NerdWallet and SoFi Earnings Blunt FinTech IPOs Rise as Index Gains 1.4%
A flurry of earnings reports rolled in over the past week, and a rough parity between rising stocks and falling stocks kept the FinTech IPO Index up 1.4%.
NerdWallet shares are down 30% over the past five sessions. In the company’s latest earnings report, the company said so First quarter revenue was $170 million, up 31% from the prior year. Credit card revenue of $61.3 million grew 36% year-over-year, offset by loan revenue of $22 million, down 36% year-over-year as mortgage and student loan demand fell. The company’s earnings filing shows NerdWallet had 23 million average monthly unique users, up 7% year over year.
In the company’s shareholder letter detailing results, Tim Chen, the CEO, said that with respect to credit cards, “what was previously a cautious environment in sub- and near-prime underwriting is also spilling over into prime, as banks approach the second-order consequences of regional bank failures with caution. “
Elsewhere, SoFi’s shares fell 19% for the week. The company’s latest quarterly results show that the demand for personal loans continues to increase.
Earnings filings show the company added 433,000 members during the quarter, bringing its total member base to 5.7 million, up 46% year over year. The company said personal loan originations were up 46% to nearly $3 billion.
SoFi weighs in
SoFi CEO Anthony Noto said, “more than 90% of our consumer deposits are from sticky direct deposit members, and 97% of our deposits are insured.”
Noto said more than 50% of newly funded SoFi money accounts set up direct deposits by day 30, which significantly impacts spending.
The nCino share fell 13.4 percent. The company said it had partnered with the digital bank Grasshopper. Under the terms of the agreement, Grasshopper will leverage several nCino solutions, including Portfolio Analytics, Commercial Banking and Customer Engagement, to improve portfolio management and reporting and speed to market for, among other things, loan closings.
Alchemy published results for the first quarter which describes that SaaS subscription services grew to $57.5 million from $42.8 million last year.
Management comments noted that during the quarter the company crossed 15 million digital banking users and exited the quarter with 15.1 million digital banking users on the Alkami platform, up 18% from the year-ago quarter, according to the company’s release.
The share fell 3.9 percent.
Some winners too
MoneyLion shares rose 34.7%. According to reports from TechinAsia.com, MoneyLion is no longer partnering with Japanese conglomerate Aeon to launch a digital Islamic bank in Malaysia. The reports stated that MoneyLion decided to pull out of the consortium to focus on its US operations.
The KE Holding share rose 3.4% during the week.
The company at the end of last month has submitted its latest annual report. In that filing, the company described revenue falling 24.9% to RMB 60.7 billion in 2022 (US$8.8 billion) from a year ago. In 2022, the company facilitated approximately 3.8 million residential transactions on its platform and generated a combined GTV of RMB 2,609.6 billion (US$378.4 billion), down from over 4.5 million residential transactions and a GTV of 3,853 .5 billion RMB in 2021.
