The winning caravan rumbles.
And the results, as we’ve seen over the past week – at least for digital-first and digital-only to change financial services – have been mixed.
The FinTech IPO index lost 1.6%. Yet month-to-date, the group is still up just over 15%, reflecting two weeks of trading that were overall positive and outpaced Nasdaq’s roughly 9% gain. during the same period.
Payoneer rose 19.6%, on the heels of earnings that saw reported volumes rise 8% year-on-year to $14.6 billion. The company said in its earnings announcement that its revenue jumped 34%. And in a bit of detail regarding the transformation of commerce payments, B2B AP/AR volumes grew more than 65% year-over-year and accounted for 12% of total volume in the second quarter, Payoneer said.
Shares of Nu Holding rose nearly 15% as the company’s earnings report showed total revenue jumped 230% to $1.2 billion last quarter, as its list of customers increased by more than 50% during the same period, reaching 65.3 million.
Nubank’s customers grew by 5.7 million, or 57%, in the quarter to a total of 65.3 million, while customers of its core credit card products reached 29 million. The revenue supplements published by the company show that the installed clientele represents more than a third of the adult population of Brazil. Additionally, deposits increased by 87% to the USD equivalent of $13.3 billion. Digital banking services are used by 2 million SMEs, the company said in its documents.
NerdWallet rose 10%, extending gains seen after the company’s results earlier this month showed credit card revenue of $54.6 million was up 82% year over year. other and that “other vertical revenue” of $46.6 million grew 58% annually. -over a year, marked by the growth of SME products.
Declines lower performance
These gains were not enough to offset Marqueta’s 29% decline. As we noted last week, Marqeta’s major FinTech clients are themselves facing macroeconomic pressures. Although the company posted 53% growth in TPV, this is a slowdown from previous rates of over 75%, and management has guided a revenue growth rate in the high range of 30 %.
Chief Financial Officer Mike Milotich noted that it is “wise to be cautious over the next few months.”
FinTechs, he said, are “less aggressive” in their expansion plans and investments. He said that “many customers signed up in the past 12+ months, as well as crypto customers, will grow their business more slowly than expected a few months ago,” which in turn means cards and other financial products of these customers offerings will be muted. BNPL’s growth falls below 100% for the first time.
OppFi fell around 16.7% on the week, after withdrawing its forecast for measures other than revenue growth, and noting in its quarterly report that there is “limited visibility” due to macroeconomic pressures. The release also noted a slight increase in net charges, measured as a percentage of average receivables. Net originations for the most recent quarter increased 57% to $226.2 million.