Business
Katapult Announces First Quarter 2023 Financial Results
Company Reported a Year-over-Year Increase in Gross Originations of 17.3% and Positive Quarterly Adjusted EBITDA PLANO, Texas, May 11, 2023 (GLOBE NEWSWIRE)
About this update from Katapult Holdings, Inc.
[{"type":"text","content":"Company Reported a Year-over-Year Increase in Gross Originations of 17.3% and Positive Quarterly Adjusted EBITDA\nPLANO, Texas, May 11, 2023 (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, 2023. “We are pleased with our results this quarter. Despite continued softness in consumer spending, our gross originations increased 17.3% year-over-year and we saw the first quarter of positive Adjusted EBITDA since the third quarter of 2021,” said Orlando Zayas, CEO of Katapult. “Our Q1 2023 results reflect continued strong demand for lease-to-own products that support underserved consumers who are unable to access traditional financing. We believe Katapult is well positioned to continue to drive revenue growth while executing a path to profitability.” First Quarter 2023 Financial and Operational Highlights: Gross originations of $54.7 million, increased 17.3% from the first quarter of 2022 Approximately 47% of gross originations for the first quarter of 2023 came from repeat customers1 Total revenue of $55.7 million, decreased 7.0% year-over-year, but reflects sequential improvement due to strong collection efforts and underwriting performanceNet loss was $9.1 million for the first quarter of 2023 driven primarily by lower revenue and increased interest expense. Adjusted net loss2 was $7.2 million for the first quarter of 2023Adjusted EBITDA2 was $0.6 million for the first quarter of 2023 compared to an Adjusted EBITDA2 loss of $4.2 million in the prior year periodDuring the quarter, Katapult repaid $25.0 million of its term loan and ended the quarter with total cash and cash equivalents of $44.9 millionAchieved continued high customer satisfaction with a Net Promoter Score of 63 as of March 31, 2023Writeoffs as a percentage of revenue of 8.4% in the first quarter of 2023, reflecting a sequential improvement from 9.7% in the fourth quarter of 2022 Second Quarter 2023 Business Outlook The Company continues to navigate macro uncertainty and expects further consumer spending headwinds to persist. However, lease-to-own solutions have historically benefited from periods of shrinking prime credit availability, creating a counter cyclical hedge against the challenging macro envir...