Oppfi Inc. · NYSE:OPFI
Oppfi — Q1 2024 Earnings Presentation
22 slides from Oppfi's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Earnings Presentation
A Tech-Enabled, Mission-Driven Specialty Finance Platform that Broadens the Reach of Community Banks to Extend Credit Access to Everyday Americans Q1 2024 Earnings Presentation May 8, 2024
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
Slide 3: Q1 2024 Highlights
Q1 2024 Highlights Net income of $10.1 million up from 5.8% increase year over year in $3.9 million year over year, and total revenue to $127.3 million adjusted net income of $8.8 million up from $3.9 million year over year1,2 Exceeded adjusted EPS guidance 3.5 percentage point increase year and rai
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
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’
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
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
Slide 8: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights $10.1M Total Revenue Net Income • Total revenue increased 6% year over year to $127M $8.8M Adj. Net Income1 Net Originations2,3 $0.29 • Total net originations increased 2% year over year Basic EPS to $163M • Total retained net originations decreased 2% year $0.10 over ye
Slide 9: Q1 2024 Performance
Q1 2024 Performance Despite relatively steady receivables balances, a higher-yielding portfolio drove total revenue growth of 6% year over year for Q1. $160 $160 $163 $370 $371 $127 +2% +0.5% $120 +6% $333 $101 Q1 2022 Q1 2023 Q1 2024 Q1 2022 Q1 2023 Q1 2024 Q1 2022 Q1 2023 Q1 2024 Total Net Origina
Slide 10: Q1 2024 Key Performance Indicators
Q1 2024 Key Performance Indicators6 UNAUDITED QUARTER ENDED Key Highlights6 Total net originations increased 2% year over year as a result of ($ in millions) 3/31/2024 3/31/2023 bank partners expanding into additional states, as well as enhanced lead evaluation capabilities driving higher quality ap
Slide 11: Condensed Balance Sheet
Condensed Balance Sheet UNAUDITED ($ in millions) 3/31/2024 12/31/2023 Key Highlights Assets Total cash and restricted cash increased by $15 million driven by Cash and Restricted Cash $88.7 $73.9 an increase in received payments relative to originations and partially offset by payments of debt Finan
Slide 12: 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
Slide 13: Raised Full Year 2024 Earnings Guidance
Raised Full Year 2024 Earnings Guidance $510M to $50M to $0.58 to $530M $54M $0.62 Total Revenue Adjusted Net Income1 Adjusted EPS1,2 Affirmed Raised from $46M to $49M Raised from $0.53 to $0.57 Growth Profitability Profitability 1. Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS a
Slide 14: Appendix
Appendix 13
Slide 15: Pro Forma Share Count as of March 31, 2024
Pro Forma Share Count as of March 31, 2024 (Unaudited) Share Price Shares Notes $10.00 $12.00 $13.00 $14.00 Class A Common Stock 19,311,623 19,311,623 19,311,623 19,311,623 Class V Common Stock Excludes 25,500,000 shares of Class V Common Stock outstanding with Held for the benefit of Pre-Business 6
Slide 16: Fair Market Valuation
Fair Market Valuation UNAUDITED Key Highlights ($ in thousands) 3/31/2024 12/31/2023 Outstanding Principal $371,386 $416,463 • Interest rate increased by 60 bps due to Interest Rate 156.7% 156.1% relative increase in base APR loans in the portfolio Discount Rate 26.2% 26.3% • Default rate increased
Slide 17: Q1 2024 Income Statement
Q1 2024 Income Statement (in Thousands, except share and per share data) Three Months Ended March 31, Variance (Unaudited) 2024 2023 $ % Interest and loan related income $ 126,279 $ 119,942 $ 6,337 5.3% Other revenue 1,064 432 632 146.3% Total revenue 127,343 120,374 6,969 5.8% Change in fair value
Slide 18: Condensed Balance Sheet
Condensed Balance Sheet March 31, December 31, Variance (in Thousands) 2024 2023 $ % Unaudited Assets Cash and restricted cash $ 88,721 $ 73,943 $ 14,778 20.0% Finance receivables at fair value 412,038 463,320 (51,282) (11.1%) Finance receivables at amortized cost, net 48 110 (62) (56.4%) Other asse
Slide 19: Condensed Cash Flow Statement
Condensed Cash Flow Statement (in Thousands) Three Months Ended March 31, Variance (Unaudited) 2024 2023 $ % Net cash provided by operating activities $ 74,427 $ 65,637 $ 8,790 13.4% Net cash used in investing activities (18,005) (28,300) 10,295 (36.4%) Net cash used in provided by financing activit
Slide 20: Q1 2024 Net Income to Adjusted EBT and Adjusted Net Income Reconciliation
Q1 2024 Net Income to Adjusted EBT and Adjusted Net Income Reconciliation (in Thousands, except share and per share data) Three Months Ended March 31, Variance (Unaudited) 2024 2023 $ % Net income $ 10,131 $ 3,930 $ 6,201 157.8% Income tax expense 404 146 258 176.7% Other income (80) (193) 113 (58.5
Slide 21: Q1 2024 Diluted Shares as Reflected in Adjusted Earnings Per Share
Q1 2024 Diluted Shares as Reflected in Adjusted Earnings Per Share Three Months Ended March 31, (Unaudited) 2024 2023 Weighted average Class A common stock outstanding 19,205,427 15,037,326 Weighted average Class V voting stock outstanding 91,898,193 94,742,634 Elimination of earnouts at period end
Slide 22: Q1 Adjusted Earnings Per Share
Q1 Adjusted Earnings Per Share (in Thousands, except share and per share data) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 (Unaudited) $ Per Share $ Per Share Weighted average diluted shares outstanding 86,243,498 84,432,529 Net income $ 10,131 $ 0.12 $ 3,930 $ 0.05 Income ta