GreenSky, Inc. (NASDAQ: GSKY), a financial technology company Powering Commerce at the Point of Sale®, reported financial results today for the second quarter ended June 30, 2020, the company said.
During the second quarter:
Transaction Volume: Transaction volume originated on our technology platform in the second quarter of 2020 declined 14% from the second quarter of 2019. Importantly, our volumes rebounded sharply over the course of Q2 with April 2020 levels at only 74% of April 2019 volumes, May volumes at 84% of the same month in 2019, and June volumes at 100% of 2019 levels.
Transaction Fee Rate: The average transaction fee rate was 7.5% in the second quarter, an increase of 9% from a transaction fee rate of 6.9% in the same quarter of prior year, reflecting normal variations in the mix of promotional products offered by our merchants and consumer preferences for certain promotional financing products in the current economic environment.
Revenue: Second quarter revenue declined 4%, driven by Q2 2019´s recognition of a USD 9.0 million service asset (revenue), versus a USD 0.9 million decrease in servicing assets in Q2 2020. The other changes in revenue aggregating a net USD 4.1 million increase reflect the growth in our average servicing portfolio, interest from loans receivable held for sale, and an increase in the transaction fee rate, largely offset by COVID-19 impacted transaction volumes.
Credit Quality: Credit performance continued to be strong. As of June 30, 2020, 30-day delinquencies were 0.74%, an improvement of 57 basis points over the 30 day-delinquencies at June 30, 2019. The weighted-average FICO score for originations in the second quarter of 2020 was 783 compared to 769 in the second quarter of 2019.
Hardship Requests: At June 30, slightly less than 4% of the total balances in the Company´s servicing portfolio are in payment deferral under hardship programs, with the number of new requests declining sharply each successive month from the April peak for new requests.
GreenSky is a technology company Powering Commerce at the Point of Sale® for a growing ecosystem of merchants, consumers and banks. For more information, visit https://www.greensky.com.