It was a solid week for the Fintech IPO Index as Affirm, Bill.com and cloud-based digital banking provider Alkami led the group of 100 companies to a 3.6% gain for the week, closing the month of August at break-even as earnings season comes to a close.
Among the notable performances for the week that impacted their trading:
Bill.com reported strong financial results for Q4 and fiscal year 2024, with total revenue increasing 16% and 22% year over year (YoY), respectively. The company’s core revenue, consisting of subscription and transaction fees, also saw significant growth. While subscription fees were down slightly in Q4, transaction fees increased 22%. The company’s float revenue, generated from interest on customer funds, also contributed to overall growth.
Bill.com reported a net income of $7.6 million for Q4 and a non-GAAP net income of $63.9 million. The company also announced a new $300 million share repurchase program and expressed confidence in its future growth potential. Bill.com plans to make targeted investments in fiscal 2025 to accelerate its strategic priorities and capture a larger market share. After starting the week at $48.13, it closed Thursday at $54.89.
Cloud-based financial services platform Alkami rode some good news to a share price bounce for the week.
On Tuesday (Aug. 27), it announced it has been added to the 2024 World’s Top 250 Fintech Companies List, an annual list prepared by CNBC in partnership with Statista. The list includes the top FinTech companies across eight categories; Alkami was named in Banking Solutions.
The company also noted that it has certified by J.D. Power for providing “An Outstanding Mobile Banking Platform Experience.” This certification requires that technology providers’ apps rank near the top of the J.D. Power North America Mobile App Satisfaction Index and outperform industry benchmarks on mobile app development, design and operational functionality.
Alkami started the week at $32 and finished at $33.86, which is just off its high for the year.
However, one of the biggest share price jumps for the week was reserved for buy now, pay later platform Affirm. After opening the week at $30, it spiked to $42.34 by the end of the week as it announced solid earnings and elevated guidance for the balance of the year.
As reported on Wednesday (Aug. 28), its Q4 fiscal 2024 financial results saw a 31% YoY growth in gross merchandise volume, reaching $7.2 billion, and a 48% surge in revenue, reaching $659 million. These increases underscore the growing appetite for flexible payment options as consumers deal with financial pressures.
Looking ahead, the company’s CEO Max Levchin told analysts that the potential interest rate declines could drive up usage.
“The most exciting thing about reductions at that fund rate is we’ll just have more active users, … we’ll have more repeat users, because we’ll be able to approve more people,” Levchin said.
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