Oppfi Inc. · NYSE:OPFI
Oppfi — Q1 2022 Earnings Presentation
21 slides from Oppfi's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Earnings Presentation
Q1 2022 Earnings Presentation May 5, 2022 A Leading FinTech Platform for the Everyday Consumer
Slide 2: Disclaimer
1 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,
Slide 3: Key Company Highlights
2 Robust Customer Demand More than 2.4 million applications in 2021, ~80% mobile generated Leading Proprietary Credit & Technology Platform Real-time AI drove automation for 82% of decisions in 2021 Exceptional Customer Satisfaction Net Promoter Score of 85; 2,700+ Trustpilot customer reviews with 4
Slide 4: The OppFi Advantage: Built for the Future
3 A platform that puts you in control The OppFi Advantage: Built for the Future 1. Hamdani, Kausar, et al. “UNEQUAL ACCESS TO CREDIT The Hidden Impact of Credit Constraints.” NewYorkFed.org, 2019 2. Friedman, Zack. “78% Of Workers Live Paycheck To Paycheck.” Forbes.com, January 11, 2019 3. Elkins, K
Slide 5: Q1 2022 Financial Highlights
4 Q1 2022 Financial Highlights • Net Originations increased 63% year over year • Ending Receivables increased 38% year over year • Revenue increased 20% year over year • Net Loss was ($0.3) million • Adjusted Net Income was $0.6 million • GAAP and Adjusted EPS1 were $0.08 and $0.01, respectively 1.
Slide 6: Q1 2022 Performance
5 $84 $101 $245 $338 $100 $163 Q1 2021 Net Originations ($ Millions) Ending Receivables1 ($ Millions) Total Revenue ($ Millions) 1. Receivables are defined as unpaid principal balances of both on- and off-balance sheet loans. YoY Growth +63% Q1 2022 YoY Growth +38% YoY Growth +20% Q1 2022 Performanc
Slide 7: Muted Profitability In Q1 2022, In-Line With Expectations
6 $19 $1 Adj. EBITDA1 ($ Millions) Adj. Net Income1 ($ Millions) 11%38%Margin2 Margin2 1. Adj. EBITDA and Adj. Net Income and margins thereof are not financial measures determined in accordance with GAAP. For a reconciliation to our most directly comparable financial measures calculated and presente
Slide 8: Quarterly Key Performance Indicators
7 • Net originations increased 63% year over year • Ending receivables increased 38% year over year as a result of strong origination growth YoY • Net charge-offs as % of average receivables increased to 56% versus 30% year over year reflecting increased losses from segments that are no longer being
Slide 9: Condensed Balance Sheet
8 • Total cash decrease of $2 million was driven by self funding higher receivables growth and one-time expenses such as transaction costs and tax distributions • Other assets grew by $14 million driven largely by the addition of an operating lease right of use assets of $15 million (corresponding l
Slide 10: Reaffirming Full Year 2022 Outlook
9 Reaffirming Full Year 2022 Outlook Net Revenue Margin 60% to 65% Adj. Operating Expense1 Margin 43% to 47% Adj. EBITDA Margin 20% to 25% Adj. Net Income Margin 8% to 12% Total revenue and ending receivables growth of 20% to 25% in 2022 year over year 1. Adj. Operating Expense is defined as total e
Slide 11: Key Investment Highlights
10 Key Investment Highlights Profitable, growing financial technology company Installment loan category disruptor Differentiated business model with low cost spread-based lending creates a competitive advantage and minimizes interest rate risk Potential strategic growth via product extensions and ac
Slide 12: Appendix
11 Appendix
Slide 13: Pro Forma Share Count as of March 31, 2022
12 Pro Forma Share Count as of March 31, 2022 Shares Share Price Notes$10.00 $12.00 $13.00 $14.00 Class A Common Stock held by Public and Founders 13,349,150 13,349,150 13,349,150 13,349,150 ▪ Shares held by public shareholders, including founders, underwriters and private placements. Class A and Cl
Slide 14: Fair Value First Quarter Valuation
13 Fair Value First Quarter Valuation Unaudited ($ in thousands) 3/31/2022 12/31/2021 Outstanding Principal $332,517 $332,244 Accrued Interest $10,674 $10,637 Interest Rate 147.7% 147.6% Discount Rate 21.6% 21.8% Servicing Cost1 (5.0)% (5.0)% Remaining Life 0.617 years 0.618 years Default Rate1 18.5
Slide 15: OppFi GAAP Income Statements
14 OppFi GAAP Income Statements 1. Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-
Slide 16: OppFi Condensed Balance Sheet
15 OppFi Condensed Balance Sheet (in thousands) Unaudited March 31, 2022 December 31, 2021 Variance (%) Assets Cash and restricted cash $ 59,946 $ 62,362 (3.9%) Finance receivables at fair value 381,845 383,890 (0.5%) Finance receivables at amortized cost, net 4,811 4,220 14.0% Other assets 65,943 5
Slide 17: Quarterly Net Income to Adj. EBT and Adj. EBITDA Reconciliation
16 OppFi Quarterly Net Income to Adj. EBT and Adj. EBITDA Reconciliation 1. For the three months ended March 31, 2022, addback and one-time expense of ($0.06 million) included a ($2.4 million) addback due to the change in fair value of the warrant liabilities, a $1.5 million expense due to severance
Slide 18: OppFi Cash Flows
17 OppFi Cash Flows Three Months Ended March 31, (in thousands) Unaudited 2022 2021 Variance (%) Net cash provided by operating activities $ 44,286 $ 45,356 (2.4%) Net cash (used in) investing activities (52,244) (4,642) (1025.5%) Net cash provided by financing activities 5,097 9,594 (46.9%) Net (de
Slide 19: Adjusted Shares in Adjusted Basic and Diluted EPS
18 OppFi Adjusted Shares as Reflected in Adjusted Basic and Diluted Earnings Per Share Three Months Ended March 31, 2022 2021 Weighted average Class A common stock outstanding 13,581,828 - Weighted average Class V voting stock outstanding 96,338,474 - Elimination of earnouts at period end (25,500,00
Slide 20: OppFi Adjusted Basic and Diluted EPS
19 OppFi Adjusted Basic and Diluted EPS Three Months Ended March 31, 2022 2021 Adjusted net income (thousands)1 $ 648 $ 19,255 Weighted average adjusted basic shares 84,420,302 - Adjusted basic EPS2: $ 0.01 $ - Three Months Ended March 31, 2022 2021 Adjusted net income (thousands)1 $ 648 $ 19,255 We
Slide 21: Net Income to Adj. EBT and Adj. EBITDA Reconciliation
20 OppFi Net Income to Adj. EBT and Adj. EBITDA Reconciliation 1. Other addback and one-time expense of ($8.5 million) included a ($26.4 million) addback due to the change in fair value of the warrant liabilities, a ($6.4 million) addback due to the gain on forgiveness of PPP Loan, and a $24.4 milli