The share price of Israeli fintech company Pagaya Technologies (Nasdaq: PGY) dipped today, after the company reported its first financial results since listing on Wall Street in June. Over the past month, Pagaya’s share price has risen 800% and is currently down 5%, giving a market cap of $14.08 billion.
Pagaya, which was founded in 2016 by CEO Gal Krubiner, CRO Yahav Yulzari, and CTO Avital Pardo, reported revenue of $181.5 million in the second quarter of 2022, up 83% from the corresponding quarter of 2021. The company reported a net loss of $146.3 million, mainly because of share-based compensation of $146 million. This compares with a loss of $5.3 million in the corresponding quarter of 2021.
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Pagaya provides solutions based on machine learning and big data that allow financial institutions to more accurately manage credit allocation procedures. The company sees total revenue of $700-725 million for the entire year and adjusted EBITDA ranging between minus $20 million and plus $10 million.
Krubiner said, “In our first quarter reporting as a public company, we are proud to report continued strong network volume and total revenue growth. These results reflect the strength of a proprietary AI network that drives better outcomes and a B2B2C business model that delivers consistent growth through macro cycles. Looking ahead, we will remain focused on our ambition to be the trusted AI partner for the banking system.”
It is unclear how concerned shareholders will be about the results. Market sources believe that Pagaya’s share price is so high because a ‘short squeeze’ has made few shares available and investors who took short positions on the company, shortly after its SPAC merger was completed in late June, have been compelled to pay high prices in order to pay back the shares they borrowed.
Published by Globes, Israel business news – en.globes.co.il – on August 16, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
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