FinTech IPO Index Gains 5.1% as MoneyLion Leads Earnings Season Surge

The last few names are coming in with their earnings reports — and while September’s quarter end seems long ago and far away, investors largely cheered the FinTech IPO names that disclosed results.

The FinTech IPO Index was up 5.1% this past week.

MoneyLion Leads the Pack

MoneyLion was 22% higher through the past five sessions.

MoneyLion said it recorded rising revenue this quarter after developing new personal finance tools. Revenues were $110 million, up 24% from the same quarter last year.

Co-Founder and CEO Dee Choubey said the results show the “strength and resiliency” of MoneyLion’s business. The company said it had diversified its product mix this quarter, expanding into non-lending verticals such as high-yield savings. As we reported, revenue from personal loan verticals now makes up 55% of MoneyLion’s enterprise marketplace revenue, compared to 85% in the prior quarter.

Affirm Holding, which soared 19.4%, said it expects increase in demand for its short-term consumer loans if interest rates remain high for an extended period. In the quarter ended Sept. 30, the company reported a 28% increase in gross merchandise volume, reaching $5.6 billion compared to the previous year. Revenue also increased by 37% to $496.5 million, while the net loss narrowed to $171.8 million from $251.3 million. Additionally, credit performance improved, with the share of delinquent customers falling from 2.7% to 2.4%.

XP’s latest earnings boosted the firm’s shares 6.9%.

The company’s third quarter results noted that the Brazilian company notched gross revenue was 4.4 billion reals ($904 million) in the latest period, up 17% quarter over quarter (QoQ) and 14% year over year (YoY), primarily driven by growth in retail revenue YoY and what it said was “a strong recovery” in corporate and issuer services QoQ. Revenue from those latter segments totaled 519 million reals ($106.7 million), up 83% QoQ and 19% YoY.

Paysafe’s stock rallied 22%.

As reported here, Paysafe plans to launch a digital wallet for small and midsized businesses (SMBs). CEO Bruce Lowthers noted on the company’s latest earnings call that “over time, the range of money-moving capabilities and services will be expanded with a longer term product vision to combine foundational capabilities along with addressing the underserved needs of our SMB clients.”

The company’s earnings report showed third quarter volume in digital wallets was $5.6 billion, up 18% YoY. Digital wallets revenue for the third quarter came to $182.9 million, an increase of 12% YoY and a 5% increase on a constant currency basis.

OppFi’s quarterly earnings report showed last week that total revenues were up 7.2% to $133 million, while net originations were $195.7 million, up from $181.8 million in the same period last year. The percentage of originations by bank partners stood at 98%, where that tally had been 94% in the year ago period. Net charge-off rate as a percentage of total revenue decreased 23% YoY to 42% for the third quarter of 2022. OppFi shares gained 13.4%.

Nu Holdings saw its shares slide 1.9%. The latest quarter disclosed that $2.1 billion in revenues were up 53% YoY. Nu said that in Brazil, it has been signing up 1.5 million new customers per month. In Mexico, Nu’s customer base grew to 4.3 million, “driven by the rollout and expansion of the savings account product Cuenta Nu, which currently has over 2.4 million customers.” There are over 1 million active insurance policies, and over 12 million investment active customers, the company said.

BILL Denies Melio Deal

BILL shares gave up 4.9%.

The movement came in the wake of reports and a denial from the company that it was looking to buy Melio Payments.

“Although BILL’s general policy is not to comment on market rumors or media speculation, BILL is not pursuing any such acquisition at this time,” the company said in a news release provided to PYMNTS last week. A spokesperson for Melio likewise told PYMNTS the company does not “comment on rumors and speculation.”

The release was issued following a report by Bloomberg News that the company was working on a cash-and-stock deal that would value Melio at $1.95 billion.

Lufax said in its third quarter report that its outsanding loan balances declined.  The balance of loans enabled was 366.3 billion yuan ($50.5 billion) as of Sept. 30 compared to 636.5 billion yuan last year, a 42.5% slide. The cumulative number of borrowers increased by 6.8% to about 20 million as of the September quarter. New loans enabled were 50.5 billion yuan in the third quarter, down 59.2% YoY. Lufax’s stock gave up 5.7%.