What we’ve noticed: A record number of fintech companies have gone public, which means they now have to publish their quarterly earnings. Their reports offer us a temperature check on the industry.
Fintech earnings highlights: A number of listed fintechs are on track to beat their 2020 revenues, and some have already done so. But the net loss for many has widened.
- API issuer-processor Marqeta’s net revenues of $122 million in Q2 were up 76% year-over-year, while its net loss reached $68,554, up from $7,107 the same time last year.
- Digital cross-border payments fintech Flywire grew revenues 56% YoY to $37 million in Q2, while net loss came to $18.1 million, compared with $16 million in Q2 2020.
- Ahead of its public listing, Robinhood reported it reached $522 million in revenues for Q1, more than half the $959 million for all of 2020. But net losses reached a whopping $1.4 million, from $52,502 last year.
- Coinbase stands out for actually generating a profit. It reported $2.23 billion in revenues, up from $1.3 billion for all of 2020. It also recorded net income of $1.61 billion, up from $32 million in Q2 2020.
Looking ahead: Fintech exit momentum shows no signs of slowing down as more startups seek to emulate their predecessors’ rapid growth.
Just 88 fintechs accounted for 70% of global fintech funding in Q2, leading to a record number of startups reaching sky-high valuations. The VCs will likely encourage them to go public to capitalize on the current fintech hype and make lucrative exits—whether or not they experience widening losses. In addition, a surplus of available SPACs is competing for acquisition targets—meaning fintechs can potentially shop for the best deals to take them public. KPMG expects that H2 will see an increase in SPAC acquisitions focused on unicorn and near-unicorn fintechs.