Pagaya Technologies Ltd. · NASDAQ:PGY
Pagaya Technologies — Investor Presentation (February 2025)
25 slides from Pagaya Technologies's investor presentation, February 2025
Slide 1: Pagaya Technologies Investor Presentation
February 2025 INTRODUCTION Pagaya Technologies Investor Presentation 1 1
Slide 2: Disclaimer: Forward Looking Statements and Non-GAAP Information
Disclaimer: Forward Looking Statements and Non-GAAP Information Certain comments made in this presentation may be characterized as forward looking However, non-GAAP financial measures have limitations in their usefulness to investors under the Private Securities Litigation Reform Act of 1995. Forwar
Slide 3: Company Overview
01 Company Overview 3 3
Slide 4: Mission: Delivering more financial opportunity to more people, more often
MISSION Delivering more financial opportunity to more people, more often 4 4
Slide 5: Pagaya by the numbers
Pagaya by the numbers 31 Lending partners 5 Markets (personal loan, auto, 132 Funding partners >$2.5T Applications evaluated since inception point-of-sale, credit card, and single-family rental) ~$27B Funding raised across 65+ ABS transactions ~$1.1B Annualized run-rate total revenue ~$260M Annualiz
Slide 6: Consumers can't get the credit they deserve
The Problem Consumers can’t get the credit they deserve 42% ~$120K 31 Unique API of U.S. consumers are denied the Average income of our borrowers(2) Integrations credit they seek under legacy credit Into lending scoring models(1) origination systems across multiple markets Our Solution Ensuring lend
Slide 7: How our Product Works
How our Product Works Lenders add more borrowers under their brand With Pagaya, the end borrower gets an offer from the lender they trust Step 1 Step 2 Step 3 Step 4 Personal Loan Personal Loan Personal Loan The outcome: a seamless experience for lenders & borrowers API • Lender keeps the relationsh
Slide 8: How We Fund Our Network Volume
How We Fund Our Network Volume Unlike traditional funding models, we raise funding before assets are created – minimizing liquidity risk Upfront funding model mitigates liquidity risk Pagaya’s upfront funding model • Pagaya raises cash from investors first, which sits in a trust waiting to be deploy
Slide 9: How We Make Money
How We Make Money Pagaya earns $3.5 - $4.5 in FRLPC1 for every $100 of loans issued FRLPC1 driven primarily by fees paid by our lending partners for helping them add more borrowers Lending Partners Funding Partners Pay fees to Pagaya to use our product to originate more loans and gain new customers
Slide 10: Driving profitability with growing unit economics
Driving profitability with growing unit economics Network volume Total revenues $ in millions & YoY % growth $ in millions & YoY % growth 28% 31% 28% 21% 9% 13% 33% 31% 19% 11% $2,604 $250 $257 $279 $2,419 $218 $245 $2,380 $2,331 $2,351 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Tak
Slide 11: Growth Strategy
02 Growth Strategy 11 11
Slide 12: Sustainable, cost-efficient growth strategy compared to D2C lenders
Sustainable, cost-efficient growth strategy compared to D2C lenders Sustainable growth through macro volatility Volume change (%) indexed to 1Q’22 Adding Lending Partners To Our Network 140% PL POS Auto 120% Cost Efficient: Scalable: No Incremental Marketing Cost (CAC) New Partners Drive Incremental
Slide 13: Expanding our partner network with top U.S. lenders
Expanding our partner network with top U.S. lenders Added 6 enterprise- level partnerships since 2023 for a total of 31 lending partners Top 5 Auto Captive ©2023Company Source: Pagaya. Confidential | FOR internal data. INTERNAL Financial USEas data ONLY of December 31, 2024, unless otherwise noted.
Slide 14: Developing new products to help lenders extract more customer lifetime value
Developing new products to help lenders extract more customer lifetime value Increasing Flagship Product Increasing Products in Development Customer Wallet Market Share Share Enable lenders to capture customers that Increase Product roadmap designed to enhance Customer otherwise would have been turn
Slide 15: Pagaya aspires to be the go-to lending technology partner
Pagaya aspires to be the go-to lending technology partner for the consumer finance ecosystem Pagaya’s flagship product started in credit. We strive to help transform a bank’s full value chain with technology Today Long Term Origination Collections Marketing Platforms Funding Underwriting Model Risk
Slide 16: Financials
03 Financials 16 16
Slide 17: Illustrative unit economics: FRLPC structure
Illustrative unit economics: FRLPC1 structure Metric Definition Illustrative Application Volume Total applications seen from lending partners $1,000,000 Conversion Rate % of loan offers accepted by the borrower 1% The notional value of all assets Network Volume (“NV”) $10,000 created using our techn
Slide 18: Increasing fees as we deliver more value to our partners
Increasing fees as we deliver more value to our partners Fee revenue less production costs (“FRLPC(1)”) by product 4.3% 4.5% 4.2% 3.8% 3.3% 3.4% 3.2% 3.0% 2.9% 3.0% 2.7% 1% 25% 32% 43% 58% 60% 63% 63% 69% 71% 71% 99% 75% 68% 57% 42% 40% 37% 37% 31% 29% 29% 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1
Slide 19: Growing profitability with higher fees + operating leverage
Growing profitability with higher fees + operating leverage $64 Adjusted EBITDA ($ in millions) $56 $50 $40 $34 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 *Note: See a reconciliation of non-GAAP measures to the most comparable GAAP measure included in the appendix 19
Slide 20: Pagaya's value proposition
04 Pagaya’s value proposition 20 20
Slide 21: Our flagship product provides a "win-win-win" for lending partners
Our flagship product provides a “win-win-win” for lending partners, their customers and funding partners Lending Partners Lending Partner Customers Funding Partners Grow originations and customers with Access to more financial opportunities Efficiently deploy capital at scale in no incremental cost
Slide 22: What makes Pagaya different
What makes Pagaya different Differentiated and sustainable growth strategy Growing data advantage of US population Constantly growing “top of the funnel” by >$2.5T of applications seen since inception partnering and expanding with new and across 31 lenders and 5 asset classes existing lenders Stable
Slide 23: Appendix: Non-GAAP Reconciliation
05 Appendix: Non-GAAP Reconciliation 23 23
Slide 24: Reconciliation of Non-GAAP Financial Measures (Unaudited)
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Net Loss Attributable to Pagaya Technologies Ltd. $ (14,418) $ (21,223) $ (74,785) $ (67,476) $ (237,922) Adjusted to exclude the following: Share-based compensation 13,743
Slide 25: Reconciliation of Non-GAAP Financial Measures (Unaudited)
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Operating Income (Loss) 10,652 7,690 5,027 22,384 31,739 Add: Technology, data and product development 17,550 19,380 21,935 16,655 18,601 Add: Sales and marketing 9,576 10,
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