FinTech IPO Index Gathers 2.7% as MoneyLion Jumps 34% on Earnings

Many of the names that are part of the FinTech IPO Index soared double digits on the heels of earnings this past week, leading the overall index 2.7% higher.

MoneyLion Shares Roar Ahead

MoneyLion’s shares gained roughly 34% as December quarter details saw the number of customer inquiries it received through the platform leap 78% year over year (YoY), reaching 205 million in 2023, MoneyLion CEO Dee Choubey said during the company’s quarterly earnings call.

This shows customers’ increasing engagement with the firm’s financial services marketplace, he added.

“Our marketplace solutions, technology advantage, customer acquisition and monetization products have set us up nicely as the gateway to American financial services,” Choubey said.

The company officially launched its premium membership offering — MoneyLion WOW — after a couple of quarters of beta testing, Choubey said.

Priced at $9.99 a month, MoneyLion WOW offers members exclusive benefits like cash back on first- and third-party products and offers. Together, these can add up to hundreds of dollars in benefits each year, according to a presentation that accompanied earnings.

MoneyLion also continues to enhance the search function on its platform by supporting it with generative AI capabilities, Choubey said during the call.

Hippo Shares Follow Close Behind

Hippo Insurance shares jumped 31%, trailing MoneyLion only slightly. The company said  that in the December period, insurance-as-a-service (IaaS) and services offerings drove total generated premium (TGP) up 39% and 20% YoY, respectively. Consolidated TGP gained 15% YoY with IaaS and services now representing 77% of total TGP. Revenues surged 80% to $64 million.

Paymentus’ fourth quarter earnings revealed that it had digitally processed 124.8 million transactions in the fourth quarter of 2023, an increase of 28.4% from the fourth quarter of 2022.

CFO Sanjay Kalra mentioned that the company plans to invest in sales and marketing to support future growth. As Paymentus executives noted on Monday’s call, the company has seen its insurance, utilities, government, real estate and retail verticals expand and sign new clients.

“Paymentus again reported quarterly results that exceeded our original expectations as revenue rose 24.7%, contribution profit grew 22.7% and adjusted EBITDA was up 95.4% year over year. We also ended the year on solid footing with a strong backlog, which we believe leaves us well positioned for continued growth in 2024,” noted CEO Dushyant Sharma on the call. The company’s quarterly revenue was $164.8 million, an increase of 24.7% YoY. Paymentus shares gained 18.4% through the past five sessions.

Some Names Lose Ground

Paysafe shares lost 13%. In its own latest quarterly results, the company noted that revenue of $414.5 million was up 8%. Total payment volume of $35.8 billion was up 8%. Net loss improved to $12.1 million from $33.7 million last year.

The company said that revenue from the Merchant Solutions segment increased 7% and noted that revenue from the Digital Wallets segment increased 7%.

Nuvei shares shed a bit more than 10%. Nuvei said this past week total fourth quarter volumes were up 59% to $203 billion for 2023, and up 53% in the fourth quarter to $61.8 billion.

Nuvei also noted that its pro-forma revenue growth in the fourth quarter for its B2B, government and ISV channels were up 19% YoY, to $59 million, representing 18% of the consolidated top line recorded during the quarter.

Global commerce-related revenues, tied to midmarket to large enterprises, saw pro-forma revenues grow by 12%. Small and medium-sized business revenues increased 2% YoY to $82 million.

In looking ahead to the full year 2024 results, management has guided to total volume growth of 21% to 24%, and revenue growth of between 13% to 16%.

Nerdwallet shares lost 5.3%.

The company noted that  it was the victim of a fraudulent bankruptcy filing. As had been widely reported, the company did not file for bankruptcy and that the filing that showed up on an electronic public access service for U.S. federal court documents was fraudulent.