Business
Oportun Reports Strong Third Quarter 2022 Financial Results
Total revenue of $250 million, growth of 57% year-over-year Early-stage delinquencies trending down following July credit tightening First payment defaults
About this update from Oportun Financial Corporation
[{"type":"text","content":"Total revenue of $250 million, growth of 57% year-over-year Early-stage delinquencies trending down following July credit tightening First payment defaults fall below 2019 levels Raising full year 2022 revenue and earnings guidance SAN CARLOS, Calif., Nov. 07, 2022 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the \"Company\") today reported financial results for the third quarter ended September 30, 2022. “Oportun delivered a strong third quarter, while exhibiting responsible growth and disciplined expense management amidst ongoing macroeconomic headwinds. I'm pleased that the further credit tightening actions we implemented in July are having their intended effect,\" said Raul Vazquez, CEO of Oportun. \"Lowering our approval rates and shifting our focus towards returning members enabled us to drive down early stage delinquencies and first payment defaults, which ended the quarter below 2019 pre-pandemic levels. Nevertheless we continued to execute on our long-term growth strategy by adding high-quality new members at an annualized rate of 9% to total 1.9 million, with product adoption continuing to outpace membership at an annualized rate of 11%. We also raised additional capital with a new four-year $150 million senior secured term loan supporting our future securitization and warehouse line financings, and following the quarter completed our fourth securitization financing of the year. Our revised guidance reflects our current expectation that each quarter in 2022 will be profitable on an adjusted basis. We are raising our full year 2022 revenue guidance to a range between $946 to $951 million, and our Adjusted EPS guidance to a range between $2.19 to $2.25.\" Third Quarter 2022 Results MetricGAAP Adjusted1 3Q223Q21 3Q223Q21Total revenue$250 $159 Net income (loss)$(106)$23 $8 $24 Diluted EPS$(3.21)$0.75 $0.25 $0.78 Adjusted EBITDA $(6)$18 Dollars in millions, except per share amounts. Business Highlights Members were 1.9 million(2), a 9% annualized increase during the quarterProducts were 2.0 million(3), an 11% annualized increase during the quarterAggregate Originations were $634M, down 4% year-over-yearManaged Principal Balance at End of Period was $3.35B, up 56% year-over-yearAnnualized Net Charge-Off Rate of 9.8% as compared to 5.5% for the prior-year period30+ Day Delinquency Rate of 5....