An Ontario-born financial technology firm recently reported its quarterly earnings as the company expands its reach westward to B.C.
Toronto’s Pineapple Financial, which operates a mortgage firm with an integrated network of partner brokerages and agents across Canada, describes Canada’s mortgage landscape as “highly challenging,” citing “persistently high-interest rates and suppressed consumer sentiment.”
As a result, revenues were down 36% year-over-year, the fintech reported, and the company failed to turn a profit.
The good news is that Pineapple was able to reduce expenses while increasing its unrestricted cash, trade and other receivables, and prepaid expenses and deposits by more than $1.7 million, bringing its total by the end of the quarter to $3.4M.
“Despite facing adverse economic conditions during our first fiscal quarter, Pineapple has continued to progress by adding market share, continuing to increase our technology presence, expanding our user base, and growing our geographic presence,” stated Shubha Dasgupta, chief executive officer of Pineapple.
Pineapple last year secured the 27th position on The Globe and Mail’s list of Canada’s fastest-growing companies, posting a three-year growth rate of 1,452% before going public on NYSE American in November.
“We believe, based on this progress, as well as decreasing interest rates, and improved consumer sentiment, that Pineapple will demonstrate improved top and bottom line performance with each remaining quarter this fiscal year,” CEO Dasgupta said. “We therefore project significant top-line growth and profitability in fiscal 2024.”
In 2024, strategic geographic expansion will help drive the top-line growth that Dasgupta is aiming for.
For example, in December the fintech opened an office in Coquitlam to service the sizeable Metro Vancouver market.
This strategic move is anticipated to yield a 10% increase in gross revenue, driven by a projection of $225 million in new mortgage origination over the next twelve months, according to a statement from Pineapple.
“This expansion solidifies our unwavering commitment to delivering exceptional mortgage solutions to Canadians, contributing to the economic landscape by creating job opportunities and fostering mutually beneficial partnerships,” Christa Mitchell, Pineapple’s Chief Strategy Officer, stated last month.
So far, Pineapple has added 50 new mortgage professionals to the Company’s Western Canada network.
Among other homeowner-oriented features, the company’s platform offers an online application system that enables borrowers to easily discover how much mortgage they can afford, get an improved pre-qualification breakdown, and download a breakdown PDF to share with their realtor when looking for a new home.
Pineapple Financial was founded in 2016.