Oportun Financial (OPRT) - 2023 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2023 was $263 million, bringing FY23 total revenue to $1.1 billion, an 11% increase year-over-year[1][16] - Oportun reported total revenue of $262.6 million for Q4 2023, a slight increase from $261.9 million in Q4 2022, and total revenue for the full year 2023 was $1,056.9 million, up from $952.5 million in 2022[36] - Total Revenue for Q4 2023 was $262.6 million, slightly up from $261.9 million in Q4 2022, indicating a growth of 0.3%[66] Operating Expenses - Quarterly operating expenses decreased by 15% year-over-year to $129 million, with an additional $30 million in operating expense reductions announced[1][13] - Total Operating Expense for Q4 2023 was $129.4 million, down from $151.4 million in Q4 2022, a reduction of 14.5%[66] - The company incurred $27.6 million in acquisition and integration-related expenses for the full year 2023, compared to $29.7 million in 2022, showing a slight decrease[66] Net Loss - Net loss for Q4 2023 was $41.8 million, compared to a net loss of $8.4 million in the prior-year quarter[1][14] - The company experienced a net loss of $41.8 million in Q4 2023, compared to a net loss of $8.4 million in Q4 2022, with a full-year net loss of $180.0 million versus $77.7 million in 2022[36] - Net income (loss) for the three months ended December 31, 2023, was $(41.8) million, compared to $(8.4) million in 2022[63] - Net income (loss) for the twelve months ended December 31, 2023, was $(180.0) million, compared to $(77.7) million in 2022[63] Member Growth - Members increased to 2.2 million, an 18% growth compared to the prior-year quarter[1][9] - Oportun's member base grew to 2.2 million by the end of 2023, up from 1.9 million in 2022, indicating a growth rate of approximately 18.4% year-over-year[45] Originations - Aggregate Originations for Q4 2023 were $437 million, a 28% decrease compared to $610 million in the prior-year quarter[1][10] - The company reported aggregate originations of $437.3 million for Q4 2023, down from $610.4 million in Q4 2022, and total originations for 2023 were $1,813.1 million, compared to $2,922.9 million in 2022[45] Portfolio Metrics - Annualized Net Charge-Off Rate for Q4 2023 was 12.3%, down from 12.8% in the prior-year quarter[1][20] - The portfolio yield increased to 32.7% in Q4 2023 from 31.7% in Q4 2022, while the annualized net charge-off rate decreased to 12.3% from 12.8% year-over-year[45] Assets and Liabilities - Oportun's total assets decreased to $3,411.9 million as of December 31, 2023, down from $3,613.7 million in 2022, reflecting a reduction of approximately 5.6%[39] - The company’s total liabilities decreased to $3,007.5 million in 2023 from $3,066.1 million in 2022, a decline of about 1.9%[39] Cash Position - Cash and cash equivalents and restricted cash at the end of Q4 2023 were $206.0 million, consistent with the previous year’s $203.8 million[42] Profitability Metrics - Adjusted EBITDA for Q4 2023 was $6.1 million, up $40 million from the prior-year quarter[1][15] - Adjusted EBITDA for the three months ended December 31, 2023, was $6.1 million, compared to a loss of $33.5 million in the same period of 2022[63] - Adjusted EBITDA for the twelve months ended December 31, 2023, was $1.7 million, an improvement from a loss of $10.3 million in 2022[63] - Adjusted Operating Efficiency for the full year 2023 was 42.7%, down from 57.3% in 2022, indicating a decline in operational performance[66] Future Guidance - Full Year 2024 guidance projects total revenue between $975 million and $1 billion, with an annualized net charge-off rate of 11.9%[1][26] - The company expects Adjusted EBITDA for Q1 2024 to range from $(14.0) million to $(12.0) million, indicating continued challenges in profitability[69] Strategic Plans - The company plans to enhance its operational efficiencies and explore strategic options regarding its credit card portfolio to improve future performance[31] - The company plans to transition to an updated definition of Adjusted EBITDA in 2024 to better reflect operational results and management decisions[54] - The company believes that excluding certain non-recurring charges and non-cash items provides a clearer view of ongoing business operations[51] Earnings Per Share - Basic Earnings per Share for Q4 2023 was $(1.09), compared to $(0.25) in Q4 2022, reflecting a significant decline in earnings[68]