FinTech IPO index rises 0.3% as nCino, dLocal Post earnings

The earnings season is almost over.

But there were a few final reports among our FinTech IPO pantheon just before the next earnings season begins next week.

From mid-April, the big banks will start rolling out their reports on how the first quarter went – and by extension we will get a sense of how financial services in general are holding up amidst the continued headwinds of inflation. Details of card usage and delayed loans can be a warning for the FinTech players we track.

The aforementioned fourth quarter reports still trickling in brought the index to a (slightly) positive development for the week, up 0.3% over the past five days.

nCino and dLocal Join the income parade

nCino collected 4.3%. The company posted results that showed total revenue for the fourth quarter of fiscal year 2023 was $109.2 million, an increase of 46% from $75.0 million in the fourth quarter of fiscal year 2022. Subscription revenue for the fourth quarter was $92.8 million, up from $62.8 million dollars a year ago, an increase of 48%. These revenues include the results of SimpleNexus. Organic subscription revenue, which excludes SimpleNexus revenue, was $77.0 million, up 30% from the fourth quarter of fiscal 2022.

Income material that came with it Report shows that the company’s customer base was 1,858 in the financial year 2023, up from 1,775 last year. There were 465 customers with subscription revenue above $100,000 annually in the last financial year, compared to 271 last year.

In other earnings news, Uruguayan payments firm dLocal reported its own results for the fourth quarter which showed total payment volumes increased 78% year over year to a record $3.3 billion and increased 21% quarter over quarter. Revenue rose 55% to $118.4 million. Management said on the conference call with analysts that 67% of payment volume came from non-credit card payment methods, including non-traditional payment methods such as local debit cards, wire transfers, digital wallets and mobile payments. According to the comments on the call, other payment methods have shown traction, including PIX and Boleto in Brazil, mobile money in South Africa, UPI in India and Oxxo in Mexico. Shares in the company fell 13.1% during the week.

Apple and the BNPL movement

Shares in Affirm rose 1.4 percent.

As reported this past week, Apple has launched Apple Pay Later, its buy now pay later offer.

Aimed at Apple Pay users, the payment option is being rolled out, at least for now, on an invitation basis.

Apple’s push into installments brings the technology giant directly up against BNPL suppliers such as Affirm.

As we noted here, Apple’s Pay Later consumers are subject to qualification and approval, and the installment plan will be built into Apple Wallet. Apple’s loan will range from $50 to $1,000.

The Paysafe share lost 3.9 percent.

The company announced at the end of the month that it has expanded into the new Massachusetts mobile sports betting market.

Paysafe said the Massachusetts sports betting market, which Legal Sports Report projects will generate $295.25m+ in first-year revenue, stands as the 26th jurisdiction in which the firm operates as it supports online payments. The new market entry also expands Paysafe’s existing relationship with DraftKings.

SoFi registered an increase of 0.5%.

The news came this week that SoFi has acquired Wyndham Capital Mortgage to expand its offering to potential homeowners. The all-cash purchase, according to the announcement, expands the digital mortgage experience while reducing the company’s use of third-party partners and processes.

SoFi said in the release that the acquisition of Wyndham “is not expected to be material to the company’s financial outlook for 2023,” although “it is expected to be accretive within six months.”