OPRT - Earnings call transcript Q2 2022 | Oportun Financial Corporation

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Operator

Welcome to Oportun Financial Corporation’s Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Today’s call is being recorded.

For opening remarks and introduction, I’d like to turn the call over to Dorian Hare, Senior Vice President of Investor Relations. Mr. Hare, you may begin.

Dorian Hare

everyone. hello and Thanks to Chief second Coblentz, Executive Chief Officer today are Chief ‘XX Raul and Officer. Vazquez, Officer Administrative discuss me quarter Oportun’s results Financial With and Jonathan or and will products business webcast operations. made I our and will statements results services, business, forward-looking objectives strategy for to include on future financial of everyone the operations today that of and of the remind management some remarks our future plans related and call positions, planned from contemplated reliance not or materially forward-looking these differ statements and you by may caution forward-looking to results Actual those statements. on implied we undue place these filings more results the Commission Exchange the the to June A in for Securities risk caption these are under including our ended quarter Risk materially filing could XX, our set XX-Q forth cause XXXX. release of upcoming with discussion differ the press Form our and factors detailed earnings Factors, that in and on forward-looking future statements of result than we this we make new today as on Any required by are as that other no or to information statements update assumptions of and a these as events undertake obligation law. based call call, today’s financial which measures present results operations. information useful believe our condition both we GAAP regarding financial measures, core useful comparisons and and for of which can non-GAAP be of period-to-period provide will will we the our on and Also business to investors at materials full Investor be A earnings in section available the can on list of website. definitions Relations our our found addition accordance GAAP. substitute financial in for presented with Non-GAAP a financial measures measures to and in as not are calculated website all which at appendix investor.oportun.com. of release, our earnings XXXX included is supplement the our A press second the at section second earnings and GAAP quarter reconciliation financial of measures to Relations of available of our non-GAAP quarter are Investor section XXXX the in presentation,

the now this With after webcast Raul. of I prepared will call call, version call available remarks. our is and that, the the be addition, with over being turn to archived will an along script In

Raul Vazquez

and second good is everyone. and pleased and our you close afternoon, second quarter. I members our the an for initiatives. results discuss Today, impacting Thank financial our joining followed quarter how Dorian by am an us. on to strategic with update environment its on Thanks, performance, macroeconomic for Oportun I’d the like with update

of among have we started business. seen XXXX. with earnings quarter of last flows smaller previously with end the since an a third cash the call, Credit have free Let revenue for by XXXX. second environment, our into me shorter the and with including quarter, And quarter the numbers have maturities. Since the achieved sharing of new million, of driven results prices, $XXX We been second with and it XX%, growth inflation our be weakening adjusted of than share. our evidenced important net the we million, quarter strong we up of of Overall, quarter we Originations taking net however, our annualized including higher X.X%, with macroeconomic along adjusted observed impacting in metric had. midpoint quarter half in continued borrowers charge-off start line XXXX. originations first the quarter, in the the that loans, delivered We rate expansion are and from those had high of as states headlines. income very as end We demand to the our last up uptick of on said tightening gas guidance. we solid of a of credit by EPS $X.X have $XXX $X.XX. most of particularly have lower our by prior XXX% more second we million the delivered Since is where or loans delinquencies,

charge-offs increased half to lead of XXXX. to in this expect the second We

We have the towards delinquencies. credit tightening our address swift further to taken rising actions standards

provide me details. Let further

to our as In returning are July, borrowers the loss first to materially our borrowers loans increasing XX% new of will compared expect quarter. we in borrowers repaid who lower borrowers target more XX% Returning new Oportun. profitable and have have one our to range. were this our reducing to at losses return exposure new compared least borrowers to action to us help so rates We to loan exposure already successfully

to Additionally, to offset taken our funds. have increased we of steps increase responsibly cost yield further portfolio

be the Oportun half is focused to significant are reduction now of of steps taking we expect the compared the expense on our We of half a to these now first growth. in operating second Finally, to flat year put first expense year. operating half portfolio objectives while growth. possible revised advancing our our will year footing strongest detail the you feature long-term reflecting today company guidance The mission. that higher will strong to achieve with our the Jonathan revenue on full the

implemented. reflect already we have year the actions credit full However, we additional lowering tightening to are origination guidance our

We year profit are revising upwardly guidance is our given weakening which believe points the lowering environment. macroeconomic basis also and full by prudent charge-off XX we our expectations,

the in we term, are While short making necessary changes.

have priorities changed. not strategic long-term Our

our me priorities our outlook three strategic Let about long-term our progress for profitable sustainable for that support and on growth. you the tell year

quarter quarter, with grow the so members, we growth. rate, XX% to the at last ended Our member million very from pace first a We strategic the million X.X growth annualized members. up second of priority with our X.X are of end is the pleased

to at In is grew priority the growth with XX%. quarter, of relationships than second multi-product strategic XX%, our products increase member annualized members. rate faster our an second Our of

to financial enhancing is Our hard-working everyday third the meet strategic capability of needs people. priority platform our

increase to a Digit access app in our app currently in Digit enabling the make market We and to other center aspects fourth testing with increase continue and We member and of the progress unified this increased This growth to by creating in and products. expanding the the brand nicely. multiproduct quarter. anticipate multi-tab Oportun to intend in the to bringing be unified X app of increased during app, to Digit continue integration relationships will unified products progress app the to leading by loyalty. increase members ecosystem membership Oportun satisfaction, phase member all the seamless towards We seamless

Now progress you across let detail products. our with newer our me share regarding more

our million personal product XXX% and Arizona with May New in receivables, product, second we to we secured For to loan ended In $XXX our up the personal quarter April, year-over-year. loan expanded secured in Jersey.

is that along secured Our the our funnel benefit growth it continues acquisition personal through same loan the from personal to unsecured loans. with fact offered

Oportun-branded $XXX also more have credit card quarter and card. we our product. year-over-year grew progress We than credit have good this XXX% saw members who to an million, now from Receivables XXX,XXX

continued Finally, great with make progress Lending-as-a-Service our have to also we offering.

expect During second XXX complete ago, locations. up from Lending-as-a-Service partner our XXX we quarter, the scaled network over year we include still a and XXX partner with XXXX to to locations,

Additionally, as digital of our with our second a turn launch to now, later I’d for partnership on a the relationship, to With half Sezzle, Jonathan to lending our remains track on in additional and details our guidance. year. revised buy it pay over service first company the and financial like that, performance

Jonathan Coblentz

good afternoon and everyone. Thanks

million inflation how generated our with to adapted and As and income of of growth quarter, our light revenue responsible since higher started $XXX the quarter of and quarter. macroeconomic to weakening Raul of $X.XX focus $X.X adjusted including the continue are has adjusted results, second and profitable or environment, total mentioned, of the members prices, deliver our we in have we impacting million second end the gas net we EPS. In second pleased

to for we $XXX of high, aggregate million origination our $XXX and of originations were $XXX guidance year-over-year up between million will XXX% Our application reflected to Loan million, originations the continue responsibly originations. remains higher in and XX% volume and receivables due our and ahead grow quarter. demand up increased Total the was $XXX and the back year. of half million above expectations revenue also year-over-year, our of

debt growth was million, revenue, customers, in drive in as on period expect We increased revenue. issuance revenue from of partially total year-over-year, quarter, more debt our with providing by was a second of the due driven revenue prior will Net rate, returning offset by year to fixed Interest XX% million rates. our up up end of ago in fund by the At serving of X% X.X% improved greater us $XX decrease the continued primarily cost XX% higher interest growth to value. period. was offset in focus the expense partially our protection which debt total year-over-year. fair rising year $XXX XX% Net growth, to the we decrease versus our from

fair of in and in million For decrease had million mainly a decrease and mark-to-market consisted a of our loans $XX our net million. value, net net charge-offs value, period current our which change fair debt on we $XX $XX

The resulted price decrease. XX.X% of to as our resulted XXX decrease in rates For million notes a our spreads and basis decreased and the mark-to-market fair $XX the price in to the million XXX.X% mark-to-market, of increase in asset-backed loans the average weighted interest the June XX quarter. credit in mark-to-market increase during a value to due point from $XX

expenses. to Turning

slower to Our certain of quarter. second revenue, total Adjusted to charges, growing expense million, prior grew compensation than operating nonrecurring compared stock-based which quarter expense the excludes $XXX year-over-year as expense, total increased an XX% year million, was operating increase $XXX which XX%. XX% and

expense versus half Raul second reducing half of going the expense mentioned, flat As growth we first to operating rate be year. our are targeting operating forward, the

delivered due $XXX, quarter was demand prior to Our period of our in for million year down to of $X.XX, versus We cost and EPS the respectively. net adjusted compared income customer adjusted $XX acquisition from prior the XX% million $X.XX $X.X loans. higher year

income and Adjusted decrease $X.XX, million was second to prior a year, quarter. of EPS year was growth, the half XX% $X.X For adjusted loss million, year-over-year gain a million net first million a the $X.X the quarter, $X representing representing adjusted EBITDA the year-over-year was XX% compared of in $XX in growth.

the year return equity first year $XX adjusted the the EBITDA XX% Adjusted half $X.X year, was the X% versus prior million quarter. period. was For million of prior in in versus on

last months, averaged XX ROE XX%. the For adjusted

credit. to now Turning

with guidance. results second to line Our quarter prior credit our outcomes we well deliver in managed showed our

annualized prior was X.X% in to charge-off period. X.X% compared Our rate year the net

to balance abnormally consumer charge-off the As a low reminder, of year’s including stimulus government strong amidst sheets, rate the last impact was pandemic. due

As XX, was day rate X.X%. our XX-plus delinquency June of

which of was the at July. $XXX Regarding increased of our to end capital XX, $XXX million and total liquidity, as June million, cash

flow year-over-year. Additionally, XX% $XX net for from up the was cash quarter second million, operations

of as of And was Our $XXX XX, to fund X.Xx. warehouse combined our growth. July undrawn was and debt-to-equity lines available $XXX in our million ratio million

consistent a in record We completed million have maintained securitization. access an additional our markets. $XXX In May, capital and to of we $XXX securitization completed million the track July,

complete frees we originations the macro the are environment year. in capacity the face reflects to and remainder Our confidence warehouse funding for investor these projecting securitizations a up of of in the to ability of Oportun challenging support the

focused remain that will Turning expectations to we for the instituting rest and prudent tightening cost our growth Raul reductions the by on mentioned. XXXX, of credit

In outlook million; of terms million; $X.XX. net and adjusted is: our between Aggregate total $XXX and and $XXX and and between guidance, third $X.XX million quarter revenue $XXX originations million; for $X negative EPS between $XXX million $X negative adjusted loss million between the

the guidance and net aggregate for and $X.XX $X.XX $X.XX. revenue Our million, is million $XXX full $X.XX income $XX between million, between between total $XXX $XX updated adjusted year between adjusted billion, EPS and and originations billion and million

from focus million. in to our on macro million loan for year-end and reducing receivables $XXX forecast environment, million we $XXX prudent credit million, to $XXX card from receivables our $XXX year-end secured Given are current this growth personal for

consumer into interest factored inflation, We economic wage the that closely growth. developments all are our guidance, and unemployment growth, including monitoring of rates confidence, macroeconomic rates,

larger Although been quarters, credit into consumers expect we while our meet forecast pricing next Raul tightening not for increased over talked about. two of a the we have have states these note announced standards, models. already new make increased implemented do factored specifically light in I’d that our charge-offs we and loans future of this has stimulus number as pressures, will

the guiding quarter, net to are plus points. X.X% XX we charge-offs, third For or basis minus annualized

majority the are credit leading full full points. of charge-offs, or of in life This per basis Approximately than average tightening points of our increase basis plus the have average points tighter to increasing and X.X% that the is For is started It lower reduced year we credit portfolio the X.X XX only over now. receivables. denominator effect year. from originating make rate daily we will of our is turn guidance year, up years, keep important because amounts more portfolio the XX reflective to standards vast to in the net that the means a minus by will once the origination mind loans under for basis portfolio XX year the of

managing the decreasing for X% of and appropriate in projection be of of exception uncertain our target the every the and able with for business expect is year. risk-adjusted first for and our loss year standards elevated are to environment. start XXXX will Oportun. range and year, through underwriting X% is profitability to been reflects expense our another this and fourth as growth third the consistent, been profitable that Part we strong in year to quarters guidance the have going rates a achieve notable While growth return to profitable quarter losses back this We how current that of within manage XXXX yields. tightening XXXX, economic It’s XXXX, will that we’ve we’ve our to profitable our

our during the With provides XX.X% expect to solid business to the that alternatives half pleased I’m our a we members, significant payday of for sustainable XXXX delivered open being for full fees a yield that before profitable questions. remains. for unlevered expensive, net risk-adjusted macro In currently to this XX.X%. still an year annual Xx challenges despite environment. final a for quarter XXXX first basis. solid gross we contribution turn is the for deliver yield the profitability and summary, loans we at rate some back line the base in comments instance, on another for anticipated Raul it XX.X% now X%, This our a year. the Oportun After I servicing of that, will more charge-off over generated While Accounting midpoint, X.X% compared delivers savings yield now strong of of

Raul Vazquez

at want half of Thanks, of Jonathan. for a Oportun the to I employees thank strong the all first year.

Our drive future results. our mission and inclusive, better affordable empower to financial has been that more and financial our continue us provide a services to pertinent members to never will build guide

taken our expense As weakened, have our exposure prudent we and growth. tighten credit the macroeconomic to environment measures reduce has

are We well navigate our current making beyond. profitable currently line for in position the XXXX have in to questions. we confidence will let’s operator, ability environment, that, us and continued and the growth With the adjustments for open

Operator

Instructions] Hecht ahead. [Operator The Jefferies. you. Thank comes first John Please from with go question

John Hecht

Thanks taking much the guys. questions. and very all my for detail for Hey,

products. channels, a of growth mean You channels have I guys, and you lot new opportunities and

products affect if So at where channels maybe environment, looking most? you it and/or kind can we’re you’re describe kind in this tightening would of surgically of of the which kind

Raul Vazquez

Raul. John. Sure, is This

You’re absolutely right.

the and executed it products, the top the of to that is opportunity benefits our gives I where an be available when you of that and to think growth want one a in really of large to tighten judicious the want we channels way to strategy have we us lending-as-a-service where is that at look creates we’ve very focus. opportunities, partners, new we of the funnel terms the

saying is the for loan product I So start by engine core would business. the this personal profitable

the products. in So which relative that’s to least area tightening the we are the

the been small targets to You of We new relatively a and be talk saw those percentage products for reduced it a and personal year. portfolio, have there us and card credit receivable sense returning loan since the lot we’re secured represent that are just made applying they business, about portfolio. the receivables tighten that skew as portion more who more prudent mentioned, is of much is looking we’re I there for. to growth that the personal doing loan In in our going terms product, the we’re we’re what proven of to profitable and think

new bit with kind a the in shorter-term that on I those free lower particular, quite mentioned flow tighten in to have going We’re cash loans. in the side, borrowers new as comments, of

where we’re to looking tighten really that’s So most. the

John Hecht

right the you few – competitive mean, hearing protect industry? we’re helpful. who are seeing what mean, sheet forth. and very of surgically of to terms what a and so dynamics of I are And just from the in the I balance tightening this the That’s kind narrative you like, then type of Okay. are operators thing do

that environment in give So the you environment and well? what competitive opportunities this does kind as define would – the – describe or of you certain how

Raul Vazquez

that a what saying of gas we’re impact comments basis, adjusted if you it’s when look heard have think feel the to what that companies that’s think gross I with we’ve in say. our a the points. consistent that’s inflation earnings increase the with Jonathan his that, consistent to base listen that your to others on is said. prices, of today in the we point, basis mentioned the member space, about of high think Well, others starting in XX of we portion other and at we Again, some losses what

we environment. think, about judicious we see clearer, to share, see pause. a it positioning, our And bit be uncertain start momentary of bit We to a back think we way a once lean things continue. a growth. when given into really as So better to this we get as to taking see competitive history will And going start and we the is

So we we think competitive a remain from quite strong. perspective, positioning

John Hecht

Okay, you great. much. guys Thank very

Raul Vazquez

you, John. Thank

Operator

with ahead. The comes from Sanjay next KBW. Please go Sakhrani question

Sanjay Sakhrani

could see a question causing this hear people through Thanks. future about you higher Thanks. I what you the and some talk about on of generally they in the worried sort stress being there of problems just Good today you’re Raul, macro exactly okay causing any the of terms lot about maybe, strong if you between first credit? is guess cohort the are – low of the some where is just while unemployment income backdrop similarities the to trends, what’s are? cohorts experiencing are actually Because that cohorts afternoon. these could walk

Raul Vazquez

Absolutely.

then And go are terms, was get starting we the loans to you in smaller think road other inflation gas making environment. just new and the seen made their squeezed. So in the think individuals those ones that then that, areas, if flow free borrower hard absolutely small And benefiting from shorter lower Sanjay, payments any that described, be started prices with on think who stay them is with for when track. about those we to to to the labor strong tend or their I up, happened customers bump to payments what and they food make hard the when got it cash

seen they team, finding the at before or to trends, be are are get someone to taking got comments a servicing but like things bills. laid off got So some a we’ve They someone job, on other work. talked they got getting of we’ve and and we’re when when are it’s care our else new they a of their They COVID paycheck COVID. while going couple that behind of

are be it’s a a ended at of QX, And get to many in really inflation it them the And XX% pleased going through So a off of in we that’s you there tightening that that of now ones well, hanging the that just to bring of were were really we lower talked new borrowers. you prices those bit In the that to what And to loans doesn’t originate disruption up QX, we portion tell that can to to and in for member really, already disruption have really we least doing. the We’d down. cushion about this just just of in things started and described, last for why not direction. we’re skewing was the gas a it really of better, make that a and lot performance we’re with loans. period until cash-free new portfolio, loans enough putting in continue really returning track. why but

drove going And XX%. in QX borrowers. So XX% loans down new what we of saw was July, to that we to given

the So we’re Sanjay. are that’s actions those what taking, we’re seeing, and

Sanjay Sakhrani

about element expect your a that’s of Jonathan, we or of shouldn’t mark second very as this question? I flows That’s impact sort when the guess quarter? spread inside move sort for mark, then, liability it. should that better we think of the I any how into as that residual mean we sort think of all about Got we credit the helpful. how half into And

Jonathan Coblentz

Yes. great a question. No, that’s

expect come the in short So as down. I value, the Interest year going portfolio, the on that think up. our still progresses, we prices rates end for may fair loan terms of are

approach So an that our over will just bonds, time. are their have they for becoming payouts shorter And then impact. as they actually

power of And to the some saw that back quarters that helpful Sanjay? last two as Is start the reverse your maturity. tend in that favorable itself bonds for to benefit may we question, just revert to

Sanjay Sakhrani

guess should that anything Yes. mean – marks does trump the about trying I I those think and I’m just like, else? about think look, those be? dimensionalizing to how we – significant Like direction could the

Jonathan Coblentz

slight comments, at I from in be perspective, viewed they think our yield. credit as my think the went I debt holders’ – very I don’t a given significant of shifts expectations that these end through, will Look, have material unlevered are

provides And so ample I from debt from protection a that investor’s perspective, that perspective. think

Raul Vazquez

Raul. estimate is methodology. of quite add in a on I certainly are macro fair big uncertain one value really bit this you mark pride through and the just XX, the significant discount whole we you the will earnings detail on talked The on deck, increase that lenders the able see value impacts really, we was rate. think the fair the would Page and other the dynamic know, On have of kind one I Sanjay, go about you is thing to this When environment. as of

really see this you what quarter, last provide that’s we at the it moved trend can the indication over tricky the You macro up, quarters look there. environment. last is an really again seven and of that And

on have side we are the point, other terms feel of of elements got our out loan that kind both line performance, So, a really control Jonathan’s good it’s although of of that in these to impact the and we our sight, can debt mark. like

Sanjay Sakhrani

much. very you Thank Great. helpful. Very

Operator

with Mark go from ahead. comes DeVries Barclays. question Please Next

Mark DeVries

Thanks. Yes.

are slightly down significant on – kind guidance, to these year before really some of increased if of have come next inflation, not rolling bars start risk flow with that of now any delinquency that the kind high the the back persistent got right, you you we cash challenges. your – on to you at about of I kind hanging expecting pressure you are have deterioration charge-offs of market how get thinking expecting better And So, and here? job in are beginning based am that

Raul Vazquez

Yes. unemployment I to and overall, inflation macro rate, in environment closely, are things of Number increase we we couple and adjustments. a things. that’s wages, consider make Mark, prices, will guess right, watching one, the like gas

We will see to growth. that make prudent want what because continue loans on high-quality and think being we adjustments we based there sure are that we about make to we are as profitable booking really we

that perspective QX in in see we You our environment. from which to year is originations right guidance an because for last think the guidance the flat this basically originations is approach

are think more As that have to that’s for we roll if continued rates change much free cash payment is will just prioritizing about the we the are and going we continued negative, the swing are Those we that They default potential on But loans. our guide first to actions a have individuals the flow returning available. deterioration, and portfolio. to more that why keep to environment we then in were that take. rates see track will tightening, we individuals

Mark DeVries

of Okay. higher market under going potential kind any are That’s and expected raise to are the XX% how talk to need trying and to rate costs, need you just your of about to And helpful. impact cap kind to addressable the returns? the you also pricing funding the impact stay could tighten for

Raul Vazquez

price terms the couple so that taken in still to committed a perspective, do perspective there. of mentioned we from right that the action. XX% have we we ahead to that perspective, thoughts pricing absolutely of From the think cap. earnings price cap a can to serve, be XX% call go we price pricing the regulatory some is From in at a So, and states thing a the continue having count last we

have now. more right We done

an as we to those of into what is play. XXX all basis about expect elements So, overall of start benefit go points

and be of cost So, that just over serve, terms and of, of think of question of tightening of it terms the bit the today. adjustments are time. performance It’s into that that debt. a And say, who can that not in credit the just not those the of of a consideration, it’s be to really described profitability year. in member we going taking will of so drove end about seen quite loan, then we profitability already We we that terms in by that

Mark DeVries

Thank you. great. Okay,

Raul Vazquez

you. Thank

Operator

Next ahead. with from go Rick question comes Shane Please JPMorgan.

Rick Shane

guys taking Thanks my questions. for

the approaching perspective difference interesting. loss portfolio, mid-XXXX. peak is or are cumulative in really you mid-XXXX the a they were where a spike expectations terms – that So most that’s the unemployment. mid-XXXX on look, at had expectation where it’s And a macro versus we look of If in now. in huge now we forecast in are not from And right

to as pointed consumers’ their I difficulties? cure factor. think of that you an an opportunity consumers seeing if this work of am change, way and inflationary quickly at how out, were their is really for environment where So, do things sort all there behavior this the labor markets up change strong, you given curious your to catch you is are so out in

Raul Vazquez

That’s a Rick. question, great

business. I be continue start to incredibly will our saying I So, by about optimistic

I really of the market drives but completely how to, relative right, like at kind the the the does the So, look really labor overall asking about we gets of look we the have a inflationary optimism. seen these you way what and that’s today by performance squeezed are say, portfolio, my pressures, is you that portfolio different. business when mid-XXXX, part of are

absolutely to the gas of we It the a now in some of was XXXX. squeezing saw we differences think think meant states, mix was it’s of the of very all now That prices, those of of what world that are changed, right. between things to portfolio. profitable seeing, dynamic the one than expanded intentional. to point, really of Inflation we base. the middle long-term different into new your the we and led the we changed then then I drive very, customer as But the dynamics is big but business,

down we to week, of am So, may for ahead articles have do cautiously are inflation, was we that of happen the of we room know we provide don’t have know are breathing seen and We going the will And a XX are if like days We optimistic our sure, and we to that performance correct look our thing tighten. more gone borrowers as bit that delinquent going trends more borrowers. to a reading the room catch to of think at gas some bit go a last which the of by up. prudent all to end peak who gives row. in breathing is some to why to are that, the members. continue opportunity that’s I that felt for may prices of create if and

Rick Shane

it. thank about of helpful. you. your you you your Got you given is forward how mentioned to business systemically polling can there more that or I sort the get It’s anecdotally, any whether borrowers, the are feedback from data-driven it’s am that is, what’s information effort with And gather or surveys so branches. that curious getting going look? And on

Raul Vazquez

good branches. bring I from was a think that’s the I also What not point up. you actually shared just really

shared the are member taking your their give is department in to will already. across what particular lot car you squeezed. had this maybe tank you of higher to just to on point, team every we have to our then to some day, absolutely to of of a account how created indicates with I have into addition that hears and of think that of $XX, was to out their were $XX. that’s We helped the can bit that gas. the can driving from feedback every beneficial I to one be they feedback more you a week, try situation maybe us due squeezed. portion cash was is are to job a all servicing now over the put $XX servicing it get it used cost us, recently understand ability up heard food, to hear that’s you borrowers another understand a there to to that products if we member about someone now fill filling channel But think things example place. base our up their What And would budget of right, that that’s and I and the try and again what and And And new that’s what a actually able hearing, get flow the servicing better. place get take the free see lower that you continuous or the right, really having been cost to department

Rick Shane

Got it.

Very you. Great. Thank interesting helpful. and Okay. very

Raul Vazquez

Thank Rick. you,

Operator

Loop ahead. Next question go from Goetsch Capital. Hal comes with Please

Hal Goetsch

Hey. Thanks taking for my question.

seems your thoughts you as funnel want it are you membership this of a products, would this out new many base, funnel. you target gauge to reopen grow what wanted really of Just are into it on again to with states, origination, really like kind to reduction, your going lot many take but your new taking

you of funnel do to on for to what Thank you. start the year? have need So, this you see at come way the it the back maybe

Raul Vazquez

Yes.

ending originations we a are end the year going portfolio the the we the side, higher returning look provided, So, XX%, total would among you the with year-over-year and think are skewing the growth, I guidance more we right. about growth XX% absolutely originations when customer. year, are to slow than When Certainly, ago. revenue we new still we to at year much of the

some I side, about how a of I of what to to think it the feel So, year ahead go trajectory, us up When take have open XXXX. about more and trends it reversal for would on even if were positions this see I would talking I maintain bit overall we to we think still that about. have new great the the and been the

trend theories would So, some like those would prices in continue to breathing about We of room having see that even peak really that Thankfully, the inflation promising. to flow. have go gas that is like that prove the see may That’s hit down. remainder free would to year. of additional to the how we cash among create lower out

among again That’s cash up portfolio. would sorry, slowing this down, new see and start to to open part then growing the back less less have what and And go the see. So, reverse flow. would that’s new start ahead – and we the really of and what borrowers have with to we that it have those that to temporary would free I am we

Hal Goetsch

Thank you.

Raul Vazquez

Hal. Thank you,

Operator

with Scharf David ahead. from Please comes question JMP. Next go

Raul Vazquez

we lost you you Hi, David. may can’t right Operator, David, We may have David. now. be mute. on hear

Operator

you David are Mr. line. Scharf, the on

Raul Vazquez

other any Operator, questions?

Operator

the participation. Thank turn back the over for any closing conference to for Vazquez your you concludes This like question-and-answer go session. would I to Mr. remarks. Please ahead.

Raul Vazquez

you speaking call, us we and to again of thanks with forward again soon. to you on all today’s joining look Well, for

Operator

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

You may now disconnect.

Oportun Financial (OPRT) 9 Aug 222022 Q2 Earnings call transcript