Categories AlphaGraphs, Earnings, Finance

360 DigiTech (QFIN) Earnings: Q2 profit jumps amid strong revenue growth

August 19, 2021August 20, 2021

Online consumer finance company 360 DigiTech, Inc. (NASDAQ: QFIN) on Thursday reported double-digit earnings and revenue growth for the second quarter of 2021 as demand conditions remained favorable. Shares of the company closed the regular session down 4%.

Revenues increased 20% annually to RMB4.0 billion ($619.8 million) in the three months ended June 2021. A decrease in Credit Driven Services was more than offset by a surge in Platform Services revenue.

Net income was RMB1.55 billion ($239.7 million) or RMB9.62 per ADS ($1.48 per ADS) in the second quarter, up from last year’s profit of RMB876.5 million or RMB5.76 per ADS. Adjusted profit jumped to RMB10.03 per ADS ($1.55 per ADS) from RMB6.19 per ADS in the second quarter of 2020.

“During the quarter, financial institutions originated RMB88.5 billion loans through our platform, up 50% year-on-year. Approximately 56% of the loans was facilitated under the capital-light model and other technology solutions, further demonstrating the attractiveness of our capital-light models to financial institutions and marking continued success in our technology-driven strategic transition and upgrading,” said Haisheng Wu, chief executive officer of 360 DigiTech.

Read management/analysts’ comments on 360 DigiTech’s Q2 results

Shares of 360 DigiTech closed Thursday’s regular trading down 4% at the Nasdaq Stock Exchange but gained during the extended session following the earnings release.