FINV - FinVolution Q2 revenue beat strengthened by record transaction volume

FinVolution ( NYSE: FINV ) stock advanced 3.4% in Monday after-hours trading following the China-based fintech's better-than-expected Q2 revenue driven by record transaction volume.

For the third quarter, FinVolution ( FINV ) expects its transaction volume to be RMB 44.0B (US$6.4B) to RMB 45.0B (US$6.5B).

"Supported by a strong financial position, we are well prepared to capture both existing and new opportunities in the markets in which we operate," said CFO Jiayuan Xu.

Meanwhile, Q2 net revenue of  RMB 2.7B ($398M) surpassed the average analyst estimate of $384.6M and rose from RMB 2.4B at June 30, 2021.

Adjusted operating margin of 24.6% at the end of June vs. 29.6% in Q2 2021.

Total transaction volume reached RMB 41.5B in Q2, up 24.3% from the same period a year before.

Total outstanding loan balance came in at RMB 56.4B at June 30, a Y/Y boost of 43.9%.

Q2 provision for loans receivable was RMB 59.1M compared with RMB 81.9M in Q2 of last year, reflecting a lower-than-expected default rate as a result of the transition to better quality borrowers.

Conference call at 8:30 p.m. ET (8:30 a.m. Beijing/Hong Kong Time on August 23).

Earlier, FinVolution Group Non-GAAP EPS of $0.31, revenue of $398M beats by $13.45M .

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