Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ:
KPLT), an e-commerce-focused financial technology company, today
reported its financial results for the third quarter ended
September 30, 2023.
“We delivered another quarter of strong operating
and financial performance, including double-digit revenue growth
and positive Adjusted EBITDA,” said Orlando Zayas, CEO of Katapult.
“In addition, despite macroeconomic headwinds we were able to
deliver our fourth consecutive quarter of gross originations
growth, and we believe this sets us apart from the rest of the
competitive lease-to-own landscape. We believe that the core of our
success is our relentless focus on providing our customers with the
best experience and product and being a collaborative growth
partner to our merchants. We have continued to bring on new direct
merchant partners and test new customized offerings for existing
merchants to drive growth. We also continued to expand our
touchpoints with our customers through a variety of initiatives
including new marketing campaigns and Katapult Pay enhancements. We
believe that our value propositions for both customers and
merchants are resonating and that we are well positioned for
continued growth in the fourth quarter, including the holiday
season.”
Operating Progress: Recent
Highlights
- Announced and launched direct
integration
- Casper - innovative leader in sleep
products
- Continued to build momentum for
Katapult Pay
- The retailer Target is now available
in the app feature
- Gross originations starting in the
Katapult app have grown steadily since launch
- Katapult Pay has expanded the lifetime
value of repeat customers who use the feature to originate a
lease
- Established new relationships focused
on monetizing the Katapult platform
- New relationship with Synchrony
Financial
- ~40 affiliate programs now live
- Expanded strategy to grow consumer
base
- Launched partnership with Western
Union
- Tested and launched email, in-app and
SMS marketing campaigns
- Customer satisfaction remained high
and Katapult had a Net Promoter Score of 58 as of
September 30, 2023
Third Quarter
2023 Financial
Highlights
(All comparisons are year-over-year unless stated
otherwise.)
- Gross originations were $49.6 million,
an increase of 12.5%
- Approximately 51.3% of gross
originations for the third quarter of 2023 came from repeat
customers1
- Total revenue was $55.3 million, an
increase of 9.8%
- Net loss was $2.9 million for the
third quarter of 2023 which compares favorably to net loss of $9.2
million reported for the third quarter of 2022. Net loss
improvement in the third quarter of 2023 was driven primarily by an
increase in total revenue and decrease in operating expenses driven
by a continued focus on disciplined expense management. Total
operating expenses in the third quarter were down 27.0% and fixed
cash operating expenses were down approximately 31.8%
- Adjusted net loss2 improved to $1.9
million for the third quarter of 2023 compared with an adjusted net
loss of $7.8 million reported for the third quarter of 2022
- Adjusted EBITDA2 improved to $2.0
million for the third quarter of 2023 compared to an Adjusted
EBITDA2 loss of $2.3 million in the prior year period
- Katapult ended the quarter with total
cash and cash equivalents of $32.2 million, which excludes $6.7
million of restricted cash
- Write-offs as a percentage of revenue
were 9.3% in the third quarter of 2023 compared to 9.2% in the
second quarter of 2023 and 8.1% in the third quarter of 2022, and
remains within the Company’s 8% to 10% long-term target range
[1] Repeat rate is defined as the percentage of
in-quarter 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.
Fourth Quarter 2023 and
Full Year 2023 Business Outlook
The Company continues to navigate an evolving, but
still uncertain macro environment. While there are tailwinds such
as stable inflation data and a reduced likelihood of a recession in
the US, retail traffic is down, interest rates remain elevated,
lending standards are tight and there is uncertainty surrounding
how the resumption of student loan repayments may impact our core
consumer’s ability to take on new leases. It is also important to
note, however, that over time, 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, Katapult expects to deliver the
following results for the fourth quarter of 2023:
- A 3 to 5% year-over-year increase in
gross originations.
- A 13 to 15% 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 fourth quarter of last year,
reflecting both its revenue growth expectation and a sustained
reduction of fixed cash operating expenses. Fixed cash operating
expenses are expected to be down approximately 25% year-over-year
in the fourth quarter.
For the full year 2023, our fourth quarter outlook
translates to the following full year expectations:
- A 12 to 13% year-over-year increase in
gross originations.
- A 3 to 4.5% year-over-year increase in
revenue.
- Meaningful improvement in Adjusted
EBITDA performance compared with 2022. Year-to-date as of the third
quarter, Adjusted EBITDA has improved by $14.0 million compared
with the same period of 2022.
"Our team is laser-focused on executing our
operating plan and delivering the growth we need to unlock the
earnings and cash flow power of our financial model,” said Nancy
Walsh, CFO of Katapult. “Even as we have focused on driving our
top-line, we have remained fiscally disciplined, which has allowed
us to improve Adjusted EBITDA substantially. During the first nine
months of 2023, we grew gross originations by 16.0%, gross profit
by 16.1% and delivered $14.0 million more in Adjusted EBITDA
compared to the same timeframe of 2022. Heading into the fourth
quarter, we feel confident about our competitive positioning and
expect to exit 2023 with strong momentum.”
Conference Call and Webcast
The Company will host a conference call and webcast
at 8:00 AM ET on Wednesday, November 8, 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
Pay™, 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 Kull VP 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 fourth quarter 2023 and full year 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 and the
Israel-Hamas conflict; 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 September 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 pay through 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 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 September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
Rental revenue |
$ |
54,481 |
|
|
$ |
49,260 |
|
|
$ |
163,079 |
|
|
$ |
160,075 |
|
Other revenue |
|
769 |
|
|
|
1,081 |
|
|
|
2,418 |
|
|
|
3,183 |
|
Total revenue |
|
55,250 |
|
|
|
50,341 |
|
|
|
165,497 |
|
|
|
163,258 |
|
Cost of revenue |
|
42,439 |
|
|
|
38,417 |
|
|
|
128,486 |
|
|
|
131,379 |
|
Gross profit |
|
12,811 |
|
|
|
11,924 |
|
|
|
37,011 |
|
|
|
31,879 |
|
Operating expenses: |
|
|
|
|
|
|
|
Servicing costs |
|
1,100 |
|
|
|
1,025 |
|
|
|
3,193 |
|
|
|
3,362 |
|
Underwriting fees |
|
422 |
|
|
|
419 |
|
|
|
1,370 |
|
|
|
1,330 |
|
Professional and consulting fees |
|
1,169 |
|
|
|
2,697 |
|
|
|
5,447 |
|
|
|
8,244 |
|
Technology and data analytics |
|
1,639 |
|
|
|
2,421 |
|
|
|
5,263 |
|
|
|
7,286 |
|
Compensation costs |
|
5,117 |
|
|
|
6,752 |
|
|
|
17,942 |
|
|
|
18,599 |
|
General and administrative |
|
2,664 |
|
|
|
3,276 |
|
|
|
8,344 |
|
|
|
10,733 |
|
Total operating expenses |
|
12,111 |
|
|
|
16,590 |
|
|
|
41,559 |
|
|
|
49,554 |
|
Income (loss) from operations |
|
700 |
|
|
|
(4,666 |
) |
|
|
(4,548 |
) |
|
|
(17,675 |
) |
Loss on partial extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(2,391 |
) |
|
|
— |
|
Interest expense and other fees |
|
(4,264 |
) |
|
|
(5,074 |
) |
|
|
(13,551 |
) |
|
|
(13,760 |
) |
Interest income |
|
287 |
|
|
|
223 |
|
|
|
1,334 |
|
|
|
223 |
|
Change in fair value of warrant liability |
|
382 |
|
|
|
381 |
|
|
|
771 |
|
|
|
5,793 |
|
Loss before income taxes |
|
(2,895 |
) |
|
|
(9,136 |
) |
|
|
(18,385 |
) |
|
|
(25,419 |
) |
Provision for income taxes |
|
(19 |
) |
|
|
(73 |
) |
|
|
(53 |
) |
|
|
(173 |
) |
Net loss |
$ |
(2,914 |
) |
|
$ |
(9,209 |
) |
|
$ |
(18,438 |
) |
|
$ |
(25,592 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic and diluted |
|
4,130 |
|
|
|
3,936 |
|
|
|
4,059 |
|
|
|
3,926 |
|
|
|
|
|
|
|
|
|
Net loss per common share - basic and diluted |
$ |
(0.71 |
) |
|
$ |
(2.34 |
) |
|
$ |
(4.54 |
) |
|
$ |
(6.52 |
) |
KATAPULT HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS (dollars in thousands, except per share
data)(unaudited)
|
September |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
32,187 |
|
|
$ |
65,430 |
|
Restricted cash |
|
6,682 |
|
|
|
4,411 |
|
Property held for lease, net of accumulated depreciation and
impairment |
|
53,581 |
|
|
|
50,278 |
|
Prepaid expenses and other current assets |
|
6,777 |
|
|
|
8,515 |
|
Total current assets |
|
99,227 |
|
|
|
128,634 |
|
Property and equipment, net |
|
427 |
|
|
|
557 |
|
Security deposits |
|
91 |
|
|
|
91 |
|
Capitalized software and intangible assets, net |
|
2,060 |
|
|
|
1,847 |
|
Right-of-use assets |
|
498 |
|
|
|
772 |
|
Total assets |
$ |
102,303 |
|
|
$ |
131,901 |
|
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
735 |
|
|
$ |
1,264 |
|
Accrued liabilities |
|
15,747 |
|
|
|
14,532 |
|
Term loan |
|
— |
|
|
|
25,000 |
|
Unearned revenue |
|
2,124 |
|
|
|
1,552 |
|
Lease liabilities |
|
297 |
|
|
|
382 |
|
Total current liabilities |
|
18,903 |
|
|
|
42,730 |
|
Revolving line of credit |
|
60,397 |
|
|
|
57,639 |
|
Term loan, non-current |
|
24,543 |
|
|
|
23,057 |
|
Other liabilities |
|
131 |
|
|
|
902 |
|
Lease liabilities, non-current |
|
218 |
|
|
|
445 |
|
Total liabilities |
|
104,192 |
|
|
|
124,773 |
|
STOCKHOLDERS' (DEFICIT) EQUITY |
|
|
|
Common stock, $.0001 par value-- 250,000,000 shares authorized;
4,065,175 and 3,943,423 shares issued and outstanding at
September 30, 2023 and December 31, 2022,
respectively |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
93,225 |
|
|
|
83,804 |
|
Accumulated deficit |
|
(95,114 |
) |
|
|
(76,676 |
) |
Total stockholders' (deficit) equity |
|
(1,889 |
) |
|
|
7,128 |
|
Total liabilities and stockholders' (deficit) equity |
$ |
102,303 |
|
|
$ |
131,901 |
|
KATAPULT HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)(dollars in
thousands)
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
Net loss |
$ |
(18,438 |
) |
|
$ |
(25,592 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Depreciation and amortization |
|
90,439 |
|
|
|
89,093 |
|
Net book value of property buyouts |
|
18,909 |
|
|
|
24,783 |
|
Impairment expense |
|
15,356 |
|
|
|
11,928 |
|
Change in fair value of warrants liability |
|
(771 |
) |
|
|
(5,793 |
) |
Stock-based compensation |
|
5,678 |
|
|
|
4,753 |
|
Loss on partial extinguishment of debt |
|
2,391 |
|
|
|
— |
|
Amortization of debt discount |
|
2,147 |
|
|
|
3,278 |
|
Amortization of debt issuance costs, net |
|
211 |
|
|
|
271 |
|
Accrued PIK Interest |
|
1,208 |
|
|
|
1,508 |
|
Amortization of right-of-use assets |
|
274 |
|
|
|
271 |
|
Change in operating assets and liabilities: |
|
|
|
Property held for lease |
|
(127,327 |
) |
|
|
(105,741 |
) |
Prepaid expenses and other current assets |
|
1,738 |
|
|
|
(382 |
) |
Accounts payable |
|
(529 |
) |
|
|
872 |
|
Accrued liabilities |
|
734 |
|
|
|
159 |
|
Lease liabilities |
|
(312 |
) |
|
|
(306 |
) |
Unearned revenues |
|
572 |
|
|
|
(638 |
) |
Net cash used in operating activities |
|
(7,720 |
) |
|
|
(1,536 |
) |
Cash flows from investing activities: |
|
|
|
Purchases of property and equipment |
|
(10 |
) |
|
|
(164 |
) |
Additions to capitalized software |
|
(753 |
) |
|
|
(1,203 |
) |
Net cash used in investing activities |
|
(763 |
) |
|
|
(1,367 |
) |
Cash flows from financing activities: |
|
|
|
Proceeds from revolving line of credit |
|
10,916 |
|
|
|
9,935 |
|
Principal repayments on revolving line of credit |
|
(8,054 |
) |
|
|
(21,661 |
) |
Principal repayment on term loan |
|
(25,000 |
) |
|
|
— |
|
Payments of deferred financing costs |
|
(34 |
) |
|
|
— |
|
Repurchases of restricted stock |
|
(317 |
) |
|
|
(293 |
) |
Proceeds from exercise of stock options |
|
— |
|
|
|
65 |
|
Net cash used in financing activities |
|
(22,489 |
) |
|
|
(11,954 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(30,972 |
) |
|
|
(14,857 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
|
69,841 |
|
|
|
96,431 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
38,869 |
|
|
$ |
81,574 |
|
Supplemental disclosure of cash flow
information: |
|
|
|
Cash paid for interest |
$ |
9,821 |
|
|
$ |
7,954 |
|
Cash paid for income taxes |
$ |
146 |
|
|
$ |
362 |
|
Debt issuance cost included in accrued liabilities |
$ |
481 |
|
|
$ |
— |
|
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 |
$ |
390 |
|
|
$ |
382 |
|
KATAPULT HOLDINGS,
INC.RECONCILIATION OF NON-GAAP MEASURES AND
CERTAIN OTHER DATA (UNAUDITED)(amounts in
thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Total revenue |
$ |
55,250 |
|
$ |
50,341 |
|
$ |
165,497 |
|
$ |
163,258 |
Cost of revenue |
|
42,439 |
|
|
38,417 |
|
|
128,486 |
|
|
131,379 |
Gross profit |
|
12,811 |
|
|
11,924 |
|
|
37,011 |
|
|
31,879 |
Less: |
|
|
|
|
|
|
|
Servicing costs |
|
1,100 |
|
|
1,025 |
|
|
3,193 |
|
|
3,362 |
Underwriting fees |
|
422 |
|
|
419 |
|
|
1,370 |
|
|
1,330 |
Adjusted gross profit |
$ |
11,289 |
|
$ |
10,480 |
|
$ |
32,448 |
|
$ |
27,187 |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(2,914 |
) |
|
$ |
(9,209 |
) |
|
$ |
(18,438 |
) |
|
$ |
(25,592 |
) |
Add back: |
|
|
|
|
|
|
|
Interest expense and other fees |
|
4,264 |
|
|
|
5,074 |
|
|
|
13,551 |
|
|
|
13,760 |
|
Interest income |
|
(287 |
) |
|
|
223 |
|
|
|
(1,334 |
) |
|
|
223 |
|
Change in fair value of warrant liability |
|
(382 |
) |
|
|
(381 |
) |
|
|
(771 |
) |
|
|
(5,793 |
) |
Provision for income taxes |
|
19 |
|
|
|
73 |
|
|
|
53 |
|
|
|
173 |
|
Depreciation and amortization on property and equipment and
capitalized software |
|
247 |
|
|
|
198 |
|
|
|
679 |
|
|
|
506 |
|
Impairment of leased assets |
|
(312 |
) |
|
|
361 |
|
|
|
494 |
|
|
|
677 |
|
Loss on partial extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
2,391 |
|
|
|
— |
|
Stock-based compensation expense |
|
1,375 |
|
|
|
1,807 |
|
|
|
5,678 |
|
|
|
4,753 |
|
Adjusted EBITDA |
$ |
2,010 |
|
|
$ |
(2,300 |
) |
|
$ |
2,303 |
|
|
$ |
(11,739 |
) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(2,914 |
) |
|
$ |
(9,209 |
) |
|
$ |
(18,438 |
) |
|
$ |
(25,592 |
) |
Add back: |
|
|
|
|
|
|
|
Change in fair value of warrant liability |
|
(382 |
) |
|
|
(381 |
) |
|
|
(771 |
) |
|
|
(5,793 |
) |
Stock-based compensation expense |
|
1,375 |
|
|
|
1,807 |
|
|
|
5,678 |
|
|
|
4,753 |
|
Adjusted net loss |
$ |
(1,921 |
) |
|
$ |
(7,783 |
) |
|
$ |
(13,531 |
) |
|
$ |
(26,632 |
) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Total operating expenses |
$ |
12,111 |
|
$ |
16,590 |
|
$ |
41,559 |
|
$ |
49,554 |
Less: |
|
|
|
|
|
|
|
Depreciation and amortization on property and equipment and
capitalized software |
|
247 |
|
|
198 |
|
|
679 |
|
|
506 |
Stock based compensation expense |
|
1,375 |
|
|
1,807 |
|
|
5,678 |
|
|
4,753 |
Servicing costs |
|
1,100 |
|
|
1,025 |
|
|
3,193 |
|
|
3,362 |
Underwriting costs |
|
422 |
|
|
419 |
|
|
1,370 |
|
|
1,330 |
Fixed cash operating expenses |
$ |
8,967 |
|
$ |
13,141 |
|
$ |
30,639 |
|
$ |
39,603 |
CERTAIN KEY PERFORMANCE
METRICS
(in thousands) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Total revenue |
$ |
55,250 |
|
$ |
50,341 |
|
$ |
165,497 |
|
$ |
163,258 |
KATAPULT HOLDINGS,
INC.GROSS ORIGINATIONS BY QUARTER
|
|
Gross Originations by Quarter |
($ millions) |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
FY 2023 |
|
$ |
54.7 |
|
$ |
54.7 |
|
$ |
49.6 |
|
$ |
— |
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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