Slide 1: 4Q & Full Year 2022 Results
Pagaya Technologies Ltd. 4Q & Full Year 2022 Results February 15, 2023
Slide 2: Legal disclaimer
Disclaimer Legal disclaimer Unaudited Financial Results The financial results included in this presentation are unaudited and subject to the completion of final audit adjustments, and therefore could differ from the financial results in the Company’s audited consolidated financial statements for the
Slide 3: Agenda
Agenda 2022 highlights Expanding our network: Auto & SFR Financials and outlook Q&A
Slide 4: Financial highlights
2022 highlights Financial highlights Network volume and revenue growth driven by existing Partners and faster growth of newer products, including Auto Network volume Total revenue & other income Adjusted EBITDA 2022 year in review FY’22 $7.3B $748.9M ($4.8M) vs FY’21 +49% +58% 4Q’22 $1.8B $192.9M ($
Slide 5: Year in review
Year in review PGY Became a public company Onboarded Record funding of Top 3 Auto lender >$7B ~$300M Record top-line Onboarded M&A Klarna in PoS Acquisition of Darwin Homes ~50%+ Strengthened leadership team >53 million applications AAA rating From Moody’s and DBRS 25+ years ~100% See “Footnotes” fo
Slide 6: Driving strong network volume and revenue growth to date
2022 highlights Driving strong network volume and revenue growth to date Network Volume ($B) Total Revenue & Other Income ($M) $749 $7.3 $475 $4.9 $1.6 $99 2020 2021 2022 2020 2021 2022
Slide 7: Differentiated value proposition
Differentiated value proposition
Slide 8: Pagaya's differentiated value proposition
Differentiated value proposition Pagaya’s differentiated value proposition B2B2C platform Upfront funding model Diversified across 5 products 2 01 Pagaya raises capital from investors (cash in trust) Auto Personal 02 Loan Partners originate with the assistance of Pagaya’s AI Partners Institutional I
Slide 9: >$1 trillion application volume evaluated
Differentiated value proposition Financial infrastructure to power the real economy >$1 trillion application volume evaluated since inception3 Cumulative applications Partner headquarters <1M apps Personal loan partner Between 1M and 2M apps Credit card/PoS partner > 2M apps Auto partner Source: Pag
Slide 10: Consistent value creation over time
Differentiated value proposition Consistent value creation over time Delivering growth for partners and investors while dynamically adapting to changing market conditions Covid-19 shock Improved credit environment Interest rate shock +98% application flow growth 2022 vs. 2021 -48% decline in convers
Slide 11: Enabling better outcomes for partners
Differentiated value proposition Enabling better outcomes for partners Pagaya creates value for partners on its network through incremental growth and network insights Benefits to partners from joining Average network volume growth on New partners to Pagaya’s network see Pagaya’s network Pagaya’s pl
Slide 12: Delivering relative value for institutional investors
Differentiated value proposition Delivering relative value for Unsecured Personal Loan Early Delinquencies (1)(2) institutional investors Institutional investors connected to Pagaya’s 2.18% 2.17% platform receive: 2.04% 1.99% 1.90% 1.83% 2.00% 1.68% ✓ Unique investment opportunities in consumer cred
Slide 13: Optimizing investor returns with data-rich A.I. engine
Differentiated value proposition Optimizing investor returns with data-rich A.I. engine Data-driven insights enabled adjustments in our Personal Loan portfolio to drive improved performance Higher annual income Longer-term loans Increased payment stability Borrowers with >$70K annual income Shift to
Slide 14: Auto and single-family rental
Auto and single-family rental
Slide 15: Auto: scaling fast with strong momentum into 2023
Expanding our network Auto: scaling fast with strong momentum into 2023 Focus on increased penetration of dealerships with existing partners and scaling new partners in new states Exponential growth in Auto application volume evaluated Strong sequential growth in network volume driven by new Auto pa
Slide 16: Applying AI in real estate: single-family rental
Applying AI in real estate: Opportunity to disrupt the SFR industry with advanced data science and technology single-family rental Credit data U.S. SFR Market Demographic Economic trends data Proprietary data engine with ~300M unique consumer ~$4T $80B data points 98% 2% Proprietary payments network
Slide 17: Industry's first AI-powered vertically integrated SFR platform
+ Industry’s first AI-powered vertically integrated SFR platform Combining best in class research and data-driven investment decisions with seamless, integrated operations to drive optimal asset performance Artificial Intelligence Proprietary Software Property Acquisition & Data & Automation Renovat
Slide 18: Financials and outlook
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Slide 19: 4Q'22 and FY'22 financial highlights
Financials and outlook 4Q’22 and FY’22 financial highlights ($ in millions) 4Q’22 4Q’21 %∆ FY’22 FY21 %∆ Network Volume $1,786 $1,621 10% $7,307 $4,904 49% Total revenue & other $193 $155 25% $749 $475 58% income Revenue from fees $178 $144 24% $685 $446 54% Production costs $125 $78 59% $451 $232 9
Slide 20: Path to profitability with a resilient business model and increasing scale
Financials and outlook ✓ Ability to monetize our network in multiple ways due to Path to profitability with a the unique ecosystem we created connecting partners and investors resilient business model and increasing scale ✓ Investing in expanding our network with new partners and products ✓ Producin
Slide 21: Monetizing our network with multiple revenue streams
Financials and outlook Monetizing our network with multiple revenue streams Total Revenue by category Total Revenue +58% Fee category Description • AI Integration and Capital Markets Execution Network AI Fees fees $749 • Fees generated from the creation, sourcing 8% and delivery of assets originated
Slide 22: Delivering stable gross profit through macro cycles
Financials and outlook Delivering stable gross profit through macro cycles Revenue from fees less production costs 6 (gross profit) ✓ Revenue from fees as a % of network volume: 10.0% 8.9% ✓ Production costs as a % of network volume: 7.0% 4.8% ✓ Revenue from fees less production costs as 4.1% 3.0% a
Slide 23: Driving operating leverage with scale and proactive expense management
Driving operating leverage with scale and proactive expense management ✓ Stabilizing expense level Operating leverage enabled by scale $397 ✓ $352 $291 ✓ before any cost-saving initiatives 43% 41% 39% 2H'21 1H'22 2H'22 Revenue ($m) Operating expenses excluding stock-based compensation as a % of reve
Slide 24: 2023 Outlook
Financials and outlook 2023 Outlook 1Q23E FY23E Network Volume $1.7B to $1.8B $7.5B to $8.0B Total Revenue and Other Income $175M to $180M $775M to $825M Adjusted EBITDA ($5M) to $0 $10M to $25M
Slide 25: Q&A
Q&A (© PaGaya 25
Slide 26: Thank you
Thank you (© PaGaya
Slide 27: Appendix
Appendix (© PaGaya
Slide 28: Light balance sheet business model
Short-term Payables & receivables & other ST Other long- other current liabilities term assets assets 11% (PPE, leases & 8% ~$1 billion other) 16% Long-term Cash & cash liabilities equivalents 16% 32% in total assets Equity 53% Light balance sheet Investments Non-controlling in loans and interests s
Slide 29: Reconciliation of non-GAAP financial measures
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE MONTHS AND YEAR ENDED December 31, 2022 AND 2021 (In thousands) Three Months Ended Dec. 31, Year Ended Dec. 31, 2022 2021 2022 2021 Net Loss Attributable to Pagaya Technologies Ltd. ($33,998) ($10,456) ($302
Slide 30: Footnotes
4Q & Full Year 2022 Results Footnotes