10-Q

Weekly 10-Q: MoneyLion reports Q2 2022 results — how did things go?

  • We take a look at how MoneyLion performed in the second quarter.
  • And, Wells Fargo is planning to pull back from its reigning mortgage business that once set records.
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Weekly 10-Q: MoneyLion reports Q2 2022 results — how did things go?

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MoneyLion reports second quarter 2022 results — how did things go?

MoneyLion announced its Q2 2022 earnings:

  • Total net revenues increased 129% to $87.3 million for the second quarter of 2022 compared to Q2 2021. 
  • Gross profit increased 116% to $48.1 million year over year.
  • Net loss of $23.1 million for the second quarter of 2022 versus a loss of $39.2 million YoY.
  • Adjusted EBITDA was $18.5 million for the second quarter versus $13.6 million in the second quarter of 2021.
  • Total Customers grew 124% year-over-year to 4.9 million for the second quarter of 2022.
  • Total Products of 10.4 million was up 75% year-over-year for the second quarter of 2022. 

The help of user-generated content has driven increased engagement rates through Q2. Furthermore, the consumer and enterprise ecosystem built on strategic acquisitions and partnerships of over 1,000 enterprises further expanded MoneyLion’s top-of-funnel and broadened its product portfolio, creating more monetization opportunities.


Top stories of the week

ALLY
Ally Financial is helping fill the pipeline to fintech jobs

Students with a limited technical background in coding will shift to new roles at major Charlotte-based fintech and technology companies after completing a 24-week intensive program. Ally will bring graduates on board as part of its commitment to creating career opportunities and economic mobility pathways for underrepresented communities. (Charlotte Weekly)

CHARLES SCHWAB
Charles Schwab reports a 4% dip in total client assets

Charles Schwab reported core net new assets brought to the company by new and existing clients of $31.5 billion; net new assets excluding mutual fund clearing totaled $31.2 billion. Total client assets stood at $7.3 trillion as of July end, down 4% Y/Y and up 7% M/M. Average interest-earning assets were $605.8 billion in July, up 11% from a year-ago month and down 1% compared to the prior month. (Seeking Alpha)

COINBASE
Coinbase gets hit with a $1.1 billion loss as crypto trading volumes tumble

On Tuesday, Coinbase reported a dip of 6%, reporting an after-tax loss of $1.1 billion, thrashed by slumping digital-asset prices — compared with the $1.6 billion net profit it registered. Revenue declined by more than 60% to $808.3 million, missing the $854.8 million estimate by analysts’ expectations. The news comes after Coinbase’s revenue had plunged 61% in the latest quarter this year right when the crypto winter arrived. (Financial Times)

Regulators are probing Coinbase’s staking service
Coinbase disclosed it’s being scrutinized by the US Securities and Exchange Commission over its staking programs, which allow users to earn rewards for holding certain cryptocurrencies. The company has received investigative subpoenas and requests from the SEC for documents and information about certain customer programs, operations, and existing and intended future products. The requests relate to Coinbase’s staking programs, asset-listing process, classification of assets, and stablecoin products. (Bloomberg)

INTUIT
Intuit’s Quickbooks new offering gives SMBs access to the eCommerce marketplace
Quickbooks’ latest offering, Trada, is focusing on a market sector that’s been notably slow to digitize: wholesale trade. Trada by QuickBooks uses a marketplace model — where buyers and sellers meet online to do business. Trada plays an important role in helping resource-constrained SMBs adopt payment digitization and automation practices with SaaS solutions, quickly and inexpensively. (PYMNTS)

JACK HENRY
Jack Henry to acquire Payrailz
Payment processor Jack Henry & Associates is acquiring Payrailz, adding the company’s next-generation digital payment capabilities, including real-time person-to-person payments to Jack Henry’s payments ecosystem. Financial details of the acquisition, which is expected to close at the end of this month, have not been disclosed yet. Through this acquisition, Jack Henry envisions supporting banks and credit unions by amplifying its payments-as-a-service strategy and providing a platform for the option of embedded finance to its 8,000 clients. (Finovate)

JPMORGAN CHASE
Two former JPMorgan metals traders convicted at spoofing trial
Two former JPMorgan Chase employees were found guilty on charges in a landmark trial over futures market manipulation on Wednesday, while a third former trader was acquitted entirely. The bank’s former global precious metals desk head Michael Nowak, precious metals trader Gregg Smith and salesperson Jeffrey Ruffo had been charged by the Justice Department with racketeering and conspiracy in the agency’s one of the most controversial cases so far involving a scheming trading tactic known as spoofing. All three men, who had pleaded not guilty, were acquitted of racketeering and conspiracy. (CNBC)

Q2 HOLDINGS
Q2 and Rocket Mortgage partner to provide digital home loans to banks and credit unions

Q2 and Rocket Mortgage are forging a new partnership that lets banks and credit unions offer customers and members digital access to Rocket Mortgage, integrated into the Q2 digital banking platform. Everything related to the loan and servicing to the financial institution will be supervised by Rocket Mortgage – including no implementation or subscription fees. (The Financial Brand)

ROBINHOOD
Robinhood must face US market manipulation claims over ‘meme stock’ debacle, says the judge 
Cecilia Altonaga, U.S. district court judge in Miami, has ruled that Robinhood must face market manipulation claims over temporary trading restrictions it imposed on retail traders during last year’s meme-stock turmoil. Particularly, investors in GameStop, AMC Entertainment, and seven other social media-fueled stocks can press on a class-action lawsuit against Robinhood, as the restrictions allegedly artificially boosted the supply of those equities. (Seeking Alpha)

UPSTART
Upstart’s outlook comes up short, but CEO is ‘confident’ in the value of AI lending
Upstart delivered a lower-than-expected income forecast for the present quarter, however, its chief expressed confidence in the efficiency and worth of artificial-intelligence-driven lending. For Q2, the corporate posted a web lack of $29.9 million, or 36 cents a share, while it recorded web earnings of $37.3 million, or 39 cents a share, within the year-earlier quarter. On an adjusted foundation, Upstart posted per-share earnings of 1 cent, whereas it had logged adjusted earnings per share of 62 cents a year earlier. (MarketWatch)

WELLS FARGO
Scandals spur a debate among new leaders at Wells Fargo that once set records
Wells Fargo plans to recoil its extensive mortgage empire, which once backed one of every three home loans in the US. The retreat is likely to start with the bank’s ties to outside mortgage firms that generated roughly a third of its $205 billion in new home loans last year. The strategic move comes amid changes in the executive ranks and years of struggles to keep away from costly regulatory probes and blows to the bank’s reputation. (Bloomberg)

WISE
6000+ US apps will now be on user finger-tips, thanks to Wise – Plaid partnership
Wise has established an open finance agreement with Plaid to enable its 13 million customers to access thousands of apps. With the help of Plaid’s open finance tool Core Exchange, customers are now able to directly connect their US Wise accounts to more than 6000 apps, including Venmo, Robinhood, Truebill, and Chime. The partnership will allow Wise customers to conveniently and securely move money across their own accounts through Plaid’s API-first data network. (PYMNTS)


Tweets of the week

1.

Source: Montypocket69(The Hobbit)

2.

Source: Warren Togami

Charts of the week

1.  Fintech valuations from January to July, 2022

Source: Dan Van Dyke

2. Visa, Mastercard see cross-border uplift in Q2 22

Source: FXCintelligence

What’s trending

Goldman Sachs has extended a $150 million credit line to Mexican startup Clara, which lends to corporations and helps manage their spending. (The Paypers)

AvidXchange initiates AP and payment solutions to include a new offering for the construction industry. (PYMNTS)


Stay ahead of the game with Outlier — Tearsheet’s exclusive members-only content program and join the leading financial services and fintech innovators reading us every day.

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