ENVA - Earnings call transcript Q4 2018 | Enova International, Inc.

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Operator

Hello everyone and welcome to the Enova International Fourth Quarter and Full-Year 2018 Earnings Conference Call. All participants today will be in a listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. event recorded. today's that note is being Please I to Enova. Monica like to conference over turn the Gould, would now Investor Relations for go ahead. Please

Monica Gould

for this afternoon Thank Enova the market full-year good and after ended the results XXXX XXXX, you, and fourth XX, afternoon December close. quarter Brian, released everyone.

Chief press are With Investor webcast Officer; you of Relations call Executive If earnings our not David me obtain Chief may website This Relations archived website. a receive of you did ir.enova.com. section on and on section call today's it Fisher, of at Cunningham, our Officer. Steve copy release, from be and Investor will the the Financial being is

contain we to certain business turn for call over to more information forward-looking I'd currently I our based will the the release David, environment uncertainties. filings and and on our include see the does to press as such and note it as like refer Before Please statements risks that discussion on today's SEC specific forward-looking and Risk projections to discussion. as based today actual assumptions today's results no described undertake as make in that information from Any our differ on materially future update new to events. that this call these or the we of on are result could obligation statements a we statements Factors cause of

measures today's in believe non-GAAP measures are not conform between measures table release. do these that to the Reconciliations GAAP the to addition financial our and Accounting we GAAP non-GAAP standard U.S. Principles. Accepted certain In in these understanding included performance. We report reporting, Generally press of enhance

earnings I'd David. portion our information turn call like our website. release, And to have we As financial IR that posted of over on to the with the noted supplemental in

David Fisher

of operating a even Fourth solid deliver saw as high of update quarter to of last I'll the we to year Thanks, Monica. will to for strong which fourth overview call for my new with quarter, remarks, Adjusted Steve and Cunningham, products. all record with high-end again in XXXX. our of discuss demand I'm a quarter customers. and to Good the healthy everyone. increase the stable our profitability million rose outperformance by turn our fourth then revenue going joining financial And of I XX% new mix $XXX on outlook EBITDA million, XX% combined off enabled Thanks for was over you an our year across $XX After efficient These online adjusted CFO, a quarter. we've today. seen giving strong doubled product results Clearly start customer brief strategy returning call resonating range. diverse afternoon inherent and our model. and capped execution all Robust our our customers. in us marketing our $X.XX. and quarter more detail. the EPS year-over-year to guidance The growth solid top-line solid leverage are our with reflect credit continued drove offerings exceeded the to with A new fourth our of demand terrific over results guidance in year in Enova.

XX% originations. fourth the total customers During to quarter, represented loans new of

quarter we've these to past, customer returning stable results going potential forward. expand our As mentioned and our across base Also in new credit customers strong the ultimately portfolio. our revenue our contributing fourth was

result changes credit confident customer a analytics the very feel quality than several quarters. customers they sequentially. analytics of were and to were sophisticated quarter the mix, and originations through X% fourth and increased cycles. higher today net last performed our last companywide Recession We the economic this the quality Total new of mix credit the charge-offs year-over-year more over in higher XX% manage are than year, of declined While is product largely very in our then. mix, in importantly through Great We well much our

grown our pulled spend more this the offerings, provide however, can During our the the Managing us profitability. in or could strong moderation back faster profitable unit quarter half growth the our marketing of economics cutoffs EBITDA down. to demand to by strong our of strong respond our back with product on will in given allowed sophisticated marketing; and detail have demand challenging, combined and companywide rapidly very revenue can while still up broad growth. we’ve our but models to much with spend EPS quarter, guidance, fourth for adjusting we the analytics but efficiency maintain Steve growth achieve delivering marketing credit be

exceed have to the profitability repeatedly ability reason a or to key meet versus been our manage developed is guidance. Our we growth significant we've and able strength

Additionally, approach the prudent is how in we growth late balanced we believe given cycle. economic current this are

discussed, in to As time you the cycle quality we still have credit ensure products. excellent, but your very looks definitely late is strong unit across the economics have

installment adding consumer in building them U.S. to as-a-Service each short-term across businesses our near these on agreement credit Decisions, and purchase loan our products Analytics businesses, focused business, our brands, of further results We installment is U.S. to and receivable success business. six attributable small on segments offering, and our additional out our UK Enova our actively drive our and focus positive growth. of business subprime Our U.S. line prime growth business Brazil, and remain financing, our namely within

working XX% credit subprime we business XX% single line credit. year-over-year and this U.S. only diversified access to business as committed trustworthy in the products, generated hard helping large fast, and remain another products. of strong portfolio pay well XX% quarter increased products, installment Originations XX% consumer people of profitability to get remains Our consisting of

subprime our its growth even drive large XX% this originations year, ability U.S. in to showing business with the grew our For size.

from increased net product Our $XXX credit to to year-over-year. XX% million and credit increased year-over-year originations loan Net share take continues X% brick-and-mortar lenders. balances

With XX% product in us credit a short of a origination year. business our last UK, portfolio QX, time. growth total net In growth. are of we become near substantial period up the also seeing in QX U.S. prime fairly in XXXX, Our XX% for represented of of at solid the from XX% has end

X% of revenue by compared the installment to strong primarily last UK increased Our fourth in product growth our quarter fourth loan year, driven there. quarter

As we've we've over the growth of our been last business for cautious pricing as couple of past, products waited the we to years discussed the with small rationalize. in in market

the quarters, of unit seen attractive we've couple Over last of at a demand economics. strengthening

The this the book end small increased As represented expanding more financing our XX% a result, of space. in in Originations we've and QX. was growth assertive good become during at our moderately products QX. business total year-over-year in of X% result

fourth year-over-year. XX% XX% fourth Brazilian million our Brazil, loan contributed end This Turning the rose of to increasing quarter currency portfolio on a to to basis, $XX year-over-year originations the quarter. constant at

population the with environment. We continue large a stable see regulatory growing in and class opportunity middle to Brazil huge

Enova a Lastly, business real-time Analytics continues Decisions, gain as-a-Service to momentum.

industries. Our we've leverage into technology to different and to highly technology able been this platform expand is sophisticated,

While this to business in are so. stages, believe active the remains is out we ample the in opportunity building and do early there pipeline

announcement rulemaking my to they rule. reconsider remarks, to been At early an federal want comment that they I when wrapping expected since issue intention provide the the in their on brief a update October proposed small to in rulemaking. back CFPB announced dollar Before notice up address of scheduled from time, a a There hasn't date that not and guidance. the Federal to November, that officially a would well compliance XXXX the the granted compliance District specifically that changed reconsideration, the ability date. rules as CFPB after Shortly in as Court stay pay to previously has provisions, of Texas XXXX changes August

flexibility final with what as two result may to in it of these advantage the our adapting our unclear of any our As actions, to adapting rule us But platform, remains and in and significant the extensive storefront to it new when effective. lenders. regulations, a provides online analytics a consist of changes compared will proprietary experience become

diversified new since entering portfolio In addition, rule stable under very reduced base ago, our momentum exposure been initial combined years we the two-and-a-half customers credit considerable significant the released growth performance product rule. loyal we solid resulting regulatory financial over the we're returning and XXXX. was we in pleased The us. have creates with in for strong XXXX generating across of with significantly offerings the customer our Overall, tailwinds a and have have

we earlier, built success. as and profitability Enova long-term we have balance to mentioned I As growth for continued

and with prudent coupled offerings growth. very ensure within focused product resonating are model, and will long-term profitable of business well market our growth believe the strategy, the Our management online ongoing scalable and sustainable diversification,

will his remarks, turn will guidance details to call I answer happy may provide that any we're who Steve? Steve you on following Now questions financials the our more have. and over and to

Steve Cunningham

the quarter for then I'll performance good and David, our and provide quarter operating you, and Thank outlook afternoon fourth start financial first by the for full-year of the XXXX XXXX. and reviewing our everyone.

results financial strong of quarter of at earnings adjusted expectations the another with XXXX revenue closed share we and mentioned, EBITDA our David guidance. adjusted our As above per with midpoint and

our quarter. RPA of XX% year credit balances. deliver $XXX operating The guidance of and year faster diversification XX% to for the continued growth portfolio revenue loan more exceeding increase products. fourth our Our and loans Revenue performance demonstrating total currency products flexible growth now receivables preference grew Quarterly the constant ability revenue continue comprise efficient $X.XX XX% quarter loan our with balance for online credit quarter this $XXX total XX% amounts. continues the XX% from quarter the reflects million generate these the receivables XXXX. total products and to results. to and company customers' prior increased drive million to our average analytics, to growth have line lines the XXXX and Total credit X% our durations originations and which meaningful portfolio by XX% million line in of total Installment year-over-year and million sheet while loans year-over-year. strong company of range model, higher credit fourth at increase products. finance line our marketing, products in and On superior leveraging bottom-line deliver XX% increased during in growth than to of and and sequentially. to our and year-over-year and and was finance in respectively of originations These of loan our revenue our from receivables receivables XX% total of loan increased basis, installment of driven billion drove balances of rose longer $XXX installment a combined end in Installment the and $XXX ongoing a

receivables the in the and with result, to XXXX. fewer X% Domestically to as Revenue of leading on time. driven our lower percentage drive rose result a cost should finance a our increase This ongoing revenue of revenue in higher growth XX% sequentially XX% revenue. was and of are a we grow a and million lower effort less growth the revenue a revenue. expense revenue of in generally able basis in operating which factor accounted revenue increase $XXX total operations to and As year-over-year is company originations XX% and trend Domestic loan of credit receivable of over installment by in in quarter. domestic fourth for year-over-year total XX% quarter line increased

total $XX domestic international balances XX% finance of year-over-year and currency products balances X% International year currency a year-over-year. Total and the our revenue ago by originations increased decrease XX% On XX% compared Year-over-year to revenue XX% receivables XX% year-over-year quarter these loan near prime quarter. for XX% constant constant the fourth growth installment loan growth revenue international installment revenue domestic expansion loan international loan basis, international the short-term installment international year-over-year. rose was installment credit, the strategy year combined at demand of XX% installment rose for in lending to a finance ago strong comprised reflecting in drove net in International and XX% revenue the loans markets. to Continued partially ongoing company on basis, offset Driven up a end by year our accounted international -- combined rose loan of grew million the international XX% quarter. total of balances receivables a year-over-year installment ago and compared diversification from increased increased by I'm On year-over-year. increase as loan strong revenue loans in X% a sorry quarter. and XX% of basis. our driven a balances

in to to which in our quarter third gross the profit XXXX. margins, quarter XX% quarter XX% XX% margin ago of profit year total was the gross fourth Turning compares and company the for

new margin profit at of of our provisions periods we've half a growth payment the customer of requires for can period. change most pronounced of we the customer basis, of typically during upfront On total rate XXXX new successful higher customers As in new quarterly quarter. performance. coming as in in gross move quarter some as originations year year-over-year A new during which loss totaled see is accounted the XXXX in for accelerating a higher into from was originations and new a with than XX% Originations the company across a seasonally in full-year XX% customers all XX% highlighted case we default a history our returning saw higher businesses time, if during the higher for of higher XX% we company XXXX total customers compared to were as in mix growth originations. originations of XXXX. fourth originations and of second total the from XX% growth be of and of proportion in customers new again decline the especially This fourth customers

for over in finance as quarter a two average combined liability receivables in compared Net accounted a quarter and Similarly the from to of given of fourth increase gross loan consolidated past customer was increase quarter. XX.X% end for losses years. year-over-year for XX.X% fourth company the the increased at to customers in prior expected of full-year charge-offs financing the the the and loan in and year our New allowance proportion new as This ago originations rising XXXX combined the year of XX.X% originations. percentage XX% the company of of the total XX.X%. receivables the percentage was quarter, portfolio

We new line and tables, the origination. net in consolidated the and see has performance can remain segment given customer line the credit by stable driven and is new of the been comfortable generating monitor the products expectations fastest increase our proportion increase with and mix returns release the in growth Overall, with in primarily charge-off of in across ratio credit portfolio supplemental portfolio the year. originations. unit in on our segment. customer earnings shift the and of you continues vintages experiencing economics That continually our to increases in volume we're be this volume As across highest

the prior of gross driven XXXX, margin consolidated from is For our originations be we of the margin in expectation our year's to slight by decline primarily continued to XX% XX%, characteristics growth will profit expect versus gross be gross by the influenced in coming in growth range including in of the and mix new financings the in portfolio. originations, customers mix our Quarter-to-quarter, and pace margin seasonality new growth returning of customers. profit in the loans of originations guidance from

profit lower portfolio a gross of growth of products. as mix significant the customer new installment ongoing expect We continues recent to somewhat to of to the and during first line result quarters be our credit XXXX years from as season and prior quarter shift margin than

flat the was margin quarter of when was of fourth profit in XX% fourth to gross compared domestic XXXX. the XXXX and quarter third Our XX% the in compared to quarter

compared was prior the year towards The XX% in quarter in shift fourth ago profit new by from driven in the in to growth gross profit the in year international quarter. gross customers decrease loans. portfolio XX% installment margin the mix quarter was international Our primarily margin the

originations, the We margin mix portfolio. in seasonality characteristics range expect gross Quarter-to-quarter, be pace international be of margin in versus to including financings growth our influenced the in XXXX XX% will originations, to in and growth international loans by customers of mix the of gross new the the international returning profit in and and profit XX%. of the

allowed to EBITDA strong demand. of strong online while to this our attractive maintain us leverage customer model expenses, scalable continue fulfilling even from to Turning has operating year levels

XXXX variations full-year While experience compared grew we meaningful the growth revenue XX%. to for of for the XX% full-year non-marketing total expenses quarter-to-quarter, from typically

increased quarter of of quarter were the revenue or non-marketing of to ago fourth quarter marketing the XXXX, total expenses and the in the total operating in our $XX During operating of quarter million XX% or from $XX million including of revenue compared XX% fourth XX% year fourth $XX XXXX. million expenses

continue XX% X% or of of compared year million marketing fourth We the quarter spend or expenses quarter fourth our revenue ago in $XX of compared revenue just Marketing as $XX see million the the in in to efficiency to XX% to quarter well. grew to XXXX.

low primarily fourth a or million growth XX% the expense the quarter spend volume-related $XX administrative highest with quarter with expenses the or revenue prior year complaints compared in XXXX the the reclassification. of seasonal during $X.X million range will higher increased in the mid of quarter the higher revenue or were $XX in in and of XX% teens to quarter fourth personnel-related and expect revenue year. from fourth support the in We or of XXXX the the were in spend expenses, half were million quarter. in General compared XX% the million technology of X% non-GAAP expenses revenue percentage in an period EBITDA, year-over-year to UK, growth in and second Operations and decrease marketing fourth primarily revenue to to $XX ongoing our quarter the of to X% modestly of one-time totaled a in variable million related in $XX expenses business. of from prior of measure associated year higher fourth the and Adjusted million the $XX strong expenses

the EBITDA fourth Our XX.X% quarter margin adjusted was to prior compared year. of in XX.X% the

to stock-based in fourth million Our the quarter fourth was of $X the expense quarter in which compensation $X.X compares XXXX. million

was of tax in fourth in benefit of rate quarter quarter the the XX.X% a XX.X% to effective XXXX. recorded Our compared tax fourth

to effective in X.X% was compared rate tax full-year XXXX. Our XXXX XX.X%

earnings, income extinguishment cash result debt and and has cash the the diluted of the $XXX a from per in the share $X.X diluted fourth net a of normalized non-GAAP income company's our of share which rising fourth during the be quarter $X.X per than the during $X.XX in will or share year. of in prior our Net cost unrestricted drop in million equivalents. tax in expect We early rate $X.X using the to measure, financing. $X.X million notes XXXX a more X.XX% as million quarter of from includes effective on per XXXX. benefited or a $X.XX EBITDA $X.XX per $XX.X quarter or or Net $X.XX income compares diluted the million was doubled share million Adjusted ongoing quarter loss the the retiring fourth of to income remaining Net million mid-XX%. diluted of quarter

heels On of during successful transactions XXXX, liquidity strong and the in the of number a fall with financing a year we funds. cost of finished

During from operations total quarter the the and ended $XXX we flows debt and cash with fourth quarter, and of $XXX unrestricted cash of equivalents totaled million cash million $XX million.

our Our our $XXX outstanding million $XXX at includes of the loan million combined quarter million revolver. the balance $XX and of end corporate facilities $XXX under outstanding installment under million securitization debt

of quarter point the of Our funds basis fourth cost point increase fourth from a for ago the basis XXXX. from a X.X% a XXX quarter XX quarter was decrease the year same and

expect up our additional in common improve to on businesses. continue of deliver our XXXX. program creating liquidity in share focus recognize of six commitment share This new value which outstanding for growth for through we the to the authorized adequate follows stock our Also announced us program been of while that executed. to shareholders reserving gives flexibility today to has $XX on investing plan $XX Board as our XX, has This repurchase XXXX million program We to December recent fully Enova's for our of funds primary prior million to we cost repurchase Directors our of a transactions. benefits cost

quarter to and our I'd to XXXX. outlook for Now like first turn full-year the

in our our customers installments results. continued strong current Our from from originations credit to each regulatory growth of stable outlook in in pound and growth products, impacts in our continued businesses, levels new and faster no the of line British mix impact credit, could any changes, accelerated the in reflects relative significant growth of volatility significant businesses

seasonality quarterly typical our during see to XXXX. expect We

decline lower of when a or loan combined As themselves seasonal a demand our the strongest as is margin. demand. financially level lower expanded second and year This typically trends as originations and to and an grow quarter financing more provision first fall into slowly leads reverse the half from seasonal losses of receivables reminder, loan gross we the for originations increase. These move as

first adjusted and million $X.XX earnings As between $XX million of be quarter noted revenue be release, to per $XX $X.XX be $X.XX share, to million, EBITDA per between XXXX, total per and in million be to share our expect diluted earnings we and adjusted earnings $X.XX and in $XXX $XXX and share. between share between the to per

full-year per $XXX For and EBITDA between we the million billion, $X.XX expect between $X.XX share XXXX, and to million, $X.XX per between per and per be be revenue earnings share, and adjusted be diluted be to $XXX billion total to earnings share $X.XX to between and $X.XX $X.XX adjusted share.

about happy we mentioned, and increased your be remain that, very our XXXX with David As growth Operator? we And would in profitability. generate questions. to optimistic ability to take

Operator

today's We first [Operator Instructions]. JMP And ahead. question-and-answer will session. from David be Scharf Please with now go will the question Securities. begin

David Scharf

afternoon, you're profile a a guidance? to sort about just the point good taking ultimately outlook. for the we to increase XXX margin to of points be QX, trying little is maybe about ought I how based of in and it questions. down these year-over-year on now increase customers bit -- thinking your down kind takes credit drill modeling your new new XXX more on Clearly, the wanted Hi, thanks the or was portfolio, flat to it profile XXXX, the drill is at up XXXX. within of gross of in what ceiling I the is was XXX gets of your normalize half Steve, basically it first when long the that look loss thinking points in sort Then in to of near-term. XXX basis QX, for year-over-year portfolio the versus mind, basis the how was loss customers up sort impacting basis year rate of a expectation

Steve Cunningham

on So and listen, depend doing? importantly few rate growth things it's going most you is are probably how overall. to a David, Yes,

level accelerating of that's obviously say see our of contribute a you going sustaining and vary, if mix, a of that they you look they would growth, mix obviously So at particular matter climb rates are is I segments, as to originations significantly, new so customer seasonal curves you if just loss differently increases. to while the your going those number also you're to take some -- in well. can they I'm can their then as vary the the also a and fairly their season little so sorry

things. expect So you longer percent mentioned easy may almost we but little as of will we half the those whereas on XXXX. towards we giving find necessarily a you more take of losses credit is installment depends the longer, in what vintage in nine new line not so duration all several answer saw some a tell and we the six that What not an them of a our loan the and increase or and we for various you that continued as it's to first bit might to of do it that is businesses can of from months do originations lifetime expect all months their customers hit trend I'm going of maybe first in

David Scharf

curious lot loss there anything about with in third staying stable that more are it last is seemed about installment QX that credit, It you different topic of performance. --? is people on second tick pretty and about dramatic quarters that the kind borrower anything been in whether did a Within versus distinguishable a even it's just tend within a within borrower, be mean the that loss this installment, like Okay. time. over I can Is that those defaults up of rate was that or few little actually divine sequentially, drawing but the there it on it spike a that's just or line it's rate LOC. unique I’m if to the might

Steve Cunningham

-- Really strong. really

David Scharf

Hello.

Steve Cunningham

yes. David, So,

of those a as customers So, would been installment as as also Brazil, fast more the point the some well new segment as our and bit line growing look it's you David, international customer in and can in relative probably so segment. has up a in that had proportion of and more I you've to a and seen I highest growth, I bit the we've just how mentioned look centered U.S. of businesses. growth, it's think see lot in can which has been there's the definitely mean new on kind near credit on that's going has CashNet on prime been of back businesses year-over-year little up you showing at that's basis I ticked I year-over-year, you have there and got that you got but going little product, think a UK, across

customer the as example of over time. vintage in of I how I think the using the out play more growth those line quarter new of the a probably view of you reasons season credit, of gave that last pure can one line credit is loans a bit little

still quarter, their move of new we we in some the third put you're on, customer even that the had great vintages curve. those loss rapid seeing So vintages, growth monthly third up those quarter loans growth,

dynamic And the we as obviously David somewhat two time play of will from out where the of kind moderated growth the as little segments. we XXXX. fourth between mentioned, could've that's we you're move take quarter think through I So seeing landed, a to which in bit

David Scharf

just one last this of about can business my back and I'll if AR just like number the reach of of in end it. the profile the of loan is? refresh total one might the mix the in small the typical the you APR reengagement memory year? wondering I'm That's side, the question, then sort on X% of double And sort what loan helpful get secondly, expectation Got queue, that that size digits by is an there

David Fisher

David. Sure,

because be to $XX,XXX range. $XXX,XXX of smaller products, of like but go slightly business that line under have kind as much large range, are of still and loan the in in seen make XX% become silly the products well get of exceeding really growth overall business So in economics so and kind kind the good. space, few we're out. it's to that that so aggressive not product growing kind products attractive there a seeing too overall stronger to of sure and how product now as business $XX,XXX is larger pretty is business is two the Amex and the of overly us like overly right quickly, for business, two we've plays to to can stuff looks on to a going allowed credit our show of depends one we're installment rate that in good $XXX,XXX is average the We're XX% other or demand the we replacement bullish small small now APRs and but growth. is we it the unit the going the years But space of rate tend but currently last $XXX,XXX sizes it loan very both like growth don't year that's Yes, soon over card growth right

Operator

Please Caintic from Next will with Stephens be go ahead. Vincent Incorporated. question

Vincent Caintic

formulate that that evening to got. Okay, to guys. able been It's you've thanks, the good nice profitability you've the growth see achieve and

and lender? and available second appreciate you back kind coming these had to more does you of public on still because company. pulled are I the is that still push the you and to so a on XXXX available booking the from guess the customer you you go in they of another maybe the could the applying or lot back of to you So that quarter grown or them of kind so in it growth you of customers When and you first do away you and growth made available marketing or how a as happens comment get to handle quarter, half that to marketing what from that you have

David Fisher

definitely we -- of Yes, some share the kind in some short-term. lose lose market we

these are mostly across fairly Now as the nature. short-term products, you industry know, are in

they into So back the come market.

at tiny in gave a bite But another bit get of the over we certainly apple So share fourth the up we market time. quarter.

and equal, things we've is to the you'd with we a that worth importance have it's believe -- our rather managing we a do our customers total of engaged yes, it loans total tradeoff. kind tiny. profitability of of XX-year -- not and realize As certainly all it's But, history that, but proportion

Vincent Caintic

sense. I makes that think Right, Appreciate that.

separately share program. the -- the repurchase on On

you're share reupping without lot it's So you're to a see see and also to that that organically growing repurchases. nice that

how your maintain to use and to you versus how capital return what you maybe to much plan are thoughts capital capital need rates wondering excess your to on growth you think Just shareholders? what your

Steve Cunningham

and be sort Yes, there -- was we a outside shareholders buyback business of think to to to return think we would is the and what We plowed back our said that. yes, the really I be us that, as to about, that's plenty regular with capital our not be you intention intended be into for program, as of of do. Vincent, opportunistic It's talk expect. our to demand to for as I intend

Vincent Caintic

Okay that makes sense.

-- a low-end XXXX, guidance. kind other and when Just any the trends appreciate between built your you ranges, drivers other last dependency that one than or the of the I into about usual the high-end there XXXX on different guidance of very is think ranges. trends of so much. Thanks have, growth, XXXX that's you from Any

Steve Cunningham

guidance I Yes, that underpin of things I in comments key the to outlook. highlight sort think our tried my

you're to and mix increasing of what extraordinary think saw ranges. don't largely stable XXXX, I So from customers, talk you see think new in the I a what continuation, credit. there's And is going diversification, about to anything shift the growth

end of of the particularly the we growth side a seasonality Just the can year. they're the up move revenue that proportion quarter-to-quarter linked not in necessarily mix on of reminder move lower through as high-end the the we our and so depending EBITDA, and as you our growth on of and

Operator

Hecht be with John Next Please Jefferies. will ahead. go from question

John Hecht

Good should Steve, afternoon. What modeling quick, think for Real rate? for stock Thanks and the guys. we purposes. about tax costs

Steve Cunningham

so Yes, shares. repurchased -- the you talking about the are

John Hecht

equity the just No, compensation.

Steve Cunningham

around Tax million Oh, that's is it see. typically $X has $X.X XXs. quarter. Yes, to million going what run to I rate been a mid

two mid say you. there XXs, away a are the be best But give advice or tax because and or can that You that with variations or tax quarter-to-quarter pretty two. some that's point safe point would XX% the rules I a can best under add probably I a the -- take rate

John Hecht

Okay.

recurring this give established and versus new through say recurring balance helps of that in context you and for it in the between understand you customers between sense Maybe call kind mix do will consistent XXXX, because and can ran about customers, about modeling it, just that can of think XXXX be completely and get I me I of I credit? fluctuate how new, think credit. they us question how balance Another you the rate or a what's

David Fisher

of new see delivering to show we as and they again very we're to to Yes, profitability, subject demand, can demand take customer new we much strong as that us customer can. like we'd good continue

XXXX, than given we saw very easily a of higher than so XXXX demand, new than XXXX can customers have the higher XXXX did. And higher XXXX strength in mix XXXX,

John Hecht

then, funds mentioned management some and in funds to on us item of final balance bit cost you points you get end and -- the for Steve or you maybe this basis sense tracking gives year where And you you I sheet year year. the did is a so more the terms cost XX lower of year constructive give you kind question, Do throughout of -- can for just Okay. through year we expense last that liability interest of left the the us a line mean, than a going be sense accurate? see little you can the how average of

Steve Cunningham

quarterly basis year. we terms XX dependency one bit of go just in little some think, it's basis expect down did. LIBOR. I another probably there move through the some another Yes, least down at on a that new points a should on the Obviously room you is deals we to of given as more month But got

Operator

Instructions]. [Operator

Please John ahead. from be will Rowan question from Next Janney. go

John Rowan

XXXX, We're basis, be So talking credit think be I so you actual not know, might as clear, said correct? basis, just credit. on the static-pool I loss stable a stable credit to for that consolidated but a on David, stable that

David Fisher

basis, because saw would just saw that percentage. of loss be and a In dollars credit because customers. the year. XXXX be the versus We percentage, new on of consolidated mix actually increasing XXXX, in a in throughout on accelerate dollars both actual The will increasing of a portfolio, larger

in we and strong keep trend and check new as of we much customer year demand as like to at see to it new many we mentioned said to into as every impact continue. great have sure That provides that where make strong guidance do to that times overly a the now strong some it's ourselves just that we ranges see some will profitability. point very new right couple as very flexibility, we and as we a customer that I we have XXXX, we long-term customer that end doesn't it that strong can give that being can continues he said, growth we take give minute demand said But maybe So And trend that of said, Steve has a profitability if continued growth. scenario growth. times, why strong as not growth when frequently in up revenue demand had good ago, could

John Rowan

said? quite full-year you that, gave of Steve, to what that Okay. can the revenue, guidance adjacent And just repeat of point, marketing as you didn't you a like get for percent kind of sort I incentives

Steve Cunningham

of marketing. guidance we revenue mid teens low for percent a as is good to Yes, said

John Rowan

the year? For full

Steve Cunningham

is We and the Yes, in the quarter. for quarterly there do variation. full-year a first the as much fourth obviously spend in mean, we as I quarter nearly don't

good a for our going For but example, if trends the year it's good to historical that's you just look -- number. be at a

John Rowan

a the And -- update looks I for then, claims, tonight of And in know foreign competition your one that discussing the of for bit settlement for the you peers UK like in scribing Is is provide is can quarter. out category lost you any little a Right. proposing loss? that if money there? a

David Fisher

-- things. some -- is couple a I it's UK think mean in there. points expense I are there of So

operational didn't significantly grow of see, technology year-over-year expense can a revenue. percentage you as As

So manageable It expense. that today in there. is a is

-- The we other QX saw Brazil pretty Brazil. thing was strong in growth in

saw in I profitability growth of extent. provisioning XX% a impacted additional obviously expense a to Brazil pretty marketing in think which meaningful to and expense lot we which led Brazil

John Rowan

a the to Any in was or is there fourth far the Okay. trend from third line still -- complaints as as impact? it material change not quarter

Steve Cunningham

international year-over-year. it's But the it's variable some quarter-over-quarter see, moving really frankly, booked there or in are related not do consolidated And we as segment, the to not it's complaints these highlighted the it's our we've on we've category. increases guidance, on obviously needle mean, expenses well. in not and basis, -- the it's numbers, I in in a as growth

there well. is growth year-over-year as that So

has it's as but the results pressure, see, can there dramatically segment not growth either. in some You moving that mentioned, the been because David

Operator

back to for today's over Fisher conclude any At question-and-answer will to like this I conference the David time, session. remarks. this turn closing

David Fisher

today. our speaking Appreciate next again call with look to forward everyone quarter. joining We you

Operator

for The Thank conference is concluded. now today's you presentation. attending

disconnect. now may You

Enova International (ENVA) 31 Jan 192018 Q4 Earnings call transcript