Slide 1: 2Q23 Earnings Supplement
PA G AYA T E C H N O L O G I E S LT D . 2Q23 Earnings Supplement August 10th, 2023
Slide 2: Contents
01 Financial Metrics 02 Contents Operating Metrics 03 Non-GAAP Reconciliations
Slide 3: Financial Metrics
01 Financial Metrics
Slide 4: 2Q23 financial highlights
2Q23 financial highlights ($ millions) 2Q23 2Q22 %∆ Network Volume $1,957 $1,947 0% Total revenue & other income $196 $182 8% Revenue from fees $186 $163 14% Production costs $121 $105 15% Revenue from fees less production costs (FRLPC)* $65 $58 12% Operating Expenses ex. SBC $65 $81 (20%) (R&D, S&M
Slide 5: Key financial metrics
Key financial metrics In $ millions; % in yoy growth Total Revenue FRLPC Adjusted EBITDA 200 $65 20 $196 65 $17 18 195 63 16 190 8% 12% 14 61 185 $182 12 255% 59 $58 180 10 57 8 175 6 $5 170 55 4 165 53 2 160 51 — Q2 2022 2Q22 Q22Q23 2023 Q2 2022 2Q22 Q22Q23 2023 Q2 2022 2Q22 Q22Q23 2023
Slide 6: Evolution of FRLPC
Evolution of FRLPC Components of FRLPC as a % of network volume 12.0% 10.0% 10.0% 9.6% 9.5% 9.5% 8.4% 8.0% 7.0% 6.8% 6.7% 6.2% 6.0% 5.4% 4.0% 3.3% 2.9% 3.0% 2.7% 3 -4 % 3.0% FRLPC target range 2.0% 0.0% 2Q22 3Q22 4Q22 1Q23 2Q23 Fee revenue % of network volume (take rate) Production costs % of networ
Slide 7: Evolution of FRLPC by product
Evolution of FRLPC by product % contribution from lending partner and investor products Fee revenue less production costs as a % of network volume – breakdown by product 3.3% 3.0% 2.9% 3.0% 2.7% 1% 25% 32% 43% 58% 99% 75% 68% 57% 42% 2Q22 3Q22 4Q22 1Q23 2Q23 Investor Product (capital markets executi
Slide 8: Core operating expenses
Core operating expenses In $millions Total operating expenses excluding share-based compensation expense, one-time expenses (including the impact of recent Darwin acquisition), and depreciation 75 50% $ 67 65 $62 45% $56 40% 55 $52 $50 33% 32% 35% 31% 45 28% 30% 26% 35 25% 20% 25 15% 15 10% 5 5% (5)
Slide 9: Adjusted EBITDA
Adjusted EBITDA In $millions 20 $17 15 10 $5 5 $2 — (5) (5) ($5) (10) (9) ($9) (15) 2Q 2022 2Q22 3Q 2022 3Q22 4Q 2022 4Q22 1Q 2023 1Q23 2Q2Q23 2023
Slide 10: Operating Metrics
O02 Operating Metrics
Slide 11: Operating highlights
Operating highlights $ application volume from our Network volume Growing ABS lending partners (in $millions) investor base (in $billions) 2,000 205 100 1,990 200 $198 86 90 81 1,980 195 80 77 1,970 190 16% 70 67 67 1,960 $1,957 185 60 $1,947 50 52 1,950 180 50 47 47 42 1,940 175 40 36 $171 1,930 17
Slide 12: Network volume
Network volume in $millions $1,947 $1,924 $1,957 $1,850 $1,786 $1,621 $1,650 $1,522 $1,088 $673 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Source: Pagaya internal data
Slide 13: Applications evaluated vs conversion rate %
Applications evaluated vs conversion rate % Cumulative applications (#) versus conversion rate (%) 87% growth in application volume 2Q’23 vs. 3Q21 -48% decline in conversion rate 2Q’23 vs. 3Q’21 1Q20 1Q'20 2Q20 2Q'20 3Q20 3Q'20 4Q20 4Q'20 1Q21 1Q'21 2Q21 2Q'21 3Q21 3Q'21 4Q21 4Q'21 1Q22 1Q'22 2Q22 2
Slide 14: Our ABS funding network
Our ABS funding network ABS Issuance ABS Investor Base Investors in Pagaya’s financing vehicles Pagaya ABS issuance across all products TTM beginning 3Q19 (in $billions) Capital contributed in 1H23 by investor type $6.3B $5.5B $3.3B $1.1B Asset Manager Bank / Depository Hedge Fund Insurance Company
Slide 15: Credit performance: personal loan portfolio
Credit performance: personal loan portfolio Pagaya Personal Loan portfolio weighted average coupon (“WAC”) vs. 30-day+ DQs plus cumulative gross loss (“DQ”) at month on book 3 25% 4% 20% 3% 15% WAC (%) DQ (%) 2% 10% 1% 5% 0% 0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 WAC DQ Source: Pagaya inter
Slide 16: Credit performance: auto loan portfolio
Credit performance: auto loan portfolio Pagaya auto loan portfolio effective weighted average coupon (“EWAC”) vs. 60-day+ DQs plus cumulative gross loss (“DQ”) at month on book 6 25% 16% 20% 12% 15% EWAC (%) DQ (%) 8% 10% 4% 5% 0% 0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 EWAC DQ Source: Pagaya int
Slide 17: Non-GAAP Reconciliations
03 Non-GAAP Reconciliations
Slide 18: Reconciliation of Non-GAAP Financial Measures
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net Loss Attributable to Pagaya Technologies Ltd. ($31,297) ($175,262) ($9
Slide 19: Fee revenue less production costs (FRLPC) reconciliation
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (in thousands) Three Months Ended June 30, Six Months Ended June 30, Fee revenue less production costs (FRLPC) 2023 2022 2023 2022 Revenue from fees $185,685 $163,