OPFI - Earnings call transcript Q3 2021

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Operator

Greetings, and welcome to OppFi Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Jason Rosenthal, Vice President of Finance. you. Thank

begin. may You

Jason Rosenthal

presentation On and are Officer. Shiven XXXX and third operator. at Chief The Kaplan, Executive quarter supplemental release press Officer; Shah, earnings be today's you, found Jared investors.oppfi.com. call OppFi’s company's can Thank Chief Financial

GAAP from company's Risk SEC, are could be found decisions afternoon's statements non-GAAP described metrics. press webcast I to would forward-looking in discussing be call, management This turn call be can discussing and the of business their today's made could and appropriate. most in to earnings information, new forward-looking or as OppFi the non-GAAP replay light In being actual measures be cause duty Any information. certain assessments over call Factors. the the forward-looking in the live whether including of and to statements historical will believed made on to by Jared. they conditions, that of call update financial remarks differ company and financial these factors assessment as developments, undertakes future based results, during on reconciliation of development other management, this this is will available events are assumptions the company will to our revise are expected statements, result website. and trends, the with sections release. made any the materially or and forward-looking such These for of During comparable statements by future otherwise. today one-month current be a for factors A now filings OppFi’s measures like experience entitled no Important

Jared Kaplan

good everyone. afternoon Thank and you

sequential what to and up prior credit our record a for demand more a While million, was quarter $XXX a XX% short-term key financial start strong XX% for rebound. highlights results up wanted the continued year compared in Shiven hitting quarter, quarter. basis third totaled a as to will Originations few by on I detail, discuss to

XX% $XXX end of at the As to a the up result, and receivables ongoing compared revenue XX% for quarter million, boding year-over-year second well quarter growth. ended the

In million facilitate this over the of served loan customers month expect X strength fact, robustness our now XXX,XXX our to date at to and of reinforcing and and we have our dataset. platform durability unique

Through EBITDA, million to Turning margin compared $XX $XX to adjusted and the with statement, XXXX, the net adjusted XX% of third XXXX share $XX Profitability was the of for strong adjusted of the and quarter XX% months of for grew XXXX, adjusted million net income. $X.XX basis. we quarter third the the first a for income and on a $XX quarter third of income representing quarter adjusted revenue million and diluted Adjusted earnings generated million. nine $X.XX of three sequential first of the $XX XXXX. remains quarters of per of million for EBITDA XX% have

In approval of for process September, automated. XX% credit June about to now of XX% the are from increased partners. or The just our for applications our automatically this machine in platform, continue invest Automation creates intelligence continue customers. for strides friction learning make our We heavily less tools. particularly quarter, automating artificial product in talent, and including technology, and our in we approvals of denials XX% percentage decisions approved to to on almost behalf whether bank credit

product. innovative to market grow of introduced these new into our SalaryTap and and products recently APR products. of our card OppFi we payroll future our for growth to credit leading to credit capital SalaryTap, secured significant We continue recently product. loan deductible with built Speaking facilities sub the fund foundation launched and investment, develop we XX% under installment believe have an Starting we SalaryTap

gives This scores promoter seeing customer strong the metrics. are our fit. to product market high over ability customer net a having in We product time very well identified us as confidence strong scale as

offering and quite focused become expanded in support Similar a SalaryTap SalaryTap. are are bank terms and through our price partnering companies range said, having the of we product additional wide currently credit OppFi million develop mostly from in their employers. designs, on to early are without card road. we points growth to direct-to-consumer directly recently perspective, viable That which of still and products. our existing down stages facility SalaryTap, payroll we've innovative considering criteria We still being its to favorable anticipate $XX link by to has the of And the verification to a with funding advances expansion Card technology underwriting to offer testing employees in

and players, in believe products recently scaling $XX our our the have line that growth. amended to OppFi card and for our reducing customer needs. while financing credit whereas a increase receivables built SalaryTap that beginning value further card the customer product We strong more us loan a share provide fund to as customers installment line market lifetime allowing active innovating It prefer are from Card credit million OppFi away businesses for our with purchases emergent legacy and our appears take of together team credit most acquisition suite everyday strong costs. OppLoans products a will We users

ongoing to include OppFi consumer inaugural of the experienced APR product, impact report Impact ensure Finally, consumers' financial they our the of XXX,XXX loans a TurnUp to a Report average that the point program, services histories an payment According OppFi help measure Highlights and part if to three paid XX% access product. an credit platform. sub major Score company's qualifies products found platform OppFi reported OppFi's that Vantage with we the to from Through off over the for increase. on OppFi will have internal study, efforts all Social have recently XX bureaus. as published their consumers OppFi who the

free education program consumers and to with receive the financial had blog our in social model mission loan for a everyday of one OppFi OppFi's how outcomes who lenders. access X effectiveness XXXX. than Furthermore, visits measurable has of TurnUp financial reflected provided more indicates OppFi's However, need XXXX. referrals consumers. and in of our OppFi million online credit. more continue in success consumers the than opt plan impact We of the less us than to to XXX,XXX millions through our who these measure initiatives that aligned data X% with enables our business to user hub financial resources to relationships, health into inclusion facilitate OppU consumers, to

how demand pre-pandemic like to I'd bit and Now it environment times. to more about the overall compares talk a

third was there rebound had still we While anticipated. steep borrowing. less originations demand accelerated believe quarter, to We record levels than several the factors are the back in holding

from first. demand through credit more market, we centers. a the ongoing. creditworthy than savings targeted occurs seeing Our typically where a government stimulus programs consumers credit We to phenomenon combination to have still our as some has These still are percentage gradual higher spending, wage of to less consumers season that cash pandemic and income savings after production influence proprietary which are inflation and of now borrowers collect. their from consumers are normalize higher tax of return This work the on market expect likely to Of increased returned hand. the various usual impact back score those come the

as designs in AI of our behaviors with As a brand, better product and and our borrowing credit accelerating while bank going forward, may better growth models, particularly we working to talent us look pricing align consumer. position more We to normalize. ramping are refine with the partners believe personalized today's investment to future, we trends, for needs approach

in growth our our scaling the Looking by efforts, marketing our ahead, and of and level quarter investment QX higher growth. receivables revenue normalization, the will we branding will believe ongoing and of supported earnings be originations impacted be the while up in future by entering credit

they percent cash asset-light. types income becoming to believe customers and consumer. services their though We friction are that remain the customer a What's the the hundred in lowering smooth to while and all early constrained achieve financial products We overall costs providing is serve premier exceptional the a product our different for by many customers financial We this among financial digital experience. to service offering platform are plan used their our involving of clear to costs be flow. employed, comprehensive of high even suite needs destination very due everyday our

for are further average expand address for to substantial shift economics current active this these customer product attractive Our our which frictional going starting We should and is there to customer pain growth flow revenue help optimize moving to and so at opportunity enable products a and smooth we costs, forward, growth we or suite a believe cash began savings customers. reduce unit quantify per forward. thoughtful can

Shiven look and our other flexibility the balance consumer. customer create call large with investment funding revealing who brand FinTech We opportunities about to an platform of started net for strategy the future. relying income, all accelerate our private markets. is products evolving to funding like near to would turn see This and to to the a As largely growth. we We rapidly differentiate our that, more financial grow. a for optimize of everyday base to we destination from forward including sheet premier support more outside own the to financing company, our grow array to to us are off-balance as With have in financials. sheet opportunities now attractive part I a to on review our And to goal over financial equity explore long-term great thoughtful optimize platforms

Shiven Shah

good afternoon, And Jared. Thanks, everyone.

comparisons based third form be on Now would XXXX adjusted view note I all value perspective a from that present a XXXX turning to statement to to our XXXX income for like an financial pro comparison. are like-for-like able results, quarter fair to to

the loss the methods growth solid quarter, receivables a robust XXXX, profitability, healthy sheet. receivable incurred financial the method. results from originations balance and accounting fair third the highlighted core installment application by transitioned that in and You'll company January strong on credit recall to value for We its X, had

ago, and returns. and customer were originations customers from third adjusted $XXX year third on quarter from quarter at versus as the were XX% quarter was was year Ending a XX% customers, continue approximately sequentially. XX% up third XXXX. of to from last million an to a cost ago Originations XX% the quarter ago. third revenue was million, million, balance XX% the revenue demand quarter Third ago. year quarter new sequentially. adjusted sequentially, XX% receivables and rebound of originations for increase year-over-year up which XX% compared XX% the the up the basis a during year XX% XX% new $XXX the from and up amortized of XX% Originations quarter end the and third record a Total $XX grew quarter sequentially an of

charge for percentage the as net off quarter. annualized ratio a XX% Our was receivables third average of

levels, pre-COVID quarter the X,XXX the XXX to XXXX. As returning ratio for charge second off and charge basis quarter points net increasing the ratio from net of expected, from third charge points the for we saw offs begin XX% off up basis

hardship offer Looking which expect to basis receivables with of an increased a ahead, in was points customers was quarter. remaining historical due to well yield originations previous the the the was to the a in charge increase versus increase as of previous light annually. premium in value a portfolio XX we as in points basis range fewer $XX mid more ratio offset origination in fair levels Change shift fair quarter, bank line growth in net and in XX% by in the lower as million fair enrolled increase high partner to leading premium premium, approach driven ending The by to value XXX in growth portfolio, programs. increase the value longer

third of as items for the million million one-time originations to well backs XX% for Turning expenses or the now This last quarter, from as driven revenue operating or were and XXXX. to $XX third third ad was year in impact on the of XX% revenue demand total quarter of Sales primarily $XX XX% million to quarter XX% revenue quarter, revenue with or marketing XX% or new expense. higher last coupled XX% percentage expenses and total for quarter, customers. million and third $XX million as from corresponding the revenues revenue $XX by interest of last an Total excluding coming of increase increased $XX a from and marketing of and versus expenses. originations XXXX XXXX third accelerated, of of for for the and of from of $XX direct acquisition compared acceleration quarter quarter or million or the expense,

million for to customers of demand quarter we year. the or revenue the a last marketing mix As compared for to of quarter, remainder million quarter between remain or Customer expect this of XX% total and percentage operations a saw the quarter expenses returns, revenue of XX% balanced cost third of total new and $XX for $X as quarter as third returning levels third $XX million of totaled XXXX. revenue revenue near and we XX% the total or

We drive customer approval XX% and versus since beginning automatic of has efficiency an year center down with to our led center ago. to the customer the headcount XX% continue XX% operating in rate our This be year. a last to up quarter

expect customer we growth less of ahead, origination half Looking expense growth sequentially. to than operation percentage percentage be

third which or quarter As we same of the customer origination the operations product X%, of growth last was revenue quarter than growth as for $X of saw and the million third and with and $X expenses for less Technology quarter this X% of XX% quarter expense analytics or X%. XXXX. over million totaled

resources revenue We million company support controls, to of million augmentation technology of expenses of public the infrastructure as in to as as in in continued the technology total a investments digits. of support support or $XX risk, the as, company’s as we and of powered our well and total invest a transitioned addition new XXXX. or to as and scaling and higher increase a buy entity. to functions the of AI revenues expect expenses G&A enhancements engine, total $XX XX% compliance to revenue insurance to in was and expenses, personnel by compared result, becoming for $X of products, underwriting million the percentage in driven XX% the high-single to XX% internal quarter G&A excluding quarter last total quarter third remain or third backs, for expenses, The revenue of operational one-time

the expenses sequentially consistent at expect origination were XXXX and Adjusted flat to revenues revenues primarily quarter We year. the EBITDA offset G&A as increased by approximately remainder with a and sales drive the for related to of as percentage third net $XX remain million to was of expenses, higher year-over-year marketing growth. of

XX, of ratio. EBITDA charge-off driven a September ending net nine nine XX% ending September by the was versus XX, growth the XXXX months million, in XXXX, For adjusted lower a $XX months receivables

XX% EBITDA XXXX. compared adjusted last quarter Our for the margin second and was XX% third of to the for quarter XX% year,

total quarter amortization origination totaled X% for million income senior from quarter from as net $XX of not previous was $XX nine returning $X or marketing spend versus for As quarter, pre-COVID $X as we adjusted third the charge-off income all flat expense of expected million or self-funded Adjusted million compared nine quarter year, adjusted Interest ratios the debt growth revenue with or was XXXX. for first revenue net our began we XX% excluding EBITDA levels net million $XX in the quarter X% months $XX months margin compared of the expenses, year the for coupled the flow $XX third to did of normalizing last receivables $X total third cash additional Interest million increased total and from quarter previous revenue our to million operations, or draw quarter net million third the of to by growth. We and the the of of began the third first X% XXXX. up recognized of million XXXX. of driven and debt.

XX, of excluding the September XXXX, $XX.X nine shares. total $XX.X million $X.XX $X.XX share had for the outstanding first earnings was OppFi and quarter the million of out As for year. earn third months Adjusted shares for

balance the sheet. to now Turning

debt equity than XXXX continues by with of balance free million flow less times. sheet Our a $XX driven ending cash to two in balances healthy, ratio at net strong to QX remain cash

quarter, to did tax partially I to million, growth guidance XXXX on businesses. approximately tax offset million between a $XX to adjusted financial in million including million expenses, and outlook $XXX reiterating capacity net $XXX revenue, our fund net net its including financing year-over-year income with $XXX plans, mentioned, $XXX expected equity. with due our for between fourth slower impact adjustments $XX a value and As previous debt standpoint, transaction based revenues historical average were And additional we $XXX of fair cap expectations the of draw related card EBITDA distributions. adjusted and I to million, by year and senior XX% to tax self-funded From XX% adjusted XXXX. approximately not million approximately and assumptions, XXXX third between of Ending million receivables to $XXX $XX and and income yields and growth, have which to diversified net credit percentage demand million. $XX of support which of grew of one-time and the reduced following. full to million distributions levels growth, receivables recently adoption funding would income capital transaction includes year EBITDA quarter an $XX lower due represent is consistent our the company financials. on and for capacity funding a nearly full future to to million. securing now with want we its various XXXX The our of structure salary million OppFi’s receivables. expectations than to and Adjusted Net turn recovery. charge-offs, growth XX% million, material $XXX in receivables Equity XX%

focusing market on Jared highlighted more share earlier, As innovation design. product through are capturing we and

specifically in pricing. introduced remain product environment recently personalized year we the said our tandem in positioning more our trajectory volumes to platform capitalize year-over-year we that a Having our demand bank coupled More approach next to that, more on growth will on a You’re over growth focused extensions. partners, normalized confident show time. with with accelerating

able shift volumes confident charge-off we millions higher conclude, to stronger slightly mission, unable to drive for serve law of To the competitive in we As lower the U.S. execute remain gross we lower the prospects rates roll and access by of believe yield. being sources. from our out who traditional will are credit long-term to partially consumers offset customers, credit more net revenue

We share. and are market committed our to increase growth to in platform investing drive future

on We on be products that at and on key demand finalized new testing. over on the well provide working call. scenarios the that, to the based such price we assumptions as of guidance XXXX traction for will to operator as the now XXXX call call. personalized Q&A With session as turn And are through year earning investment our plan and next we QX end, like to Operator? would consumer currently our

Operator

you. proceed Thank Please first of [Operator with Instructions] Sharp comes Our with from David question line your question. Securities. JMP the

David Sharp

kind in the year off than of and either in tailwinds, channels? few others decline some improves. applications I'm of or Hi, – across or then rates right as as just conversion a Jared particular my your a all Obviously reflecting to contrast a conversion and to guys. kind based as and your is on kind sort end steep kind marketing of Delta lenders employment of relative guess where near-term inflow of Thanks have other pretty macro now. there in Thanks. afternoon. kind of wondering, good any questions fact outlook months the channel in recedes broad what of demand ago, on lessening you for of kind more reflect maybe for have one kind expectations is it demand taking may been I rates fallen the of lot is balances Maybe noting environment of pretty a kind follow-up. of

Jared Kaplan

at never XXXX, healthy. environment. lot in the exogenous through based. think you And broad it's in it's growth pulled pandemic the facilitating versus that more for I partners of bank demand think quite about we mean, But it's a others, back I really Yes, forecasting originations unlike if the the I look an in period. difficulty

more just out exactly it would outlined government in So cash really the and I the a coming spending, overall acceleration, challenging less which not I on back that stimulus some figure think phenomenon. pieces by the market really, the we see to think we it's factors driven did, just of that we continued environment it's because we are and script, so absolutely thought the when was people channel in in that's to less driven this people having but

than period. healthy time compare versus less but we just less same us the had pre-pandemic you healthy XXXX, So overall and expected, at certainly the when

David Sharp

is Got maybe pricing be, And sort not issues may just wondering share going that question comments me. current the just completely and it. of competitive consumer in either potentially exploring. and you're broadening response related this personalized of Is funnel Got you're may you that the sort separate, or it's environment it. I'm of this base sort target or is about over tell the the factors, a widening demand something market to the after? of approach

Jared Kaplan

the always a It's separate. quarters where to looking elasticity have of mean, we're think. we at I couple been number and curves at last on for looking things conviction get

and growth can and drive pool customer profit the flat. stays You revenue accelerated relatively

more So that's can we more thing plus with offer products us. for a everyone the with in they're these customers once ecosystem to products good

factor. which we refund see to market driving like, after these as proprietary happening right, coming you scoring higher tax the what what's that's economically, coming lower to alluded relates see season. in wages. specifically macro think back we of is some pieces with market There customers the So back line and first, it a to who's do I to are

a of programs some that the government And stimulus here be while. for may

of and the And a to put we're we price them price sure these win-win realm additional be customer I without a the on flexible time. making – to products good offer So customers in generate but over banks, be getting that best and lower we think can build anyway, doing pandemic, that making answer. is have up we we to even through sure can able able would the it's where all growth, the a the products and

David Sharp

Great. Got you. it. Thank

Operator

your Mayank of Needham question. line Company. Please Tandon the from proceed comes question with next with Our &

Mayank Tandon

from a the little the timeline how bit SalaryTap perspective, more the time of product? think what to should in just on could model hearing that investment just sort of in talk initial what a terms you based scale market? card of your to impact maybe Like when you. credit and longer-term over plans you're going evening. impact and we around start the and it's Thank Good does that Jared, about

Jared Kaplan

both be – we expect really piece going both we products are they're to today. us. that SalaryTap we're interesting for market different scale the we've over in product think continue believe Yes, to got where slightly to We fit And stages the time.

I think for both picture. SalaryTap and the to credit card, overall the there's still receivables immaterial

I think continue we breaking as are products start can as out XXXX scale. them hopeful that we separate in to those

fit, credit future that side, we're and the got expect make for we number card will continue for On confident a by marketplace sure, as near different to sure right market the customer, we're case on use well. in the pretty we've the here testing the XXXX product of in scale to but options the nicely and that

really on we portfolio, parts we'll talking breaking as go, them it, of gas, we them bigger individually, step we to before out and when that are we become about the that can so scale both properly. are pieces of the begin sure making do but So ready it still there's

Mayank Tandon

advertising new for funded as That's shift a you costs mix a cost much And How repeat it. and marketing look by versus then follow sequentially higher both at a borrowers? this already the versus year-over-year. color. quick gave up helpful but of that metric, sorry that was towards loan roles, and just we driven Got if

Jared Kaplan

the was saw question. good partner, was the driven a a the the place Yes. demand be to We mainly That mix continue first returned. of channel by kind take That shift. where

this channel the last versus high-XXs high-XXs mix year. So in was the in partner year

the and – that of organic came more that's then from channel. So

what increase. So drove the really that's

Mayank Tandon

much. so Thanks Okay.

Operator

Our comes Please proceed Northland Securities. question line from the your of question. Mike with Grondahl next with

Mike Grondahl

on cadence good Hey, comments July, talk thank bit a August, and little you over you the Could October origination about September, of then originations, guys. activity? evening. And any

Jared Kaplan

the of I steady in Yes. also, year-over-year. range I XX% and mean, projecting of that's fourth of that's the what of looking kind year-over-year as in – the kind origination kind saw kind the you what And so quarter quarter growth we're of in well. in that think we're kind was October

Mike Grondahl

clearly about might it. can with you’re on? be? working should five do SalaryTap Credit progress Like, Got you may we number thinking that it. think that Got the next roadmap on four, Is what there Card. and And product be guys you a are number and

Jared Kaplan

it's costs. got with of high that. We them not in each smooth some premature – ideas customer talk little did We've products cash publicly. to base, to where that them interesting flow, the a of I'm lots on we're using to allude this different about seeing they're phenomenon friction

vision. about be up to to And so friction this opportunity that bundle imagine a have talk provide will a strategy is very future. their set above And to serve more that dramatically cost to a reduce products suite to customer in we'll the and interesting can you additional that

Mike Grondahl

it. Got it. Got

Okay. just do environment, over to last days; anything on XX guess, see you any the out the swings? call And lastly, I competitive major

Jared Kaplan

haven't. we No,

quarter. haven't bit a saw is any pretty new a program, which turn that is It entrance. up interesting the rate down in seen the match We ticked We little the barometer. good

was and the So was for X.X% it X% second the around quarter, right quarter. shy just in it at third

little a a but market the was bit, which the full a may that near bit, Blair have little prime when we out material. the So suggest off folks saw pulling some have been pandemic drop come of still who into nothing

Mike Grondahl

it. Got

Okay. Thank you.

Operator

from next with Piper your question. proceed question of Chris Please line the Donat Sandler. comes with Our

Chris Donat

going should you're on rollout in question they kind XXXX follow about of but still XXXX? in on or much pretty to Hey, to of going up what not just XXXX, impact we your small know good know material card. the gentlemen. are yield the expect be, afternoon, I think to comment on And the I but any I on SalaryTap be answer's likely darn and

Jared Kaplan

No.

expect scale we XXXX. in So we do those them do – to to expect businesses

kind will those down material kind of yield we offset that volume mix to expect of come portfolio be overall based to the the on of So but products, the that. kind of will

Chris Donat

we'll future know change than we so probably parse see mix for I'm guess rather and, partly else out – you'll that so I Okay. on? an we going – able, if us in be we the that in it you'll asking impact something

Jared Kaplan

Yes.

will that We just change of very that and much the of is kind how versus much drivers how what mixed is are factors. clear of yield explain be kind the of other of on

Chris Donat

Okay. in this normal are that, getting I'm the new your trying pre-pandemic, of just new of like we in in the customer your or put part mix. quarter, sort improvement sort of the context just or to then to normal being originations as back And customer with originations

Jared Kaplan

back normal. mix And refund season. as headed of pandemic typical definitely after those being tax to what pick tax It’s customers did a see refund you we And season. like I Yes. the a like would up look the think big

to So, that the would continue expect economy here. as macro we renormalizes pattern

Chris Donat

Okay. been a kind quarter fourth seasonal of, focus should then some, for we just wise there’s anything that think in thinking fourth we terms I on first your of the of and quarter and little just normal had aware of sort quarter consumer or thinking quarters season that the a fluctuations a should then funky really be ahead, tax the think because and couple guidance timing highlights? as during we of that hits we XXXX And just about credit’s pandemic in seasonality the you’re disrupted,

Jared Kaplan

I Yes, highlight. think it hits that’s,

We’re future. not the more much into atypical – normal projecting seasonality cadence expect a would next anything year. We

Chris Donat

it. Appreciate much. very Thanks Okay.

Operator

your Davidson. proceed question. from with the Brendler with Our Please Chris comes next of line question D.A.

Chris Brendler

results. and with afternoon wanted start congrats Good you quality. guys. to credit from I to thanks Hi, the on again, hear

XX% getting rate. seeing. of somewhat I quarter like if like are commentary wondering color sort markers was I that back just of hit into how any but you credit. XX% reduced, Just fourth the forward what you feel the as is demand sort environment you’re we’re to charge-off looking still Yes, sure on to on

Shiven Shah

Yes. weighing. I that, quarter guided levels mean, the as, kind we we back kind of offs in pre-pandemic had it second to, renormalize of programs stimulus expected to charge of

expect seasonally based is the the a that that So, higher quarter, charge-off of going to into vintages happen fourth fourth also on normally. the month quarter typically a we seasoning

the mean percentage XX% historically of of projections charge-off kind the XX% average XXXX, that’s baked historically with is receivables that to XX%. sorry, into So XXXX, kind rate and like I

that’s So more kind level. of normalized

Chris Brendler

it. Got

obviously, automation to, that reduction in Okay, it’s disclosure there as guess, you point does that, a material, nice that see in cost? increasing to great. up increase And it’s material I Where regular been improving. as but show is this new

Jared Kaplan

So customer operations expenses. that in comes

the normally get, grown automation any we of operations line growth growth. the have half I year. grow play. mentioned expect that operation without expenses that is customer growth. mentioned, that’s into that, in also has comes with center we you’d any to of growth headcount you on customer And added this origination So And customer haven’t customer And head kind during origination what seen script we where

Chris Brendler

Great.

Okay. the The new right? that fair value is the products, receivables the OppLoan is accounting are accrual

Jared Kaplan

Yes.

on on to we are the old two accounting fair product and value the under reserve continuing OppLoan on methodology. So are the we products, other

Chris Brendler

Okay.

good So of that way it’s a Great. there tracking is watch progress to the look.

Let’s see.

return terms I early or think pretty start going I that ask receivables, What more, you pay is yet? improve pay our the was of the one any or had seeing like to are to in downs to downs number. I close

Jared Kaplan

Yes, and I of also is are normalized period. kind on which as to the well. They to levels. of to is kind see back the so you get kind returning stimulus kind rate were kind elevated repayment of of corresponding those what back the starting during charge-off And mean,

Chris Brendler

before demand repairs for more think we’ve has like holiday come where ask typically I going and anyway and like It’s perspective a I’m just Okay. to apologize from I like that. season, business given like, been the auto into this don’t this heading stuff last, seasonal.

steady ramp. expect So, shouldn’t a on holiday we basis. quarter-by-quarter more It’s seasonal, a like a

Shiven Shah

a is the but cash very, The due also quarter is because fungible. robust during typically spending to the fourth family, demand on partly for holiday quarter season, a

you the between elsewhere spend have busy is Christmas you Thanksgiving for season, time you it and if then, the So use money don’t pretty that. Typically holiday a product do to period. may the and

expect would year. we this that again So

Chris Brendler

Thanks guys. Appreciate it.

Jared Kaplan

Chris. Thanks,

Operator

the call all questions. back is have for That remarks. for to like time closing I’d we turn to management the

Jared Kaplan

the to that joined We to story. things the soon, platform us lots today. everyone to on you progress much has of in so good future. This make continuing everyday look to Thank you for Talk consumer, forward this

Operator

Thank gentlemen, participation. and teleconference. conclude for this does today’s your you Ladies

your and a this have You may day. time wonderful at disconnect lines

OppFi (OPFI) 12 Nov 212021 Q3 Earnings call transcript