Fintech’s IPO bonanza means many firms are now required to update on their progress in driving revenue. So far the news is impressive.
In the past 18 months as the world has grappled with the pandemic, fintech companies have boomed. In terms of fundraising through venture capital, mergers & acquisitions and even a crop of high profile, public listings fintech has been a money machine.
The latter story, though, is perhaps the most eagerly watched to see if financial disruptors can exist, perhaps even thrive, in the glare of the public markets. It's hard to argue with the bottom line.
Early indications from a host of firms reporting their second-quarter earnings for 2021 show positive signs.
Coinbase, the largest crypto exchange in the world, which listed in a blockbuster $100bn IPO in April 2021, reported revenue of just over $2bn this week. An increase of more than 10 times compared to the same period in 2020.
Card issuing platform Marqeta, meanwhile, reported net revenue of $122m, up 76 per cent year-over-year, with 76 per cent growth in total processing volume and a 70 per cent increase in gross profit, its first earnings announcement since going public in June via an IPO.
Jason Gardner, founder & CEO, Marqetasaid: “Our strong Q2 results and continued growth is a direct result of our commitment to our customers, including in the Buy Now, Pay Later space where we saw net revenue grow more than 300% compared to the same quarter last year,”
Payoneer too, which just also released its first earnings announcement since going public via SPAC in June, saw revenue increase 42 per cent to $110.9m as compared to $78.4m in 2020. Although it did see a net loss of $12.4m compared to a net loss of $6.7m in 2020.