Oppfi Inc. · NYSE:OPFI

Oppfi — Q4 2023 Earnings Presentation

27 slides from Oppfi's earnings presentation, Mar 7, 2024

  1. Slide 1: Q4 2023 Earnings Presentation

    A Tech-Enabled, Mission-Driven Specialty Finance Platform that Broadens the Reach of Community Banks to Extend Credit Access to Everyday Americans Q4 2023 Earnings Presentation March 7, 2024

  2. Slide 2: Disclaimer

    Disclaimer This presentation (the “Presentation”) of OppFi Inc. (“OppFi” or the “Company”) is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be reliable for the purposes used herein, t

  3. Slide 3: Q4 2023 Highlights

    Q4 2023 Highlights GAAP net income of $1.9 million up from net loss of $5.2 million year over 10.7% increase year over year in year, and adjusted net income1 of total revenue to $132.9 million $8.9 million up from adjusted net loss of $2.8 million year over year Exceeded full-year guidance for 8.4 p

  4. Slide 4: Key Company Highlights

    Key Company Highlights Profitable Across Solid Revenue CEO and Executive Chairman Business Cycles Growth as Largest Shareholder 9 consecutive years of net 31% 5-year CAGR2 Owner / operator dynamic aligns income1 incentives to maximize shareholder value Leading Proprietary Significant Scale Exception

  5. Slide 5: High Percentage of Americans Lack Savings and/or Credit Access

    High Percentage of Americans Lack Savings and/or Credit Access 63 million U.S. 62% of U.S. 56% of U.S. adults consumers consumers do not have savings are credit live paycheck to cover a $1,000 marginalized1 to paycheck2 unplanned expense3 1. PYMNTS. "How Credit Insecurity is Changing U.S. Consumers’

  6. Slide 6: OppFi Offers Market Leading Terms & Excellent Customer Experience

    OppFi Offers Market Leading Terms & Excellent Customer Experience Market Leading Terms OppFi Customers Can Use Exceptional Customer Proceeds for any Unexpected Reviews ▪ Simple interest, amortizing installment Expense loans with no balloon payments 4.5/5.0 ▪ No origination, late, or NSF fees Trustpi

  7. Slide 7: OppFi Growth Strategy

    OppFi Growth Strategy Accelerate Profitable Growth Serve more customers through Drive profitable OppLoans Diversify into new customer new relationships and volume growth and product types via M&A products • Continue to refine and enhance • Acquire platforms or assets • Form new strategic channel und

  8. Slide 8: Q4 2023 Financial Highlights

    Q4 2023 Financial Highlights $1.9M Total Revenue Net Income • Total revenue increased 11% year over year to $8.9M $133M Adj. Net Income1 Net Originations2 ($0.31) Basic EPS • Net originations increased 3% year over year to $192M ($0.31) Diluted EPS Ending Receivables2 $0.10 • Ending receivables incr

  9. Slide 9: Full Year 2023 Financial Highlights

    Full Year 2023 Financial Highlights $39.5M Total Revenue Net Income • Total revenue increased 12% year over year to $43.3M $509M Adj. Net Income1 Net Originations2 ($0.06) Basic Loss per Share • Net originations decreased 1% year over year to $748M ($0.06) Diluted Loss per Share Ending Receivables2

  10. Slide 10: Q4 2023 Performance

    Q4 2023 Performance Greater demand led to increased originations and ending receivables year over year. Higher credit quality receivables drove total revenue growth of 11% year over year for Q4. $186 $192 $416 $133 $182 +3% $402 +4% $120 +11% $332 $96 Q4 2021 Q4 2022 Q4 2023 Q4 2021 Q4 2022 Q4 2023

  11. Slide 11: Full Year 2023 Performance

    Full Year 2023 Performance Credit adjustments led to slightly lower net originations year over year. Despite the lower originations, higher credit quality receivables drove total revenue growth of 12% year over year. $753 $748 $416 $509 -1% $402 +4% $453 +12% $589 $332 $351 FY 2021 FY 2022 FY 2023 F

  12. Slide 12: Q4 2023 Key Performance Indicators

    Q4 2023 Key Performance Indicators6 UNAUDITED QUARTER ENDED Key Highlights6 Net originations increased 3% year over year as a result of ($ in millions) 12/31/2023 12/31/2022 increased demand within the tighter credit standards that were enacted with our bank partners mid-year 2022 Net Originations1

  13. Slide 13: Condensed Balance Sheet

    Condensed Balance Sheet UNAUDITED ($ in millions) 12/31/2023 12/31/2022 Assets Key Highlights Cash and Restricted Cash $73.9 $49.7 Total cash and restricted cash increased by $24 million driven by an increase in received payments relative to originations Finance Receivables at Fair Value 463.3 457.3

  14. Slide 14: Reduced Cost of Financing and Strong Balance Sheet to Power Growth

    Expanded funding capacity more Reduced Cost of Financing and than 5x since 2017 Strong Balance Sheet to Power Growth Decreased cost of borrowing Ample debt capacity provides a means to fund anticipated spread by 500+ bps since 2017 short-term future growth without equity Diversified institutional ca

  15. Slide 15: Full Year 2024 Earnings Guidance

    Full Year 2024 Earnings Guidance $510M to $46M to $0.53 to $530M $49M $0.57 Total Revenue Adjusted Net Income1 Adjusted EPS1,2 Growth Profitability Profitability 1. Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are financial measures that have not been prepared in accordance with

  16. Slide 16: Appendix

    Appendix 15

  17. Slide 17: Pro Forma Share Count as of December 31, 2023

    Pro Forma Share Count as of December 31, 2023 (Unaudited) Share Price Shares Notes $10.00 $12.00 $13.00 $14.00 Class A Common Stock 18,850,860 18,850,860 18,850,860 18,850,860 Class V Common Stock Excludes 25,500,000 shares of Class V Common Stock outstanding with Held for the benefit of Pre-Busines

  18. Slide 18: Fair Value Valuation

    Fair Value Valuation UNAUDITED Key Highlights ($ in thousands) 12/31/2023 12/31/2022 Outstanding Principal $416,463 $402,180 • Interest rate increased by 370 bps due to Interest Rate 156.1% 152.4% relative increase in base APR loans in the portfolio and a shift away from states with Discount Rate 26

  19. Slide 19: Q4 GAAP Income Statement

    Q4 GAAP Income Statement (in Thousands, except share and per share data) Three Months Ended December 31, Variance (Unaudited) 2023 2022 $ % Interest and loan related income $ 131,815 $ 119,634 $ 12,181 10.2% Other revenue 1,109 396 713 180.1% Total revenue 132,924 120,030 12,894 10.7% Change in fair

  20. Slide 20: Full Year GAAP Income Statement

    Full Year GAAP Income Statement Year Ended December 31, Variance (in Thousands, except share and per share data) 2023 2022 $ % Unaudited Interest and loan related income $ 505,430 $ 451,448 $ 53,982 12.0% Other revenue 3,519 1,411 2,108 149.4% Total revenue 508,949 452,859 56,090 12.4% Change in fai

  21. Slide 21: Condensed Balance Sheet

    Condensed Balance Sheet December 31, December 31, Variance (in Thousands) 2023 2022 $ % Unaudited Assets Cash and restricted cash $ 73,943 $ 49,670 $ 24,273 48.9% Finance receivables at fair value 463,320 457,296 6,024 1.3% Finance receivables at amortized cost, net 110 643 (533) (82.9%) Other asset

  22. Slide 22: Condensed Cash Flow Statement

    Condensed Cash Flow Statement Year Ended December 31, Variance (in Thousands) 2023 2022 $ % Unaudited Net cash provided by operating activities $ 296,146 $ 243,297 $ 52,849 21.7% Net cash (used in) investing activities (244,292) (317,244) 72,952 (23.0%) Net cash (used in) provided by financing activ

  23. Slide 23: Q4 Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation

    Q4 Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation (in Thousands, except share and per share data) Three Months Ended December 31, Variance (Unaudited) 2023 2022 $ % Net income (loss) $ 1,942 $ (5,199) $ 7,141 137.4% Income tax expense (benefit) 1,034 (2,034) 3,068

  24. Slide 24: Full Year Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation

    Full Year Net Income to Adjusted EBT, Adjusted Net Income and Adjusted EBITDA Reconciliation (in Thousands, except share and per share data) Year Ended December 31, Variance (Unaudited) 2023 2022 $ % Net income $ 39,479 $ 3,340 $ 36,139 1082.0% Income tax expense (benefit) 2,331 (277) 2,608 941.5% D

  25. Slide 25: Q4 and Full Year Diluted Shares as Reflected in Adjusted Earnings Per Share

    Q4 and Full Year Diluted Shares as Reflected in Adjusted Earnings Per Share Three Months Ended December 31, (Unaudited) 2023 2022 Weighted average Class A common stock outstanding 18,087,627 14,563,168 Weighted average Class V voting stock outstanding 92,604,532 - Elimination of earnouts at period e

  26. Slide 26: Q4 Adjusted Earnings Per Share

    Q4 Adjusted Earnings Per Share (in Thousands, except share and per share data) Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 (Unaudited) $ Per Share $ Per Share 1 Weighted average diluted shares outstanding 85,721,167 14,563,168 Net income (loss) $ 1,942 $ 0.02 $ (5,199)

  27. Slide 27: Full Year Adjusted Earnings Per Share

    Full Year Adjusted Earnings Per Share (in Thousands, except share and per share data) Year Ended December 31, 2023 Year Ended December 31, 2022 (Unaudited) $ Per Share $ Per Share Weighted average diluted shares outstanding 85,051,304 84,256,084 Net income $ 39,479 $ 0.46 $ 3,340 $ 0.04 Income tax e

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