Facebook punches sink fintech revenue

The start of February 22 will be remembered for one thing: Facebook – and the tech market it now represents – had a terrible quarter.

The supergiant with a new name fell more than 24% in a single trading session after missing earnings estimates, the biggest one-day drop for a company in US history.

Additionally, Meta only missed $0.17 per share and beat first-quarter revenue by $700 million. Still, a lack of additional users, a money sink of more than $10 billion in the company’s new metaverse section, sent shares tumbling.

Fintech has also been drawn into the red. Last week, tech like PayPal, Robinhood, and even Lending Club followed the same trend: fewer subscribers, earnings close but not surprising, forecasts of 22 that spooked investors, and earnings no one cares if action does not pay.

PayPal: ouch

PayPal had a “good end to the year” in terms of volume and revenue, but not enough to beat estimates. EPS was a penny lower, $1.11, and revenue was $6.89 billion, a difference of $30 million from expert opinions that sent the stock price plummeting like a rock. News that more than 4 million user accounts were scam bots created to suck up free promotional money didn’t help bring the stock price down.

“Twenty-one was one of the strongest years in PayPal’s history. We reached $1.25 trillion in POS and launched more products and experiences than ever before. he future is moving in our direction and we are investing in our consumer and merchant capabilities to seize the opportunity before us,” Chairman and CEO Dan Schulman said in the statement.

Enova: Golden Goose this week

On Thursday, Enova released its fourth quarter 2021 results, showing a sizable increase in revenue and EPS that beat expectations, pushing the share price higher. The online lender’s results showed revenue of $363 million, with organizations up 25% from the third quarter: a record $1.1 billion. Based on these results, Enova looks forward to another year of new originations and strong credit performance, Chief Financial Officer Steve Cunningham said on the earnings call after market close.

“We have navigated deftly through a complex and rapidly changing market environment, rapidly accelerating our originations as the economy recovers and helping our customers access fast and reliable credit,” CEO David Fisher said during the talk. the call. “At the same time, we closely monitored credit performance, which remained significantly better than pre-pandemic levels. As a result, the company’s total originations doubled year-on-year. another to reach $1 billion, and the company’s total loans and financial receivables combined increased 48% to $2 billion.

Robin Hood

The PFOF “democratizing investing” app called Robinhood ended up costing investors money with terrible, negative earnings per share on Thursday, January 27.

Revenue fell to $363 million in Q4 21 from $522 million in Q1. A net loss of $423 million sent shares tumbling 15% to $9.98, from a high of $85 in August.

Crypto sales, which accounted for more than half of all platform revenue in the past, are now down to just 18% of the total, and active users peaked in May.

loan club

The fintech that became a full-time bank posted a profitable full year for the first time but was not investor-friendly enough.

Nearly a year after buying RadiusBank, LendingClub has reported revenue of $262.2 million and diluted earnings per share of $0.27.

Still, forward-looking statements from last week’s earnings call were disappointing, and the stock continues to fall along with the rest of the fintech market.

“I would like to say a big thank you to our highly engaged and resilient employee base at LendingClub,” CEO Scott Sanborn said on the earnings call. “Thank you all for a great year, and I look forward to entering 2022 together. We are well positioned to thrive.

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