GreenSky LLC (NASDAQ:GSKY), the online lending platform that took the market by storm with its exciting IPO, has quickly soared to the top of the market following its public debut, and the company shows few signs of slowing down anytime soon. While many critics were quick to dismiss GreenSky when the company initially filed to go public, it’s proving its detractors wrong with a stellar record on the market thus far, and raised more than $800 million during its market debut.
Here’s what you need to know about the rapidly-growing GreenSky, and what the company is doing to capitalize on the success of its IPO.
One Of The Biggest IPOs Of The Year
2018 has been an absolutely astonishing year for many tech IPOs, and GreenSky is no exception; the online lending platform, which facilitates loans to home renovators hoping to increase the value of their property, raised roughly $874 million during its market debut. Original reporting surrounding GreenSky’s market debut mused that the company’s IPO might bring in ‘as much’ as $100 million, making the true results of its IPO even more impressive. While many had high expectations for the online lending company, few expected it to soar so highly above expectations in the way that it did.
Taking a glimpse at the company’s S-1 filings, which it made with the SEC ahead of its market debut, it’s not too hard to see why GreenSky did so well; after all, the contemporary housing market is all but tailor-made for companies like GreenSky, which help homeowners and professional renovators alike get the financing they need to complete expensive renovations. The company relies on a cleverly-designed smartphone app that much of its business goes through, and it’s probably no unfair to say that one of the reasons tech investors went crazy over GreenSky is its extensive grasp on the value of digitized operations in the contemporary market.
Its basic fundamentals don’t look bad, either; for instance, GreenSky netted some $103 in net income last year, up from the $99 million or so it netted in 2016. As long as the online lending platform can show that customers are sincerely interested in its services, it’s likely that investors will continue to believe GreenSky can increase its income levels in the near-future. In the long-term, too, the company has serious potential to grow and capture more of the digital lending platform market, though it will surely face some stiff competition from others trying to get a slice of the pie.
GreenSky also has a slew of influential partners with which it hopes to dominate the market of tomorrow; as long as the lending platform can continue to establish lucrative relationships with the likes of Bank of America (NYSE:BAC), it stands to reason that it will have all of the financial heft it needs to innovate and remain relevant in a rapidly changing digital economy. The fact that GreenSky has seen serious success in garnering private funding before its market debut should also pair well with its IPO profits when it comes to convincing would-be investors that the company has a mountain of cash to tap into if it ever runs into problems in the future.
Tying Merchants, Banks And Consumers Together
If GreenSky is really going to be financially successful in the long-term, it will depend on how well the company ties together the three disparate factions that make up the bulk of its business dealings – banks, merchants, and everyday consumers. GreenSky has endured for well-over a decade precisely because it offers good investment options for everyone; bank partners gain access to a slew of consumers who are looking for loans, property owners get the properly-financed loans they need for projects, and merchants can bolster their sales figures. If GreenSky continues to perfect this formula, there are few reasons to doubt the company’s long-term potential.
The fact that GreenSky has become of the fastest growing and most valuable tech holdings in the nation will doubtlessly put some wind in its sails; after all, despite all the chatter about how tech investors love scrappy upstart IPOs, long-term investors are often interested in market behemoths, and GreenSky is already carving out a sizable name for itself in the public market. The company’s six-year track record of profitability will assuredly help, too, as few can point to many flaws in GreenSky’s method of business that can’t be fixed with a little bit of innovation and the infusion of some more capital. As long as the online lending platform continues to draw profits and entice in new partners, expect it to soar even higher in the market; GreenSky has been doubted before, but it’s proving many of its critics wrong after its blockbuster IPO.