4Q23 Total revenue of
Quarterly operating expense down 15%
Full Year 2024 guidance reflects expectations for markedly improved profitability
"We executed well during the fourth quarter and met each of our guidance metrics," said
Fourth Quarter and Full Year 2023 Results
Metric | GAAP | Adjusted1 | |||||||||||||||||||||||
4Q23 | 4Q22 | FY23 | FY22 | 4Q23 | 4Q22 | FY23 | FY22 | ||||||||||||||||||
Total revenue | $ | 263 | $ | 262 | $ | 1,057 | $ | 953 | |||||||||||||||||
Net income (loss) | ($ | 42 | ) | $ | (8.4 | ) | ($ | 180 | ) | ($ | 78 | ) | ($ | 21 | ) | $ | 4.6 | $ | (124 | ) | $ | 69 | |||
Diluted EPS | ($ | 1.09 | ) | $ | (0.25 | ) | ($ | 4.88 | ) | $ | (2.37 | ) | ($ | 0.54 | ) | $ | 0.14 | ($ | 3.37 | ) | $ | 2.09 | |||
Adjusted EBITDA | $ | 6.1 | $ | (34 | ) | $ | 1.7 | $ | (10 | ) | |||||||||||||||
Dollars in millions, except per share amounts. | |||||||||||||||||||||||||
1 See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. |
Fourth Quarter 2023
- Members were 2.2 million, an increase of 18% compared to the prior-year quarter
- Products were 2.4 million, an increase of 19% compared to the prior-year quarter
- Aggregate Originations were
$437 million , down 28% compared to the prior-year quarter - Portfolio Yield was 32.7%, an increase of 100 basis points compared to the prior-year quarter
- Managed Principal Balance at End of Period was
$3.2 billion , down 7% compared to the prior-year quarter - Annualized Net Charge-Off Rate of 12.3% as compared to 12.8% for the prior-year quarter
- 30+ Day Delinquency Rate of 5.9% as compared to 5.6% for the prior-year quarter
Full Year 2023
- Aggregate Originations were
$1.8 billion , down 38% year-over-year - Portfolio Yield was 32.2%, an increase of 23 basis points year-over-year
- Managed Principal Balance at End of Period was
$3.2 billion , down 7% year-over-year - Annualized Net Charge-Off Rate of 12.2% as compared to 10.1% for the prior-year period
Financial and Operating Results
All figures are as of or for the quarter ended
Operational Drivers
Members – Members as of the end of the fourth quarter grew to 2.2 million, up 18% from 1.9 million at the end of the prior-year quarter.
Products – Products as of the end of the fourth quarter grew to 2.4 million, up 19% from 2.0 million at the end of the prior-year quarter.
Originations – Aggregate Originations for the fourth quarter were
Portfolio Yield – Portfolio Yield as of the end of fourth quarter was 32.7%, an increase of 100 basis points as compared to 31.7% in the prior-year quarter. Portfolio Yield for the full year 2023 was 32.2%, an increase of 23 basis points as compared to 32.0% in 2022. Both figures were primarily attributable to higher pricing on our personal loan products.
Fourth Quarter 2023 Financial Results
Revenue – Total revenue for the fourth quarter was
Operating Expenses and Adjusted Operating Expenses – For the fourth quarter, total operating expense was
Net Income (Loss) and Adjusted Net Income (Loss) – Net loss was
Earnings (Loss) Per Share and Adjusted EPS – GAAP net loss per share, basic and diluted, were both
Adjusted EBITDA – Adjusted EBITDA was
Full Year 2023 Financial Results
Revenue – Total revenue for the full year was
Operating Expenses and Adjusted Operating Expenses – For the full year, total operating expense was
Net Income (Loss) and Adjusted Net Income (Loss) – Net loss was
Earnings (Loss) Per Share and Adjusted EPS – GAAP net loss per share, basic and diluted, were both
Adjusted EBITDA – Adjusted EBITDA was
Credit and Operating Metrics
Net Charge-Off Rate – The Annualized Net Charge-Off Rate for the fourth quarter was 12.3%, compared to 12.8% for the prior-year quarter, and 12.2% for the full year 2023, compared to 10.1% for 2022 and 6.8% for 2021.
30+ Day Delinquency Rate – 30+ Day Delinquency Rate was 5.9% at the end of 2023, compared to 5.6% at the end of 2022. 30+ Day Delinquency Rates are presented on page 11 of the Company's Earnings Presentation available at investor.oportun.com.
Operating Efficiency and Adjusted Operating Efficiency – Operating Efficiency for the fourth quarter was 49% as compared to 58% in the prior-year quarter. Adjusted Operating Efficiency in the fourth quarter was 38%, as compared to 52% in the prior-year quarter. For the full year 2023, Operating Efficiency was 51% as compared to 75% for 2022. Adjusted Operating Efficiency for the full year 2023 was 43%, as compared to 57% for 2022. The improvement in Operating Efficiency and Adjusted Operating Efficiency reflect the Company's revenue growing more quickly than operating expenses. Adjusted Operating Efficiency excludes stock-based compensation expense and certain non-recurring charges, such as impairment charges, the Company's retail network optimization expenses, and acquisition and integration related expenses.
Return on Equity ("ROE") and Adjusted ROE – ROE for the fourth quarter was (39)%, compared to (6.1)% in the prior-year quarter. Adjusted ROE for the fourth quarter was (19)%, compared to 3.3% in the corresponding prior-year quarter. ROE for the full year 2023 was (38)%, as compared to (14)% for 2022. Adjusted ROE for the full year 2023 was (26)%, as compared to 12% for 2022.
Other Products
Secured personal loans – As of
Credit card receivables – As of
Funding and Liquidity
As of
On
On
Financial Outlook for First Quarter and Full Year 2024
1Q 2024 | Full Year 2024 | ||
Total Revenue | |||
Annualized Net Charge-Off Rate | 12.1% +/- 15 bps | 11.9% +/- 50 bps | |
Adjusted EBITDA1 | |||
1 See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, including revised Adjusted EBITDA, and the table entitled “Reconciliation of Forward Looking Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures. | |||
Conference Call
As previously announced, Oportun’s management will host a conference call to discuss fourth quarter 2023 results at 5:00 p.m. ET (
About Non-GAAP Financial Measures
This press release presents information about the Company’s Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Efficiency, Adjusted Operating Expense and Adjusted ROE, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in
About
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements as to future performance, results of operations and financial position; statements related to the effectiveness of the Company’s cost reduction measures and the impacts on the Company's business; the anticipated size, timing and effectiveness of operational efficiencies and expense reductions; strategic options regarding our credit card portfolio; our planned products and services; the ability to access diverse sources of capital; the Company's expectations regarding the sale of certain personal loan originations; achievement of the Company's strategic priorities and goals; the Company's expectations regarding macroeconomic conditions; the Company's profitability and future growth opportunities; the Company's expectations regarding the effect of tightening its underwriting standards on credit outcomes and the effect of fair value mark-to-market adjustments on its loan portfolio and asset-backed notes; the Company's first quarter and full year 2024 outlook; the Company's expectations related to future profitability on an adjusted basis, and the plans and objectives of management for our future operations, are forward-looking statements. These statements can be generally identified by terms such as “expect,” “plan,” “goal,” “target,” “anticipate,” “assume,” “predict,” “project,” “outlook,” “continue,” “due,” “may,” “believe,” “seek,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share and per share data, unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | ||||||||||||||||
Interest income | $ | 242.2 | $ | 244.1 | $ | 963.5 | $ | 876.1 | ||||||||
Non-interest income | 20.5 | 17.8 | 93.4 | 76.4 | ||||||||||||
Total revenue | 262.6 | 261.9 | 1,056.9 | 952.5 | ||||||||||||
Less: | ||||||||||||||||
Interest expense | 52.0 | 35.6 | 179.4 | 93.0 | ||||||||||||
Net decrease in fair value | (138.5 | ) | (82.9 | ) | (596.8 | ) | (218.8 | ) | ||||||||
Net revenue | 72.1 | 143.4 | 280.7 | 640.7 | ||||||||||||
Operating expenses: | ||||||||||||||||
Technology and facilities | 54.8 | 58.0 | 219.4 | 216.1 | ||||||||||||
Sales and marketing | 18.1 | 21.3 | 75.3 | 110.0 | ||||||||||||
Personnel | 25.1 | 40.3 | 121.8 | 154.9 | ||||||||||||
Outsourcing and professional fees | 11.2 | 17.5 | 45.4 | 67.6 | ||||||||||||
General, administrative and other | 20.2 | 14.1 | 72.4 | 58.8 | ||||||||||||
— | — | — | 108.5 | |||||||||||||
Total operating expenses | 129.4 | 151.4 | 534.3 | 715.9 | ||||||||||||
Income (loss) before taxes | (57.3 | ) | (7.9 | ) | (253.7 | ) | (75.3 | ) | ||||||||
Income tax expense (benefit) | (15.5 | ) | 0.5 | (73.7 | ) | 2.5 | ||||||||||
Net loss | $ | (41.8 | ) | $ | (8.4 | ) | $ | (180.0 | ) | $ | (77.7 | ) | ||||
Diluted Earnings (Loss) per Common Share | $ | (1.09 | ) | $ | (0.25 | ) | $ | (4.88 | ) | $ | (2.37 | ) | ||||
Diluted Weighted Average Common Shares | 38,485,406 | 33,231,661 | 36,875,950 | 32,825,772 |
Note: Numbers may not foot or cross-foot due to rounding.
CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) | ||||||||
2023 | 2022 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 91.2 | $ | 98.8 | ||||
Restricted cash | 114.8 | 105.0 | ||||||
Loans receivable at fair value | 2,962.4 | 3,175.4 | ||||||
Capitalized software and other intangibles | 114.7 | 139.8 | ||||||
Right of use assets - operating | 21.1 | 30.4 | ||||||
Other assets | 107.7 | 64.2 | ||||||
Total assets | $ | 3,411.9 | $ | 3,613.7 | ||||
Liabilities and stockholders' equity | ||||||||
Liabilities | ||||||||
Secured financing | $ | 290.0 | $ | 317.6 | ||||
Asset-backed notes at fair value | 1,780.0 | 2,387.7 | ||||||
Asset-backed borrowings at amortized cost | 581.5 | — | ||||||
Acquisition and corporate financing | 258.7 | 222.9 | ||||||
Lease liabilities | 28.4 | 37.9 | ||||||
Other liabilities | 68.9 | 100.0 | ||||||
Total liabilities | 3,007.5 | 3,066.1 | ||||||
Stockholders' equity | ||||||||
Common stock | — | — | ||||||
Common stock, additional paid-in capital | 584.6 | 547.8 | ||||||
Retained earnings (accumulated deficit) | (173.8 | ) | 6.1 | |||||
(6.3 | ) | (6.3 | ) | |||||
Total stockholders’ equity | 404.4 | 547.6 | ||||||
Total liabilities and stockholders' equity | $ | 3,411.9 | $ | 3,613.7 |
Note: Numbers may not foot or cross-foot due to rounding.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions, unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Cash flows from operating activities | |||||||||||||||
Net loss | $ | (41.8 | ) | $ | (8.4 | ) | $ | (180.0 | ) | $ | (77.7 | ) | |||
Adjustments for non-cash items | 139.0 | 91.7 | 585.3 | 400.3 | |||||||||||
Proceeds from sale of loans in excess of originations of loans sold and held for sale | 2.9 | (0.1 | ) | 8.5 | 6.1 | ||||||||||
Changes in balances of operating assets and liabilities | 6.2 | 5.3 | (21.1 | ) | (80.7 | ) | |||||||||
Net cash provided by operating activities | 106.3 | 88.5 | 392.8 | 247.9 | |||||||||||
Cash flows from investing activities | |||||||||||||||
Net loan principal repayments (loan originations) | (91.8 | ) | (242.4 | ) | (257.5 | ) | (1,365.9 | ) | |||||||
Proceeds from loan sales originated as held for investment | 1.3 | 1.3 | 4.1 | 249.3 | |||||||||||
Capitalization of system development costs | (6.1 | ) | (12.1 | ) | (31.3 | ) | (48.9 | ) | |||||||
Other, net | (0.2 | ) | (2.6 | ) | (1.4 | ) | (6.0 | ) | |||||||
Net cash used in investing activities | (96.8 | ) | (255.7 | ) | (286.2 | ) | (1,171.5 | ) | |||||||
Cash flows from financing activities | |||||||||||||||
Borrowings | 429.4 | 579.2 | 945.5 | 3,234.1 | |||||||||||
Repayments | (432.1 | ) | (480.1 | ) | (1,047.1 | ) | (2,290.9 | ) | |||||||
Net stock-based activities | (0.4 | ) | (0.4 | ) | (2.7 | ) | (8.7 | ) | |||||||
Net cash provided by (used in) financing activities | (3.1 | ) | 98.7 | (104.4 | ) | 934.5 | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 6.4 | (68.4 | ) | 2.2 | 10.9 | ||||||||||
Cash and cash equivalents and restricted cash beginning of period | 199.6 | 272.2 | 203.8 | 193.0 | |||||||||||
Cash and cash equivalents and restricted cash end of period | $ | 206.0 | $ | 203.8 | $ | 206.0 | $ | 203.8 |
Note: Numbers may not foot or cross-foot due to rounding.
CONSOLIDATED KEY PERFORMANCE METRICS (unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Members (Actuals) | 2,224,302 | 1,877,260 | 2,224,302 | 1,877,260 | ||||||||||||
Products (Actuals) | 2,387,745 | 2,006,245 | 2,387,745 | 2,006,245 | ||||||||||||
Aggregate Originations (Millions) | $ | 437.3 | $ | 610.4 | $ | 1,813.1 | $ | 2,922.9 | ||||||||
Portfolio Yield (%) | 32.7 | % | 31.7 | % | 32.2 | % | 32.0 | % | ||||||||
30+ Day Delinquency Rate (%) | 5.9 | % | 5.6 | % | 5.9 | % | 5.6 | % | ||||||||
Annualized Net Charge-Off Rate (%) | 12.3 | % | 12.8 | % | 12.2 | % | 10.1 | % | ||||||||
Return on Equity (%) | (39.2 | )% | (6.1 | )% | (37.8 | )% | (13.5 | )% | ||||||||
Adjusted Return on Equity (%) | (19.3 | )% | 3.3 | % | (26.1 | )% | 12.1 | % |
OTHER METRICS (unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Managed Principal Balance at End of Period (Millions) | $ | 3,182.1 | $ | 3,407.0 | $ | 3,182.1 | $ | 3,407.0 | ||||||||
Owned Principal Balance at End of Period (Millions) | $ | 2,904.7 | $ | 3,098.6 | $ | 2,904.7 | $ | 3,098.6 | ||||||||
Average Daily Principal Balance (Millions) | $ | 2,940.5 | $ | 3,058.3 | $ | 2,992.6 | $ | 2,740.3 |
Note: Numbers may not foot or cross-foot due to rounding.
ABOUT NON-GAAP FINANCIAL MEASURES (unaudited) |
This press release dated
The Company believes that the provision of these non-GAAP financial measures can provide useful measures for period-to-period comparisons of
Adjusted EBITDA
The Company defines Adjusted EBITDA as net income, adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted EBITDA is an important measure because it allows management, investors and its board of directors to evaluate and compare operating results, including return on capital and operating efficiencies, from period to period by making the adjustments described below. In addition, it provides a useful measure for period-to-period comparisons of
- The Company believes it is useful to exclude the impact of income tax expense, as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations.
- The Company believes it is useful to exclude depreciation and amortization and stock-based compensation expense because they are non-cash charges.
- The Company believes it is useful to exclude the impact of interest expense associated with the Company's corporate financing facilities, as it views this expense as related to its capital structure rather than its funding.
- The Company excludes the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, acquisition and integration related expenses and other non-recurring charges because it does not believe that these items reflect ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
- The Company also reverses origination fees for Loans Receivable at Fair Value, net. The Company believes it is beneficial to exclude the uncollected portion of such origination fees, because such amounts do not represent cash received.
- The Company also reverses the fair value mark-to-market adjustment because it is a non-cash adjustment.
Revised Adjusted EBITDA
Beginning in 2024, we will transition to an updated definition of Adjusted EBITDA which better represents how management views the results of operations and makes management decisions. Reconciliations of non-GAAP to GAAP measures, updated definitions of reconciling items, and comparative calculations for 2022 and 2023 for Adjusted EBITDA using the new definition can be found below.
Adjusted EBITDA | Rationale for Change |
Interest on Corporate Financing | We have updated the interest on corporate financing adjustment to include interest on our acquisition related financing previously included within the adjustment for acquisition and integration related expenses. |
Depreciation and amortization | We have updated the adjustment related to depreciation and amortization to include the amortization of acquired intangibles. This amortization was previously included within the adjustment for acquisition and integration related expenses. |
Acquisition and integration related expenses | We have removed the adjustment related to acquisition and integration related expenses. Interest expense related to our acquisition related financing has been reclassified to the adjustment for corporate financing. Amortization of acquired intangibles has been reclassified to depreciation and amortization. |
Origination fees for loans receivable at fair value, net | We have removed the adjustment related to origination fees for loans receivable at fair value, net as we believe this better aligns with common practices within our industry. |
Adjusted Net Income
The Company defines Adjusted Net Income as net income adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted Net Income is an important measure of operating performance because it allows management, investors, and the Company's board of directors to evaluate and compare its operating results, including return on capital and operating efficiencies, from period to period, excluding the after-tax impact of non-cash, stock-based compensation expense and certain non-recurring charges.
- The Company believes it is useful to exclude the impact of income tax expense (benefit), as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company also includes the impact of normalized income tax expense by applying a normalized statutory tax rate.
- The Company believes it is useful to exclude the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, acquisition and integration related expenses and other non-recurring charges because it does not believe that these items reflect its ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our Corporate Financing facility.
- The Company believes it is useful to exclude stock-based compensation expense because it is a non-cash charge.
Revised Adjusted Net Income (Loss)
Beginning in 2024, we will transition to an updated definition of Adjusted Net Income (Loss) which better represents how management views the results of operations and makes management decisions. Reconciliations of non-GAAP to GAAP measures, updated definitions of reconciling items, and comparative calculations for 2022 and 2023 for Adjusted Net Income (Loss) using the new definitions can be found below.
Adjusted Net Income (Loss) | Rationale for Change |
Acquisition and integration related expenses | We have removed the adjustment related to acquisition and integration related expenses. Interest expense related to our acquisition related financing has been reclassified to the adjustment for Corporate Financing. Amortization of acquired intangibles has been reclassified to depreciation and amortization. |
Fair value mark-to-market adjustment on Asset-Backed Notes at Fair Value | We have added an adjustment to exclude the Fair value mark-to-market adjustments related to Asset-Backed Notes at Fair Value. This adjustment aligns with our decision in 2023 to stop electing the fair value option for new debt financings. By the end of 2025 nearly all our existing Asset-Backed Notes at Fair Value will have paid down to zero, so after that there will be no mark-to-market adjustment for our debt. |
Adjusted Operating Efficiency and Adjusted Operating Expense
The Company defines Adjusted Operating Efficiency as Adjusted Operating Expense divided by total revenue. The Company defines Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges, such as expenses associated with our workforce optimization, acquisition and integration related expenses and other non-recurring charges. Other non-recurring charges include litigation reserve, impairment charges, and debt amendment costs related to our Corporate Financing facility. The Company believes Adjusted Operating Efficiency is an important measure because it allows management, investors and
Adjusted Return on Equity
The Company defines Adjusted Return on Equity (“ROE”) as annualized Adjusted Net Income divided by average stockholders’ equity. Average stockholders’ equity is an average of the beginning and ending stockholders’ equity balance for each period. The Company believes Adjusted ROE is an important measure because it allows management, investors and its board of directors to evaluate the profitability of the business in relation to its stockholders' equity and how efficiently it generates income from stockholders' equity.
Adjusted EPS
The Company defines Adjusted EPS as Adjusted Net Income divided by weighted average diluted shares outstanding.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Adjusted EBITDA | 2023 | 2022 | ||||||||||||||
Reported | Revised | Reported | Revised | |||||||||||||
Net income (loss) | $ | (41.8 | ) | $ | (41.8 | ) | $ | (8.4 | ) | $ | (8.4 | ) | ||||
Adjustments: | ||||||||||||||||
Income tax expense (benefit) | (15.5 | ) | (15.5 | ) | 0.5 | 0.5 | ||||||||||
Interest on corporate financing (1) | 11.2 | 14.6 | 5.1 | 8.5 | ||||||||||||
Depreciation and amortization | 10.8 | 13.8 | 9.9 | 12.9 | ||||||||||||
Stock-based compensation expense | 4.8 | 4.8 | 6.9 | 6.9 | ||||||||||||
Workforce optimization expenses | 6.8 | 6.8 | — | — | ||||||||||||
Acquisition and integration related expenses | 6.6 | — | 7.3 | 0.9 | ||||||||||||
Other non-recurring charges (1) | 10.8 | 10.8 | — | — | ||||||||||||
Origination fees for Loans Receivable at Fair Value, net | (4.0 | ) | — | (9.1 | ) | — | ||||||||||
Fair value mark-to-market adjustment | 16.4 | 16.4 | (45.6 | ) | (45.6 | ) | ||||||||||
Adjusted EBITDA | $ | 6.1 | $ | 9.9 | $ | (33.5 | ) | $ | (24.4 | ) | ||||||
Twelve Months Ended | ||||||||||||||||
Adjusted EBITDA | 2023 | 2022 | ||||||||||||||
Reported | Revised | Reported | Revised | |||||||||||||
Net income (loss) | $ | (180.0 | ) | $ | (180.0 | ) | $ | (77.7 | ) | $ | (77.7 | ) | ||||
Adjustments: | ||||||||||||||||
Income tax expense (benefit) | (73.7 | ) | (73.7 | ) | 2.5 | 2.5 | ||||||||||
Interest on corporate financing (1) | 37.7 | 51.8 | 6.0 | 17.6 | ||||||||||||
Depreciation and amortization | 43.0 | 54.9 | 35.2 | 47.4 | ||||||||||||
Stock-based compensation expense | 18.0 | 18.0 | 27.6 | 27.6 | ||||||||||||
Workforce optimization expenses | 22.5 | 22.5 | 1.9 | 1.9 | ||||||||||||
Acquisition and integration related expenses | 27.6 | — | 29.7 | 5.8 | ||||||||||||
Other non-recurring charges (1) | 15.5 | 15.5 | 111.2 | 111.2 | ||||||||||||
Origination fees for Loans Receivable at Fair Value, net | (18.5 | ) | — | (26.8 | ) | — | ||||||||||
Fair value mark-to-market adjustment | 109.5 | 109.5 | (119.7 | ) | (119.7 | ) | ||||||||||
Adjusted EBITDA | $ | 1.7 | $ | 18.6 | $ | (10.3 | ) | $ | 16.6 |
Three Months Ended | ||||||||||||||||
Adjusted Net Income | 2023 | 2022 | ||||||||||||||
Reported | Revised | Reported | Revised | |||||||||||||
Net income (loss) | $ | (41.8 | ) | $ | (41.8 | ) | $ | (8.4 | ) | $ | (8.4 | ) | ||||
Adjustments: | ||||||||||||||||
Income tax expense (benefit) | (15.5 | ) | (15.5 | ) | 0.5 | 0.5 | ||||||||||
Stock-based compensation expense | 4.8 | 4.8 | 6.9 | 6.9 | ||||||||||||
Workforce optimization expenses | 6.8 | 6.8 | — | — | ||||||||||||
Acquisition and integration related expenses | 6.6 | — | 7.3 | 0.9 | ||||||||||||
Other non-recurring charges (1) | 10.8 | 10.8 | — | — | ||||||||||||
Mark-to-market adjustment on ABS notes | — | 23.6 | — | (21.0 | ) | |||||||||||
Adjusted income before taxes | (28.3 | ) | (11.3 | ) | 6.3 | (21.1 | ) | |||||||||
Normalized income tax expense | (7.6 | ) | (3.0 | ) | 1.7 | (5.7 | ) | |||||||||
Adjusted Net Income | $ | (20.6 | ) | $ | (8.2 | ) | $ | 4.6 | $ | (15.4 | ) |
Twelve Months Ended | ||||||||||||||||
Adjusted Net Income | 2023 | 2022 | ||||||||||||||
Reported | Revised | Reported | Revised | |||||||||||||
Net income (loss) | $ | (180.0 | ) | $ | (180.0 | ) | $ | (77.7 | ) | $ | (77.7 | ) | ||||
Adjustments: | ||||||||||||||||
Income tax expense (benefit) | (73.7 | ) | (73.7 | ) | 2.5 | 2.5 | ||||||||||
Stock-based compensation expense | 18.0 | 18.0 | 27.6 | 27.6 | ||||||||||||
Workforce optimization expenses | 22.5 | 22.5 | 1.9 | 1.9 | ||||||||||||
Acquisition and integration related expenses | 27.6 | — | 29.7 | 5.8 | ||||||||||||
Other non-recurring charges (1) | 15.5 | 15.5 | 111.2 | 111.2 | ||||||||||||
Mark-to-market adjustment on ABS notes | — | 100.0 | — | (184.9 | ) | |||||||||||
Adjusted income before taxes | (170.0 | ) | (97.7 | ) | 95.1 | (113.6 | ) | |||||||||
Normalized income tax expense | (45.9 | ) | (26.4 | ) | 25.7 | (30.7 | ) | |||||||||
Adjusted Net Income | $ | (124.1 | ) | $ | (71.3 | ) | $ | 69.4 | $ | (82.9 | ) |
Note: Numbers may not foot or cross-foot due to rounding.
(1) Certain prior-period financial information has been reclassified to conform to current period presentation.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
Adjusted Operating Efficiency | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Operating Efficiency | 49.3 | % | 57.8 | % | 50.6 | % | 75.2 | % | ||||||||
Total Revenue | $ | 262.6 | $ | 261.9 | $ | 1,056.9 | $ | 952.5 | ||||||||
Total Operating Expense | $ | 129.4 | $ | 151.4 | $ | 534.3 | $ | 715.9 | ||||||||
Adjustments: | ||||||||||||||||
Stock-based compensation expense | (4.8 | ) | (6.9 | ) | (18.0 | ) | (27.6 | ) | ||||||||
Workforce optimization expenses | (6.8 | ) | — | (22.5 | ) | (1.9 | ) | |||||||||
Acquisition and integration related expenses | (6.6 | ) | (7.3 | ) | (27.6 | ) | (29.7 | ) | ||||||||
Other non-recurring charges (1) | (10.5 | ) | — | (14.4 | ) | (111.2 | ) | |||||||||
Total Adjusted Operating Expense | $ | 100.7 | $ | 137.2 | $ | 451.8 | $ | 545.5 | ||||||||
Adjusted Operating Efficiency | 38.4 | % | 52.4 | % | 42.7 | % | 57.3 | % |
Note: Numbers may not foot or cross-foot due to rounding.
(1) Certain prior-period financial information has been reclassified to conform to current period presentation.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except share and per share data, unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
GAAP Earnings (loss) per Share | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net income (loss) | $ | (41.8 | ) | $ | (8.4 | ) | $ | (180.0 | ) | $ | (77.7 | ) | ||||
Net income (loss) attributable to common stockholders | $ | (41.8 | ) | $ | (8.4 | ) | $ | (180.0 | ) | $ | (77.7 | ) | ||||
Basic weighted-average common shares outstanding | 38,485,406 | 33,231,661 | 36,875,950 | 32,825,772 | ||||||||||||
Weighted average effect of dilutive securities: | ||||||||||||||||
Stock options | — | — | — | — | ||||||||||||
Restricted stock units | — | — | — | — | ||||||||||||
Diluted weighted-average common shares outstanding | 38,485,406 | 33,231,661 | 36,875,950 | 32,825,772 | ||||||||||||
Earnings (loss) per share: | ||||||||||||||||
Basic | $ | (1.09 | ) | $ | (0.25 | ) | $ | (4.88 | ) | $ | (2.37 | ) | ||||
Diluted | $ | (1.09 | ) | $ | (0.25 | ) | $ | (4.88 | ) | $ | (2.37 | ) |
Three Months Ended | Twelve Months Ended | |||||||||||||||
Adjusted Earnings (loss) Per Share | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Diluted earnings (loss) per share | $ | (1.09 | ) | $ | (0.25 | ) | $ | (4.88 | ) | $ | (2.37 | ) | ||||
Adjusted Net Income | $ | (20.6 | ) | $ | 4.6 | $ | (124.1 | ) | $ | 69.4 | ||||||
Basic weighted-average common shares outstanding | 38,485,406 | 33,231,661 | 36,875,950 | 32,825,772 | ||||||||||||
Weighted average effect of dilutive securities: | ||||||||||||||||
Stock options | — | 29,322 | — | 252,357 | ||||||||||||
Restricted stock units | — | 66,569 | — | 173,092 | ||||||||||||
Diluted adjusted weighted-average common shares outstanding | 38,485,406 | 33,327,552 | 36,875,950 | 33,251,221 | ||||||||||||
Adjusted Earnings (loss) Per Share | $ | (0.54 | ) | $ | 0.14 | $ | (3.37 | ) | $ | 2.09 |
Note: Numbers may not foot or cross-foot due to rounding.
RECONCILIATION OF FORWARD LOOKING NON-GAAP FINANCIAL MEASURES (in millions, unaudited) | |||||||||||||||||
1Q 2024 | FY 2024 | ||||||||||||||||
Low | High | Low | High | ||||||||||||||
Adjusted EBITDA | |||||||||||||||||
Net (loss)* | $ | (35.8 | ) | * | $ | (34.2 | ) | * | $ | (54.2 | ) | * | $ | (46.3 | ) | * | |
Adjustments: | |||||||||||||||||
Income tax expense (benefit) | (14.7 | ) | (14.3 | ) | (12.9 | ) | (10.8 | ) | |||||||||
Interest on corporate financing | 13.4 | 13.4 | 48.7 | 48.7 | |||||||||||||
Depreciation and amortization | 13.3 | 13.3 | 50.9 | 50.9 | |||||||||||||
Stock-based compensation expense | 5.4 | 5.4 | 18.5 | 18.5 | |||||||||||||
Workforce optimization expenses | 0.8 | 0.8 | 0.8 | 0.8 | |||||||||||||
Other non-recurring charges | 3.6 | 3.6 | 8.2 | 8.2 | |||||||||||||
Fair value mark-to-market adjustment* | * | * | * | * | |||||||||||||
Adjusted EBITDA | $ | (14.0 | ) | $ | (12.0 | ) | $ | 60.0 | $ | 70.0 | |||||||
* Due to the uncertainty in macroeconomic conditions, we are unable to precisely forecast the fair value mark-to-market adjustments on our loan portfolio and asset-backed notes. As a result, while we fully expect there to be a fair value mark-to-market adjustment which could have an impact on GAAP net income (loss), the net income (loss) number shown above assumes no change in the fair value mark-to-market adjustment.
Note: Numbers may not foot or cross-foot due to rounding.
Investor ContactDorian Hare (650) 590-4323 ir@oportun.com Media Contact Usher Lieberman (650) 769-9414 usher.lieberman@oportun.com
Source:
2024 GlobeNewswire, Inc., source