Chime raises annual revenue forecast on robust demand

Nov 4 : Fintech firm Chime raised its forecast for full-year revenue growth above Wall Street estimates on Wednesday, betting on sustained demand for its digital banking products.

Shares rose nearly 5.8 per cent to $31.6 in after-hours trading.

Here are more details:

• Consumer spending remained resilient, supporting growth in the sector as households and businesses continued to spend despite higher oil prices and inflationary pressures stemming from the US war with Iran.

• "While consumers are expressing concern about affordability, the reality is they're actually remaining very resilient and confident in how they spend," Mark Troughton, president and interim CFO, told Reuters, adding that the company was seeing "a very strong and resilient consumer."

• Consumers are also shifting their spending patterns, spending more on entertainment while increasingly opting for public transportation and other alternatives to driving as they cope with higher gasoline prices, Troughton added.

• Chime, which had nearly 11 million active members at the end of the third quarter, said households earning $75,000 or more were its fastest-growing customer segment.

• The San Francisco-based fintech firm now expects revenue growth of 28 per cent in 2026, compared with an expectation of 26.6 per cent, according to estimates compiled by LSEG.

• It forecast fourth-quarter revenue between $757 million and $767 million, above analysts' estimates of $745.6 million.

• The company reported revenue of $718 million for the third quarter, up 32 per cent over last year.

• Chime's average revenue per active member increased 10 per cent to $270.