Opportun, Catapult Earnings Slide FinTech IPO Index

The last week has been dominated by bank runs, by lifelines thrown to banks, by bank bailouts.

And yet, in the midst of a whipsaw week for tech stocks, there our other news.

Proceeds continued to trickle in, helping to send the FinTech IPO stock index 4.1% lower for the week, as several names declined by double-digit percentage points.

At the forefront of these declines were Oportun and Katapult.

Earnings reports send investors to the exits

Oportun dropped 43% over the past five sessions. The company reported earnings this week that showed revenue rose 35% in the December quarter to $262 million. The company’s financial presentation revealed that members in the quarter were 1.9 million, up about 27% year-over-year, while total organizations were down 29% over the same period to $610 million. Management said on the conference call with analysts that the loan assignment was lower year-over-year and below previous guidance of between $650 million to $700 million due to additional credit tightening measures by the company in November and December.

The company’s 30-day default rate grew to 5.6%, from 5.4% in the third quarter and up from 3.9% last year. The materials show that the annual net depreciation rate was 12.8%, where this calculation had been 6.8% last year. And per comments from CEO Raul Vazquez, the company does not expect to return to a 7% to 9% depreciation rate in the second half of the year.

Catapult lost 31.2% throughout the week.

The company said in its own earnings report that gross originations of $59.8 million rose $0.9 million, or 1.5% year-over-year in the December quarter. At the same time, total revenue fell by 33.4%, to $48.8 million. And while there has been evidence that year-on-year gross output should continue to increase into 2023, headwinds remain for consumer spending. The presentation material from the company notes that impairments as a percentage of gross originations have fallen from around 10% earlier in 2022 to a more recent level of 9%.

Paysafe lost more than 20% over the last five sessions. As reported here, Binance is halting cryptocurrency withdrawals and deposits for its UK customers.

“Paysafe, our fiat partner that provides GBP deposit and withdrawal services via bank transfer (Faster Payments) and via card (Card Deposit) to Binance users, has informed us that they will no longer be able to provide these services from 22 May 2023 “, the company said in a statement provided to PYMNTS.

Paysafe’s share crash came in the wake of its own earnings report which showed total payment volumes were up 5% to $33.1 billion, while revenue grew 3% to $383.6 million. Merchant Solutions revenue was up 10%, while digital wallet revenue was up 4% on a reported basis.

Alkami lost 15.2%, after reporting last week that Maine-based Kennebec Savings Bank has launched the Alkami Digital Banking Platform. The release noted that the platform will provide customers with self-service banking capabilities.

Bill.com gave up 4.6%, and the company announced a partnership with BMO to digitize and streamline business payments. BMO Bill Connect, powered by BILL, according to the announcement, serves as a bill payment and invoicing platform that helps customers pay and get paid in an easier, faster and more secure way, the companies said.

There were some companies that managed to book profits. Opendoor Technologies was up 23.2%, having recovered slightly from results late last month that showed a narrower-than-expected loss but saw sales fall 25% quarter-on-quarter. Hippo Insurance was up 12.3% that week. The company said it had initiated a $50 million share buyback program.