Articles by deBanked Staff
Enova Posts Q3 Results, Admits It is Dealing With Regulatory Situation
October 28, 2021
Enova’s Q3 report is very brief and to the point. Through both its consumer loan and business loan operations, the company generated a net income of $52M on $320M in revenue.
“We are pleased to again report a strong quarter of growth across all of our businesses,” said David Fisher, Enova’s CEO.
There was no mention of OnDeck by name this time around, its major small business lending division. Instead, Enova was sure to draw attention to a regulatory inquiry it had received from the CFPB.
“The Company has received a Civil Investigative Demand (‘CID’) from the Consumer Financial Protection Bureau (‘CFPB’) concerning certain loan processing issues,” the company stated. “Enova has been cooperating fully with the CFPB by providing data and information in response to the CID. Enova anticipates being able to expeditiously complete the investigation as several of the issues were self-disclosed and the Company has provided, and will continue to provide, restitution to customers who may have been negatively impacted.”
The language is particularly concessive. Whatever happened, they felt the need to self-report it and to provide restitution to customers.
This is likely to be queried in more detail during the company’s earnings call this evening.
Shopify Capital Originated $393.6M in MCAs and Business Loans in Q3
October 28, 2021Shopify Capital, the funding arm of e-commerce giant Shopify, originated $393.6M in merchant cash advances and business loans in Q3, the company reported. That’s up from the $363M in the previous quarter.
Covid was a boon to Shopify Capital given its dependence on e-commerce businesses. Its 2020 funding volume was almost double that of 2019.
“Shopify Capital has grown to approximately $2.7 billion in cumulative capital funded since its launch in April 2016,” the company announced. The large volume and continued success has landed the Shopify Capital division in the company’s “core” bucket of “near-term initiatives” that will build the company for the long term, according to a presentation accompanying Q3 earnings.
Robinhood Posts Rough Q3
October 26, 2021
Robinhood revealed a steep $1.3B loss on Tuesday. Thought it was highly attributable to share-based compensation, several areas of their growth went into reverse. Transaction-based revenues, for example, were only $267M in Q3, a sharp drop from the $451M in Q2.
That’s not all. Assets Under Custody, Average Revenue Per User, and Monthly Active Users all shrank as well.
“This quarter was about developing more products and services for our customers, including crypto wallets,” said Vlad Tenev, CEO and Co-Founder of Robinhood Markets, in the company’s official statement. “More than one million people have joined our crypto wallets waitlist to date. With 24/7 live phone support, we believe that Robinhood is becoming the most trusted and intuitive platform for retail and crypto investors. And looking ahead, we’re committed to delivering tax-advantaged retirement accounts to help everyone invest for the long term.”
Slava Rubin, Founder of Indiegogo, to Keynote Broker Fair 2021
October 22, 2021
Broker Fair announced that Slava Rubin will be its keynote speaker for its 2021 conference on December 6th in New York City.
REGISTER HERE FOR BROKER FAIR 2021
Who is Slava Rubin?
Slava Rubin is an entrepreneur and innovator in the fintech space for nearly 20 years. Slava built an alternative investment platform, a venture fund, an equity crowdfunding platform, a perks crowdfunding platform, and an angel investment portfolio. Slava is a founder of Vincent, a company which has developed the largest database of alternative investments (crypto to NFTs, trading cards to art, real estate to venture and debt) and is changing how people access them. He is also founder & managing partner at humbition, a $30M early-stage operators venture fund built by founders, for founders. Slava also founded Indiegogo, a company dedicated to empowering people from all over the world to make their ideas a reality. As CEO for over 10 years from inception in 2006, Slava grew Indiegogo from an idea to over 500,000 campaigns and more than $1B distributed around the world. While at Indiegogo, Slava launched one of the nation’s first equity crowdfunding businesses. Slava’s angel portfolio includes 4 unicorns – Carta, Hedera, GOAT, & Turo. He is also a founding advisor to multiple companies including Hedera Hashgraph – a top 60 blockchain protocol.
Prior to Indiegogo, Slava was a strategy consultant working on behalf of clients such as MasterCard, Goldman Sachs and FedEx. He is also the founder of “Music Against Myeloma,” a charity that raises funds and awareness for cancer research in partnership with the International Myeloma Foundation. Slava is currently a member of the board for NYSE traded (WSO) Watsco Inc., and privately held, Indiegogo.
Slava represented the crowdfunding industry at the White House during the signing of the JOBS Act under the Obama administration and has helped navigate bringing equity crowdfunding to the American public. He also pioneered security tokens in the United States – having been a catalyst for selling fractionalized ownership of the St. Regis hotel in Aspen using blockchain technology. He has made many TV appearances including being a regular guest commentator on CNBC. He has also been often quoted in NYTimes and Wall Street Journal.
Slava has received numerous awards including Fortune 40 under 40, Observer 20 Heros under 40, and the Wharton Young Leadership award for 2015.
Slava holds a B.S.E. from the Wharton School of Business
New York DFS Provides New Guidance on Disclosure Law, 6 Month Delay
October 20, 2021
New York’s Department of Financial Services has provided updated guidance on the impending commercial finance disclosure law scheduled to go into effect on January 1st.
The main news? A six month delay.
“Financiers and brokers shall comply with disclosure requirements six months after the effective date,” the proposals state.
The comment period has also been corrected/extended to December 19, 2021. Comments are to be directed to George Bogdan at DFS.
The regulation’s draft has been amended as well and can be VIEWED HERE.
North Mill Equipment Finance Hit All-Time Quarterly Loan/Lease Originations Record
October 14, 2021
North Mill Equipment Finance just had its best quarter in 60 years. The company originated $129.1M in Q3. That was up from the record set the previous quarter of $120M.
Contributing to the company’s growth rate is the recent joint acquisition of 100% of the stock of parent company Aztec Financial, LLC.
“This has been an exceptional year,” said David C. Lee, Chairman and CEO, North Mill. “In addition to introducing a new category of equipment through the acquisition of Aztec, we recently purchased a $50.3 million portfolio of seasoned truck and trailer leases to help diversify our portfolio even further.”
The company is on pace to surpass $400M in originations in 2021.
NerdWallet Names its Competition, Reveals Its Web Traffic Figures
October 12, 2021
Personal finance company NerdWallet disclosed who its direct competitors were last week in an S-1 filing.
Those companies include: Bankrate, Credit Karma, LendingTree, and Zillow.
“We currently compete with a number of companies that market financial services online, as well as with more traditional sources of financial information, and with financial institutions offering their products directly, and we expect that competition will intensify,” NerdWallet said.
“… We also face direct or indirect competition from providers of consumer personal finance guidance and online search engines,” the company added.
NerdWallet generated 16 million unique users per month last year, defining that metric as a unique user with at least one session in a given month as determined by unique device identifiers. That was up from the 13 million per month in 2019.
The company had more than 8 million registered users as of December 2020, 2 million of which registered in 2020.
Fundera Sold For $29.2M + Up to $66M Earn-Out
October 12, 2021
When NerdWallet acquired Fundera last year, terms of the deal were not revealed.
NerdWallet recently disclosed that it paid $29.2M at closing to acquire Fundera with an additional potential earn-out of up to $66M over the following two years if certain metrics were met.
“As of December 31, 2020, the estimated fair value of the contingent consideration was $35.2 million,” NerdWallet reported.
Fundera had entered the market strong, launching in 2013, raising $3.4M in 2014, followed by another raise of $15.5M in 2015. The party slowed thereafter.
NerdWallet has big plans for Fundera, however. “We plan to invest significant resources to integrate, develop and expand new offerings and technologies in the markets in which Fundera operates,” the company wrote in its S-1 filing.
NerdWallet filed its S-1 on October 8th.
