Banking edges closer to profitability, shares up 30% – FinTech Futures, a Californian cloud-based fintech which automates businesses’ bill payments, saw its shares jump more than 30% last week.

The spike followed the unveiling of its financial results for October to December 2020, which beat analysts’ predictions. Its losses were down to $2.7 million, compared with $4.5 million in the same quarter a year before.

Transaction fee growth was up 98% year-over-year

The fintech went public at the end of 2019, carrying with it a loss of $7.3 million from June 2019 to June 2020. Despite being a loss-making firm, the company secured a valuation of $1.6 billion following its initial public offering (IPO).

Held up as an IPO success story by the industry for fellow loss-making fintechs, seems to have kept up its momentum since. Priced at $22 a share back in December 2019,’s stock price sat at $184.69 on Friday trade close.

Outperforming analysts

Between October and December last year, revenue was up 38%, to $54 million. Wall Street analyst consensus forecasted a lesser $47.1 million.

And for the first time ever, its “core revenue” – which makes up the vast majority of its earnings, made up of subscription and transaction fees – surpassed $50 million.

Transaction fee growth was up 98% year-over-year. Whilst total payment volume surged 40% year-over-year to $35 billion, from $25 billion a year earlier. Total customers grew to 109,000, up 27% from 86,000 a year ago.

The fintech serves mid-market customers, having established integrations with Sage Intacct, Oracle NetSuite and Intuit’s QuickBooks Enterprise.

In the last year, it has been busy rolling out a number of new products, which are likely pitting confidence in investors who are keen to see carve out a route to profitability.

“Over the last few years, we launched several faster payment offerings, including virtual card, cross-border payments and “Instant Transfer”, which is our real-time payment product,” Rene Lacerte,’s CEO and founder, says on an earnings call reported by Motely Fool.

Currently, the fintech has developed white label offerings with three major US banks – JPMorgan Chase, Bank of America and Wells Fargo.

It also recently rolled out a platform for wealth management firms to offer bill pay functionality to clients.

Read next: Business payments platform set to raise $100m in IPO

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