SPACs Outperform in Q3

Today we cover $SOFI, $PAYO, $UTAA, and more…

As the earnings season kicks into full gear, SPACs are delivering better than expected earnings and continue to drive stellar growth. Also, a former Nintendo Executive and the co-founder of Reddit team up on in this new SPAC. Read on to find the latest about all things SPACs.

SPACs to Watch Today

$SOFI Stock Shoots up After Posting Strong Results 

  • Shares of SoFi Technologies was up 15% premarket after the company posted better than expected earnings as both membership and product uptake. 

Revenues rose $272 million for the quarter and were up 35.5% compared to the same quarter a year ago. Revenues significantly grew as a result of strong sequential membership growth (2.94 million members in September vs. 2.56 million in June) and product growth (4.27 million in Q3 vs. 3.67 million in Q2).

SoFi is continuing to diversify its products beyond refinancing student loans (student loan volumes were still less than half their levels from before the pandemic). SoFi’s EBITDA for the quarter stood at $10.3 million compared to $33.5 million a year ago and a net loss of $30 million compared to a loss of $42.9 million a year prior. Management also raised guidance for the fourth quarter, stating that it expects an acceleration of annual growth. Net revenues are expected to come in at $277 million for Q4 (up 13% from the prior guidance) and $1.01 billion for the full year. 

$PAYO Sees Record New Customers in Q3 

  • Payoneer Stock is up 10% as a result of strong Q3 results which included an increased focus on product expansion, customer acquisition, and lower transaction costs. 

Payoneer’s product mix has evolved into a unique mix of high-value services which include B2B accounts payable and receivable, bank partnerships, commercial cards, merchant services, and working capital, with the company continuing to optimize its product line to cater to an increasingly diverse customer base.

In Q3, Payoneer reported a 16% increase in payments volumes, which stood at $13.6 billion, and a 35% increase in revenues to $122.7 million. Transaction costs also improved to 20% of revenues compared to 27% of revenue in 2020, translating to an improvement in the bottom line. With strong momentum in payments volume, management also raised the guidance for the full year and now expects revenues for 2021 to come in between $458 million – $462 million (translation to 33-34% growth compared to prior guidance of 28-30% growth). 

Price Target Updates After Q3

Reddit Reads

$CND Launches Venture Fund, Plans Singapore Expansion 

Soon-to-be-public digital currency firm Circle Internet Financial Ltd. is planning to invest $50 million in early-stage blockchain projects, as well as an expansion to Singapore. The venture fund will be called ‘Circle Ventures’ and will fit into the company’s larger vision to advance innovation in financial services. In a separate announcement, the company also announced that it was expanding its base of operations to signore. This will involve the company hiring a Singapore-based leadership team for the hub and submitting applications to obtain the applicable licenses and registrations.

$DMYQ Will Acquire VanderSat

Planet will acquire VanderSat to deliver advanced agriculture data products to customers. VanderSat’s technology helps customers better measure and understand water management and crop health in major markets.

Meme of the Day 

SPACs in a Nutshell 

Alexis Ohanian and Reggie Fils-Aimé Team Up in $UTAA

  • United Talented Acquisition Corp is a SPAC that is debuting with a $200 million IPO and includes the likes of former Nintendo Executive Reggie Fils-Aimé as the Chairman and Reddit Co-Founder Alexis Ohanian as the director. 

Another notable addition to the UTAA team is Kathy Vrabeck, a former senior leader at Electronics and Activision.

Fils–Aimé and Vrabeck were directors in GameStop before UTAA and left the company during the shakeup prompted by a massive frenzy in the stock. The industry experience of the SPAC executives is expected to come in handy as UTAA aims to target companies in the gaming, digital media, creator economy, entertainment, and technology industries. 


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