Slide 1: Q3 2024 Summary Results
Q3 2024 Summary Results October 2024
Slide 2: Disclaimer
Disclaimer Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, and Tangible Book Value. These non- GAAP measures are in addition to, and not a s
Slide 3: Members
Members (5) New Member Additions of 756K in Q3, bringing total to nearly 9.4M Members (+35% YoY) (1) Members 9,373 in thousands 8,774 8,132 7,542 6,957 6,240 5,656 5,223 4,743 4,319 3,868 3,460 2,937 2,560 2,281 1,851 1,501 1,086 1,204 Q1’20 Q2’20 Q3’20 Q4’20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'2
Slide 4: Products
Products (5) New Product Additions of 1.1M in Q3, bringing total to nearly 13.7M (+31% YoY, or 37% when excluding digital assets accounts) 13,651 (2) Products 12,776 in thousands 11,830 11,142 10,448 9,401 8,554 7,895 7,199 6,564 5,862 5,173 4,268 3,667 3,185 2,524 2,053 1,442 1,645 Q1’20 Q2’20 Q3’2
Slide 5: Galileo Accounts
Galileo Accounts Accounts total 160M (+17% YoY) (3)(4) Galileo Accounts 158 160 in millions 151 145 137 131 129 124 126 117 110 100 89 79 70 60 49 36 30 Q1’20 Q2’20 Q3’20 Q4’20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 YoY Growth 132% 119% 81% 67% 58%
Slide 6: Lending and Financial Services Products
Lending and Financial Services Products Growth in products & members driven by Financial Services products, which reached 11.8M (+33% YoY, or 40% when excluding digital assets accounts) (2) (2) Lending Products (000s): +19% YoY to 1.9M Financial Services Products (000s): +33%* YoY to 11.8M 1,891 11,
Slide 7: Financial Services Productivity Loop
Financial Services Productivity Loop FSPL continues to create marketing efficiencies and improves xBuy (2) Ratio of Financial Services to Lending Products Q3'24 Total: 13,651K Q3'23 Total Fin Serv Products Total Lending Products 6.2x Total: 10,448K Money: 4,720K Money: 3,064K 5.6x Relay: 4,200K Inve
Slide 8: Financial Services + Tech Platform Revenue Growth and Mix
Financial Services + Tech Platform Revenue Growth and Mix These segments grew a combined 64% YoY, now comprising 49% of adjusted net revenue vs 39% in the prior year period (8) (8) Financial Services + Tech Platform Net Revenue ($M): +64% YoY to $341M Financial Services + Tech Platform, % of Adjuste
Slide 9: Q3 2024 Credit Performance
Q3 2024 Credit Performance
Slide 10: NCL by Loan Vintage and % of Remaining UPB
NCL* by Loan Vintage and % of Remaining UPB** For Personal Loan Originations Comparison of 2017 vintage (last yearly vintage that approached 8% cumulative life of loan losses) and recent vintages which proceeded meaningful credit cuts in mid-late 2022. Q4 2022 -Q4 2023 vintages all continue to perfo
Slide 11: NCL by Loan Vintage and % of Remaining UPB
NCL by Loan Vintage and % of Remaining UPB For Personal Loan Originations Q1’20 - Q2’24 Origination & NCL Analysis Total Originations Q1’20 - Q2’24 $39B Remaining UPB on Total Of the $39B of 2020-Q2’24 principal Originations Q1’20-Q2’24 $16.7B originated, 43% remains outstanding % Remaining 43% Cumu
Slide 12: Q3 2024 Financial Review
Q3 2024 Financial Review
Slide 13: Quarterly Performance
Quarterly Performance Adjusted Net Revenue of $689M (30% YoY Growth) and Adjusted EBITDA of $186M (at 27% EBITDA Margin) (8) (9) Quarterly Adjusted Net Revenue ($M) Quarterly Adjusted EBITDA ($M) $689 $186 $181 $594 $597 $581 $531 $144 $138 $489 $460 $443 $419 $98 $76 $77 $70 $44 Q3'22 Q4'22 Q1'23 Q
Slide 14: Trailing Twelve Months Performance
Trailing Twelve Months Performance (8) (9) Adjusted Net Revenue ($M) Adjusted EBITDA ($M) Net Income (Loss) ($M) $2,461 $650 $214 $2,074 $432 $1,540 $1,010 $143 $(301) $(320) $30 $(484) 2021 2022 2023 Q3’24 TTM 2021 2022 2023 Q3’24 TTM 2021 2022 2023 Q3’24 TTM 5.6% (20) ROTCE Note: See “Footnotes” s
Slide 15: Q3 2024 Non-GAAP Results vs Guidance
Q3 2024 Non-GAAP Results vs Guidance Adj. Net Revenue was $689M vs guidance of $625-645M, representing a $44M beat at the high end Adj. EBITDA was $186M vs guidance of $160-165M, representing an $21M beat at the high end GAAP Net Income was $61M vs guidance of $40-45M, representing a $16M beat at th
Slide 16: FY 2024 Guidance
FY 2024 Guidance We expect to deliver: • Financial Services net revenue growth of more than 80% versus 2023 levels • Lending adjusted net revenue of at least 100% of 2023 levels • Tech Platform net revenue percent growth of low to high teens versus 2023 levels (8) • Adjusted Net Revenue of $2,535 -
Slide 17: FY 2024 Guidance
FY 2024 Guidance We now expect to deliver $2.54-2.55 billion in Adjusted Net Revenue, $640-645 million in Adjusted EBITDA, $204-206 million in Net Income and $0.11-0.12 cents in EPS $ in millions 2024 Guidance Prior 2024 Original 2023 Actual Low High Guidance Guidance (8) Adjusted net revenue $2,074
Slide 18: Financial Supplement
Financial Supplement
Slide 19: Company Metrics
Company Metrics FY 2022 FY 2023 FY 2024 Year End (in 000’s) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 2021 2022 2023 Company Metrics (1) Members 3,868 4,319 4,743 5,223 5,656 6,240 6,957 7,542 8,132 8,774 9,373 3,460 5,223 7,542 QoQ % 11.8 % 11.6 % 9.8 % 10.1 % 8.3 % 10.3 % 1
Slide 20: Segment Financials
Segment Financials FY 2022 FY 2023 FY 2024 Year End (in 000’s) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 2021 2022 2023 Lending Segment Student Loan Originations $ 983,804 $ 398,722 $ 457,184 $ 405,789 $ 525,373 $ 395,367 $ 919,330 $ 789,970 $ 751,680 $ 736,518 $ 943,584 $ 4,
Slide 21: Segment Financials
Segment Financials FY 2022 FY 2023 FY 2024 (in 000’s) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Lending Segment Net interest income $ 94,354 $ 114,003 $ 139,516 $ 183,607 $ 201,047 $ 231,885 $ 265,215 $ 262,626 $ 266,536 $ 279,212 $ 316,268 Total noninterest income 158,635 14
Slide 22: Net Interest Margin Components
Net Interest Margin Components FY 2022 FY 2023 FY 2024 (in 000’s) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Average Balances Total interest-earning assets $ 8,666,475 $ 9,374,928 $ 10,723,022 $ 14,103,767 $ 17,239,960 $ 20,357,082 $ 22,856,717 $ 25,698,397 $ 27,428,608 $ 28,4
Slide 23: Fair Value of Loans
Fair Value of Loans FY 2022 FY 2023 FY 2024 (in 000’s) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Personal Loans Unpaid principal $ 3,006,363 $ 3,943,768 $ 6,667,484 $ 8,283,400 $ 10,039,769 $ 12,171,935 $ 14,177,004 $ 14,498,629 $ 14,332,874 $ 15,040,190 $ 16,199,604 Accumula
Slide 24: 90+ Day Delinquencies
90+ Day Delinquencies FY 2022 FY 2023 FY 2024 (in 000’s) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Personal Loans Total Unpaid principal $3,006,363 $3,943,768 $6,667,484 $8,283,400 $10,039,769 $ 12,171,935 $ 14,177,004 $14,498,629 $14,332,874 $15,040,190 $16,199,604 Unpaid pr
Slide 25: Select Balance Sheet Information
Select Balance Sheet Information Assets Liabilities and Permanent Equity $ in thousands Q3'24 Q3'24 Cash & cash equivalents $ 2,354,965 Revolving credit facility $ 486,000 Restricted cash & cash equivalents 614,794 Personal loan warehouse facilities 252,769 Investment Securities 1,554,285 Student lo
Slide 26: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2022 FY 2023 FY 2024 Year End (in 000’s) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 2021 2022 2023 Net Revenue (GAAP) $ 330,344 $ 362,527 $ 423,985 $ 456,679 $ 472,158 $ 498,018 $ 537,209 $ 615,404 $ 644,995 $ 598,618 $ 697,121
Slide 27: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2022 FY 2023 FY 2024 Year End (in 000’s) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 2021 2022 2023 Non-GAAP Reconciliations Net Revenue (GAAP) $ 330,344 $ 362,527 $ 423,985 $ 456,679 $ 472,158 $ 498,018 $ 537,209 $ 615,404 $ 644
Slide 28: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2022 FY 2023 FY 2024 Year End (in 000’s) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 2021 2022 2023 Non-GAAP Reconciliations Net Revenue - Lending (GAAP) $ 252,989 $ 257,117 $ 301,694 $ 328,191 $ 337,081 $ 331,441 $ 348,973 $ 353
Slide 29: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations FY 2022 FY 2023 FY 2024 (in 000’s, except share and per share data) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Non-GAAP Reconciliations Total permanent equity (GAAP) $ 5,210,299 $ 5,186,180 $ 5,181,003 $ 5,208,102 $ 5,234,072 $ 5,2
Slide 30: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations (in 000’s, except ratios) Q3’24 Non-GAAP Reconciliations Net income, trailing twelve months (GAAP) $ 214,105 Average permanent equity, last 12 months (GAAP) $ 5,569,637 Average goodwill (1,393,505) Average intangible assets (348,486) (19) Average tangibl
Slide 31: Footnotes to Financial Statements
Footnotes to Financial Statements
Slide 32: Footnotes
Footnotes (1) We refer to our customers as “members”. We define a member as someone who has a lending relationship with us through origination and/or ongoing servicing, opened a financial services account, linked an external account to our platform, or signed up for our credit score monitoring servi
Slide 33: Footnotes
Footnotes (9) Adjusted EBITDA, adjusted EBITDA margin, and incremental adjusted EBITDA margin are non-GAAP measures. Adjusted EBITDA is defined as net income (loss), adjusted to exclude, as applicable: (i) corporate borrowing-based interest expense (our adjusted EBITDA measure is not adjusted for wa