Business
Katapult Announces Fourth Quarter 2022 Financial Results
PLANO, Texas, March 09, 2023 (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, March 09, 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 fourth quarter ended December 31, 2022. Orlando Zayas, CEO of Katapult said, “I am proud that our team successfully executed against the strategic investment roadmap that we shared in early 2022, highlighted by new technology, such as enhancing our mobile app with a new feature called Katapult PayTM, our one-time use virtual card technology that makes lease purchasing simple and intuitive for our customers. The early success of these investments is reflected in our fourth quarter results with a return to growth in gross originations of 1.5% year-over-year, despite a challenging macro backdrop for consumers and retailers. As we look forward into 2023, we remain passionate about creating relationships with more customers and deepening our engagement by introducing new access points like our mobile app to drive top line growth and profitability.” Fourth Quarter 2022 Financial and Operational Highlights: Gross originations of $59.8 million increased by $0.9 million, or 1.5% year-over-year, the first positive inflection since the third quarter of 2021. December 2022 gross originations increased by mid-teen’s year- over-yearTotal revenue of $48.8 million decreased by $24.5 million, or 33.4% compared to the prior year period. Of the total $24.5 million decrease, $9.0 million was a result of our adoption of ASC 842 as of January 1, 2022Added 21 new direct merchants in the fourth quarter of 2022, bringing our total direct merchant adds to 113 for fiscal year 2022Added 7 merchants to Katapult PayTM, a new feature on our mobile app, including Home Depot and Wayfair, for a total of 18 merchants added for the full year. While still in its early stages, the Company originated over 12,000 leases totaling over $8 million of gross originations with Katapult PayTM since its launch in the third quarter of 2022 through December 31, 2022Initiated process to further right-size expense and headcount base that is expected to result in significant reductions in cash operating expenses in 2023Impairment charges as a percentage of gross originations in the fourth quarter of 2022 were 8.8%, reflecting a sequential improvement from 10.1% in the ...