FinTech IPO Index Rises 9.3% as Blend, Open Lending Lead Earnings Rally

Earnings, earnings, everywhere – and for the FinTech IPO index, a remarkable rally marked the last five sessions.

The overall index rose 9.3 per cent.

Blend Labs led the charge, with shares rising more than 84%.

In the company’s resultsBlend noted that mortgage software processed 23.2% of total market originations as measured by the Mortgage Bankers Association in the second half of 2022, up from 14.5% in the second half of 2021. Additional earning material shows that consumer banking suite revenue increased 34% to $5.2 million, and the decline in mortgage package revenue, 33% year-over-year (YoY), to $17.8 million, was better than the 58% decline in industry-wide mortgage . origin volumes.

Open Lending saw its stock jump more than 55%. The company’s latest results announcement shows that the company facilitated 32,408 certified loans during the first quarter of 2023, compared to 43,944 certified loans in the first quarter of 2022. Total revenues were $38.4 million in the first quarter of 2023, lower than $50.1 million logged in the first quarter of 2022. New vehicle certifications as a percentage of the total was 14.7%, compared to 5.6% last year. Used vehicle certifications were 85.3%, down from 94.4%.

Oportun income in the past week brought the shares up 41%. In the results report, the management noted that the membership list grew by 14% to 1.9 million. The company also said products were up 17% to 1.9 million.

During the most recent quarter, the company said revenue rose 21% to $260 million. Total originations were $408 million, down 49% year over year. The filings detail the annual net depreciation rate of 12.1% compared to 8.6% for the previous year. The 30-day delinquency rate of 5.5% was higher than 4.5% for the prior year.

Some discretionary spending headwinds

Our coverage of Affirm’s quarterly report noted that the company’s quarterly results showed double-digit gains in gross merchandise value (GMV). But consumers are pulling back on at least some categories of spending.

Shares in Affirm rose 36.6%.

The consumer electronics category fell 8% year-on-year. The home/lifestyle category also fell 10% year-on-year, while growing 2% year-on-year in the fiscal second quarter.

Revenue rose 7% year-over-year, or up 15%, excluding Peloton, to $381 million.

The number of active sellers grew 19% YoY to 246,000 total sellers, and sellers with more than $1,000 in trailing 12-month GMV grew 29% to 92,000.

Management said that over the past few months, the banking sector had been pushing funding costs higher – an environment that will remain in place in the current fiscal fourth quarter.

CFO Michael Linford noted: “When you get to the third quarter of the next financial year, when we get to about nine months from now, you’ll start rounding off lighter competitions. And so we’re optimistic that when we get there, some of these businesses will return to some solid growth. But for now the headwind continues there.”

Upstart’s shares rose 34.6%. The company, which uses AI to help drive the platform’s lending efforts produced a smaller loss than the Street had expected. In the most recent quarter, the company said revenue fell more than 50% to $147 million. The company’s lending partners, according to the earnings report, originated 154,478 loans in the quarter, a total of 1.5 billion dollars. These figures were reduced by more than 60% from the same period last year. The company also said it had secured about $2 billion in additional financing.

Toast’s results for the first quarter illustrated that the company has added over 5,500 net new locations during the quarter. Gross Payment Volume (GPV) increased 50% year-over-year to $26.7 billion.

Revenue from subscription services in the most recent quarter was $107 million, compared to $63 million last year. The share rose 18.2 percent.

“In the small SMB space, we are optimizing pricing and packaging to meet the needs of that customer segment and leveraging an e-commerce sales movement and self-service onboarding to effectively grow in this segment,” said Toast Chairman and CEO Chris Comparato.

In the quarter, the tech company also announced that it is integrating Order With Google into its platform, allowing restaurants to unlock a new channel for orders. The company also shared that it has acquired digital drive-thru signage company Delphi Display Systems in an effort to boost its QSR offerings.