Business
Oportun Reports First Quarter 2023 Financial Results
Grew revenue 21% year-over-year to $260 million Outperformed each guidance metric Implementing further expense optimization measures to provide additional
About this update from Oportun Financial Corporation
[{"type":"text","content":"Grew revenue 21% year-over-year to $260 million Outperformed each guidance metric Implementing further expense optimization measures to provide additional $78M to $83M in annualized savings SAN CARLOS, Calif., May 08, 2023 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the \"Company\") today reported financial results for the first quarter ended March 31, 2023. \"Our first quarter results reflect the continuation of our successful efforts to fortify our business economics, streamline operations and grow member engagement\", said Raul Vazquez, CEO of Oportun. \"Our credit tightening actions are continuing to prove effective as our charge-off rate declined sequentially by 70 basis points from the fourth quarter of 2022 and our back book from our originations made prior to July 2022 is becoming a smaller proportion of our loan portfolio. While our aggregate originations declined by 33% sequentially as a result of our tightening efforts, total revenue remained resilient by declining only 1% sequentially and growing 21% year-over-year. This top-line performance, coupled with our ongoing expense discipline, enabled us to set yet another post-IPO record for operating efficiency, which we will continue to improve upon.\" \"Today we are announcing the necessary decision to enact further personnel and other cost savings measures aimed at optimizing our efficiency while the economic environment remains challenging. We now anticipate annualized run rate cost savings of $78 to $83 million in addition to the $48 to $53 million we announced in February.\" \"Although we also expect that our back book loans will experience higher near-term losses, we are upwardly revising our full-year 2023 Adjusted EBITDA guidance and maintaining our total revenue guidance. With our back book declining to a fraction of our loan portfolio by the end of the year and a sharply reduced cost structure, our considerable market opportunity to address the biggest challenges facing U.S. consumers remains fully intact.\" First Quarter 2023 Results MetricGAAP Adjusted1 1Q231Q22 1Q231Q22Total revenue$260$215 Net income (loss)($102)$46 ($88)$53Diluted EPS$(3.00)$1.37 $(2.60)$1.58Adjusted EBITDA ($24)$34Dollars in millions, except per share amounts. Business Highlights Members were 1.9 million, an increase of 14% compared to the prior-year qu...