Gains soften decline in FinTech IPO index

The earnings caravan rumbles on.

And the results, as seen over the past week — at least for the digital-first and digital-only upstarts looking to transform financial services — have been mixed.

The FinTech IPO index lost 1.6 percent. Still, month-to-date, the group is still up a little more than 15%, reflecting two weeks of trading that’s been positive overall, outpacing the Nasdaq’s roughly 9% gain over the same period.

Payoneer was up 19.6%, following earnings that saw reported volumes rise 8% year over year to $14.6 billion. The company said in its earnings announcement that revenue rose by 34%. And detailing the transformation of commercial payments, B2B AP/AR volumes grew over 65% year over year and represented 12% of total volume in the second quarter, Payoneer said.

Nu Holdings shares rallied nearly 15%, as the company’s own earnings report showed total revenue rose 230% to $1.2 billion last quarter, as its customer list grew more than 50% over the same period, to 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 for its core credit card products reached 29 million. Revenue supplements released by the company show that the installed customer base represents more than a third of Brazil’s adult population. In addition, deposits increased by 87% to the equivalent of USD 13.3 billion. Digital banking services are used by 2 million SMEs, the company said in its filings.

NerdWallet rose 10%, adding to gains after the company’s earnings results earlier this month showed credit card-related revenue of $54.6 million grew 82% year-over-year, and “other vertical revenue” of $46.6 million increased 58% this year. – over the year, characterized by growth in SME products.

Decelerators Reduce performance

These gains were not enough to offset Marqeta’s 29% drop. As we noted last week, Marqeta’s key FinTech clients are facing their own macro pressures. Although the company had 53% growth in TPV, that’s down from previous rates of more than 75%, and management has led to 30% revenue growth.

CFO Mike Milotich noted that it is “sound to be cautious about the next few months.”

FinTechs, he said, are “less aggressive” in terms of expansion plans and investments. He stated that “many of the customers signed in the last 12-plus months, as well as crypto customers, will grow their business more slowly than we expected a few months ago”, which in turn means that these customers’ card and other financial product offerings will is muted. BNPL growth has fallen below 100% for the first time.

OppFi gave up around 16.7% on the week, after withdrawing guidance for metrics other than earnings growth, and noted in its quarterly report that there is “limited visibility” as a result of macro pressures. The release also noted an increase in net charge-offs, measured as a percentage of average receivables. Net originations for the most recent quarter were up 57%, to $226.2 million.