Pagaya Technologies Ltd. · NASDAQ:PGY
Pagaya Technologies — Q3 2023 Earnings Presentation
19 slides from Pagaya Technologies's earnings presentation, Nov 2, 2023
Slide 1: 3Q23 Earnings Supplement
PA G AYA T E C H N O L O G I E S LT D . 3Q23 Earnings Supplement November 2nd, 2023
Slide 2: Contents
01 Financial Metrics 02 Contents Operating Metrics 03 Non-GAAP Reconciliations
Slide 3: Financial Metrics
01 Financial Metrics
Slide 4: 3Q23 financial highlights
3Q23 financial highlights ($ millions) 3Q23 3Q22 %∆ Network Volume $2,112 $1,924 10% Total revenue & other income $212 $204 4% Revenue from fees $201 $186 9% Production costs $129 $129 (0%) Revenue from fees less production costs (FRLPC)* $73 $56 29% Operating Expenses ex. SBC $62 $79 (21%) (R&D, S&
Slide 5: Key financial metrics
Key financial metrics In $ millions; % in yoy growth Total Revenue FRLPC Adjusted EBITDA $215 $75 $73 30 $28 $212 $70 25 $210 4% 29% 20 $65 +$33 $204 15 $205 $60 $56 10 $55 $200 5 $50 - $195 $45 ($5) ($5) $190 $40 ($10) 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23
Slide 6: Evolution of FRLPC
Evolution of FRLPC Components of FRLPC as a % of network volume 12.0% 10.0% 10.0% 9.5% 9.5% 9.5% 9.6% 8.0% 7.0% 6.8% 6.7% 6.2% 6.1% 6.0% 3.4% 4.0% 3.0% 2.7% 3.3% 3 -4 % FRLPC target 2.9% range 2.0% 0.0% 3Q22 4Q22 1Q23 2Q23 3Q23 Fee revenue % of network volume (take rate) Production costs % of networ
Slide 7: Evolution of FRLPC by product
Evolution of FRLPC by product % contribution from lending partner and investor products Fee revenue less production costs as a % of network volume – breakdown by product 3.3% 3.4% 3.0% 2.9% 2.7% 25% 32% 43% 58% 60% 75% 68% 57% 42% 40% 3Q22 4Q22 1Q23 2Q23 3Q23 Investor Product (capital markets execut
Slide 8: Core operating expenses
Core operating expenses In $ millions Total operating expenses excluding share-based compensation expense, one-time expenses, and depreciation $67 $62 $57 33% $55 32% $52 30% 28% 25% 3Q22 4Q22 1Q23 2Q23 3Q23 Core Opex Core Opex as a % of Revenue
Slide 9: Adjusted EBITDA
Adjusted EBITDA In $ millions $35 $30 $28 $25 $20 $17 $15 $10 $5 $2 — ($5) ($5) ($10) ($9) ($15) 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 10: Operating Metrics
O02 Operating Metrics
Slide 11: Operating highlights
Operating highlights $ application volume from our Network volume Growing ABS lending partners (in $ millions) investor base (in $ billions) $2,150 $184 100 $2,112 93 $182 89 $2,100 $182 90 10% $182 81 80 77 $2,050 $180 70 67 67 $2,000 $178 60 $1,950 $1,924 50 52 50 47 47 $1,900 42 $176 36 40 $1,850
Slide 12: Network volume
Network volume in $ millions $2,112 $1,947 $1,924 $1,957 $1,850 $1,786 $1,621 $1,650 $1,522 $1,088 $673 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Source: Pagaya internal data
Slide 13: Applications evaluated vs conversion rate %
Applications evaluated vs conversion rate % Applications per quarter (in $ billions) versus conversion rate of applications into network volume (%) $225 0.025 $182B Applications evaluated in $175 3Q23 0.02 $125 0.015 $75 <1% Conversion rate of 0.01 applications to $25 issued loans in 3Q23 1Q21 2Q21
Slide 14: Our ABS funding network
Our ABS funding network ABS Issuance ABS Investor Base Investors in Pagaya’s financing vehicles Pagaya ABS issuance across all products TTM beginning 4Q19 (in $billions) Capital contributed in 9M23 by investor type $6.1 $6.3 $4.3 $0.9 Asset Manager Bank / Depository Hedge Fund Insurance Company Othe
Slide 15: Credit performance: personal loan portfolio
Credit performance: personal loan portfolio Pagaya personal loan portfolio weighted average coupon (“WAC”) vs. 30-day+ DQs plus cumulative gross loss (“DQ”) Figures represent performance 3 months from issuance 25% 4% 20% 3% 15% WAC (%) DQ (%) 2% 10% 1% 5% 0% 0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q2
Slide 16: Credit performance: auto loan portfolio
Credit performance: auto loan portfolio Pagaya auto loan portfolio effective weighted average coupon (“EWAC”) vs. 60-day+ DQs plus cumulative gross loss (“DQ”) Figures represent performance 6 months from issuance 25% 16% 20% 12% 15% EWAC (%) DQ (%) 8% 10% 4% 5% 0% 0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q
Slide 17: Non-GAAP Reconciliations
03 Non-GAAP Reconciliations
Slide 18: Reconciliation of Non-GAAP Financial Measures (Unaudited)
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net Loss Attributable to Pagaya Technologies Ltd. ($21,75
Slide 19: Reconciliation of Non-GAAP Financial Measures: FRLPC
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 (in thousands) Three Months Ended September 30, Nine Months Ended September 30, Fee revenue less production costs (FRLPC) 2023 2022 2023 2022 Revenue from fe