Business
Katapult Announces First Quarter 2022 Financial Results
PLANO, Texas, May 10, 2022 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial
About this update from Katapult Holdings, Inc.
[{"type":"text","content":"PLANO, Texas, May 10, 2022 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the first quarter ended March 31, 2022. First Quarter 2022 Financial and Operational Highlights: Recorded total revenue of $59.9 million in first quarter 2022 compared to $80.6 million in the prior year, a decrease of $20.7 million. $3.0 million of this decline was attributable to the Company’s adoption of ASC 842 as of January 1, 2022.Added 27 new merchants in the first quarter 2022. Continued high customer satisfaction with Net Promoter Score of 51 as of March 31, 2022 and rising to 64 at the end of April 2022. More than 49% of gross originations for first quarter 2022 came from repeat customers (customers who have originated more than one lease with Katapult over their lifetime).Continued targeted tightening of our underwriting processes in Q1 2022.Ended Q1 2022 with $80.6 million of unrestricted cash on the balance sheet and $76.3 million available on the asset-backed revolving line of credit. “While current macroeconomic headwinds continued to weigh on our consumers and retailers this quarter, we are optimistic that the strategic investments we have been making will position us to capture market share in this large addressable market. We look forward to incremental growth opportunities as these investments come to fruition in the mid to long term,” said Orlando Zayas, CEO of Katapult. First Quarter 2022 Results (Comparisons are to the respective periods of the prior year unless otherwise noted.) The Company recorded first quarter revenue of $59.9 million, which was down $20.7 million compared to the first quarter of the prior year. Gross originations for the first quarter were $46.7 million, a 27% decline from the prior year due to ongoing macro challenges, including ongoing supply chain headwinds, the end of government stimulus, inflationary pressures and changes in consumer spending that continue to impact the consumer and merchant economics, combined with the Company proactively tightening lease underwriting in response to credit performance normalizing. Net loss was $5.6 million for the first quarter 2022, including a $3.1 million revaluation gain related to our warrants. Adjusted net loss was $7.6 million for the...