Business
Pagaya Reports Third Quarter 2022 Results
3Q’22 Network Volume grows 26% year-over-year to $1.9 billion Total Revenue grows 49% year-over-year to reach record $204 million Adjusted EBITDA of ($5.2)
About this update from Pagaya Technologies Ltd.
[{"type":"text","content":"\n3Q’22 Network Volume grows 26% year-over-year to $1.9 billion\n\nTotal Revenue grows 49% year-over-year to reach record $204 million\n\nAdjusted EBITDA of ($5.2) million\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 third quarter ending September 30, 2022 and updates to its full-year 2022 outlook.\n\n“We delivered another quarter of strong network volume and total revenue growth year-over-year, resulting in the highest quarterly revenue in our 6-year history. These results reflect the power of the network infrastructure we have created, the “rails” that connect our partners, investors, and consumers across the country,” said Gal Krubiner, Chief Executive Officer of Pagaya. “We believe we have built a unique business, led by an experienced management team, that will enable us to navigate the current macroeconomic cycle and continue executing on our mission.”\n\nThird Quarter 2022 Financial Highlights\n\nAll comparisons are made versus the same period in 2021 unless otherwise stated\n\n\nNetwork Volume increased 26% to $1.9 billion, reflecting strong growth from existing partnerships and newer products\n\n\nTotal revenue and other income increased 49% to $204.0 million, mainly due to increased fee revenue from Network Volume growth\n\n\nNet loss attributable to Pagaya shareholders of $74.8 million, impacted by share-based compensation of $60.3 million. Adjusted net loss of $14.4 million, which excludes share-based compensation expense, a change in fair value of warrant liability and non-recurring expenses\n\n\nAdjusted EBITDA of negative $5.2 million, reflecting lower margins in newer programs, financial markets volatility and ongoing investment in the business\n\n\nRecent Business Highlights\n\n\nNetwork expansion: Monthly application flow from existing partners grew by approximately 20% from January to September 2022. Top 3 Auto partner onboarded in May enabling further expansion in Auto product, with dealership representation in over 70% of all U.S. franchise dealerships. Top-tier PoS partner onboarded onto the Company’s platform\n\n\nConsistently raising capital: Raised over $2 billion of investor ca...