Katapult(KPLT) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $63.0 million, reflecting a 9.4$247.194 million, an increase from $221.588 million in 2023, representing a growth of approximately 11.5$45.771 million, compared to $41.707 million in 2023, reflecting an increase of about 9.9$62,963,000, representing a 9.5% increase from $57,558,000 in Q4 2023[46]. - Gross profit for the year ended December 31, 2024, was$45,771,000, up from $41,707,000 in 2023, indicating a growth of 9.9$75.2 million, an increase of 11.3% year-over-year, with a 50% growth excluding the home furnishings and mattress category[5]. - The company achieved a 50% growth in application volume during Q4 2024, driven by new and existing customers[2]. - KPay gross originations grew approximately 52% year-over-year in Q4 2024, accounting for 41% of total gross originations[4]. - The company expects gross originations to grow at least 20% in Q1 2025 and throughout the year[9]. - Gross originations in Q4 2024 reached $75.2 million, an increase from$67.5 million in Q4 2023, marking a growth of 11.6%[48]. Customer Metrics - Approximately 61% of Q4 2024 gross originations started in the Katapult app marketplace, making it the largest customer referral source[3]. - The repeat customer rate was 61.5% for Q4 2024, indicating strong customer retention[3]. Operating Expenses - Total operating expenses in Q4 2024 decreased by 37.4%, with fixed cash operating expenses down approximately 7.1%[5]. - Total operating expenses for the year ended December 31, 2024, were $53.872 million, down from$60.499 million in 2023, showing a reduction of about 11%[37]. - Total operating expenses for the year ended December 31, 2024, were $53,872,000, down from$60,499,000 in 2023, a decrease of 11.9%[44]. Net Loss and Adjusted Metrics - Net loss for Q4 2024 was $9.6 million, an improvement from a net loss of$14.6 million in Q4 2023[5]. - The net loss for the year ended December 31, 2024, was $25.915 million, a decrease from a net loss of$36.666 million in 2023, indicating an improvement of approximately 29.4%[37]. - Adjusted EBITDA for Q4 2024 was $(1,068,000), an improvement from$(327,000) in Q4 2023[43]. - The adjusted net loss for Q4 2024 was $(8,007,000), compared to$(6,309,000) in Q4 2023, indicating a worsening of 26.9%[43]. Balance Sheet Highlights - Cash and cash equivalents at the end of the period were $3.465 million, a significant decrease from$21.408 million at the end of 2023[39]. - The company reported a total of $90.368 million in current assets as of December 31, 2024, down from$97.637 million in 2023[39]. - The total liabilities increased to $139.965 million as of December 31, 2024, compared to$128.854 million in 2023, representing an increase of approximately 8.7%[39]. - The company’s accumulated deficit as of December 31, 2024, was $148.451 million, up from$122.536 million in 2023[39]. - The weighted average common shares outstanding increased to 4.518 million in 2024 from 4.130 million in 2023[37]. Interest and Compensation Expenses - Interest expense and other fees for the year ended December 31, 2024, totaled $18,851,000, compared to$17,822,000 in 2023, an increase of 5.8%[43]. - Stock-based compensation expense for the year ended December 31, 2024, was $5,759,000, down from$7,034,000 in 2023, a decrease of 18.1%[43]. Write-offs - Write-offs as a percentage of revenue were 9.6% in Q4 2024, within the company's long-term target range of 8% to 10%[5].