FinTech IPO Index Surges 8.8% as Earnings Start to Roll In

Earnings are rolling in, and for the FinTech IPO group, 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 the overall performance still has been dismal, down 35.2% for the year.

And, in reference to the past several days’ performance, the gains were led by companies such as SoFi, which surged by nearly 28%.

SoFi Gains on Earnings

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

Technology platform accounts surged to 117 million, from 79 million last year. Total net revenues from lending came in at $257 million, up 55% from a year ago. Total loan originations gained 9% from last year to $3.2 billion. The average loan balance for personal loans was up 13% to a bit more than $24,400.

Flywire’s 27% gain closely followed SoFi’s advance. The company’s surge comes on the heels of 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% boost came this week, as spotlighted in this space, the B2B accounts receivable (AR) automation firm could be put up for sale by its owner, BTRS Holdings. The parent firm went public via a special purpose acquisition company (SPAC) merger in 2021.

Remitly shares added 19.7% through the past five sessions, as the company posted 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 revenues 42% higher year over year to $157.3 million.

Robinhood gained 15%, rallying as the company said this week that it is laying off just under a quarter of its staff. 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 revenues, also year over year, to $318 million. Supplemental 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 the $102 billion seen a year ago.

Opendoor Labs eked out a gain of a bit more than 1%, as news came 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 the firm pitched 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 post gains through the past week. Most notable among decliners 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.” That platform is being jointly developed with Brazil-based technology company Pismo.