, linked to the strength of eCommerce and demand from small and medium business (SMB) customers. Digital wallet revenue increased 5% year-on-year, supported by the strength of the gambling sector. Consolidated revenue of $418 million increased 7% on a constant currency basis. Total payment volume of $36.1 billion increased 7% and transactions per active user increased 14%.
Loan open The company’s shares have gained 7.8% this week collaborated with Major specialized insurance holdingsenabling Core Specialty to begin providing credit default insurance policies for Open Lending’s Lenders Protection platform.
Robin Hood shares are up 3.4% over the past five sessions. The company reported first quarter profits which exceeded expectations, driven by a strong force cryptocurrency trading volumes and increase in net interest income. Retail traders, buoyed by hopes of a soft landing in the economy, re-entered the market, leading to a 59% increase in transaction-based revenue for the company. The company’s net interest income increased 22% to $254 million.
Opportunity shares rose 2.7%. The company had already reported preliminary results for the first quarter and noted this in its official report on May 9 aggregate originations were $338 million, up from $408 million last year. The portfolio’s return was 32.5%, an increase of 113 basis points from the prior-year quarter. The annualized net cancellation rate is 12% compared to 12.1% observed a year ago and 12.3% in the fourth quarter.
dLocal leads to the downside
dLocal shares tumbled 27% as the company’s earnings pointed to that total payment volume was $5.3 billion in the first quarter, up 49% year-over-year from $3.6 billion in the first quarter of 2023 and up 4% from the fourth quarter of 2023. Revenues were increased 34% year over year to $184.4 million and down 2% sequentially. Gross profit margins were slightly pressured, due to renegotiation of terms with a major merchant and higher payment volumes. Operating income was 32% lower year over year.
Nu Holdings claimed in its report that it added 5.5 million clients in the first quarter to reach 99.3 million customers globally by the end of March. Nubank is now Latin America’s fourth-largest financial institution by number of customers, the company said. Average monthly revenue per active customer grew 30% year over year. In Brazil, the NPL 15-90 ratio of the company’s consumer credit portfolio was 5%, in line with expectations and historical seasonality. The company’s shares lost 0.6%.
Spend added unlimited virtual cards to its spend management platform. With the new Expensify Visa Commercial Card, businesses can manage all employee and merchant expenses, including one-time and recurring expenses. The new feature allows customers to set fixed or monthly spending limits for each card. It can provide fixed-spend cards for one-time purchases and monthly-spend cards for recurring expenses. The company’s share lost 3.4%.
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