Business
Katapult Announces Second Quarter 2023 Financial Results
Gross Originations Up Year-Over-Year For Third Consecutive Quarter; Revenue Also Up Year-Over-Year Third Quarter Outlook Includes Continued Growth in Gross
About this update from Katapult Holdings, Inc.
[{"type":"text","content":"Gross Originations Up Year-Over-Year For Third Consecutive Quarter; Revenue Also Up Year-Over-Year Third Quarter Outlook Includes Continued Growth in Gross Originations and Revenue PLANO, Texas, Aug. 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 second quarter ended June 30, 2023. “During the quarter, our team continued to build the foundation for sustainable, profitable growth,” said Orlando Zayas, CEO of Katapult. “Our financial results were strong; year-over-year, we grew gross originations by 18% and revenue by nearly 3%, and we improved our Adjusted EBITDA performance by more than $5 million. We believe we offer merchants a unique growth channel by providing access to an underserved and loyal base of consumers. At the same time, we provide consumers with a lease-to-own product that allows them to gain access to the durable goods they need at fair and transparent pricing terms. With these strong value propositions, we are well positioned to grow both our merchant base and our customer base profitably, and create a flywheel for sustainable, profitable growth. We look forward to continuing to unlock the power of our business model while focusing on our mission to help an underserved community gain access to critical financial resources while driving growth for our merchant partners.” Second Quarter 2023 Financial and Operational Highlights: (All comparisons are year-over-year unless stated otherwise.) Gross originations were $54.7 million, an increase of 18.0%. Approximately 51% of gross originations for the second quarter of 2023 came from repeat customers1. Total revenue was $54.6 million, an increase of 2.9%.Net loss was $6.4 million for the second quarter of 2023 which compares favorably to net loss of $10.3 million reported for the second quarter of 2022. Net loss improvement in the second quarter of 2023 was driven primarily by an increase in total revenue and decrease in operating expenses resulting from the completion of our operating expense reduction initiative. Total operating expenses in the second quarter of 2023 were down 16.5% and fixed cash operating expenses were down approximately 24.6%.Adjusted net loss2 improved to $4.5 million for the second quarter of 2023 c...