FinTech IPO Index Dips 0.1% as Earnings Season Wanes

The FinTech IPO Index barely budged this past week, giving up a slight 0.1% through the past five sessions.

A bit less than three months from now, earnings season will be in full swing again, and we’ll see if the lending picture has brightened, if consumer spending has remained resilient, if the FinTech players dependent on those trends are sanguine about their prospects.

A Few Earnings Reports

BILL reported its fiscal fourth quarter results for the year that ended in June. As noted in our coverage of the earnings report, BILL will launch a unified platform experience this fall, fulfilling a priority it set a year ago. This integrated platform will bring together the financial automation software provider’s accounts payable (AP) and expense management solutions.

And with emphasis on the quarter’s results, BILL CEO and Founder Rene Lacerte said during the conference call with analysts that the company had expanded its customer base, and reached a milestone during the year with more than $1 billion in sales. Smaller businesses represent a particularly attractive market, the CEO said during the call.

“There is a vast opportunity to help these small businesses automate their financial operations to gain better insight to confidently manage their business and cash flow and easily transact trillions of dollars of B2B payments,” Lacerte said.

Core revenue, which consists of subscription and transaction fees, was $259.5 million, an increase of 33% year over year (YoY) during the quarter. Subscription fees were $66.9 million, up 21% YoY, the company said in its results.

BILL shares were up 3.4%

Lufax Holding reported in its own earnings results that in its most recent quarter, the outstanding balance of loans enabled was RMB426.4 billion as of June 30, down more than 35%.

During the quarter, the cumulative number of borrowers increased by 8.3% to about 19.7 million. And per the company’s release, the new loans enabled were RMB53.5 billion in the most recent period, representing a decrease of 58.7%. The days past due 30+ delinquency rate for the total loans the company had enabled was 5.9% as of June 30, compared to 5.7% as of the March period.

Lufax’s stock sank 14%.

SoFi shares were basically flat on the week. As Barron’s reported this past week, analysts at Citi boosted their price target on the name to $12 from $10.

And Some Partnerships Too

Riskified shares were up about 5.3%.

The company said this week that it has teamed with Mastercard to help businesses increase eCommerce revenues while reducing fraud. The collaboration focused on linking Mastercard’s cybersecurity products and solutions with Riskified’s transaction and identity network. The collaboration also offers access to Mastercard’s suite of tools that allow for real-time alerts on chargeback events and automated dispute resolution.

Riskified’s partnership with Mastercard follows its integration with commercetools’ eCommerce platform earlier this month.

Expensify shares declined 2.7%.

In an announcement, the company said that it was introducing a revenue-sharing program for its accounting partners.

Beginning in September, members of the company’s ExpensifyApproved! Accountants partnership program will get a 0.5% revenue share on every client’s Expensify Card purchases.

When the program begins, partners will start to see the revenue share payments sent via Expensify’s Bill Pay feature.