Pineapple Financial Grows 59%, Expands, Launches PineappleONE

Key Takeaway

• Pineapple Financial reports a 59.04% revenue increase in Q2, with the launch of PineappleONE to streamline mortgage brokerage.
• Company expands into metro Vancouver, Ottawa, Winnipeg, and Alberta; aims for efficiency and growth with new technologies.
• Apollo Global Management sees a 26% rise in adjusted net income but falls short of expectations; plans major boost in private credit origination.

PineappleONE Launch

Pineapple Financial Inc has introduced PineappleONE, a platform designed to transform the mortgage brokerage process by streamlining operations from origination to submission. This innovation allows brokers to view all details of a mortgage deal in a single interface, automating tasks like generating lender-specific notes and assembling document packages. PineappleONE's adaptive technology learns from brokers' behaviors and preferences, aiming to enhance efficiency and revenue through quicker deal submissions and higher acceptance rates. Christa Mitchell, Pineapple's Chief Strategy Officer, emphasized the platform's role in reinforcing the company's competitive edge and supporting expansion efforts across Canada in 2024.

Financial Growth

Pineapple Financial Inc reported a significant 59.04% increase in revenue year-over-year for the fiscal second quarter ending February 29, 2024, totaling $784,869. The company also saw a 17.6% growth in residential mortgage loans, reaching $314.963 million. Despite a 33.3% rise in selling, general, and administrative expenses due to expansion and travel costs, Pineapple managed to reduce its net loss by 4% to $657,456 compared to the same quarter in 2023. The firm's cash position improved to $1,339,618, with total liquidity reaching $2,417,239 at the quarter's end.

Strategic Expansion and Performance

During the second quarter, Pineapple expanded its footprint by opening offices in metro Vancouver, Ottawa, Winnipeg, and Alberta. The company also enhanced its online mortgage application for brokers and introduced custom advertising banner management software to boost lead conversion. Co-founder and CEO Shubha Dasgupta expressed optimism about the company's technological advancements and marketing strategies, anticipating continued improvement in financial performance as the industry outlook brightens.

Apollo's Financial Update

Apollo Global Management Inc. reported a 26% increase in adjusted net income to $1.06 billion for the first quarter, missing analysts' expectations by 7 cents. The firm aims to significantly boost its private credit origination to $200-$250 billion annually within five years. Despite a competitive private credit market, Apollo's assets under management grew by 12% to $671 billion. The firm is actively participating in major financing deals, such as a €1.5 billion loan for SumUp Payments Ltd., highlighting the dynamic and competitive nature of the private credit sector.

Management Quotes

• Christa Mitchell, Chief Strategy Officer of Pineapple:

  "Once again, Pineapple is at the forefront of innovation in the Canadian mortgage industry. PineappleONE is a significant competitive advantage and will further enhance our agent recruitment efforts as we expand across Canada in 2024."

• Shubha Dasgupta, co-founder and CEO of Pineapple:

  "We’re seeing terrific results from our internal tech improvements and marketing and expansion activities initiated during fiscal Q2. I believe that, as our industry outlook continues to improve, Pineapple will continue to demonstrate improved top- and bottom-line performance for the remainder of the fiscal year and beyond."