FinTech IPO Tracker Wraps up 1Q Down 20% YTD

Right into the end of the quarter, and year to date, it’s been rough sledding for the FinTech IPO Tracker.

The headline numbers show that a 64 basis point gain for the week and a 1.1% gain for the month were not enough to reverse a long-standing trend. All told, the index is down about 20% through the year. That’s more than double the roughly 8% decline in the tech-heavy Nasdaq YTD. The broader S&P 500 Stock Index is down only slightly over the same timeframe.

FinTech IPO chart

Only a few names managed to eke out gains for the quarter — among them XP Inc., which was up a bit more than 7%, and, which added roughly 2% through the end of March. All the remaining names — more than 40 other firms tracked — were down year to date.

Some Notable Names

Among the worst performers, as measured in the Tracker: Affirm, off more than 50% through this reading, and AvidExchange, down more than 40%. Expensify was down about 46% into the final trading day of the quarter.

In company-specific news, Expensify’s shares slumped double-digit percentage points this week after the company posted fourth-quarter results that topped expectations but guidance underwhelmed the Street. Revenues were up 56% to about $40.4 million, above estimates for $39 million. The firm guided to top line in the first quarter of $38.6 million to $39.6 million, below consensus of $40.3 million.

Elsewhere, Payfare shares surged by more than double-digits on the week, buoyed by the news that the company has extended its relationship with Visa in the U.S., and will add Visa Direct to its platform to help facilitate real-time payout experiences for gig workers.

Robinhood shares were up 11% on the week, with news relayed in this space that earlier this month the company launched the Cash Card to help new customers start investing. Robinhood said the card offers “the same benefits and rewards” typically reserved for credit card holders.

The cash card will replace Robinhood’s Cash Management product, where customers’ investing and spending cash were all part of their brokerage account. With the new card, customers can sign up and see separate accounts for investing and spending.

As reported, the card will give customers a bonus of 10 to 100% (capped at $10) on their weekly round-up.

Read also: Robinhood Launches Debit Card with Auto Savings

Looking ahead at what may come, the FinTech IPO Tracker may continue to see volatility, along with the broader markets, as investors continue to parse macro data … which then filters into earnings reports and expectations.

Inflation remains a key concern, as there’s a dual-edged sword for payments firms. The value of transactions goes up, but the volumes may see headwinds. And of course, inflation boosts input costs and wages, which crimp operating margins.