FinTech IPO Index Jumps 5% as Sezzle and Expensify Lead the Upside

Earnings powered the FinTech IPO Index 5% higher in a week that was, as has been the case for the last month, dominated by earnings.

Sezzle kept up its post quarterly-report momentum, leaping more than 53% through the past five sessions. The recent Sezzle gains tack on to the 38% rally that came in the immediate wake of earnings.

Expensify shares rocketed ahead by 51%. The company said this week that core business metrics were stabilizing, as revenue and paid users are within 1% of last quarter, with quarterly interchange, operating cash flow and free cash flow up 14%, 168% and 10% from that quarter, respectively. The company also saw its paid member tally at 684,000, a decrease of 8% YoY. The earnings release also noted that “the majority of active Expensify Card customers began transitioning to the new program, with 34% of spend migrated by end of Q2.”

Paymentus shares were up nearly 19%. In the company’s latest quarter, revenue was a record $197.4 million, a YoY increase of 32.6%, driven largely by increased billers and transactions. The total number of transactions gained 28.2% to 140.4 million in the most recent quarter.

XP’s stock leaped 18%.

The company’s second-quarter results showed that client assets totaled R$1.2 trillion in 2Q24, up 14% YoY and 2% QoQ. Year-over-year growth was driven by R$113 billion net inflows and R$30 billion of market appreciation, per the company’s release. In the latest quarter, total TPV was R$11.5 billion, a 19% growth from last year.

Open Lending’s second-quarter earnings supplements revealed that the company facilitated 28,963 certified loans during the second quarter of 2024, compared to 34,354 certified loans in the second quarter of 2023. Total revenue was $26.7 million during the second quarter of 2024, compared to $38.2 million in the second quarter of 2023. Open Lending’s shares lost 4%.

Opportun’s Declining Delinquencies

Opportun’s stock was up 9%. The company said in its latest earnings report that 30+ day delinquencies declined for second consecutive quarter to 5%. Second-quarter originations of $435 million grew 29% sequentially in line with seasonal patterns. The annualized net charge-off rate was 12.3% in the most recent quarter, compared to 12.5% last year. Total revenue for the second quarter was $250 million, a decrease of 6% as compared to $267 million in the prior-year quarter.

Upstart’s quarterly financials noted that revenue was $128 million, a decrease of 6% YoY, and remained flat sequentially. Total fee revenue was $131 million, a decrease of 9% YoY. The FinTech originated 143,900 loans in the second quarter, totaling $1.1 billion across the company’s platform in the second quarter of 2024, down 6% from the same quarter of the prior year. Conversion on rate requests, as the release noted, was 15% in the second quarter of 2024, up from 9% in the same quarter last year. Upstart shares gathered more than 8%.

In non-earnings related news, Affirm shares climbed 10.2% higher. The company said this week that Tekmetric has partnered with Affirm to enable auto repair shops to offer their customers the ability to pay over time.

Marqeta shares gathered 5.2%. As we noted in our own coverage on the company’s earnings, Marqeta posted second-quarter results that showed total processing volumes (TPVs) surged 32% to $71 billion. Use cases across the company’s platform continue to grow, and 10 of the top 20 company customers volumes grew by more than 50% YoY in the quarter.

Katapult shares lost 25.3%, having noted in its most recent earnings report that sales were 8.7% higher than the Q2 2023. Katapult Pay originations, the company said, doubled year on year and were 28% of gross originations.