FinTech IPO Index rises 8.8% as earnings roll in

The revenue is rolling in, and for the FinTech IPO crowd, a relief rally may be in the works.

To that end, the FinTech IPO Index was up 8.8% on the week, driven by double-digit percentage point gains for several names tracked by PYMNTS.

Just a few trading days into August and the group is up 13.4% for the month. But overall performance has remained dismal, down 35.2% for the year.

And referring to the past few days’ results, the gains were led by companies such as SoFi, which surged nearly 28%.

SoFi gains on revenue

SoFi posted earnings this week that showed SoFi achieved its second-highest membership growth and second-highest product growth on record for the period ending in June of this year. The company said new member additions of more than 450,000 brought its total number of members to 4.3 million at the end of the quarter, up nearly 1.8 million, or 69%, from the end of 2021’s second quarter.

Technology platform accounts rose to 117 million, from 79 million last year. Total net lending income came in at $257 million, up 55% from a year ago. Total loan originations increased 9% from last year to $3.2 billion. The average loan balance for personal loans was up 13% to just over $24,400.

Flywire’s 27% gain closely followed SoFi’s progress. The company’s increase follows news last month that Flywire acquired international education payments platform Cohort Go to bring students, agents and student services to the Flywire platform.

Billtrust’s 22.5% rise came this week as the spotlight was put on the B2B accounts receivable (AR) automation firm could be put up for sale by its owner, BTRS Holdings. The parent company was listed on the stock exchange via a merger with a special acquisition company (SPAC) in 2021.

Remitly shares are up 19.7% over the past five sessions, as the company released its latest earnings results this week. The company reported that active customers increased to 3.4 million, from 2.4 million, up 43%. Send volume increased to $7 billion, from $5 billion, up 40%. Those gains help push revenue 42% higher year-over-year to $157.3 million.

Robinhood gained 15%, rising as the company said this week it is laying off just under a quarter of its employees. The results also showed a 34% year-over-year decline in active users to 14 million, which in turn helped usher in a 44% drop in revenue, also year-over-year, to $318 million. Supplementary data from the company also revealed that total assets under custody stood at $64 billion, down from $94 billion in the first quarter and significantly below $102 billion a year ago.

Opendoor Labs gained a little more than 1% on news that the Federal Trade Commission on Monday fined the online home-buying firm $62 million. As reported here, the fine came as the FTC alleged that the firm solicited potential sellers using misleading and deceptive information. Most customers who sold to Opendoor made thousands less than they would have using a more traditional approach, the FTC said.

There were some names that did not make gains throughout the last week. Most notable among the departures was OneConnect Financial Technology Co., which this week announced the launch of OneCosmo, billed as “a one-stop omni-platform for all-in-one digital banking solutions.” This platform is being developed jointly with the Brazil-based technology company Pismo.