Xoom, Inc. (XOOM) - NASDAQ
  • Jul. 2, 2015, 5:45 PM
    • EBAY closed up 2.4% following news PayPal (Pending:PYPL) is buying top online international money transfer service XOOM for $890M. With PayPal now just 18 days away from trading separately, eBay is within $1.50 of a 52-week high of $63.30. Western Union had a less favorable reaction to the deal.
    • Street reactions to the purchase have been largely positive. SunTrust's Bob Peck: "We see synergies/opportunity between Xoom and [mobile payments platform] Venmo inside the PayPal ecosystem enabling lower cost (ACH, or debit worse-case) wallet funding (PayPal, Paydiant) and in-market and cross-border [consumer-to-consumer] and [consumer-to-business] transactions. This could serve to sustain relevance on the consumer side and (interrelated) preserve/lower funding cost and strengthen the value proposition on the merchant side."
    • Baird's Colin Sebastian: "Both PayPal and Xoom have competitive advantages from fraud-detection technology underlying their respective products. While Xoom’s engine was initially built using concepts borrowed from PayPal, they have since extended the functionality to peer-to-peer international remittance..."
    • Keefe, Bruyette & Woods' Sanjay Sakhrani: "[I]nternational money transmittance is a highly adjacent business to P2P payments and digital wallets, which is PayPal's core business…Despite a fairly rich valuation, XOOM is growing quickly and brings to the table a scalable, bolt-on platform to help offer additional value-add..." Morgan Stanley's Brian Nowak sees an opportunity to significantly expand Xoom's op. margin (4% in 2014).
    • Xoom closed at $25.05, slightly above PayPal's $25/share buyout price. SunTrust's Andrew Jeffrey thinks Western Union and/or Internet companies could make a rival bid. Baird's Sebastian: "Higher bid from traditional money transfer company still plausible given a PayPal-Xoom combination presents a much greater (and better-capitalized) competitive threat."
    | Jul. 2, 2015, 5:45 PM | 1 Comment
  • Jul. 2, 2015, 9:11 AM
    | Jul. 2, 2015, 9:11 AM | 13 Comments
  • Jul. 1, 2015, 6:06 PM
    • After coming off a halt, XOOM has jumped to $25.80 in AH trading, surpassing PayPal's (EBAY, PYPL) $25/share acquisition price as investors (for now, at least) bet on a higher bid arriving.
    • Earlier: PayPal acquiring Xoom for $890M
    | Jul. 1, 2015, 6:06 PM | 1 Comment
  • Jul. 1, 2015, 5:40 PM
    • PayPal (EBAY, PYPL) is acquiring leading online money transfer/remittance service provider XOOM for an enterprise value of $890M, or $25/share, in cash.
    • The price represents a 21% premium to Xoom's Wednesday close. The deal comes ahead of PayPal's mid-July spinoff into a separate, publicly-traded, company. XOOM has been halted.
    • PayPal president/soon-to-be-CEO Dan Schulman: "Expanding into international money transfer and remittances aligns with our strategic vision to democratize the movement and management of money ...  Xoom's presence in 37 countries in particular, Mexico, India, the Philippines, China and Brazil will help us accelerate our expansion in these important markets."
    • The deal is expected to close in Q4, and be slightly dilutive to PayPal's 2016 EPS. PayPal plans to pay for it with existing cash. Xoom will operate as a separate service within PayPal.
    • Recent PayPal acquisitions include white-label mobile payments services provider Paydiant, cybersecurity software firm CyActive, and rival online/mobile payments service provider Braintree.
    | Jul. 1, 2015, 5:40 PM | 7 Comments
  • Jun. 29, 2015, 12:02 PM
    • XOOM has added considerably to the premarket losses seen following a Susquehanna downgrade to Neutral. Volume (522K shares) has already topped a 3-month daily average of 412K.
    • "While we are constructive on the shares longer term, we think consensus is full and the stock may move sideways in the interim," says Susquehanna's James Friedman, discussing his downgrade. He notes shares had risen 56% in Q2, states World Bank data points to service price declines in India, the Philippines, and Mexico (major Xoom markets), and observes Moneygram and PayPal's Venmo unit have "made some revisions" to their offerings that may overlap with Xoom's.
    • Friedman: "While none of these services may be as fast or elegant as Xoom, they are viable in our opinion." Moneygram is now charging $4 to transfer $200 to Mexico and the Philippines, and nothing for transferring to India. Meanwhile, PayPal is set to take Venmo international, and Ria's automated clearing house (ACH) money transfer prices for India, the Philippines, and Mexico undercut Xoom's.
    | Jun. 29, 2015, 12:02 PM | 3 Comments
  • Jun. 29, 2015, 9:14 AM
    • Susquehanna has downgraded XOOM to Neutral, and cut its target by $7 to $24.
    • Xoom has dropped to $21.97 premarket; Nasdaq futures are off 1.2%. The online money transfer provider remains up 25% YTD.
    | Jun. 29, 2015, 9:14 AM | 5 Comments
  • Jun. 1, 2015, 5:39 PM
    | Jun. 1, 2015, 5:39 PM | 3 Comments
  • May 15, 2015, 1:15 PM
    • After starting the day off quietly, Xoom (XOOM +6.6%) has shot higher over the last hour. 464K shares have already been traded, topping a 3-month daily average of 425K.
    • The online money transfer provider is now up 36% from a February low of $13.82, set after shares tumbled in January on account of a fraud disclosure. They surged two weeks ago following a Q1 beat and in-line guidance, and gained last week in response to a report Western Union is in talks to buy MoneyGram.
    | May 15, 2015, 1:15 PM
  • May 6, 2015, 11:05 AM
    • Xoom (XOOM +1.9%) appears to be getting a lift from a Bloomberg report stating Western Union is in talks to buy long-time money transfer rival MoneyGram.
    • Western and (especially) MoneyGram have soared on the report. Should a deal be inked, Western/MoneyGram will likely cite the existence of online/mobile rivals such as Xoom as a reason why antitrust regulators should clear it.
    • Last week: Xoom soars following Q1 beat, in-line 2015 guidance
    | May 6, 2015, 11:05 AM
  • Apr. 29, 2015, 10:54 AM
    • With shares having gone into earnings far below their 2013 highs following a string of earnings disappointments, XOOM's in-line 2015 guidance is going over well: The online money transfer platform expects revenue of $191M-$196M and EPS of $0.34-$0.43 vs. a consensus of $194.1M and $0.37. Q2 guidance is softer: Revenue of $46M-$48M and EPS of $0.05-$0.10 vs. a consensus of $49M and $0.10.
    • Gross sending volume rose 6% Y/Y in Q1 to $1.7B, a slowdown from Q4's 29% growth. Transactions rose 23% to 3.55M (implies lower average transaction size), active customers 19% to 1.34M, and gross customer adds 14% to 156K. Xoom is no longer sharing new customer adds, arguing gross adds are more important.
    • GAAP operating expenses rose 29% Y/Y to $33.2M, exceeding revenue growth of 24%. Xoom ended Q1 with $240.5M in cash/short-term investments (equal to nearly 1/3 of its current market cap), and no debt. The company is counting on its recent expansion into China and Pakistan to boost future growth, as well as newer services such as Bill Pay and Top Up (enabled by last year's BlueKite acquisition).
    • Short-covering could have much to do with today's gains: 5.1M shares (over 1/5 of the float) shorted as of April 15.
    • Q1 results, PR
    | Apr. 29, 2015, 10:54 AM | 2 Comments
  • Apr. 9, 2015, 3:18 PM
    • Only a handful of non-microcap tech companies are posting outsized gains or losses today amid a 0.4% rise for the Nasdaq.
    • Notable gainers include 4G modem/M2M module vendor Sierra Wireless (SWIR +5.1%), online money transfer provider Xoom (XOOM +4.6%), authentication hardware/software provider Vasco (VDSI +4.8%), and RFID/electronic document tech provider SuperCom (SPCB +7.9%).
    • Notable decliners include a couple of Chinese tech firms that soared yesterday: Sungy Mobile (GOMO -5.4%), and China Mobile Games (CMGE -7.4%). Cheetah Mobile (CMCM -9.8%), a Chinese name that rose moderately yesterday but soared on Tuesday, is also a casualty.
    • Sierra has risen to its highest levels since early March,  and close to where it traded before tumbling in February due to the mixed guidance provided with a Q4 beat.
    • SuperCom is now up 11% since posting Q4 results on March 26; the company missed estimates, but also stated it's open to a buyback and that it has major deals in the pipeline that aren't factored into current 2015 guidance.
    • Previously covered: SolarCity/Vivint, Silicon Motion, Solar3D, Smith Micro, Turtle Beach, Taser, Highpower, Paylocity/Fleetmatics/Five9
    • Update: Possibly helping Sierra: Today is 2015's IoT Day.
    | Apr. 9, 2015, 3:18 PM | 9 Comments
  • Mar. 18, 2015, 3:05 PM
    • Today's notable tech gainers include data protection software vendor Imperva (IMPV +3.5%), supercomputer maker SGI (SGI +5.3%), analog/mixed-signal chipmaker MagnaChip (MX +6.1%), enterprise cloud healthcare software vendor Castlight (CSLT +7.6%), program guide/content protection IP provider Rovi (ROVI +5.8%), cloud contact center software vendor Zendesk (ZEN +5%), and Web site owner Demand Media (DMD +4.6%). The Nasdaq is up 0.8% following Janet Yellen's market-pleasing remarks.
    • Notable decliners include Chinese EV maker Kandi (KNDI -3.4%), RF backhaul hardware maker DragonWave (DRWI -7.6%), NAND flash controller/4G RF transceiver maker Silicon Motion (SIMO -3.2%), and online money transfer provider Xoom (XOOM -4.9%).
    • Castlight is now up 13% from Friday's close. Rovi, rumored to be weighing strategic options, is two days removed from naming a new sales chief and announcing a licensing deal with Sharp. Kandi has now given back the big Monday gains it saw after posting Q4 results.
    • Xoom's losses are likely tied to Facebook's launch of a money transfer service for Messenger users; Facebook isn't charging any fees for now.
    • Previously covered: Adobe, Wix, Microsemi/Vitesse, Pandora, 500.com, chip equipment makers, Qihoo, MicroVision, Solar3D, Immersion, Netlist, Qunar, eBay, Avid
    | Mar. 18, 2015, 3:05 PM | 2 Comments
  • Feb. 18, 2015, 2:59 PM
    • Today's notable tech gainers include smart grid hardware/software provider Silver Spring (SSNI +8.9%), SMB Web services provider Web.com (WWWW +4.1%), cybersecurity software firm CyberArk (CYBR +7%), Chinese online retailers JD.com (JD +3.5%) and LightInTheBox (LITB +4.5%), cloud life sciences software firm Veeva (VEEV +4.3%), online money transfer provider Xoom (XOOM +3.7%), and video infrastructure hardware vendor Concurrent (CCUR +3.8%).
    • Notable decliners include Russian online payments leader Qiwi (QIWI -6.5%), supercomputer maker SGI (SGI -3.7%), analog/mixed-signal chipmaker MagnaChip (MX -4.6%), and cloud marketing software provider Marketo (MKTO -3.3%). The Nasdaq is close to breakeven.
    • JD.com and LightInTheBox are adding to the Tuesday gains they saw following Vipshop's big Q4 beat. MagnaChip is adding to the huge losses seen last Friday after its Q1-Q3 2014 results were finally posted. Marketo is adding to last week's post-earnings losses. CyberArk is now up 74% from its Feb. 9 close, thanks to a big Q4 beat and broader cybersecurity enthusiasm.
    • Previously covered: Angie's List, GoPro, Zillow, Garmin, Qihoo, Sonus, VirnetX, Yandex, Bitauto, Cavium
    | Feb. 18, 2015, 2:59 PM
  • Feb. 10, 2015, 7:09 PM
    • Though it beat Q4 estimates, XOOM is guiding for Q1 revenue of $42M-$44M and EPS of -$0.02 to $0.03, below a consensus of $44.4M and $0.08. Full-year guidance is for revenue of $190M-$195M and EPS of $0.29-$0.40 vs. a consensus of $192.5M and $0.40.
    • Gross sending volume rose 29% Y/Y in Q4 to $1.8B, an improvement from Q3's 13% growth. Transactions rose 27% to  3.48M, active customers 21% to 1.28M, and gross customer adds 10% to 145.2K.
    • New customer adds rose 5% to 118.1K, reversing Q3's 22% decline. However, Xoom says it won't break out the figure going forward, arguing gross adds are a more important metric.
    • Excluding a $30.8M fraud charge, GAAP operating expenses rose 43% Y/Y to $29.4M, outpacing revenue growth of 37%.
    • Shares are down to $14.65 AH. Q4 results, PR.
    | Feb. 10, 2015, 7:09 PM | 1 Comment
  • Jan. 6, 2015, 9:07 AM
    | Jan. 6, 2015, 9:07 AM
  • Jan. 5, 2015, 6:31 PM
    • XOOM states it was "the victim of a criminal fraud" involving "employee impersonation and fraudulent requests targeting the Company's finance department, resulting in the transfer of $30.8 million in corporate cash to overseas accounts." (8-K)
    • A $30.8M one-time charge will be recorded. The online money transfer service provider insists "no customer data was involved nor was any customer's money involved in this matter and the Company's systems were not impacted." Federal law enforcement authorities are "actively pursuing a multi-agency criminal investigation."
    • CFO Matt Hibbard has resigned. Ryno Blignaut, who only recently stepped down as CFO, will serve as acting CFO and chief risk officer.
    • The disclosures are overshadowing a Q4 guidance hike: Xoom now expects to report Q4 revenue of $43.1M-$43.6M, above prior guidance of $41M-$43M and a $41.8M consensus. Active customers +21% Y/Y in Q4 to 1.28M (+22% in Q3); new customers +5% to 118K (-22% in Q3).
    | Jan. 5, 2015, 6:31 PM | 6 Comments
Company Description
Xoom Corp provides online consumer-to-consumer international money transfers in close to 32 countries. The Company's customers use its website to send money to friends and families in these countries.
Sector: Financial
Country: United States