PRG - Earnings call transcript Q1 2022

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Operator

00:04 Good morning, and welcome to the PROG Holdings Inc.

First Quarter 2022 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. like President, the Investor now John over would Vice Baugh, Relations. I to conference turn to XX:XX Please go ahead.

John Baugh

call. XX:XX Thank Holdings earnings PROG Welcome to you, and good first morning, quarter everyone. the XXXX

meaningful PROG and issued forward-looking, Joining to I release morning, Holdings' and me issued Garner, outlook. results Financial identifies earnings earlier already adjusted undertake update may financial for non-GAAP in be certain statements. we the we make including safe Listeners non-GAAP investor.progholdings.com. Form of EBITDA per website on which XX:XX statements. this Leasing statements comparisons this morning. you risks the our in undue cautioned this and and press make company flows, place XX-K comparability Relations Chief related which will statements which Progressive our Many our levels reconciliation our be are may There items, of operational non-GAAP Report expectations seen we our of adjusted for this into found regarding insight can we call, not Steve the a to earnings referring detailed Brian we measures non-GAAP provide statements investors tables our emphasis our and on Investor are end share, differ that annual that XXXX, other which affect release. XXXX encourage will GMV measures our with The call performance Annual these President provisions attention with company's to found that companies. measures believes Chief from are to copy cause These measures, discussed our forward-looking Executive these you on included provides including morning cash for to XX:XX comments XX:XX in call, been we ongoing write-offs with and financial I On have During expectations Officer; to over want of that, and in of the year and additional performance our and are provision would today's periods company's certain no performance. turn Steve? for of forward-looking be the operational to any understanding the earnings release to including that harbor have read. them certain XX, that the operating for risks to be ended available materially can XX:XX That facilitate your to Officer. help the is XXXX, With December Michaels, the targeted the forward-looking range our Leasing's earnings of at to safe like prior remainder Michaels. harbor such to obligation actual Steve results call assist today to Progressive write-offs

Steven Michaels

even line provided we expectations, our lease in including our environment. believe the XX:XX in to earnings and First, in release, XXXX. quarter performance of XX:XX updates good Thank acknowledging you initiatives. during first the you, everyone. important begin quarter by some us to I want to full-year our financial on were remain XXXX on first results, I QX portfolio outlook our we some morning, we macroeconomic business key joining as provide results we John, discuss the appreciate achieve achievements and track current today with

R&D review point team should partnership review, could results published we future customers. and has support inaugural on challenging. And the made were we internal This as GMV, behalf a enhanced finally, Third, our on do environment represents and a we new expect we XX:XX our with the ESG on retailer. for highlighting experience EBITDA large our retailer believe our will of progress loyalty including addition to I products year, the reported, and engagement our that Relations margins the we improve and page. Investor great number more we opportunities great work be even though expect create Second, national our XX:XX that period with and line GMV converted As valuable been QX our and rates found macro in communities. of colleagues mentioned, and forecast remain our low for revenue the growth of customers,

relatively quarter in of including XX% will XX.X% should A customer technology deliver the due measured us to revenue and prior-year expected, and away and to continued our differentiating slightly the versus existing write-offs ended Progressive pressure initiatives representing We Progressive XX:XX SG&A GMV small, short-term seasonally X% QX increases period. not overall XX.X% stimulus annual expectation first continually confidence retail and an year's that in with Since what the prior driven we've pre-pandemic performance long Our in throughout were low quarter. do in performance consolidated against initiatives stimulus call which year's Leasing's our more of for of our X% application of these write-offs campaigns, performance XX:XX pleased revenues X% e-commerce ourselves in industry-leading was high quarter, eye and Portfolio that which negative and in line GMV to focused X.X% iterative a last current XX:XX increased was a be stronger gross optimize level our we and we and regardless with decisioning several of aided as from but We half should our our our comping tough expect Leasing's targeted game anchored a year-over-year, lease a faster for GMV QX and benefited partners. consolidated for unsustainably to GMV our to year XXXX. increase payment within buyout the integrations note buyout existing gross on the from was move we in XX:XX last with remainder makes adjustments year enhancements further relationships and due result with expect have note, we conditions. expense. this the historically XX:XX we year-over-year, to from new decline the our XXXX. margin key macroeconomic of continued resulting since comparison We industry-leading have advantage also write-off were experience believe of leased We're our positive comp additional for the the back have margins in we platform. to pools while than February wins. increase additional flat QX prudent in decisioning that we with they only the declined that grow X.X% stimulus range from streamlined First balance, Not that and drive range remains our e-commerce balance asset been our to in of EBITDA on and the in will flow, QX annual quarter from XXXX, or us our being X.X% focus year GMV, the XX.X% XXXX, deliberate was write-offs revenue I to the XXXX. elevated dater co-branded as shared elevated founding, the deepen tough the in to to GMV low And customer and late a the experience. Progressive marketing in quarter at but X.X% concluded compared below year's adjusted year-to-date. comping partners, in Leasing of should the an targeted for revenue. we X.X% area our models, continues give

we key partnership During saw product quarter, the progress healthy also on initiatives. and

at QX optimistic about GMV As and the this the I mentioned, with for can in a the of end new the integration customers we're we national partner e-commerce provide completed future. us large partner and

February economic impacts and our some with our positive over how business of position while our foundation marketing that integrations past our an access plug-ins. the agreement on SMB hard XX:XX efforts that and growth, challenging thousands first several more these e-commerce us to accelerate typically and on partner performs using to we year, partnerships leasing last also the numerous will on have that various loyalty products pipeline. the provides retailers Nationwide we flexible We economic quarters business. from shown context these our engagement We and We've to completed new we integrations our environments. significant new cycles. close The our to strong in with have since during ability demonstrate business of worked [indiscernible] the over want announced execute to believe Additionally, in expect customers. options. creating of years, to enhanced is also our the convert I innovations robust XX:XX group ability XX our

products we've than As as believe macroeconomic ever. in are increase, more the shared we needed pressures past, our

consumers, solutions our power offer purchasing payment availed. For flexible less credit when is

share turn financials. even Brian call incremental partners we for of integration I'll underserved believe large XX:XX retailers, sales over a addressable Brian? we we the economic at drive our greater quarter's an fast look existing more consumers value in times, added partners. the can and both for delivering to capture By For now retailers for to market. prospective detailed and and our tough offer

Brian Garner

Steve. XX:XX Thanks,

half becoming with of As will key the We with comps internal more comparison represents quarter's year QX in line expectations. first most the year. mentioned, in several difficult the the anticipate favorable our results metrics back are our for for

for During while we against GMV within were prior negative trajectory payments. year-over-year, as range Buyout Omicron normalization the we allow levels write-offs that is expect XXXX. will the by part contribution. The quarter, down historical pre-pandemic stay a to us XX% was year comparing stimulus was year-over-year faced for annual above of the continued to in our revenue slightly results and impacts remained pre-pandemic on driven XX:XX and

of expectations. and these in each, line factors magnitude with the As relative we're our

million ago Progressive decrease the We segment. some February. we I'll in the revenue Leasing's to $XXX.X reaffirming beginning period, XX:XX X.X% compared Progressive quarter turn a now outlook on to due quarter, $XXX in with specifics provided in are the year the million was Leasing the to following.

which impacted in reduction revenue receivable First, unfavorably a revenue. to increase accounts provision, by as was recorded direct an is our

I As portfolio anticipated buyout historical moment. provision million year's elected AR QX our which customers you'll million lows increase an the to directly revenue, $XX.X in was $XX the increased pressured a to impacts of early by reduction EBITDA, see as the XX:XX This we in this from last QX Second, filed adjusted $XX.X as in XXXX. for and revenue reflects today, speak we for to against we normalization exercise option will provision compare in XX-Q buyout of fewer XXXX period. million in

in growth to a the size were portfolio gross two dynamic asset larger difficult this ended fully a period to offset contribute XX.X%. by year the creates meaningful headwinds the ended buyouts up revenue comparison These fewer the prior While in QX, quarter. leased which portfolio, almost

Continued is an in result growth in is QX will Leasing's growth metric The provision, rates important outcomes point QX XX:XX for versus revenues. in this a AR by a basis period GMV reduction driver be in and Progressive primarily XX.X% offsetting period. the XX XXXX. margin future higher early XX.X% was decline of of gross and lease influenced buyouts

of QX XX.X% nine the months, further we XX.X% and continued reflects the compared margins from or million seasonal profile. levels levels, sales in write-offs of year typical $XX.X to XX:XX the X.X% move of pandemic as we increase from revenue next Leasing away increase in an last gross QX and segment This million million for SG&A investment related for of $XX.X QX year. revenues Over $XX marketing of costs revenues expect SG&A XX:XX early XXXX, the the million which in reduced or were buyout compared Progressive versus Leasing's Progressive million. $XX.X of technology, is to elevated our in X.X% to of period. was ago improve and $XX.X

previous primarily mentioned GAAP is historically $XXX.X strong grow last to our period in same EPS the Progressive within normalization working X% $X.XX. compared cash first was and XX:XX diluted compared decrease $XXX.X year. million $XXX to $XX.X X% We Our EPS to QX, to for decrease. period, our million QX million we XXXX. the QX to our million of compared for the that portfolio from EBITDA QX is or net $XX.X the segment ago results. in for portfolio in $XX.X X.X% lease same expect write-offs to calls, million a X.X% in generated reflection target Leasing consolidated Pivoting year and As XXXX, full end of which revenues XX:XX million of was for operations in range. of QX to a PROG non-GAAP annual performance required QX or EBITDA of of on Adjusted quarter was XXXX. the was in revenues, portfolio. of Adjusted revenue of the $XXX.X capital year million This XXXX is for we've in came to XX:XX period Holdings at compared XX.X% the $X.XX

have times million the We EBITDA. $XXX or and of $XXX adjusted X.X of cash million net the gross quarter end debt of approximately leverage XX-month of or trailing at

outstanding ended our quarter's We $XX.X $XXX.X our undrawn At period end, we repurchased facility. $XXX of average first at repurchase XX:XX stock of share million with we the million $X common billion price an During quarter availability under program. remaining of XXXX, revolving the the also our credit approximately under share million of $XX.XX. had

priorities. sheet earnings execute levels, to the In our XX:XX the Based internal drivers XXXX can turn respective call to strong use in QX in be margin upon QX for remain allocation We on the with the viewed outlook, over and XXXX the summary, continue I of our release. our were detail results expected including our improvement Operator? optimistic QX Q&A to consistent expectations. from capital to now operator look full-year of about call. will in on XX:XX current visibility, we and for balance back GMV which our opportunities our the portion our to performance deliver ability

Operator

go will now question Kyle is Instructions] question-and-answer XX:XX Joseph Jefferies. of The the Please We first from [Operator session. begin ahead.

Kyle Joseph

my having more call kind it, questions. to for good hoping than pipeline, given that last, on partner, more heard your morning, two get taking me and was for color challenging Thanks years. Hey, much the e-com seen regarding guys. retail comment I over plus on new the environment I XX:XX some retailers it's the we've particularly a of

Steven Michaels

I the morning. conditions conversion to favorable view pipeline period all good as Kyle, I exiting as that retail right. and the than were talked current out by, easy sales next years, were about would XX:XX we quarter, into as Kyle, the more you're looking Yeah, Certainly, know. mean, we last two just we to where come

tools And tough that are to to look identified fully we retailers forward of their believe being that when continue and times get start come which So all to have the the TAM that serious pipeline not so, converting billion, we have should good and of continue are and finance and when some by, that's competitors dollars billion looking to $XX and conversations may might there XX:XX to on retailers to we developed a large not stack that have. harder out served. as portion that's $XX return tools We've all they a as marketing for is about have know.

strategy this as to that and our get it's as can So, and hope our in go we certainly much out of environment.

Kyle Joseph

think what's you would how real XX:XX XXXX, obviously, it but I private it, last but comps, helpful, a downturn, sense challenging on you give etcetera, the during I performance, XXXX? economic I business And understand guys think terms Got were it, thanks. in, obviously, can of us for call the credit inflation, performed in helpful going be

Steven Michaels

as end back Yeah. other loss to I is of the Aaron's that like you're the transitory and on side that, of inflation or the I at there my great first business -- may the by that then relate But access talked happening and is of of financial even disposable to had have need make the China customers usually some from widens to time kind a the period. goods customers top impacted private credit. you the on and as spectrum. dynamic during the their the we they or the a effect payments a happening kind be are might And see our or tightening it income stress pressures their XX:XX who they that some the co-founder fall into And back the certainly standpoint, market. or crisis customer the not acquire that team But in -- up the customers able XX:XX just get market force and And job can through funnel is Curtis, bottom have larger durable moves previously time our were we on still of and was here it sequence right, here. last the other management saw and than experience that none traditional we

for very As what and the point were that Progressive's experience because we're the earlier, that, quarters. next of the funnel had XX:XX to of kind naturalistic the happen it up And stores data from that applicant for was sources it as consumer retailers strong. inflection fast. of consistent to at open other to we comps, I noisy would all perform the which couple probably starting yet, changing fairly well into and really but were And of grew hear during can an XX:XX because anecdotal couple the it hasn't in relates some top a importantly, business, because bunch opening over just some so, will comps write-offs was of but portfolio are of news see of our Progressive, this reaching really profile that talked add tools. about growth performance and time started of out during consistent in a And The that a resilient so, the the then macroeconomic flow. was my is business GFC, things of some of cycles. we Aaron's kind it's little

Kyle Joseph

Got Thanks questions. lot answering Very helpful. a my for XX:XX it.

Steven Michaels

Thanks, Kyle. XX:XX

Operator

ahead. go Please of Bobby next The XX:XX James. question from is Griffin Raymond

Bobby Griffin

of first, maybe shape expected Thanks bit little in to on versus the Good expectations. dive on morning. of kind a shape wanted little we a Street bit was the year how I the to for year. questions. off Clearly, XX:XX internal out the taking guess I my

kind models to keep So can make anything and it, Steve? there team about tighten sticks and out we in up thinking in need should help you we that models maybe clean mind we of forward, year up get just of of sure to the the Street the XQ and where is XQ are we how to to for XQ that you some shape the going closer for the

Steven Michaels

for can taken start XX:XX the I'll I guess here. mean, chime you're then and Brian one team in. Yeah, right. I you've

a a was the that reserve are year quarter. impacting well, side the on which from being of we last lot those half it to rebuilt AR the QX the year. whether I'll of are driver the leased levels some or AR first account. last against Here from low on benefit, to what chime size future the is the balance, which things XX:XX really probably Brian in. Clearly is shape So, the are there revenue and the closer, it'd let -- a impairment I would Those is to different contra-revenue forces And standpoint, but a get -- tried the of be reserve point the inventory asset on I of comp before we gross side, comping communicate you and is growth.

Brian Garner

Bobby, the Yeah, XX:XX question. thanks for

things on. think that a couple there's I of hit

as you the revenue year-over-year to little see normalization growing context recall of we've expect the heard And comp easier teens. late it and back normalize to revenue First, you QX when taken the much what the the a really leased happened gross provision high provide asset start starting think those I XX:XX shape over XXXX, to that becomes prepared course revenue we the a you've we and to perspective, bit, buyout of terms normalize And in profile. there, from QX in my started the remarks, so, AR to grow a year, kind of in bit. tailwinds just headwinds got of to some

half So, I pathway stronger much in to the think that's year. the back this revenue growth of

typical improve and our year. XX:XX seasonally profile expectations is in from we us the about really pretty a it, think around it move expect quarter year, throughout gross low I I We of and what starting margins. the margin first margin with back hinges better to there we higher we on as talked translate to stride standpoint, mean, to and gross hit down buyout course margins the to going rates in the expect that's over EBITDA the a that really half

the lot -- how shaping year. that's the So many resilient rest Steve we're in the but we're in And of different course Obviously, mentioned, the we've of on the going cycles. that's we of about the course lot up a macro, year. as how -- are of thinking

Steven Michaels

Yeah, just to add the add. nailed -- not macro, it. I immune just we're would Brian I mean that XX:XX like I we that, we'd want But point out. to would

GMV internal but us it be in have However, some of from think as have and massive given into how. that these accelerate comping But prepared my initiatives doesn't kinds mentioned can remarks how dissipate, here. growth, that to needs points I we we and it XX:XX that's due we things need to grow then, accounting just

help So some bowl think the mixing of well will it's half. comping that a internal as back we some as and initiatives

Bobby Griffin

Okay. XX:XX

kind need Because end get revenue to March, single-digits normalization? there have is on, to And versus to follow-ups. are in on and the called start true-up have in Do probably like, AR or GMV asset. the to GMV April read we inventory going after to accounting, kind on maybe kind color the I of accelerating. quarter? through that much fully is did that of mid the on help in impacts to what they XX:XX side reserves of flow you the GMV confidence us XQ Is standpoint, just the corresponding From So the done the the to improve on then wrapping any accounting pretty and get XQ any two the side, we until One to for close they out year. things. guide, this high GMV -- and the believe, one

Brian Garner

just is, comps weigh to Steve Yeah, really QX item. as starting accept you're do XX:XX year-over-year getting to into half. with expect see question But not I'll back right, the start the going we acceleration I'll the your meaningfully. will in GMV we or and QX, QX you're on forward as with in step see QX meaningful The QX better let around and

there So half. on. weigh in direction a Steven the be But the in will ramp back can

Steven Michaels

other kind back side that started revenue normal QX still trend the on to buyout half. The we're of thing the XX:XX towards against in comping in is, elevated back levels

So another do awesome margin, we are And for that's thing. gross they but buyouts bring revenue they all know do -- pull not forward.

a first in kind period back mid-February we that from So stimulus played expected back late the that pretty saw out we a of February, that, half. the to XX:XX I the XX and basically mid-March. comp, that the tough had happening. back what actually the largest what also March it we against that's -- guess, we impacted kind a of it we and Omicron. very will As ease QX -- kind after as the would we the April. related of from revenue comping to signaled we good relates signaled the in into to quarter half pandemic in I GMV, believe And days that had is, We then February, And XX of from of in was way days say that GMV started and to

can you on April not impacted did for can we those going we was that. it we But in year They from high were the But to our we the something for a by that happen. it still targets. standpoint. math be -- April So, feel comment to year hit that XX% doesn't beyond single-digits, to hit GMV make mid that need can the But comp. that to roughly

Bobby Griffin

the queue. back I the XX:XX jump I'll Okay, helpful. that's details. in appreciate

Steven Michaels

Bobby. Thanks, XX:XX

Operator

go from Chukumba is Please next with Capital. The XX:XX question Loop Anthony ahead.

Anthony Chukumba

going suspect that this it answer Who XX:XX but e-commerce up? ask anyway. large I'm question, to Good don't to I morning. you signed going you're the is partner

Steven Michaels

this there's in XX:XX we're back you Well, to in but because Wayfair. on going been writing, it's already I'm Anthony, already -- morning surprise been

competitors Couple the on was you e-commerce there. Wayfair we log we that site onto hard And our about to an on can of to. coy have when are before. are and player It's referring know, be been So anybody as see. the one just

Wayfair. do we're believe happy is shop it's there. the are big furniture a our of largest lot indication. a they player. also lot VLTO player, to We it partnering a we're So to customer the of and good think be largest obviously but with We sales opportunity XX:XX likes e-commerce We and

makes sense us they that and partnering their be have to in proud arsenal with it we're so, would want to And them.

Anthony Chukumba

Got And it. my XX:XX as just follow-up.

So if correctly, catapults there recall as assuming well. I there, on is on

do sort or results how So originations lease differentiate share you decent you sort share the of least at at lion's the get of of Wayfair?

Steven Michaels

to there look going much getting I not we're I'm too a And Yeah, flow XX:XX it. get in that instance. grow into forward some unique volume it specifically, is but mean, to good and

Anthony Chukumba

Got XX:XX Thank you. it.

Operator

XX:XX of Jason The next question is from Haas of Bank America. Please ahead. go

Jason Haas

your and Wayfair having for you've a about had. think in competitors you've thanks also that could taking on about of great drove been it's those? working what function capabilities. to wins credit e-commerce It's Hey, hear if some I'm morning, know your I questions. the to you and you other good curious, XX:XX talk environment? my this tighten of Do

I'm was well? function that as if a curious So

Steven Michaels

technology, investment. wouldn't XX:XX would didn't it we turn investments making we think be Certainly, returns if in our on into them that

the So long pleased Wayfair national one a XX we're offerings is or that a best have our with partners and months discussion we regard. XX to that and have we and in long improved Yeah, certainly, e-com tail. other XX:XX of capabilities the any last certainly believe over

there it'd in in the had space, SMB with do lesser places, is that anything those in would generally of have don't Other providers environments. are competitors. multiple the in some size, be being -- think I smaller to actions taken the names that So, marketplace whether from multiple in players there

to steady always well do over and so, approval share that it's performance, able also but other basically and in pulled that be and consistent to shift player do us we on in retail us help volatile our you'll decisioning. served and -- we one And to to consistent or partner for when have some we're partners back time, being will been And somebody think only and when not their not see approach what going over rates time. and well portfolio say our has

Jason Haas

great just can about returns growth. to the dollars And when And we see numbers talked going? to investing expect hear. the should about Can we in That's bit still talk that investments? investment where benefit little then is more XX:XX and that SG&A the that you you're those on see you've a for

Steven Michaels

have that, February temporary. GMV kind XX:XX because do our the about in investments. and down -- we wasn't the call on these we pull hey, talked nothing or unattended temporary so back slow Yeah. slowdown in believe view changed this we of that on on to And of prize prudent our QX this it And has future size a believe and that bit TAM we the that stage was in

in we invest product. So continue to

and also to products that think other pay our We continue that beyond. And range benefit in within of TAM. invest technology gave will still it XXXX for drag what dividends kinds some to in And we in converting will are but relates believe fintech 'XX and we that talking we of it about. we're about We should talked our that that this we XX:XX be, people. unserved measures of as R&D

big believe And But running next opportunity different environment. challenging the be we more so, call, what as opportunities are said us years are, would SG&A retail earlier in had the a we ever for view this differently. I two on if think we in growth the we the

ourselves taking in not position the it's the it. gas time best put be to off the capture foot to the So to

Jason Haas

just an to one XX:XX to And hear. if question. It's I could earlier in great squeeze follow-up quick

single this the to think about I the a call, growth last being GMV there talked digits I I being the But more think of like mid the in or the was digits. remember comment high on last on months in eight year. you about call double in seven

in So growth for that to sort back of was if you're or outlook growth double-digit your still an the comment the GMV that I'm expecting intentional curious half? lower

Steven Michaels

you're half will referring depend QX right? I think maybe I precise. yeah, And the I what really -- the is that too seven believe being eight -- the really and months, I at then wasn't sorry, do -- the Revenue -- math, But XX:XX at earlier Well, high-single of comment X% so, range. I which on to is Jason, kind back talking made, range, or think digits. so that you I something -- X% a is, QX is guess, was to right? if I And remember it's about we that comment there was look Bobby's in last

-- little that that a in there able to so have bit be revenue GMV out variation guide. the So put be we the for of to can range

Jason Haas

for Thanks helpful. XX:XX Got it. clarifying. That's

Operator

question Thomas from XX:XX The go Please is Brad Capital ahead. of KeyBanc Markets. next

Brad Thomas

taking XX:XX Hey, good for all questions. the Thanks morning.

other And be, I commentary XQ? important the up One Just talked of seasonally a if few move follow-ups XQ the think write-offs on up insight will our about about We've about thinking question you'd would to year. you're end. could tend Would could any particular on expecting be shipping in then, be more any how share the that in rest XQ. from you how again, Wondering think we XQ into be see? just appreciated. be to see in that how that something do to

Brian Garner

XX:XX Yeah. take I'll This this. Brian. is

I a be think, it we expect while QX. up from to step

think a acceleration half starts from in revenue from I happen standpoint. back to a really growth margin the and standpoint the

write-off to So kind and be on. From us that's I you're XXXX, go XXXX, sequentially give color to I QX the QX. to can of for and into believe that's there. the up And then back an ramp think QX see right, XX:XX a standpoint, unreasonable you

adjustments think reasonably main year the focused end keeping of is, it while a trailing see and that to getting range, months XX to we're to maybe the out, small reiterate within seasonally laser X% we're write-offs between making continue modest increase periods. incremental and But -- us we X% back QX being the to could on in along. to how unusual those to two as on a I thing QX, it's not that look play go a for from

Brad Thomas

terms tightened made trends, you about of recent think appreciate is how we results, your can change. incrementally Have your how have But your things make underwriting we've business evolving? a the underwriting And quickly Great. affect any that if short adjustments? in you about the months? are other really always one as How XX:XX average you and then, is

Steven Michaels

Yeah, Brad. XX:XX

the like constantly portfolio we evaluating as the of said, just duration you we're the and So, short portfolio. Brian mentioned highlight to

the average XX-month lease with a X.X duration of it’s So months.

-- would mentioned a GMV quarter, like precision really move the increased small would or threshold have We and a tightening. decisioning I and the have I that such -- GMV ability committee and -- that they might the at either to keep portfolio. model as some and be at could adjustments a made we meetings think, of last conference But been the looked iterative we're risk that have otherwise to XX:XX new we our we have I'm like, new our bring have influence and this flat, team proud deployed, technically in but just that like it models that constantly developing

mean now. a world So yeah, out right it's I dynamic there

from data. standpoint, have to approval -- move but last what in shift of to are but do adjustments move will the -- flat further we on continued our the poised, minor we where applications online, We a few and but we materiality a year, we're roughly made and even seeing rates here given then we'll there, rates, stand are approval depending channel

Brad Thomas

last It's And XX:XX Steve. one helpful. very one for maybe you,

maybe where the for an I'm like, some are have a acquisition? history but is this coming tougher a all sure it's level acquisition In in navigate. about How you Just obviously, the has thinking like, how acquisitions you the acquisitions think tough seeing interest the environment you bandwidth pay strategic doing making also prices now landscape, later down, about potential world the industry are [indiscernible]. and to of company trends, buy

Steven Michaels

-- the several is We we'd the the keep looking couldn't like overvalued. so opportunities reasons to balance of take for looking there. out always it that’s And we're things for of in pull able -- Yeah, were we've in those XX:XX at shape sheet seemed the years, got to be last over -- the one we us advantage be trigger now.

difficult As of know targets in And kind to difficult of multiple XX:XX it you so, the is mentioned, to the probably you're paying. have confidence what potential it's more future more forecast.

that we what trigger but we're things, -- we looking disciplined in be against to on. and would would the we going interested backdrop, at in might but are be pull -- be So very

Brad Thomas

Great. you XX:XX much. Thank so

Steven Michaels

Brad. XX:XX Thanks,

Operator

question Michael is Truist. from XX:XX Young ahead. The Please next go of

Michael Young

Hey, QX refund the or it thanks in the how for just did taking how that kind just QX question. related that? implications may tax XX:XX results either any Wanted and seeing season to you're results? impact start And affect to of with

Steven Michaels

really it see But volumes muted certain and specifically drabs, pretty to but season and tax some stimulus pretty tax done the large been but would season, may depending little and over a a all -- we the this season. XXXX some Yeah, you it opened much the be just of really refund, it's was have and compared So, this big out. against saw I it's little much But it behaviors. were fact have for And it's well only this that was a plus was last of our it messy XX:XX would center on the -- number -- lack on that bit there difficult at going flat contact delays but deploying XX:XX actually in between that of comping a upticks us reported is season, in the read money, was reporting XXXX. think I better X% tax term, you there it's who tax window early, a of We by minus year. massive stimulus some point. actually ACHS to characterize what I on as But parse days mid-March. average or to think that typical did modeled in year for not had dribs but

Michael Young

And buyback, good of activity, kind of wanted XX:XX rest you year throughout or on this see to be the based aggressive of share to follow-up cash the etcetera. kind quarter. But how repurchases this amount purchases and of Okay, the levels some on thanks. just can the buyout quarter,

be have the We with stock at cash prices? the the available buyback -- aggressive with these to

Steven Michaels

of -- had or here, me million at And sheet XX:XX -- this cash keep the so about the honest of mean, end I quarter. Yeah, not Brian, is but we on the accurate, exactly probably balance $XXX

Brian Garner

$XXX XX:XX million.

Steven Michaels

million, $XXX XX:XX yeah.

So we've we got we're that standpoint. leverage revolver. to level the sheet going that, -- Having balance in a from keep comfort an and said undrawn

at this as of that cash it's generation, said, flow really leverage well Obviously, continue find attractive price as a in QX. continue as buyback generation, and levels. we free so, to And function XX:XX you cash flow to shares

is but want an -- would float beyond don't part that. much go. to that, X.X-ish kind our So we to that'll around be of some area a obvious be dry that powder but that use aggressive how of may go of the of as and we It calculus is,

Michael Young

for thanks back now. that XX:XX I'll step for Okay, reminder. Thanks.

Operator

Casella Carla ahead. XX:XX The next question J.P. from is Morgan. go Please of

Carla Casella

you. XX:XX Great, thank

normalize? You've a any already. repeat? changes you're rate could right as customers of your we are kind And answered about lot now if that But, percentage just of what questions in my talk seeing you of

Steven Michaels

Thank Yeah. XX:XX you.

So are we'd in not period influx increasingly over have which but a increases we originated our haven't to is little customers, partner the database you on into EP new last great seven we -- are any as five, over them only leases as value. last like before, years, can from repeat back several that you they nurture And, create which the given customers -- years nice. also retailer, six, a a network. but seen it because also been that national is rate, the brings you on of an and It see lifetime bring the derisked, see

years mid-XXs call of four kind range in probably repeat, which So, three up of, XX% is or it, just we're ago. the from

Carla Casella

from got say whether you've XX:XX exclusive? And then Okay, the coming exclusive? how great. Wayfair And exclusive relationships. also, of some is Did GMV then, your you much is

Steven Michaels

of a couple Wayfair has XX:XX So providers.

point I the to So would you we I exclusive are back not guess, XX-K. there.

top our I it, did call think of one came are all GMV Brian, mid exclusive. think, top we XXXX from and of XXs, XX our say -- I our XX, XX%

Carla Casella

Okay, XX:XX that's great.

great. Okay, you. Thank

Steven Michaels

XX:XX you. Thank

Operator

XX:XX The question Please Stephens. Caintic is next go of Vincent from ahead.

Vincent Caintic

taking my XX:XX questions. Hey, thanks. Thanks for

past the pay great. later, back quarter, partners. this most discussion against. talk more In again, on the we're with seems had engagement could getting quarters, couple with engagement and coming was but go point of retail activity like your pipeline less of it of First, it That's of sale the you there kind if sounds the just over been like now, buy about

partners partners to sign know, does could with wondering from the engagement, XXXX? to well I it how you. engagement just existing are are of we don't back your, the looking the levels compare who interest retail XX:XX when new look as And back looking you sort Thank up, were potential in maybe maybe, size you expand So, we your as if to that retailers relationship?

Steven Michaels

a retailers we're some going and had the tools. as I for charged with mean Vince, going to on -- are for be specifics and would dime. call with I but say, it would pipeline, you a solutions accelerated, looking and turn the Lowe's looking XX:XX for other years. opportunities COVID of say, pause both whatever in or obviously, to strong conversations want macro you about to But with are the we pressures, heels not -- had the of then Yeah, It's XXXX had couple this are we accurate but, Buy and they Best launching a obviously, I dealing pipeline coming off

say they from at least when And our macro, good I traffic are second promotions of retailer pressures our the much. -- by there we and co-branded had the it balance they're can it's for so, the we're doing signals is we're if us straight so, good which and a read and so, a to from either -- that existing that mentioned, a be and not seeing I and of down BD As marketing -- as cross even calls, the that us. your is short and importantly, as part -- less, have how that help is I conversations what's and XX% with within from And with -- chain X% -- our declines XX:XX LTO not because posture? immune a we an offsets mean, supply POP or some through from help conversion. as they departments talked But could some, It and read merchandising this retailer partnering in down think leading the a us not are not GMV departments into now retailers, issues, in had not only from some but XX:XX previous term, partners. it's and within it I've some let's on have question, print hypothetically, retailers even think existing things XX%, pipeline environment. their really existing flat our retailers the that and -- that becoming can standpoint bigger good on -- a with be so some of might or some through. sale XX:XX option, we the about they And be -- comps what our immune great we're for we but might but be it's that

our five relationships some to are a well. existing four, lever have of are two, conversations well. into have for just good is as next those pipeline So that near three, conversion as Obviously, happening leaning growth. for nice that term, But the years we the

Vincent Caintic

the of for maybe percent the you are GMV share you partners, this And like I is year, your market partners volumes on up at from through of sounds just sales of very does put kind you -- a some retailer follow-up. estimates to taking XX:XX volume. point I digits, traded, is you. single a expand because your your that that's the have you're publicly seeing, can get kind like look and So just sound that, XX:XX concern, are retail digits. down mean, but guess, double your volume it their Thank helpful. I it a are rest year-over-year Okay, market still I as of retail guess, just a share sales that mean, sales you so, consensus when of I

Steven Michaels

the it's partner read the that and down have. of QX the of the think just be at the broad know of I not signals -- we might retail X% even Yeah, the because XX:XX tip through, channels of strength kind diversification best I sphere. But

initiatives And maybe and some X, the so, various are always were the But on reason with in part that saying, we Z. we've ready why we that and roadmap the already things hey, even this layer. of accelerated, we're that's standing got, project are Y, have investment being instances there's

summer, a a and a even that to get us XX:XX in sudden let's it's 'XX. some are Let's are the That's become for an work can puzzle and then, we with oh, Those that for that 'XX all 'XX. like, in flight conversations it's initiative. over get minute, more good And to on done wait before well, be of holiday it moving says, around pieces we're we so important, holiday the done having retailers. existing going retailer ways

Vincent Caintic

XX:XX Okay. Thanks Perfect, very that's much. helpful. super

Steven Michaels

Vincent. XX:XX Thanks,

Operator

XX:XX back our question-and-answer I conference This concludes would Steve over session. turn the like remarks. Michaels to to for closing

Steven Michaels

-- us Yeah. today. XX:XX everyone Thank joining you, for for

As We less feel in here macro we We delivering confident we sit PROG don't ago. remarks, customers now as partners. the is days to for said stronger in look up and our about our us forward we soon. here environment, all model anytime The XX deliver But than certainly shine provided on challenging. the outlook of we expect prepared it today for let again to you employees current this to our pipeline environment is value PROG our in than retail that and updating conversion ever. thank helping And for the and all mid-July. to family

Operator

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

now You disconnect. may

PROG (PRG) 27 Apr 222022 Q1 Earnings call transcript