• |
Network Volume increased 79% to $1.9 billion, reflecting strong growth from existing partnerships across all products
|
• |
Total revenue and other income increased 83% to $181.5 million, primarily due to increased fee revenue from Network Volume growth
|
• |
Net loss attributable to Pagaya shareholders of $146.3 million, impacted by share-based compensation of $146.0 million. Adjusted net income of $3.5 million, which excludes share-based compensation expense, change in fair value of warrant liability, and non-recurring expenses
|
• |
Adjusted EBITDA of $4.9 million, reflecting ongoing investments in the long-term growth and scalability of the business
|
• |
Business combination with EJF Acquisition Corp. closed on June 22, 2022, with an upsized PIPE investment of $350 million; Class A ordinary shares and public warrants began trading on Nasdaq on June 23, 2022 under the symbols "PGY" and "PGYWW," respectively
|
• |
Onboarded large U.S. bank with over $100 billion in assets as a major partner in auto |
• |
On July 1, 2022, former Barclays Bank UK CEO, Ashok Vaswani, joined Pagaya as President, bringing 30+ years of financial services experience to help take the Company into its next chapter of growth
|
• |
Continued strong application flow, with 63 million applications cumulatively evaluated from the beginning of 2019 through 2Q'22
|
• |
Raised approximately $1.8 billion in investor capital into financing vehicles, across new ABS issuances and privately managed funds
|
FY22
| |
Network Volume
|
Expected to range between $7.2 billion and $7.8 billion
|
Total Revenue
|
Expected to range between $700 million and $725 million
|
Adjusted EBITDA
|
Expected to range between negative $20 million and positive $10 million
|
Jency John
Head of Investor Relations
IR@pagaya.com
Media & Press
Emily Passer
VP, Head of PR & External Communications
Press@pagaya.com
Three Months Ended
June 30,
|
Six Months Ended
June 30,
| |||||||||||||||
|
2022
|
2021
|
2022
|
2021
| ||||||||||||
Revenue
|
|
| ||||||||||||||
Revenue from fees
|
$
|
163,302
|
$
|
92,179
|
$
|
321,627
|
$
|
173,455
| ||||||||
Other Income
| ||||||||||||||||
Interest income
|
17,252
|
6,969
|
29,461
|
9,801
| ||||||||||||
Investment income (loss)
|
995
|
(58
|
)
|
995
|
12
| |||||||||||
Total Revenue and Other Income
|
181,549
|
99,090
|
352,083
|
183,268
| ||||||||||||
Costs and Operating Expenses
| ||||||||||||||||
Production costs
|
104,980
|
62,592
|
197,260
|
99,774
| ||||||||||||
Research and development(1)
|
65,110
|
8,562
|
88,736
|
39,412
| ||||||||||||
Sales and marketing(1)
|
50,604
|
6,228
|
63,650
|
28,403
| ||||||||||||
General and administrative(1)
|
111,479
|
11,338
|
163,073
|
34,107
| ||||||||||||
Total Costs and Operating Expenses
|
332,173
|
88,720
|
512,719
|
201,696
| ||||||||||||
Operating Income (Loss)
|
(150,624
|
)
|
10,370
|
(160,636
|
)
|
(18,428
|
)
| |||||||||
Other income (loss), net
|
13,159
|
(9,198
|
)
|
13,472
|
(18,771
|
)
| ||||||||||
Income (Loss) Before Income Taxes
|
(137,465
|
)
|
1,172
|
(147,164
|
)
|
(37,199
|
)
| |||||||||
Income tax expense (benefit)
|
(2,404
|
)
|
1,627
|
(2,590
|
)
|
7,793
| ||||||||||
Net Loss
|
(135,061
|
)
|
(455
|
)
|
(144,574
|
)
|
(44,992
|
)
| ||||||||
Less: Net income attributable to noncontrolling interests
|
11,213
|
5,419
|
19,972
|
7,546
| ||||||||||||
Net Loss Attributable to Pagaya Technologies Ltd.
|
$
|
(146,274
|
)
|
$
|
(5,874
|
)
|
$
|
(164,546
|
)
|
$
|
(52,538
|
)
| ||||
Per share data:
| ||||||||||||||||
Net loss attributable to Pagaya Technologies Ltd.
|
$
|
(146,274
|
)
|
$
|
(5,874
|
)
|
$
|
(164,546
|
)
|
$
|
(52,538
|
)
| ||||
Less: Deemed dividend distribution
|
-
|
-
|
-
|
(23,612
|
)
| |||||||||||
Net loss attributed to Pagaya Technologies Ltd.
|
$
|
(146,274
|
)
|
$
|
(5,874
|
)
|
$
|
(164,546
|
)
|
$
|
(76,150
|
)
| ||||
Net loss per share attributable to Pagaya Technologies Ltd.:
| ||||||||||||||||
Basic(2)
|
$
|
(0.24
|
)
|
$
|
(0.01
|
)
|
$
|
(0.27
|
)
|
$
|
(0.14
|
)
| ||||
Diluted(2)
|
$
|
(0.24
|
)
|
$
|
(0.01
|
)
|
$
|
(0.27
|
)
|
$
|
(0.14
|
)
| ||||
Non-GAAP adjusted net income(3)
|
$
|
3,481
|
$
|
5,281
|
$
|
7,587
|
$
|
25,596
| ||||||||
Non-GAAP adjusted net income per share:
| ||||||||||||||||
Basic(2)
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
$
|
0.05
| ||||||||
Diluted(2)
|
$
|
0.00
|
$
|
0.01
|
$
|
0.01
|
$
|
0.04
| ||||||||
Weighted average shares outstanding:
| ||||||||||||||||
Basic(2)
|
621,680,496
|
594,168,810
|
616,371,816
|
563,664,856
| ||||||||||||
Diluted(2)
|
846,420,843
|
743,246,506
|
851,569,948
|
629,922,341
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Research and development
|
$
|
54,383
|
$
|
567
|
$
|
60,243
|
$
|
25,074
| ||||||||
Sales and marketing
|
35,998
|
406
|
38,889
|
16,779
| ||||||||||||
General and administrative
|
55,689
|
889
|
63,573
|
17,264
| ||||||||||||
Total share-based compensation in operating expenses
|
$
|
146,070
|
$
|
1,862
|
$
|
162,705
|
$
|
59,117
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
| |||||||||||||||
|
2022
|
2021
|
2022
|
2021
| ||||||||||||
Net Loss Attributable to Pagaya Technologies Ltd.
|
$
|
(146,274
|
)
|
$
|
(5,874
|
)
|
$
|
(164,546
|
)
|
$
|
(52,538
|
)
| ||||
Adjusted to exclude the following:
| ||||||||||||||||
Share-based compensation
|
146,070
|
1,862
|
162,705
|
59,117
| ||||||||||||
Fair value adjustment to warrant liability
|
(13,737
|
)
|
9,293
|
(13,268
|
)
|
19,017
| ||||||||||
Non-recurring expenses
|
17,422
|
-
|
22,696
|
-
| ||||||||||||
Adjusted Net Income
|
$
|
3,481
|
$
|
5,281
|
$
|
7,587
|
$
|
25,596
| ||||||||
Adjusted to exclude the following:
| ||||||||||||||||
Interest expenses
|
3,177
|
-
|
3,177
|
-
| ||||||||||||
Income tax expense (benefit)
|
(2,404
|
)
|
1,627
|
(2,590
|
)
|
7,793
| ||||||||||
Depreciation and amortization
|
671
|
156
|
1,148
|
282
| ||||||||||||
Adjusted EBITDA
|
$
|
4,925
|
$
|
7,064
|
$
|
9,322
|
$
|
33,671
|
(Unaudited)
|
(Audited)
| |||||||
June 30,
|
December 31,
| |||||||
2022
|
2021
| |||||||
Assets
| ||||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
414,968
|
$
|
190,778
| ||||
Restricted cash
|
10,010
|
7,000
| ||||||
Short-term deposits
|
-
|
5,020
| ||||||
Fees receivable
|
35,066
|
32,332
| ||||||
Investments in loans and securities
|
4,173
|
5,142
| ||||||
Prepaid expenses and other current assets
|
7,918
|
6,263
| ||||||
Total current assets
|
472,135
|
246,535
| ||||||
Restricted cash
|
4,770
|
6,797
| ||||||
Fees receivable
|
31,171
|
19,208
| ||||||
Investments in loans and securities
|
382,708
|
277,582
| ||||||
Equity method and other investments
|
19,083
|
14,841
| ||||||
Right-of-use asset
|
41,797
|
-
| ||||||
Property and equipment, net
|
24,971
|
7,648
| ||||||
Deferred tax assets, net
|
27,078
|
5,681
| ||||||
Deferred offering costs
|
-
|
11,966
| ||||||
Prepaid expenses and other assets
|
158
|
-
| ||||||
Total non-current assets
|
531,736
|
343,723
| ||||||
Total Assets
|
$
|
1,003,871
|
$
|
590,258
| ||||
Liabilities and Shareholders' Equity
| ||||||||
Current liabilities:
| ||||||||
Accounts payable
|
$
|
2,922
|
$
|
11,580
| ||||
Accrued expenses and other liabilities
|
39,870
|
17,093
| ||||||
Secured borrowing - current
|
28,007
|
-
| ||||||
Operating lease liability - current
|
6,423
|
-
| ||||||
Income taxes payable - current
|
11,760
|
-
| ||||||
Total current liabilities
|
88,982
|
28,673
| ||||||
Non-current liabilities:
| ||||||||
Warrant liability
|
19,795
|
27,469
| ||||||
Secured borrowing - non-current
|
96,273
|
37,905
| ||||||
Operating lease liability - non-current
|
31,911
|
-
| ||||||
Income taxes payable
|
13,461
|
11,812
| ||||||
Total non-current liabilities
|
161,440
|
77,186
| ||||||
Total liabilities
|
250,422
|
105,859
| ||||||
Shareholders' equity:
| ||||||||
Additional paid-in capital(1)
|
857,680
|
420,217
| ||||||
Accumulated deficit
|
(276,424
|
)
|
(111,878
|
)
| ||||
Total Pagaya Technologies Ltd. Shareholders' Equity
|
581,256
|
308,339
| ||||||
Noncontrolling interests
|
172,193
|
176,060
| ||||||
Total shareholders' Equity
|
753,449
|
484,399
| ||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,003,871
|
$
|
590,258
|
|
Six Months Ended
June 30,
| |||||||
|
2022
|
2021
| ||||||
Cash flows from operating activities
|
| |||||||
Net income (loss)
|
$
|
(144,574
|
)
|
$
|
(44,992
|
)
| ||
Adjustments to reconcile net income (loss) to net cash used in operating activities:
| ||||||||
Equity method income (loss)
|
(995
|
)
|
(12
|
)
| ||||
Depreciation and amortization
|
1,148
|
282
| ||||||
Share-based compensation
|
162,705
|
59,117
| ||||||
Fair value adjustment to warrant liability
|
(13,268
|
)
|
19,017
| |||||
Change in operating assets and liabilities:
| ||||||||
Fees receivable
|
(14,697
|
)
|
(10,676
|
)
| ||||
Deferred tax assets, net
|
(21,397
|
)
|
(1,921
|
)
| ||||
Prepaid expenses and other assets
|
(1,813
|
)
|
(25,763
|
)
| ||||
Right-of-use asset
|
(41,797
|
)
|
-
| |||||
Accounts payable
|
(8,658
|
)
|
2,914
| |||||
Accrued expenses and other liabilities
|
5,963
|
1,895
| ||||||
Operating lease liability
|
38,334
|
-
| ||||||
Income tax accrual
|
13,409
|
9,402
| ||||||
Net cash (used in) provided by operating activities
|
(25,640
|
)
|
9,263
| |||||
Cash flows from investing activities
| ||||||||
Proceeds from the sale/maturity/prepayment of:
| ||||||||
Investments in loans and securities
|
50,090
|
42,106
| ||||||
Short-term deposits
|
5,020
|
-
| ||||||
Equity method and other investments
|
453
|
954
| ||||||
Payments for the purchase of:
| ||||||||
Investments in loans and securities
|
(154,247
|
)
|
(118,825
|
)
| ||||
Property and equipment
|
(1,657
|
)
|
(885
|
)
| ||||
Equity method and other investments
|
(3,700
|
)
|
(23,000
|
)
| ||||
Short-term deposits
|
-
|
(91,082
|
)
| |||||
Net cash used in investing activities
|
(104,041
|
)
|
(190,732
|
)
| ||||
Cash flows from financing activities
| ||||||||
Proceeds from sale of common stock in PIPE, net of issuance costs
|
291,872
|
-
| ||||||
Proceeds from issuance of redeemable convertible preferred shares, net
|
-
|
193,496
| ||||||
Proceeds from secured borrowing
|
94,094
|
-
| ||||||
Proceeds from revolving credit facility
|
26,000
|
-
| ||||||
Proceeds received from noncontrolling interests
|
29,522
|
83,788
| ||||||
Proceeds from exercise of stock options
|
446
|
17
| ||||||
Distribution made to noncontrolling interests
|
(53,361
|
)
|
(33,368
|
)
| ||||
Distribution made to revolving credit facility
|
(26,000
|
)
|
-
| |||||
Distribution made to secured borrowing
|
(7,719
|
)
|
-
| |||||
Net cash provided by financing activities
|
354,854
|
243,933
| ||||||
Net increase in cash, cash equivalents and restricted cash
|
225,173
|
62,464
| ||||||
Cash, cash equivalents and restricted cash, beginning of period
|
204,575
|
5,880
| ||||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
429,748
|
$
|
68,344
|
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Disclaimer
Pagaya Technologies Ltd. published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 10:53:04 UTC.