Bill.com Rally Fails to Halt IPO Index Image
The FinTech IPO index fell 6.3% for the week, reducing its monthly gain from double-digit percentage points to a current 5.6%.
The result so far this year is still significantly on the downside, at 38.1%.
Earnings are largely in the rearview mirror, and to a large extent the markets are still digesting comments that point to a cautious macro picture of consumption and other factors. And of course, individual company headlines still move names — some of which have to do with technicalities that govern IPOs.
9F Group sank 39%, following a report from Nasdaq that the company’s stock had traded below the $1 minimum bid price for American Depositary Shares. The company now has a grace period of 180 days to fulfill this listing requirement (for at least 10 business days). The shares, at a recent 50 cents each, are down about 79% over the past 52 weeks.
The earnings effect still persists
Catapult was down 23.1%, continuing a decline seen in the wake of earnings earlier in the month, when second-quarter gross originations were $46.4 million, down 28% from a year earlier. The company has cited macro concerns, including inflation, as headwinds to consumer confidence and spending.
Remitly brought up the back end, close behind Katapult, also with a drop of just over 23%. As mentioned last week, the company announced a definitive agreement to acquire Rewire, an Israel-based financial services platform for migrant workers. The purchase price was $80 million, in a mix of cash and stock. And citing the mechanics of the deal, the companies said in their joint announcement that Rewire’s remittance platform will complement Remitly’s focus on cross-border payments for migrants.
Enfusion lost just under 22%, after reporting results highlighted in an earlier edition of our index tracker. This week, the company said it has appointed Oleg Movchan as interim CEO, effective August 21. Movchan succeeds Thomas Kim, who has stepped down as CEO and as a director of the company, citing a desire to spend more time with his family. . The company said in the same release that while it kept its revenue outlook in place, in connection with the CEO search and transition, “it expects to incur related costs beginning in the third quarter, which will materially impact adjusted EBITDA.” We note that the line item is a rough measure of cash flow.
Paysafe was down 15.8%; last week the company said it is expanding into Argentina along with its eCash payment solution Paysafecard.
Those losses were more than enough to overcome gains seen in Bill.com, which was up 13.7% over the past five sessions. In our own coverage of the company’s recent results, we noted that the company said 400,000 businesses were using the company’s product, three times the number of users a year ago. Triterras followed with a 12% gain, although there were no company-specific crosses or released directly by the firm in the past week.
NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS
About: The findings 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 strong demand for a single multi-functional super app instead of using dozens of individuals.
