Business
Pagaya Reports Second Quarter and First Half 2023 Results
Exceeded second quarter guidance on all metrics: Record Network Volume of $1.96 billion Total Revenue and Other Income grew 8% year-over-year to $195.6
About this update from Pagaya Technologies Ltd.
[{"type":"text","content":"\nExceeded second quarter guidance on all metrics:\n\n\n\nRecord Network Volume of $1.96 billion\n\n\n\nTotal Revenue and Other Income grew 8% year-over-year to $195.6 million\n\n\n\nAdjusted EBITDA grew by 255% to $17.5 million\n\n\n\nRaises outlook ranges for full-year 2023 Network Volume and Adjusted EBITDA\n\n\n NEW YORK & TEL AVIV, Israel--(BUSINESS WIRE)--\nPagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”, the “Company” or “we”), a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, today announced financial results for the second quarter and the first half of 2023 and provided its third quarter 2023 and full-year 2023 outlook.\n\n\nFor additional information, Pagaya's inaugural letter to shareholders can be accessed here.\n\n\n“We delivered another strong quarter while advancing our core mission to connect more people to financial opportunity,” said Gal Krubiner, co-founder and CEO of Pagaya Technologies. “Network volume reached a record-high as we continued to achieve consistent results for our lending partners and investors. We drove sustainable gains in profitability through increased monetization of our network and cost discipline. With continued momentum in our business, we are raising our network volume and adjusted EBITDA outlook for the year.”\n\n\nSecond Quarter 2023 Financial Highlights\n\n\nAll comparisons are made versus the same period in 2022 and on a year-over-year basis unless otherwise stated.\n\n\n\nNetwork volume grew to $1.96 billion (exceeding outlook of $1.8 billion to $1.9 billion), driven primarily by growth of the Company’s personal loan vertical and supported by new partners in auto and point-of-sale, partially offset by a continued low conversion rate of application volume across the portfolio.\n\n\n\nThe Company raised $3.1 billion across seven asset-backed securitizations in the first half of the year and was once again the number one personal loan ABS issuer in the US by issuance size in the second quarter.\n\n\n\nTotal revenue and other income increased 8% to $195.6 million (exceeding outlook of $180 million to $190 million), primarily due to higher revenue from fees, which grew by 14% and comprised approximately 95% of total revenue and other income.\n\n\n\nRevenue from fees less production costs (“FRLPC”) increased 12% to $65.1 million. ...