Business
Oportun Announces Plan to Streamline Operations and Provides Preliminary Fourth Quarter Financial Results
SAN CARLOS, Calif., Feb. 09, 2023 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the "Company") today announced a plan to
About this update from Oportun Financial Corporation
[{"type":"text","content":"SAN CARLOS, Calif., Feb. 09, 2023 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the \"Company\") today announced a plan to streamline its operations, intended to assure that the Company’s resources are efficiently allocated in the current macroeconomic environment. “We are taking a series of cost reduction measures that include the very difficult decision to reduce the size of our corporate staff by approximately 10%,” said Raul Vazquez, CEO of Oportun. “These actions are aimed at positioning Oportun to perform efficiently, while maintaining our high standards for serving our members. I remain confident that we will emerge from this challenging economic environment a stronger company than ever before, just as Oportun did following the pandemic and the financial crisis.\" The Company also announced preliminary financial results for the fourth quarter ending December 31, 2022. Oportun will release completed financial results for the fourth quarter on its upcoming earnings call. Streamlining Operations Oportun is taking a series of measures to streamline its operations, including reducing the size of its corporate staff by 10%, impacting approximately 155 employees, and reducing its expenditures on external contractors. In relation to these and other personnel related activities, management expects to incur non-recurring, pre-tax charges of $5 million to $6 million in the first quarter of 2023. Oportun expects to exclude these charges from its calculation of its non-GAAP financial measures. These reductions are anticipated to result in annualized run-rate savings in compensation and benefits of approximately $38 million beginning in 2023. Oportun has furthermore identified certain non-personnel related operational efficiencies that are anticipated to result in annualized run-rate savings of $10 to $15 million beginning in 2023. Preliminary Financial Results for the Fourth Quarter of 2022 For the fourth quarter of 2022, Aggregate Originations totaled $610 million. The fourth quarter Annualized Net Charge-Off Rate was 12.8%. Management continues to expect that the Annualized Net Charge-Off Rate will start decreasing in the first quarter of 2023 and return to Oportun's target 7% to 9% range by the third quarter of 2023. Management currently expects fourth quarter Total Revenue to be approximately $262...