Why Chime Financial Rallied in August

Shares of Chime Financial (NASDAQ: CHYM) rallied 44% in August, according to data from S&P Global Market Intelligence.

Chime delivered an excellent second-quarter earnings report, showing stronger-than-expected growth and a significant inflection in profitability. With the stock having sold off since going public a little over a year ago, it's no surprise to see a rally in response to the strong numbers one year later.

In the second quarter, Chime's revenue grew 27% to $670 million, with earnings per share swinging from a loss in the prior-year quarter to a positive $0.07. Both figures handily beat analyst expectations. Chime also raised its full-year revenue guidance to between $2.725 and $2.745 billion, up from the prior quarter's range of $2.66 billion to $2.69 billion, and adjusted EBITDA (earnings before interest, taxes, and depreciation, and amortization) between $465 and $475 million, up from the prior quarter's guidance between $416 million and $431 million.

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