ENVA - Earnings call transcript Q3 2020 | Enova International, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and welcome to the Enova International Third Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I'd now like to turn the conference call over to Monica Gould, Investor Relations for Enova. Please go ahead.

Monica Gould

Thank you, operator, and good afternoon, everyone. the afternoon of after for XX, ended results this XXXX, the released third XXXX, quarter September Enova market closed.

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

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

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

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

David Fisher

for and Thanks afternoon, everyone thanks joining our today. and call good

more results I that, XXXX. strategy our I’ll which the provide I'll our XX. actuations call our over on entire and in overview COVID outlook on results of response of who recent strong our from COVID. will orchestrated Cunningham, for financial quarter After seeing to the to closed and Starting QX detail. a will finally, outlook will discuss of third recovery our OnDeck March began an in an from our showed Steve effort and We as team benefits give discuss October the crisis. in signs update of First, the industry-wide business And turn this quick and the exceptional Enova CFO, impacts

improving performance originations. re-acceleration our Our and be strong a portfolio our can credit of in stability and metrics seen the are

as result As revenue a due result, primarily a we net strong performance, of credit margins expense QX driven high by to delivered in the also record profitability efficient management. but

of but quarter revenue $XXX declined XXX% $XXX adjusted to and adjusted XXX%. EBITDA a million EPS XX% of year-over-year, record grew $X.XX Third rose million

in revenue pullback COVID. response originations quarter due intentional our and decreased to Third sequentially to

the reverse result expect drove We that increase in increase confidence a substantial a The factors. during was our our trend to our to in that QX lending quarter. originations of activities given number of the decision

crisis through to stronger portfolio in much expected our efforts successful Our than manage the performance. help customers resulted

QX strong a continued demand, hundreds in continued running after stimulus government both and at even re-accelerating and of credit performance of loans from credit saw down quality we end customers performance gauge We've QX metrics of lending approach and tests and addition, In into new competition. July. wound strong taken our credit to portfolio the the importantly measured to

borrowers. we channels. re-acceleration The testing of nearly data our in of small the collect in marketing are tests every lending We consumer currently give us State and these insights from and footprint deep at our into all originations business

our our are current models products, marketing our we adjust address insights these to With economic and able to conditions.

behavior. how ongoing, of be the strong already on have hand believe Our we a impacted but we will course pandemic customer testing has

rapidly been analytics increase have model we volume to attractive adjusting result, lending unit a steadily our economics. at sophisticated As

the non-prime have the strong of lower the the last have most originations freed difficult elevated spring. has levels unemployment rates impacts growth than still and consumers used has to more and many signs are guessed and below strength we COVID have are in expect high to to levels. predictions year future back But what all by capital have seeing foreseeable COVID. would While those is QX. and are giving restrictions week-over-week caused we for make country of our even across the portions forward-looking growth based in continued spending Clearly, Despite The down economy ongoing products consumer today obviously the reduced the extra combined rates, into seeing resilient customer on would with stimulus people as the in base. proved many month-over-month capital from in for consumers. these this cases up been of pay the It spending levels continue at and originations debt. we COVID our greatly experiencing this earlier government And have

those As the and We they be the we personal dynamic due their will customers economy at saw start XXXX and our should down to can them. Enova. their have credit access dislocations in need to do same crisis debt again levels origination led temporarily successfully consumers they paying XXXX that been lend potentially income spending a demand. to support is at pent-up to will balance up, back sheet expenses. in opens to growth between elevated their belief And Since financial strong following the which where during position COVID, as

year-over-year year from QX and increased the portfolio to will last third XX% year as second loan we of a several the from our quarters currently our over is are is the year. the approach to to around seeing. the we quarter XX% a on only expected of represented we slowing portfolio Line the accounted pandemic, U.S. represented loans origination products and increased basis is up proportion products good originations, under our prime short-term total from this continue the the originations in to quarter. of XX% increase represented of But for While accelerate given XX% In Small that credit XX% customers as approximately and X% down This portfolio. for and year third QX. of new in and of products XX% last from installment prudent Due third quarter our expect from next near down rate contracted business XX% customers XX% demand they our during quarter sequentially declined new ago, X%. of originations this originations from XX% portfolio. of XX% accounted

recent OnDeck. minutes Before wrapping acquisition of up, I'd like couple a to spend a discussing

through the we consumer now many believe pandemic said further a consumers businesses across a critical small small back The need of capital deal, the economy does intend financing there OnDeck's businesses equipment, our our transaction time are the has business. employees small enhance with lending. Their this we into And their range in bring digging I small businesses down together brings be to until differentiation great complementary be other to capabilities many in market-leading we buy is business announced believe amount demand will products. that SMB have are subsides and when product when But can restock business And businesses. but reopens. devastated savings our that to broad and to significant revenues world-class theirs lending survive small these increasing to expenses. and we combining in shelves, capital country. serve, As our of presence by new the their it two proven will pent-up supply products owners pandemic

its portfolio For now scale combined the add products business to product and SMB and create diverse a to will Enova OnDeck with services significant brand offerings.

customers. true It number during marketplace several financial to Steve to best SMB that exceeded also will products and the borrowers. results third in detail. serve be will the next is OnDeck the be in decisions the by our we tests performance the strategy running the more needs gauge expectations. quarters, encouraging brands on the These Over will our of finalizing quarter numerous made of optimal discuss of needs

will per performance. track XX% when share revenue we to believe synergies first so realized. $XX deliver synergies $XX than And of we are integration are run In continue and transaction on third fully synergies. expense the accretive the addition well believe of is and In the in million that more going in rate we we the summary, non-GAAP to quarter accretion that our far earnings generate year and are with be pleased million

This portfolio Our the and see a continue stable flexibility attractive We to the quarter as economics. ended us very reflects gives balance we and with increase value strong position. lending liquidity to unit solid sheet credit.

As get access we remain people helping to hard we forward, fast credit. trustworthy to committed look working

manage successfully rapidly that that adapt market ability online-only and proven to any the the our have can we to business model We condition. have changes in business

to pandemic. financial near growth position be has the term, businesses together in in sustainable offerings and us created of uncertainty drive to will well COVID and product secure broad consumers as support OnDeck continue and Enova to as produce position positioned And shareholder well small value. While further and profitable the our well wake the

and XX better operational larger our of provide may profitable to to to look had as turn For through for we've following and outlook and you continue With and positioned to Steve's answer lending we that be opportunities we a years, over a due both performance Leveraging are I'll internally various history strong Steve? scale more on will diversification we over through offering. more our happy diverse even have. that and financial details company questions will acquisition. any combined position cycles and the to our call remarks Steve financial

Steve Cunningham

afternoon and good Thank David you, everyone.

improvement powerful team our business of depth strength our David quarter growth reflects technology. this world-class risk the of of the points and and online model, As the credit are In our challenging to ability remarks management our quarter mentioned our originations preparedness adaptability encouraged effectively and this performance costs. and low his we by the of environment, in profitability steady and the the portfolio, second strong in capabilities of manage record operating analytics the direct credit from

expected we of seeing At combine provide I better our as OnDeck the will organizations. summary excited by of are we closing we remarks In quarter are end performance. and today, the the of the addition, transaction than third OnDeck's my results a

originations an decline COVID a purposeful of slowed XX% results. driven on decrease million continuing company from amortized combined the following said, being second our to decreased of as million. revenue originations as receivables since a and of the receivables company total revenue quarter The and rate sequential ended sequential in revenue quarter in Enova's result onset $XXX and balances the the XX% the balances in which million. significantly cost That decline was increased sequentially $XXX pullback by at third basis turning quarter to loan to Total operations finance Now crisis. $XXX XX%

entered higher with highest originations we ramped are mentioned the continue enhanced the through weekly originations all weekly originations unemployment levels We low We even mid-March July. than benefits July. during quarter continue in the third are of the David we've uncertainty the credit quarter seen in Early expiration As seen than in of brands. four government to Recent originations more XX% improve with level with increase quarter company across total September facing and fourth the reduced saw steadily of we've performance total the since to up stimulus. times April.

net was impact third through expect OnDeck to third of of quarter lower among and consolidated the depend quarter originations will quality of were by slightly on move of margin levels in rates was fourth The to history. the excluding as strong the improvement we third company the the delinquency than We timing for margin lowest net flat driven quarter The net quarter. level credit total value XXXX for portfolio revenue the the revenue in upon the and company's the fair XX%. and as revenue quarter charge-off the be

value fair value the changes the in net driven margin. increases You'll were expectations, portfolio valuation line at prepayment discount by the mostly loss rate. key credit the September Significant assumptions revenue the the is assumption the future credit of recall the loss assumptions the credit the expectations item fair change to and in in including driver profile and portfolio of portfolio for drove primary improvements both evaluation sequential XX. changes Reduced

charge-offs second in to net XX.X% quarter of and For in of of the average combined of the and the X.X% receivables was loan a third ratio compared percentage XXXX. quarter, the total this quarter XX.X% company year third finance as

the at branch. end every XX a We net past have quarter portfolio the Percentage more improvement days across second sequential third declined third seen from X% total receivables of the ago. or ratio the from and in of X.X% at the end quarter to quarter charge-off end X.X% at of the year due the of

the due Customer of has low significant consolidated been recognized X.X% company the improvement the previous to environment the fair with risk end requests currently are we economic of X% September who increased our value of that We delinquencies the customers modifications past of tied we've days levels XX also this quarters. reflect the reflected adjustments uncertain totaled result expected. at portfolio more. remain quality credit to granted portfolio quarter. downward better at remain just levels. in and Even levels than defaults or similar risk of loans have to for customer two performing maintained steady. than outlook receivables early could credit those Percentage at the of metrics present in pre-COVID the receivables see to Those of XX, stage are to modifications consolidated been modified total loans continue

improvement credit adjustments degree not our some In calculation the fair current to uncertainty summarize at future end portfolio the credit uncertainties by in in fully downward was value of be To quarter end the reflected the at reflect fair Result; economic prior future portfolio September improve increased environment to to in of from the current change address performance. addition current unchanged arising quarter the value of offset the to the from the and discount reason the increased, XX the for the the value principal fair of fair for our margin meaningful our fair was XX. value, the primary value credit may metrics. of credit the XXX% from economic remains June at rate at XXX% the was This portfolio environment. outlook net high in This quarter. in strong of used the improvement the expected portfolio third quality revenue for of third range in

newer ahead, increasingly normalize revenue around seasoned of less net become the portfolio. should and Looking loans margin XX% an as proportion at the originations accelerate larger

of expenses XX% quarter increase of the total for expenses X% one-time quarter increase to were XXXX. in Turning include XXXX. as Consistent XX% revenue $XX across in million expenses. expenses, compared were $XX in our in third third revenue saw quarter marketing third quarter to operating revenue moment revenue or I'll million in of with third XX% $XX $X we the non-recurring in a of the of third the each compared or steady through operating quarter, footprint. discuss including $XX to quarter marketing the million Marketing or spend expenses we month of of million or channels the testing marketing originations reopened and expanded million virtual

and and XX% XXXX. trend third expect vendor XX% or to million and X% into dependent expenses approach $XX likely ago quarter to of of the $X to including software will originations. marketing or related of quarter expenses. the We level of quarter fourth demand in the will upon year quarter included this costs nearly revenue certain continue the million be to one-time compared declined expenses revenue OnDeck expenses X% mainly ONT technology and Operations of $XX of revenue million this from

Given the compared the increases the the of should component ONT revenue ago dollars third expense growth. significant of third for to year variable to be revenue XX% million, receivables prior expenses quarter in quarter in year. $XX administrative category XX% return increased accelerate, the an General sequential environment or to from this X% and of in of million $XX where expected originations costs quarter

year $XX quarter would one-time approximately XX% revenue Including largely quarter quarter in G&A items OnDeck with of by XX% have XXXX. third expenses these the driven the declined ago G&A Third associated to of from included acquisition. of million costs the one-time expenses deal

that has us see continue nearly quickly. rapidly rate We capability year-over-year with sequentially. will of model Their our allowed line flexible in to growth run reductions to us while in and category expense both to expenses allow in adjust return every revenue intact G&A changes to keeping operating

operating measure with quarter integration for associated as costs the result temporarily be We operating acquisition. to non-marketing OnDeck will of one-time the expenses the transactional from There year to EBITDA, and elevated be temporarily the during reasons ago synergies we doubled a recognize companies than higher before combined million I sequentially third the $XXX later a non-GAAP and begin expect fourth for costs cost additional increased Adjusted year. total more quarter XX% discussed. previously in this to OnDeck a the

year of XX% quarter from prior in margin to adjusted Our in from prior EBITDA XX% the the XX% increased quarter. third the

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

where XXXX resulting expense for stock vesting is XXXX quarter first with units in the increase last restricted increase. mentioned associated in the reflected year year-over-year period I fully As a the

effective of was reduction in as for Our audit. of X% third the driven a rate XX% a by a third tax quarter positions declined of reserves from Decrease for was recent a IRS resolution XXXX. which positive the quarter tax in result uncertain

cash effective to from remain of per and $XX of $XX diluted We in range. compared Adjusted per share mid unrestricted adjusted year million third share $X.XX million share for available increased and measure ended XX-month the $XXX as using million marketable million we from cash upper income $X.XX increased on the the other normalized per quarter the shareholder XX% operations to our facilities. rates. committed $XX $XXX during $XXX continue to million quarter in had revolver, the tax securities diluted third recognized $X.XX to a an dollars per XX% ago. return in rate XX% net quarter We third and million diluted or third including the in of cash to The totaled operations capacity of on $X.XX of with see earnings of $XXX from trailing earnings the on share of diluted payment XXXX. $XXX corporate or or million quarter average our to $XX equity flow Net third strong customer from prior third available the non-GAAP additional million million year. or expect capacity We quarter quarter continuing

Our the outstanding $XXX $XXX We outstanding million no quarter revolver. end our installment debt our corporate securitization million loan $XXX combined of at had million borrowings the under of facilities. under includes balance

quarter the point of cost the same X.X%, funds year a basis decreased for Our quarter a ago. from third was XX

provide believe with to when We available flow levels runway before even and of new in facility continue to will external our long to of funding a liquidity experienced position, cash us operating cash available capacity needing we raise originations recent years. return

As has been guidance at economic the uncertainty. financial the providing we quarters, not this past the few time given case for are ongoing

that Total Before I in upward to finance million. quick through plus net and and OnDeck steady recognize our growth wrap OnDeck the our improving G&A performance million drove the experienced have quickly Improving confident OnDeck. compared quarter. the up originations for charge-off to to origination annualized quarter. re-accelerate products an September credit June to profitable million take up, from during increase we'd delinquency to conclusion, a be XX% September XX gross we generate operating recovers along right rate quarterly XX% provide the quality the solid OnDeck's quarter the for that In your at And credit model, let the second and we we The meaningful income day on third third profitability. long-term XX, demand XX% XX. update opportunities remain stabilizes, at questions. $XXX $XX were Enova's $XX the acquisition liquidity consolidated the rate a totaled adjusted to and trend XX net expenses happy me and in million from to quarter OnDeck loan team, business. for was Similar with the quarter quality economy total receivables Operator? business and $XXX with loans at and lower improved

Operator

come Our question Scharf with David session. begin from We today will first Instructions] JMP the will now Securities. question-and-answer [Operator

David Scharf

Good thanks my afternoon questions. taking and for

value in lenders there that just bulk guess, the related we the credit. hone tune mark I with in the seeing delivering been been quarter forecasting that's of think loss rough outlook obviously about into XX% rate have season for. start But outlook. more. the obviously what can noted digging that calculation never to wondering early little to looking expected embedded you we to in or Is was a positive credit just forward on better we in lot ballpark fair fair we next this hire as of the consumer We've reporting or coming on than of of modeling I'm the a about Steve, losses think year? as the value, the and Just in some consolidated as credit variance our maybe

Steve Cunningham

do So have sort with look tell there a a we that metrics of David, credit think to a consider show necessarily don't you. indicator the and could we we that share the today macro going I would fact rate consideration. are take have good into specific really But you be our forward what in that just would to a than take at we environment volatility and more I delinquencies

answer couple quarters with we're our the in we saying to the at but past macro way considering very do is we have have that credit charge-off that consistent number we of the we've future losses about don't mind, the what rate at question metrics the a quarter. of your of to specific the make sure along at looked end things are with So environment a no, look

David Fisher

that's think right. I Yes,

because Just way have say still value calculation good the April, built the some uncertainty. with seen macroeconomic even really conservatism that our of since into another we've that this credit we fair

given the of we level So, There go as that normalized a in levels is far we maybe credit have still built conservatism didn't could seen. of into kind we've environment a as gone mark.

David Scharf

re-acceleration in for Was the then as be mean for volumes OnDeck any on of quarter there and same your lending things trend? helps we or you, as reflecting Okay. were small what own where the lot albeit there origination a to were well context activity trying in and sense just business into that how to OnDeck follow-up a coming once maybe modest again put want mostly and I your guess capital in was That concentration they for a I verticals? get as geographic overlap from positive was headway

David Fisher

small Yes. but side, the in good terms of re-acceleration in I both on as mentioned No. on marketing also It's consumer the pretty of business a remarks. question my channels also is think terms but both broad-based I in in prepared States,

channels and turned basically We turned of have back we business our where small all on across on. marketing consumer lined, and States States all turned the the all

more On small side are the much in greater obviously business that being COVID. impacted we're cautious by industries

bit side. to probably are in, a into We rate of were a that makes and little the in lending won't going It's at OnDeck we're that ahead re-acceleration great It's of the So broad-based much biggest we retail, bit that's with more kind levels, would re-accelerating compared all. I us third being of Enova there the quarter we an XX comfortable lending. that lending COVID with restaurants, waiting extra hurt are across mistake our We say but days all etcetera, cautious we position I'm is long across extra totally decision. States think a to where term of the think is during little that's it. the sense conservatism to re-accelerate more conservative be make and we acceleration pre-COVID but our really marketing on free much kind in a channels. of

David Scharf

it. Got

you much. thank very Okay,

David Fisher

David. Thanks Yes.

Operator

Hecht with will Jefferies. John come Our from next question

John Hecht

think a count much in the the share share not like tell guys and can but very for color. XX? as for guidance wondering to update you us asking you proper Steve, all I'm Thanks sense give XQ, thanks us, just for the the see what's the and way about --

Steve Cunningham

Yes.

So if post itself. do then shares deal the the all XX ended the math and under million where quarter we have transaction just on we you just

be So should start. should where that you

John Hecht

the XX% recognized then in and think I Okay you synergies of year one. said

to think that's Is So over just it do course course I assume year? of to simplify came should be we What over that to loader of about that? you course think going of the front XXXX. the that it the over the

Steve Cunningham

part recognize Well, so year. think going you're the the year I the first to over first of in

a and things recognize bit on way of then some depending quickly of company the vary to the there quite will like along will plans there early integration costs it. going you're the will be go of public be So away timing some but The related for example, pretty the that months. things business, sort will need the start run. for the just amount corporate of we you to see significant along XX XX service what determine first cost not the the as yes, track other should to long integrate over energy but a and we groups But

John Hecht

that's Not it out Okay quarter seeing quarter the just to to you've is then demand. for this acceleration down revenue this you revenue basis the quarter-to-quarter comping if a core fair be a business just math year you QX into increase of nearly month the fair to asking guys flattened continue for again think the it guidance year? should Enova spoke to revenues that thinking trend where start you about slightly on guidance, you're if loan is flat and case quarter of but think although month next would but thinking to of to positive the next asking in math of not then

David Fisher

business Yes, going yes like would now guidance rate answer not to of seeing going kind and we imply. around giving of long. and consumer of is revenue been the strong we're we're kind the and with of give what very, Exactly small QX quarters right is clearly that not turns But negative future. very across which has which really, because acceleration kind we're that re-acceleration I OnDeck. can't of giving you that said mean really But we not have to good for again the rate can't across again Enova predict

it's going be So if looking that fact the to but you up. next step gives positive flat indication the flat, the not and though trend certainly re-acceleration down is QX is even the that is that continue we

John Hecht

QX give think OnDeck then originations I the got the did, you Steve missed And revenues but Yes. for for I did OnDeck? I you revenues,

Steve Cunningham

to revenue I number. AR did is I stable generate can update you originally, you pretty can the you wanted the on the give just think I quarter-over-quarter. revenue There yield revenue not give numbers.

John Hecht

Yes doubled QX they than originations to sounded like from it more and QX approximately?

Steve Cunningham

Yes. Roughly.

John Hecht

Okay. All right. Thanks guys.

David Fisher

you. Thank Yes.

Operator

Our next Vincent question Caintic will come with Stephens. from

Vincent Caintic

Good thanks. afternoon. Hi

products and you're from sort re-acceleration the of maybe question both on learnings change First between on, side insights the think you're particularly consumer different you at small of testing is just seeing getting the different I or wondering the and if behaviors if the of say side trends marketing. some and so CashNet I'm the the for seeing there you the and business example NetCredit consumer about have, else? then like are anything so

David Fisher

I differences. a subprime little They you We're Yes. seeing would think I not major. there than some which expect. is bit mean what back are near-prime faster are small come

allows has income faster. but think risky a money re-acceleration is return greater ability in because riskier more higher is you're I easier higher defaults. a actually of as to us near-prime a kind But and and perspective because actually it's lending a for because there to they kind that up so save of quicker, COVID. people spending build us know I It's near-prime more test have less savings than stop terrific the subprime of and smaller is misconception shorter loans in you rates to that making from perspective for

re-acceleration. demand So continue for demand that kind we us huge not change in slight really but actually that slight again helpful is it's with as slight change of in and

is small year On similar a of business the side, demand ago. surprisingly, surprisingly to the the demand the makeup is

been businesses quality are through stronger think not differences is so point to strong, trying survive. just given would this very borrow It's it's the the lean into there based. looks You ones I really actually COVID pretty to at that of if what kind Credit anything trying but very, stronger broad few. to are really, expect economy many that has the

So if think demand credit anything a small in probably side I improvement there and a quality the slight on is business.

Vincent Caintic

you. Thank Great. Okay.

originated about economics curious current say and versus of, is post-COVID, sheet of your April let's and so your you how underwritten Next much post balance what if current could has back portfolio then maybe how the maybe sort of portfolio portfolio? newly been on the it the on book kind of talk your the

David Fisher

the get it Yes. the for to over hand I'll part part. and I'll first Steve second

pre-COVID newly originated is where per quality credit funded in-line is right very the Cost is looking So economics was strong. of with loans it and better. loan

tackle Steve to you unit portfolio drives kind that's post-COVID? do of that really, really of percent the strong the So want economics.

Steve Cunningham

Yes. if we've XXX I you quarters. plus, second originations third in at just XXX look the mean, done and about of

could a you on sort of case is or roughly. is make so book or the probably since COVID XX% of maybe XX% set So

Vincent Caintic

like look that loss XXXX of forbearance the calling is But when maybe up about of to of talking have I happen or a there one credit when spike they're or more names good my and in XXXX we Okay. quarter, you Got emergence doesn't some so think still stuff. and XXXX me. we emerges one belly last for they're because your follow when case the were or about, does you so in will shouldn't this all you. there? sort for happen just but expect of it But we prime Thank similar expect to and that delinquencies their kind are coverage is loss

David Fisher

Sure.

of months. think unless had macroeconomic there I a is levels us. very most to low the behind environment change last couple the is of Again, we've major forbearance that over of

loan of prime much is Our a than more duration lot the shorter borrowers.

will our mid of XXXX/XXXX. as will lot our sorry, or prime So a pre-COVID so pre-COVID a of lot loans kind get we late loans lenders rolled off, into to have of

next year. feeling into about really we're good So portfolio heading the

really have comments just my not fair more the do of our level uncertainty built macroeconomic mentioned because level value than to conservatism across credit kind the watch from good. we we very seeing I as post-default, of it's levels really a current very, expect every portfolio because on Now what or into earlier metric pre-default we're looking uncertainty our of in of and

Vincent Caintic

Okay. Great. much. Thanks very

Operator

will Rowan Our [Operator question John next Janney. Instructions] with from come

John Rowan

Good afternoon guys.

you're that be you're going not to about in flat XQ OnDeck report clear we're here to going only when Just revenue revenue? because say is be to revenue to talking obviously down you Enova

David Fisher

correct. That's Yes.

John Rowan

if and just but the Okay. revenue rate I thing G&A also you would would I over correct? also and just well exclude said that the from same want said G&A because run revenue you to one-time am with OnDeck G&A is coming expenses and not, sure assume I make then as the all down,

Steve Cunningham

gave of because to when year-over-year a then referring run I we Correct. and are was that. just costs QX and I the XX of include recognize mean I doesn't rate that John. OnDeck sequentially timing coming right just which and color That's you bit through reduction synergies September on through of start to one-time the deal

John Rowan

revenue. Okay. Obviously marketing I appreciate guidance the on

XX% that to above you you're I to seasonality forward? low the high XXs does half of it, back margin. look down half the to there post mean the like year XX% first How or range a look you'd profit below gross the in the should OnDeck going a in similar straight XX% of XX%, year. back in is be say that going be just the we right? the go XXs in that You mid used XX% high Is line range, that

David Fisher

gave up you get But get around we will how the to that I can back really level nearly range not mean I somewhere some really of a under seasonality roughly that's and we had method you into there accounting quickly why a normalize incurred sort we originations normalized as but we much Yes. when get to obviously on and the will think year when XX That's when we depends the the that should XX that came seasonality be of curve. back as to XX%. expect of point.

John Rowan

Thank very right. All much. you

Operator

over like David question-and-answer concludes for our Fisher session. would call to I This any the remarks. to closing turn And back

David Fisher

of you look your rest Have Great. call Thank to quarter. we listening questions. you forward we and to appreciate We you appreciate a for everyone talking evenings. again taking your good next in today. joining our

Operator

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

You may now disconnect.

Enova International (ENVA) 27 Oct 202020 Q3 Earnings call transcript