Nov 4 (Reuters) - 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.
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, interim CFO, told Reuters, adding that the company was seeing "a very strong and resilient consumer."
• The San Francisco-based fintech firm now expects revenue growth of 28% in 2026, compared with an expectation of 26.6%, 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% over last year.
• Chime's purchase volume, including outbound instant transfer, increased 22% year-over-year to $40 billion in the quarter, while active members grew 20% to 10.9 million.
• Average revenue per active member (ARPAM) increased 10% to $270.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Shailesh Kuber)