Earnings: 360 DigiTech (QFIN) Q4 profit jumps on 39% revenue growth

Online consumer finance company 360 DigiTech, Inc. (NASDAQ: QFIN) reported higher earnings and revenues for the fourth quarter of 2020. The company’s stock gained about 2% Monday evening, immediately after the announcement.

In the three months ended December 2020, revenues moved up 39% from last year to RMB3.34 billion ($511.5 million). Credit Driven Services and Platform Services grew by 29% and 85%, respectively.

Net income was RMB1.20 billion ($184.65 million) or RMB7.72 per ADS ($1.18 per ADS), up from last year’s RMB429.9 million or RMB2.86 per ADS. Adjusted profit more than doubled year-over-year to RMB8.40 per ADS ($1.29 per ADS).

Commenting on the fourth-quarter performance, 360 DigiTech’s CEO Haisheng Wu said, “Exiting the year, approximately 35% of the loan facilitation was under the capital-light model and other technology solutions, for which we bear no or limited principal risk. We have accelerated the growth of those platform solutions so far in 2021 as we continue to pursue our long-term strategy to build a leading data-driven, technology-empowered digital platform.”

Read management/analysts’ comments on 360 DigiTech’s Q4 results

Shares of 360 DigiTech closed Monday’s regular trading down 7.4% at the Nasdaq Stock Exchange but made modest gains during the extended session following the earnings release. Their value more than doubled since the beginning of the year.