Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ:
KPLT), an e-commerce-focused financial technology company, today
reported its financial results for the second quarter ended June
30, 2023.
“During the quarter, our team continued to build the foundation
for sustainable, profitable growth,” said Orlando Zayas, CEO of
Katapult. “Our financial results were strong; year-over-year, we
grew gross originations by 18% and revenue by nearly 3%, and we
improved our Adjusted EBITDA performance by more than $5 million.
We believe we offer merchants a unique growth channel by providing
access to an underserved and loyal base of consumers. At the same
time, we provide consumers with a lease-to-own product that allows
them to gain access to the durable goods they need at fair and
transparent pricing terms. With these strong value propositions, we
are well positioned to grow both our merchant base and our customer
base profitably, and create a flywheel for sustainable, profitable
growth. We look forward to continuing to unlock the power of our
business model while focusing on our mission to help an underserved
community gain access to critical financial resources while driving
growth for our merchant partners.”
Second Quarter
2023 Financial and Operational
Highlights:
(All comparisons are year-over-year unless stated
otherwise.)
- Gross originations were $54.7 million,
an increase of 18.0%.
- Approximately 51% of gross originations for the second quarter
of 2023 came from repeat customers1.
- Total revenue was $54.6 million, an increase of 2.9%.
- Net loss was $6.4 million for the second quarter of 2023 which
compares favorably to net loss of $10.3 million reported for the
second quarter of 2022. Net loss improvement in the second quarter
of 2023 was driven primarily by an increase in total revenue and
decrease in operating expenses resulting from the completion of our
operating expense reduction initiative. Total operating expenses in
the second quarter of 2023 were down 16.5% and fixed cash operating
expenses were down approximately 24.6%.
- Adjusted net loss2 improved to $4.5 million for the second
quarter of 2023 compared with an adjusted net loss of $10.8 million
reported for the second quarter of 2022.
- Adjusted EBITDA2 loss improved to $0.3 million for the second
quarter of 2023 compared to an Adjusted EBITDA2 loss of $5.3
million in the prior year period.
- Katapult ended the quarter with total cash and cash equivalents
of $38.2 million.
- Customer satisfaction remained high and Katapult had a Net
Promoter Score of 64 as of June 30, 2023.
- Writeoffs as a percentage of
revenue were 9.2% in the second quarter of 2023 compared to 8.4% in
the first quarter of 2023. This increase was due to seasonal
patterns and trends and remains within the Company’s 8 to 10%
long-term target range.
[1] Repeat rate is defined as the percentage of originations
from existing customers.
[2] Please refer to the “Reconciliation of Non-GAAP Measure and
Certain Other Data” section and the GAAP to non-GAAP reconciliation
tables below for more information.
Third Quarter 2023 Business
Outlook
The Company continues to navigate an evolving macro environment.
While there are tailwinds such as better inflation data and a
reduced likelihood of a recession in the U.S., interest rates
remain elevated, lending standards are tight and the potential
resumption of student loan repayment requirements may impact
consumers’ abilities to take on new leases. However, lease-to-own
solutions have historically benefited when prime credit options
become less available. Based on these dynamics and the operating
plan in place for the second half of 2023, in the third quarter of
2023 Katapult expects to deliver:
- A 14%-16% year-over-year increase in
gross originations.
- A 5-7% year-over-year increase in revenue. As a reminder, there
is a lag between new gross originations and revenue. Based on this,
the Company expects to see the revenue benefit from gross
originations recorded this quarter in future quarters.
- Meaningful improvement in its
Adjusted EBITDA performance compared with the third quarter of last
year, reflecting both its revenue growth expectation and a further
reduction of fixed cash operating expenses. Fixed cash operating
expenses are expected to be down approximately 25%
year-over-year.
"We delivered strong financial performance in the first half of
2023 and are well positioned heading into the second half of the
year,” said Nancy Walsh, CFO of Katapult. “During the second
quarter, we saw continued momentum in our gross originations and
steady revenue growth, and this topline progress coupled with our
streamlined cost structure allowed us to improve our Adjusted
EBITDA substantially year-over-year.”
Conference Call and Webcast
The Company will host a conference call and webcast at 8:00 AM
ET on Wednesday, August 9, 2023, to discuss the Company’s financial
results. Related presentation materials will be available before
the call on the Company’s Investor Relations page at
https://ir.katapultholdings.com. The conference call will be
broadcast live in listen-only mode and an archive of the webcast
will be available for one year.
About Katapult
Katapult is a technology driven lease-to-own platform that
integrates with omni-channel retailers and e-commerce platforms to
power the purchasing of everyday durable goods for underserved U.S.
non-prime consumers. Through our point-of-sale (POS) integrations
and innovative, mobile app featuring Katapult PayTM, consumers who
may be unable to access traditional financing can shop a growing
network of merchant partners. Our process is simple, fast, and
transparent. We believe that seeing the good in people is good for
business, humanizing the way underserved consumers get the things
they need with payment solutions based on fairness and dignity.
Contact
Jennifer KullVP of Investor Relations
ir@katapult.com
Forward-Looking Statements
Certain statements included in this Press
Release that are not historical facts are forward-looking
statements for purposes of the safe harbor provisions under the
United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally are accompanied by words such
as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,”
“intend,” “expect,” “should,” “would,” “plan,” “predict,”
“potential,” “seem,” “seek,” “future,” “outlook,” and similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding our third quarter 2023 business outlook and
our ability to weather the macroeconomic headwinds, including that
lease-to-own solutions function as a countercyclical hedge, and our
ability to drive revenue growth and profitability. These statements
are based on various assumptions, whether or not identified in this
Press Release, and on the current expectations of Katapult’s
management and are not predictions of actual performance.
These forward-looking statements are provided
for illustrative purposes only and are not intended to serve as, a
guarantee, an assurance, a prediction or a definitive statement of
fact or probability. Actual events and circumstances are difficult
or impossible to predict and will differ from assumptions. Many
actual events and circumstances are beyond the control of Katapult.
These forward-looking statements are subject to a number of risks
and uncertainties, including execution of Katapult’s business
strategy, launching new product offerings, new brands and expanding
information and technology capabilities; Katapult’s market
opportunity and its ability to acquire new customers and retain
existing customers; the timing and impact of our growth initiatives
on our future financial performance and the impact of our new
executive hires and brand strategy; anticipated occurrence and
timing of prime lending tightening and impact on our results of
operations; adoption and success of our new mobile application
featuring, Katapult Pay™, general economic conditions in the
markets where Katapult operates, the cyclical nature of consumer
spending, and seasonal sales and spending patterns of customers;
risks relating to factors affecting consumer spending that are not
under Katapult’s control, including, among others, levels of
employment, disposable consumer income, inflation, prevailing
interest rates, consumer debt and availability of credit, pandemics
(such as COVID-19), consumer confidence in future economic
conditions and political conditions, and consumer perceptions of
personal well-being and security; risks relating to uncertainty of
Katapult’s estimates of market opportunity and forecasts of market
growth; risks related to the concentration of a significant portion
of our transaction volume with a single merchant partner, or type
of merchant or industry; the effects of competition on Katapult’s
future business; unstable market and economic conditions, including
as a result of the conflict involving Russia and Ukraine;
reliability of Katapult’s platform and effectiveness of its risk
model; protection of confidential, proprietary or sensitive
information, including confidential information about consumers,
and privacy or data breaches, including by cyber-attacks or similar
disruptions; ability to attract and retain employees, executive
officers or directors; meeting future liquidity requirements and
complying with restrictive covenants related to long-term
indebtedness; effectively respond to general economic and business
conditions; obtain additional capital, including equity or debt
financing; ability to service our indebtedness; anticipate rapid
technological changes; comply with laws and regulations applicable
to Katapult’s business, including laws and regulations related to
rental purchase transactions; stay abreast of modified or new laws
and regulations applying to Katapult’s business, including rental
purchase transactions and privacy regulations; maintain
relationships with merchant partners; respond to uncertainties
associated with product and service developments and market
acceptance; anticipate the impact of new U.S. federal income tax
law; that Katapult has identified material weaknesses in its
internal control over financial reporting which, if not remediated,
could affect the reliability of its consolidated financial
statements; successfully defend litigation; litigation, regulatory
matters, complaints, adverse publicity and/or misconduct by
employees, vendors and/or service providers; and other events or
factors, including those resulting from civil unrest, war, foreign
invasions (including the conflict involving Russia and Ukraine),
terrorism, or public health crises, or responses to such events;
and those factors discussed in greater detail in the section
entitled “Risk Factors” in Katapult’s periodic reports filed with
the Securities and Exchange Commission (“SEC”), including
Katapult’s Annual Report on Form 10-K for the year ended December
31, 2022 and the Quarterly Report on Form 10-Q for the quarter
ended June 30, 2023.
If any of these risks materialize or our
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that Katapult does not presently know or
that Katapult currently believes are immaterial that could also
cause actual results to differ from those contained in the
forward-looking statements. Undue reliance should not be placed on
the forward-looking statements in this Press Release. All
forward-looking statements contained herein are based on
information available to Katapult as of the date hereof, and
Katapult does not assume any obligation to update these statements
as a result of new information or future events, except as required
by law.
Key Performance Metrics
Katapult regularly reviews several metrics,
including the following key metrics, to evaluate its business,
measure its performance, identify trends affecting our business,
formulate financial projections and make strategic decisions, which
may also be useful to an investor: gross originations, total
revenue, gross profit, adjusted gross profit and adjusted
EBITDA.
Gross originations are defined as the retail
price of the merchandise associated with lease-purchase agreements
entered into during the period through the Katapult platform. Gross
originations do not represent revenue earned. However, we believe
this is a useful operating metric for both Katapult’s management
and investors to use in assessing the volume of transactions that
take place on Katapult’s platform.
Total revenue represents the summation of rental
revenue and other revenue. Katapult measures this metric to assess
the total view of paythrough performance of its customers.
Management believes looking at these components is useful to an
investor as it helps to understand the total payment performance of
customers.
Gross profit represents total revenue less cost
of revenue, and is a measure presented in accordance with generally
accepted accounting principles in the United States ("GAAP"). See
the “Non-GAAP Financial Measures” section below for a description
and presentation of adjusted gross profit and adjusted EBITDA,
which are non-GAAP measures utilized by management.
Non-GAAP Financial Measures
To supplement the financial measures presented
in this press release and related conference call or webcast in
accordance with GAAP, the Company also presents the following
non-GAAP and other measures of financial performance: adjusted
gross profit, adjusted EBITDA, adjusted net loss and fixed cash
operating expenses. The Company urges investors to consider
non-GAAP measures only in conjunction with its GAAP financials and
to review the reconciliation of the Company’s non-GAAP financial
measures to its comparable GAAP financial measures, which are
included in this press release.
Adjusted gross profit represents gross profit
less variable operating expenses, which are servicing costs, and
underwriting fees. Management believes that adjusted gross profit
provides a meaningful understanding of one aspect of its
performance specifically attributable to total revenue and the
variable costs associated with total revenue.
Adjusted EBITDA is a non-GAAP measure that is
defined as net loss before interest expense and other fees,
interest income, change in fair value of warrant liability, loss on
partial extinguishment of debt, provision for income taxes,
depreciation and amortization on property and equipment and
capitalized software, impairment of leased assets and stock-based
compensation expense.
Adjusted net loss is a non-GAAP measure that is
defined as net loss before change in fair value of warrant
liability and stock-based compensation expense.
Fixed cash operating expenses is a non-GAAP measure that is
defined as operating expenses less variable lease costs such as
underwriting fees and servicing costs, as well as non-cash
equity-based compensation expenses. Management believes that fixed
cash operating expenses provides a meaningful understanding of
controllable ongoing expenses.
Adjusted gross profit, adjusted EBITDA and
adjusted net loss are useful to an investor in evaluating the
Company’s performance because these measures:
- Are widely used to
measure a company’s operating performance;
- Are financial measurements that are
used by rating agencies, lenders and other parties to evaluate the
Company’s credit worthiness; and
- Are used by the
Company’s management for various purposes, including as measures of
performance and as a basis for strategic planning and
forecasting.
Management believes the use of non-GAAP financial measures, as a
supplement to GAAP measures, is useful to investors in that they
eliminate items that are not part of our core operations, highly
variable or do not require a cash outlay, such as stock-based
compensation expense. Management uses these non-GAAP financial
measures when evaluating operating performance and for internal
planning and forecasting purposes. Management believes that these
non-GAAP financial measures help indicate underlying trends in the
business, are important in comparing current results with prior
period results and are useful to investors and financial analysts
in assessing operating performance. However, these non-GAAP
measures exclude items that are significant in understanding and
assessing Katapult’s financial results. Therefore, these measures
should not be considered in isolation or as alternatives to
revenue, net loss, gross profit, cash flows from operations or
other measures of profitability, liquidity or performance under
GAAP. You should be aware that Katapult’s presentation of these
measures may not be comparable to similarly titled measures used by
other companies.
Reverse Stock Split
All share and per share amounts in the condensed consolidated
statements of operations and comprehensive loss and condensed
consolidated balance sheets have been retroactively adjusted for
all periods presented to give effect to the reverse stock split
that was effective as of 5:00 p.m. on July 27, 2023.
KATAPULT HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS (amounts in
thousands, except per share
data)(unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
Rental revenue |
$ |
53,874 |
|
|
$ |
51,911 |
|
|
$ |
108,598 |
|
|
$ |
110,815 |
|
Other revenue |
|
697 |
|
|
|
1,128 |
|
|
|
1,649 |
|
|
|
2,102 |
|
Total revenue |
|
54,571 |
|
|
|
53,039 |
|
|
|
110,247 |
|
|
|
112,917 |
|
Cost of revenue |
|
43,874 |
|
|
|
44,849 |
|
|
|
86,047 |
|
|
|
92,962 |
|
Gross profit |
|
10,697 |
|
|
|
8,190 |
|
|
|
24,200 |
|
|
|
19,955 |
|
Operating expenses: |
|
|
|
|
|
|
|
Servicing costs |
|
1,103 |
|
|
|
1,131 |
|
|
|
2,093 |
|
|
|
2,337 |
|
Underwriting fees |
|
480 |
|
|
|
423 |
|
|
|
948 |
|
|
|
910 |
|
Professional and consulting
fees |
|
1,623 |
|
|
|
2,259 |
|
|
|
4,278 |
|
|
|
5,547 |
|
Technology and data
analytics |
|
1,959 |
|
|
|
2,455 |
|
|
|
3,624 |
|
|
|
4,864 |
|
Compensation costs |
|
5,768 |
|
|
|
6,470 |
|
|
|
12,825 |
|
|
|
11,847 |
|
General and
administrative |
|
2,746 |
|
|
|
3,649 |
|
|
|
5,680 |
|
|
|
7,459 |
|
Total operating expenses |
|
13,679 |
|
|
|
16,387 |
|
|
|
29,448 |
|
|
|
32,964 |
|
Loss from operations |
|
(2,982 |
) |
|
|
(8,197 |
) |
|
|
(5,248 |
) |
|
|
(13,009 |
) |
Loss on partial extinguishment
of debt |
|
— |
|
|
|
— |
|
|
|
(2,391 |
) |
|
|
— |
|
Interest expense and other
fees |
|
(4,098 |
) |
|
|
(4,405 |
) |
|
|
(9,287 |
) |
|
|
(8,686 |
) |
Interest income |
|
427 |
|
|
|
— |
|
|
|
1,047 |
|
|
|
— |
|
Change in fair value of
warrant liability |
|
257 |
|
|
|
2,323 |
|
|
|
389 |
|
|
|
5,412 |
|
Loss before income taxes |
|
(6,396 |
) |
|
|
(10,279 |
) |
|
|
(15,490 |
) |
|
|
(16,283 |
) |
Provision for income
taxes |
|
(14 |
) |
|
|
(65 |
) |
|
|
(34 |
) |
|
|
(100 |
) |
Net loss |
$ |
(6,410 |
) |
|
$ |
(10,344 |
) |
|
$ |
(15,524 |
) |
|
$ |
(16,383 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - basic and diluted |
|
4,073 |
|
|
|
3,918 |
|
|
|
4,023 |
|
|
|
3,921 |
|
|
|
|
|
|
|
|
|
Net loss per common share -
basic and diluted |
$ |
(1.57 |
) |
|
$ |
(2.64 |
) |
|
$ |
(3.86 |
) |
|
$ |
(4.18 |
) |
KATAPULT HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(dollars in thousands, except per share
data)(unaudited)
|
June 30, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
38,228 |
|
|
$ |
65,430 |
|
Restricted cash |
|
3,343 |
|
|
|
4,411 |
|
Property held for lease, net
of accumulated depreciation and impairment |
|
54,352 |
|
|
|
50,278 |
|
Prepaid expenses and other
current assets |
|
6,485 |
|
|
|
8,515 |
|
Total current assets |
|
102,408 |
|
|
|
128,634 |
|
Property and equipment,
net |
|
471 |
|
|
|
557 |
|
Security deposits |
|
91 |
|
|
|
91 |
|
Capitalized software and
intangible assets, net |
|
2,021 |
|
|
|
1,847 |
|
Right-of-use assets |
|
574 |
|
|
|
772 |
|
Total assets |
$ |
105,565 |
|
|
$ |
131,901 |
|
LIABILITIES AND
STOCKHOLDERS' (DEFICIT) EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
974 |
|
|
$ |
1,264 |
|
Accrued liabilities |
|
14,588 |
|
|
|
14,532 |
|
Term loan |
|
— |
|
|
|
25,000 |
|
Unearned revenue |
|
1,988 |
|
|
|
1,552 |
|
Lease liabilities |
|
304 |
|
|
|
382 |
|
Total current liabilities |
|
17,854 |
|
|
|
42,730 |
|
Revolving line of credit |
|
63,538 |
|
|
|
57,639 |
|
Term loan, non-current |
|
23,644 |
|
|
|
23,057 |
|
Other liabilities |
|
513 |
|
|
|
902 |
|
Lease liabilities,
non-current |
|
296 |
|
|
|
445 |
|
Total liabilities |
|
105,845 |
|
|
|
124,773 |
|
STOCKHOLDERS' (DEFICIT)
EQUITY |
|
|
|
Common stock, $.0001 par
value-- 250,000,000 shares authorized; 4,021,614 and 3,943,423
shares issued and outstanding at June 30, 2023 and December 31,
2022, respectively |
|
— |
|
|
|
— |
|
Additional paid-in
capital |
|
91,920 |
|
|
|
83,804 |
|
Accumulated deficit |
|
(92,200 |
) |
|
|
(76,676 |
) |
Total stockholders' (deficit)
equity |
|
(280 |
) |
|
|
7,128 |
|
Total liabilities and
stockholders' (deficit) equity |
$ |
105,565 |
|
|
$ |
131,901 |
|
KATAPULT HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(dollars in
thousands)(unaudited)
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(15,524 |
) |
|
$ |
(16,383 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Depreciation and
amortization |
|
59,646 |
|
|
|
62,438 |
|
Net book value of property
buyouts |
|
12,921 |
|
|
|
19,040 |
|
Impairment expense |
|
10,515 |
|
|
|
7,490 |
|
Change in fair value of
warrants liability |
|
(389 |
) |
|
|
(5,412 |
) |
Stock-based compensation |
|
4,303 |
|
|
|
2,946 |
|
Loss on partial extinguishment
of debt |
|
2,391 |
|
|
|
— |
|
Amortization of debt
discount |
|
1,592 |
|
|
|
2,107 |
|
Amortization of debt issuance
costs, net |
|
145 |
|
|
|
181 |
|
Accrued PIK Interest |
|
864 |
|
|
|
785 |
|
Amortization of right-of-use
assets |
|
198 |
|
|
|
179 |
|
Change in operating assets and
liabilities: |
|
|
|
Property held for lease |
|
(86,725 |
) |
|
|
(72,844 |
) |
Prepaid expenses and other
current assets |
|
2,030 |
|
|
|
(397 |
) |
Accounts payable |
|
(290 |
) |
|
|
(277 |
) |
Accrued liabilities |
|
(437 |
) |
|
|
(899 |
) |
Lease liabilities |
|
(227 |
) |
|
|
(201 |
) |
Unearned revenues |
|
436 |
|
|
|
(512 |
) |
Net cash used in operating
activities |
|
(8,551 |
) |
|
|
(1,759 |
) |
Cash flows from investing
activities: |
|
|
|
Purchases of property and
equipment |
|
— |
|
|
|
(153 |
) |
Additions to capitalized
software |
|
(519 |
) |
|
|
(845 |
) |
Net cash used in investing
activities |
|
(519 |
) |
|
|
(998 |
) |
Cash flows from financing
activities: |
|
|
|
Proceeds from revolving line
of credit |
|
9,380 |
|
|
|
9,935 |
|
Principal repayments on
revolving line of credit |
|
(3,311 |
) |
|
|
(16,171 |
) |
Principal repayment on term
loan |
|
(25,000 |
) |
|
|
— |
|
Payments of deferred financing
costs |
|
(22 |
) |
|
|
— |
|
Repurchases of restricted
stock |
|
(247 |
) |
|
|
(244 |
) |
Proceeds from exercise of
stock options |
|
— |
|
|
|
60 |
|
Net cash used in financing
activities |
|
(19,200 |
) |
|
|
(6,420 |
) |
Net decrease in cash, cash
equivalents and restricted cash |
|
(28,270 |
) |
|
|
(9,177 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
69,841 |
|
|
|
96,431 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
41,571 |
|
|
$ |
87,254 |
|
|
|
|
|
Supplemental
disclosure of cash flow information: |
|
|
|
Cash paid for interest |
$ |
6,602 |
|
|
$ |
5,200 |
|
Cash paid for income
taxes |
$ |
108 |
|
|
$ |
362 |
|
Debt issuance cost included in
accrued liabilities |
$ |
493 |
|
|
$ |
— |
|
Issuance of warrants to
purchase common stock in connection with debt refinancing |
$ |
4,060 |
|
|
$ |
— |
|
Right-of-use assets obtained
in exchange for operating lease liabilities |
$ |
— |
|
|
$ |
1,139 |
|
Cash paid for operating
leases |
$ |
260 |
|
|
$ |
254 |
|
KATAPULT HOLDINGS, INC.RECONCILIATION
OF NON-GAAP MEASURES AND CERTAIN OTHER DATA
(UNAUDITED)(amounts in
thousands)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Total revenue |
$ |
54,571 |
|
$ |
53,039 |
|
$ |
110,247 |
|
$ |
112,917 |
Cost of revenue |
|
43,874 |
|
|
44,849 |
|
|
86,047 |
|
|
92,962 |
Gross profit |
|
10,697 |
|
|
8,190 |
|
|
24,200 |
|
|
19,955 |
Less: |
|
|
|
|
|
|
|
Servicing costs |
|
1,103 |
|
|
1,131 |
|
|
2,093 |
|
|
2,337 |
Underwriting fees |
|
480 |
|
|
423 |
|
|
948 |
|
|
910 |
Adjusted Gross
Profit |
$ |
9,114 |
|
$ |
6,636 |
|
$ |
21,159 |
|
$ |
16,708 |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(6,410 |
) |
|
$ |
(10,344 |
) |
|
$ |
(15,524 |
) |
|
$ |
(16,383 |
) |
Interest expense and other
fees |
|
4,098 |
|
|
|
4,405 |
|
|
|
9,287 |
|
|
|
8,686 |
|
Interest income |
|
(427 |
) |
|
|
— |
|
|
|
(1,047 |
) |
|
|
— |
|
Change in fair value of
warrant liability |
|
(257 |
) |
|
|
(2,323 |
) |
|
|
(389 |
) |
|
|
(5,412 |
) |
Provision for income
taxes |
|
14 |
|
|
|
65 |
|
|
|
34 |
|
|
|
100 |
|
Depreciation and amortization
on property and equipment and capitalized software |
|
235 |
|
|
|
186 |
|
|
|
432 |
|
|
|
308 |
|
Impairment of leased
assets |
|
254 |
|
|
|
866 |
|
|
|
806 |
|
|
|
315 |
|
Loss on partial extinguishment
of debt |
|
— |
|
|
|
— |
|
|
|
2,391 |
|
|
|
— |
|
Stock-based compensation
expense |
|
2,213 |
|
|
|
1,857 |
|
|
|
4,303 |
|
|
|
2,946 |
|
Adjusted
EBITDA |
$ |
(280 |
) |
|
$ |
(5,288 |
) |
|
$ |
293 |
|
|
$ |
(9,440 |
) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(6,410 |
) |
|
$ |
(10,344 |
) |
|
$ |
(15,524 |
) |
|
$ |
(16,383 |
) |
Change in fair value of
warrant liability |
|
(257 |
) |
|
|
(2,323 |
) |
|
|
(389 |
) |
|
|
(5,412 |
) |
Stock-based compensation
expense |
|
2,213 |
|
|
|
1,857 |
|
|
|
4,303 |
|
|
|
2,946 |
|
Adjusted Net
Loss |
$ |
(4,454 |
) |
|
$ |
(10,810 |
) |
|
$ |
(11,610 |
) |
|
$ |
(18,849 |
) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Total operating expenses |
$ |
13,679 |
|
$ |
16,387 |
|
$ |
29,448 |
|
$ |
32,964 |
Less: |
|
|
|
|
|
|
|
Depreciation and amortization
on property and equipment and capitalized software |
|
235 |
|
|
186 |
|
|
432 |
|
|
308 |
Stock based compensation
expense |
|
2,213 |
|
|
1,857 |
|
|
4,303 |
|
|
2,946 |
Servicing costs |
|
1,103 |
|
|
1,131 |
|
|
2,093 |
|
|
2,337 |
Underwriting costs |
|
480 |
|
|
423 |
|
|
948 |
|
|
910 |
Fixed Cash Operating
Expenses |
$ |
9,648 |
|
$ |
12,790 |
|
$ |
21,672 |
|
$ |
26,463 |
CERTAIN KEY PERFORMANCE METRICS
(in thousands) |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Total revenue |
54,571 |
|
53,039 |
|
110,247 |
|
112,917 |
GROSS ORIGINATIONS BY QUARTER
|
|
Gross Originations by Quarter |
($ millions) |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
FY 2023 |
|
$54.7 |
|
$54.7 |
|
$— |
|
$— |
FY 2022 |
|
$46.7 |
|
$46.4 |
|
$44.1 |
|
$59.8 |
FY 2021 |
|
$63.8 |
|
$64.4 |
|
$61.0 |
|
$58.9 |
FY 2020 |
|
$37.2 |
|
$77.6 |
|
$60.5 |
|
$61.1 |
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