Oppfi Inc. · NYSE:OPFI
Oppfi — Q4 2022 Earnings Presentation
26 slides from Oppfi's earnings presentation, Mar 23, 2023
Slide 1: Q4 2022 Earnings Presentation
Q4 2022 Earnings Presentation March 23, 2023 A Mission-Driven Fintech Platform that Helps Everyday Americans Gain Access to Credit with Specialty Finance Products
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: 2022 Full Year Highlights
2 2022 Full Year Highlights Marketing cost per new funded loan decreased 20% year over year Closed $150 million credit facility with Castlelake Founder / Executive Chairman returned as Chief Executive Officer First payment default rates for new customers ended Q4 down 29% from end of Q2, trending cl
Slide 4: Key Company Highlights
3 Key Company Highlights 1. 2017– 2022 2. As of 12/31/2022 3. For full-year 2022 at the time of loan approval Solid Revenue Growth 45% 5-year CAGR1 Significant Scale Facilitated more than $4.4 billion in gross loan issuance covering over 2.6 million loans, since inception2 Leading Proprietary Credit
Slide 5: High Percentage of Americans Lack Savings and/or Credit Access
4 High Percentage of Americans Lack Savings and/or Credit Access 60 million U.S. adults lack access to traditional credit at choice1 60% of U.S. consumers live paycheck to paycheck2 43% of U.S. adults have savings to cover a $1,000 unplanned expense3 1. Hamdani, Kausar, et al. “UNEQUAL ACCESS TO CRE
Slide 6: A Cheaper, Better Product for Non-Prime
5 5 A Cheaper, Better Product for Non- Prime Traditional financing options for the underbanked have been limited, with exorbitant interest rates and poor customer service OppFi Advantage: Market Leading Terms and Excellent Customer Experience OppFi’s Market Leading Terms Underbanked Option APRs Simp
Slide 7: OppFi Growth Strategy
6 OppFi Growth Strategy Accelerate Profitable Growth Drive profitable core product volume growth Diversify into new customer and product types via M&A Expand relationships to serve more consumers • Continue to refine and enhance underwriting model, focusing on more favorable credit tiers • Maintain
Slide 8: Q4 2022 Financial Highlights
7 Q4 2022 Financial Highlights 1. Non-GAAP Financial Measures: Adjusted Net Loss and Adjusted EPS are financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). See the disclaimer on “Non-GAAP Financial Measures” on slide 1 for a detailed des
Slide 9: Full Year 2022 Financial Highlights
8 Full Year 2022 Financial Highlights 1. Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). See the disclaimer on “Non-GAAP Financial Measures” on slide 1 for a det
Slide 10: Q4 2022 Performance
9 Q4 2022 Performance Credit adjustments led to flat Q4 net originations year over year. Ending receivables growth of 19% drove total revenue growth of 25% year over year for Q4. $276 $338 $403 Q4 2021 Ending Receivables ($ Millions) Q4 2020 Q4 2022 +19% $87 $96 $120 Q4 2021 Total Revenue ($ Million
Slide 11: Full-Year 2022 Performance
10 Full-Year 2022 Performance With continued strong demand, net originations growth of 27% and ending receivables growth of 19% drove total revenue growth of 29% year over year. $276 $338 $403 Ending Receivables ($ Millions) +19% $323 $351 $453 Total Revenue ($ Millions) +29% $483 $595 $758 FY2020 F
Slide 12: Full-Year Key Performance Indicators
11 Net originations increased 27% year over year Ending receivables increased 19% year over year as a result of strong net originations growth YoY Net charge-offs as % of average receivables increased to 62% versus 38% year over year, which reflects elevated delinquencies from higher loss customers
Slide 13: Condensed Balance Sheet
12 Condensed Balance Sheet PERIOD ENDED ($ in millions) 12/31/2022 12/31/2021 Assets Cash and restricted cash $49.7 $62.4 Finance Receivables at Fair Value 457.3 383.9 Finance Receivables at Amortized Cost, Net 0.6 4.2 Other Assets 71.7 51.6 Total Assets $579.8 $502.1 Liabilities and Stockholders’ E
Slide 14: Reduced Cost of Financing and Strong Balance Sheet to Power Growth
13 Grown liquidity more than 5x since 2017 Decreased cost of borrowing spread by 500+ bps since 2017 Diversified institutional capital sources Increased financial flexibility with: • corporate credit agreements, • asset-backed facilities, • bank provided asset-based loans, • forward flow arrangement
Slide 15: FY 2023 Guidance
14 $500M to $520M FY 2023 Guidance Growth Profitability Profitability $22M to $28M $0.26 to $0.33 Total Revenue Approximate Growth of 10% to 15% Adjusted Net Income1 Adjusted EPS1,2 1. Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are financial measures that have not been prepare
Slide 16: Appendix
15 Appendix
Slide 17: Pro Forma Share Count as of December 31, 2022
16 Pro Forma Share Count as of December 31, 2022 Shares Share Price Notes $10.00 $12.00 $13.00 $14.00 Class A Common Stock 14,760,566 14,760,566 14,760,566 14,760,566 Class V Common Stock Held for the benefit of Pre-Business Combination OppFi Equity holders 69,437,285 69,437,285 69,437,285 69,437,28
Slide 18: Fair Value Valuation
17 Fair Value Valuation 1. Stated as a percentage of loan receivable. 2. Represents rate applied to unpaid principal receivables, inclusive of adjustment for accrued interest. Key Highlights • Interest rate increased by 160 bps due to relative increase in base APR loans on the book • Default rate in
Slide 19: OppFi Q4 GAAP Income Statement
18 OppFi Q4 GAAP Income Statement 1. Shares of Class V common stock that are exchangeable into shares of Class A common stock as a result of OppFi's Up-C structure are excluded from the diluted shares calculation in any period in which OppFi reports a loss because the inclusion would be antidilutive
Slide 20: OppFi Full-Year GAAP Income Statement
19 OppFi Full-Year GAAP Income Statement (in Thousands, except share and per share data) 2022 2021 $ % Interest and loan related income 451,448$ 349,029$ 102,419$ 29.3% Other revenue 1,411 1,539 (128) (8.3%) Total revenue 452,859 350,568 102,291 29.2% Provision for credit losses on finance receivabl
Slide 21: OppFi Condensed Balance Sheet
20 OppFi Condensed Balance Sheet (in Thousands) 2022 2021 $ % Assets Cash and restricted cash 49,670$ 62,362$ (12,692)$ (20.4%) Finance receivables at fair value 457,296 383,890 73,406 19.1% Finance receivables at amortized cost, net 643 4,220 (3,577) (84.8%) Other assets 72,230 51,634 20,596 39.9%
Slide 22: OppFi Cash Flows
21 OppFi Cash Flows (in Thousands) 2022 2021 $ % Net cash provided by operating activities 243,297$ 167,346$ 75,951$ 45.4% Net cash (used in) investing activities (317,244)$ (199,470)$ (117,774) (59.0%) Net cash provided by financing activities 61,255$ 48,829$ 12,426 25.4% (12,692)$ 16,705$ (29,397)
Slide 23: OppFi Q4 Net Income to Adj. EBT, Adj. Net Income and Adj. EBITDA Reconciliation
22 OppFi Q4 Net Income to Adj. EBT, Adj. Net Income and Adj. EBITDA Reconciliation 1. For the three months ended December 31, 2022, other addbacks and one-time expense of $2.8 million included a $(2.3) million addback due to the change in fair value of the warrant liabilities, $0.1 million in income
Slide 24: OppFi Full-Year Net Income to Adj. EBT, Adj. Net Income and Adj. EBITDA Reconciliation
23 OppFi Full-Year Net Income to Adj. EBT, Adj. Net Income and Adj. EBITDA Reconciliation 1. For the year ended December 31, 2022, other addbacks and one-time expenses of $1.1 million included a $(9.4) million addback due to the change in fair value of the warrant liabilities, $0.1 million in income
Slide 25: OppFi Q4 and Full-Year Diluted Shares in Adjusted Earnings Per Share
24 OppFi Q4 and Full-Year Diluted Shares as Reflected in Adjusted Earnings Per Share 1. Shares of Class V common stock that are exchangeable into shares of Class A common stock as a result of OppFi's Up-C structure are excluded from the diluted shares calculation in any period in which OppFi reports
Slide 26: OppFi Q4 and Full-Year Adjusted Earnings per Share
25 OppFi Q4 and Full-Year Adjusted Earnings per Share 1. Non-GAAP Financial Measures: Adjusted Net Income and Adjusted Earnings per Share are financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). See the disclaimer on “Non-GAAP Financial