FinTech IPO Index Adds 3% as Oportun Soars on Early Results

For the companies populating the FinTech IPO Index, earnings have been part of the continuing avalanche of headlines this past week.

Earnings Begin to Trickle In

Oportun shares soared 32.5%.

The company this week announced preliminary results that showed expected revenue ranges of $248 million to $250 million in the first quarter, down from $295.5 million last year and an annualized charge-off rate of about 12%, up from 5.5% last year. The company’s projected 30-day delinquency rate in the first quarter stands at 5.2%, compared to 5.5% a year ago.

“We expect to deliver a resilient top-line performance with Total Revenue exceeding the top end of our guidance range by $10 to $12 million,” Raul Vazquez, CEO of Oportun, said in a statement. “Our tightened credit posture contributed to delivering annualized net charge-offs in the bottom half of our guidance range and below the net charge-off rate from last year.”

Lufax shares were 6.9% higher.

The company’s latest results showed a 45% decrease in the outstanding balance of loans enabled, to 270.2 billion RMB ($37.3 billion) as of March 31 of this year. The cumulative number of borrowers increased by 12.4% to approximately 21.7 million as of March. New loans enabled were 48.1 billion RMB ($6.6 billion) in the first quarter of 2024, down 15.6% year over year. The 30+ delinquency rate for the total loans the company had enabled, excluding the consumer finance subsidiary, was 6.6% compared to 6.9% at the end of last year. 

Kaspi detailed in its first-quarter report that it had seen a “strong start to 2024” with first-quarter revenue and net income up 40% and 28% year-over-year. Total revenues in the most recent quarter were 395 million KZT ($888,017). 

Payments and Marketplace Platforms together accounted for 68% of consolidated net income, up from 60% in Q1 2023. The company said in its release: “Marketplace was our fastest growing platform with gross merchandise value (GMV) and revenue up 62% and 108% YoY respectively.” eCommerce GMV was up 114% YoY.

eCars accounted for 26% of eCommerce GMV.

Within the eGrocery segment, GMV was up 125% year over year and the company’s active consumer base here was up 84% YoY to 566,000. The average number of monthly transactions per active consumer, in 1Q 2024, stood at 71.

Kaspi shares tacked on 3.6%.

Some Partnerships, Too 

nCino’s stock was up 0.1%. In a press release, nCino said that Together, a U.K. property lender, has selected nCino’s Cloud Banking Platform to use across all its core services, including regulated residential and buy-to-let mortgages, as well as commercial loans, bridging facilities and development finance. Together, according to the release has a loan book that tops 6.8 billion pounds ($8.5 billion).

Elsewhere, PYMNTS reported that Marqeta has launched a partnership with U.K.-based, entrepreneur-focused digital bank OakNorth.

The collaboration will see Marqeta offer a commercial card for OakNorth’s business banking clients, with the Marqeta platform giving these customers a better view of the finances, the companies said.

The companies noted that small- to medium-sized businesses (SMBs) in the U.K. are struggling, with costs considerably higher than last year. The release also pointed to estimates from the Bank of England showing a 22 billion pound ($27.4 billion) SMB funding gap in Great Britain.

Marqeta’s partnership with OakNorth comes days after the company announced it was expanding its earned wage access program with help from financial wellness provider Rain.

Marqeta shares gave up 2%.