Most pandemic FinTech IPOs now trade as ‘busted’
Along with everything else, war brings uncertainty to stock markets.
It may seem like a trivial feeling when the blood is flowing. But it’s true, nonetheless.
As the world watches the war unfold in Ukraine, the last few days since our first FinTech IPO Tracker have been volatile to say the least. Among the most volatile sectors are technology and financial services. To that end, the PYMNTS FinTech IPO Tracker, which meets at the intersection of finance and technology, underperformed the broader indexes.
Through February 23, the overall IPO index reading stands at just over 66, a far cry from lifetime highs of over 171, reflecting double-digit declines of several percentage points so far. This year.
In fact, the average return among the 46 companies we track, as measured since their IPO, was just over -27%. This means that a large majority of FinTechs that have debuted in the markets since the pandemic took hold… are canceled IPOs.
In fact, among the entire roster, there are only half a dozen names that are in the dark. And some outsized gains (measured in percentage points) help skew the total average performance a bit.
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Among the winners, Bill.com has returned more than 480% since its IPO in late 2019. Upstart, which went public in late 2020, is up 281% since its debut. Futu Holdings has gained 158% since it began trading in the first quarter of 2019. There is no single trend that unites these companies, where Bill.com, of course, focuses on billing and functionality of accounting, Futu makes its niche with investment and online trading. . Upstart is an artificial intelligence lending platform.
Upstart’s surge was encouraged by a strong earnings report earlier this month. The most recent quarter was the first in the company’s history with more than $4 billion in loan transactions on the company’s platform, as reported during the company’s call with the trading community. investors. Revenue of $305 million was up 252% year-on-year, while lending volume more than tripled.
Toast, meanwhile, slipped 35% following its latest earnings report, which missed Street’s expectations. In terms of data, the company said revenue grew more than 111% to $512 million. But supply chain costs continue to be a challenge for the restaurants it serves, meaning transportation costs continue to eat into margins.
Doma Holdings, which provides real estate titles and escrow services, said its financial results showed revenue up 17% year on year to $138 million. But higher spending has also weighed on margins (rising interest rates, of course, can also impact property-related businesses); the stock is down more than 30% in the past few days.