CHIME'S IPO RINGS LIKE A SHREK-SIZED GOLD COIN! Donkey's Dish on Fintech Fun!

Somebody Once Told Me... About This IPO!

Alright alright alright! Donkey here your favorite talking equine and financial guru (self proclaimed of course!). Let me tell you folks something BIG happened! Chime this online banking thingamajig went public! They're on the Nasdaq trading under the fancy symbol CHYM and lemme tell ya they're makin' more noise than me trying to sing opera! Their shares jumped a whopping 37% on Thursday. 37%! That's like finding a whole field of waffles just waiting to be eaten! They sold shares in an IPO that valued the company at $11.6 billion. That is a lot of bling bling in my opinion!

From Zero to Hero (Almost as Fast as Shrek Can Clear a Swamp)

So Chime raised about $700 million in the offering and some fancy investors sold even MORE shares for $165 million! That's a lot of green even for Shrek's swamp! The stock closed at $37.11 which is way up from its IPO price of $27. You go Chime! They ended up having a 13.5 billion market cap! However some folks are saying that from a valuation perspective the company has taken a BIG step down from the 2021 valuation of 25 billion when private tech markets were raging.

Is the Fintech Market Warming Up or Just Passing Gas?

Now listen up! This Chime thingy might just be a sign that the fintech IPO market is thawing out after a freeze longer than my last donkey nap! Other companies like eToro and Circle have had some good luck recently which is makin' everyone optimistic. Maybe there is a light at the end of the tunnel! This is almost as good as finding out I got a chance with Dragon.

Show Me the Money! (But Not Too Much)

Chime reported $518.7 million in revenue for the most recent quarter up 32% from last year. Now that's what I call some serious dough! However the net income went down to $12.9 million which is not as much fun. It used to be $15.9 million in the same period last year. Still their CEO Chris Britt says they've got a loyal following because they're helping everyday folks making less than $100,000 a year. They're like the Robin Hood of banking but without the tights! (Thank goodness nobody wants to see me in tights!)

Happy Helpful and Possibly Hooked

Britt also said the company reached $25 million in adjusted profitability in the first quarter. Yoonkee Sull a big shot at Iconiq said they invested in Chime because they focus on helping everyday Americans. Turns out the average Chime customer completes over 55 transactions per month and uses the app all the time. Talk about loyalty! But here's the kicker: Chime spent $1.4 billion on marketing between 2022 and 2024! That's more than I spend on waffles in a lifetime!

So What Does It All Mean? (Besides More Money for Chime)

One analyst even said Chime's business model is surprisingly simple! Their money comes from interchange fees which is what merchants pay when folks use their Chime cards. Now all eyes are on Chime to see if this IPO success sticks. If it does we might see a whole bunch of other fintech companies jumping on the bandwagon! If not well they might just stay put and wait just like me waiting for Dragon to finally admit she loves my singing! Time will tell folks. But one thing's for sure: it's never ogre until it's ogre! And Donkey out!