UBS Napa Recap "Plaid" Chiodo

Research evidence excerpt

UBS Napa Recap "Plaid" Chiodo

id's network). Plaid

provides the infrastructure layer, allowing FinTechs to access customer account data via Ella Zimmermann

APIs to “build any financial application from payments to lending to wealth Associate Analyst

management.” Plaid has introduced decisioning products to help FinTechs manage risks ella.zimmermann@ubs.com

+1-212-713 5000and settlement at scale (i.e., Guaranteed Payments). The company counts the likes of

Cash App, Venmo, Affirm, Marqeta, Chime, Rocket, SoFi, Checkout.com, Varo, Current, Holt Bashinsky

Betterment, OpenAI, and numerous other FinTechs and financial institutions as clients Associate Analyst

and/or partners. holt.bashinsky@ubs.com

+1-212-713 2833

Siddhanth SoniOverview of Plaid's financial profile: Our speaker believes that there is no truly

Associate Analyst

comparable business to Plaid, noting that Plaid uniquely has a three layer network

siddhanth.soni@ubs.com

consistenting of: 1) critical financial infrastructure: 2) financial identity; and 3) financial +1-212-649 8010

intelligence, with no peer business having assembled a comparable financial

infrastructure network with all three layers. Financially, Plaid now has >$500mm ARR

growing ~40% YoY, is profitable with strong margins (on an adjusted operating margin

basis), and is operating cash flow positive. Strong demand is seen across existing and net

new customers (with ~1,800 new customers in FY 2025, noting a quarter of new

customers are AI driven businesses).

Plaid's revenue model: Plaid's revenue model is usage based, with revenue generated

in a variety of ways when customers connect their bank accounts for uses such as

identify verification or payment initiation, and thus revenue grows not just through new