Enova International, Inc. (NYSE:ENVA) Q3 2021 Earnings Conference Call October 28, 2021 5:00 PM ET Company Participants Lindsay Savarese - Investor Relations David Fisher - Chief Executive Officer Steve Cunningham - Chief Financial Officer Conference Call Participants David Scharf - JMP Securities John Hecht - Jefferies John Rowan - Janney Operator Good afternoon. And welcome to the Enova International Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instr ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-35503 Enova International, Inc. (Exact name of registrant as specified in its charter) Delaware 45-3190813 (State or other jur ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-35503 Enova International, Inc. (Exact name of registrant as specified in its charter) Delaware 45-3190813 (State or other jurisdic ...

Enova International, Inc. (NYSE:ENVA) Q2 2021 Earnings Conference Call July 29, 2021 5:00 PM ET Company Participants Lindsay Savarese - Investor Relations David Fisher - Chief Executive Officer Steve Cunningham - Chief Financial Officer Conference Call Participants David Scharf - JMP Securities John Hecht - Jefferies Operator Good day, and welcome to the Enova International Second Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s pre ...

Financial Performance - Consolidated total revenue decreased by $102.8 million, or 28.4%, to $259.4 million for the three months ended March 31, 2021, compared to $362.2 million for the same period in 2020 [142]. - Consolidated net income increased to $75.9 million in the current quarter, compared to $5.5 million in the prior year quarter, representing a significant improvement [143]. - Consolidated diluted income per share rose to $2.03 in the current quarter from $0.17 in the prior year quarter, reflecting a substantial increase in profitability [143]. - Income from operations surged by $94.4 million, or 324.4%, to $123.5 million in the current quarter compared to $29.1 million in the prior year quarter [143]. - Total expenses increased to $114.9 million in the current quarter from $97.4 million in the prior year quarter, primarily driven by higher general and administrative costs [145]. - Adjusted earnings rose to $82.5 million in 2021 compared to $8.6 million in 2020 [151]. - Adjusted EBITDA for the current quarter was $137.1 million, up from $36.2 million in the prior year [153]. - Revenue from small business loans increased by 216.1% to $75.6 million, while consumer loans revenue decreased by 45.9% to $181.7 million [162]. - Net revenue margin improved to 91.9% for the current quarter, up from 34.9% for the prior year quarter [159]. Loan and Finance Receivables - The fair value of the loan and finance receivable portfolio was $1,230.7 million as of March 31, 2021, compared to $1,093.2 million in 2020 [160]. - The small business portfolio now represents 55.1% of the combined loan and finance receivable portfolio, up from 16.1% in the prior year [164]. - The total principal of combined loans and finance receivables was $1,219,848,000, with a fair value of $1,230,711,000, resulting in a fair value as a percentage of principal of 100.9% [165]. - The ending combined loan and finance receivables balance was $1,157,546,000 as of the first quarter of 2021, with a delinquency rate of over 30 days at 7.5% [173]. - The total principal of consumer loans and finance receivables was $523,170,000, while the fair value was $581,398,000, resulting in a fair value as a percentage of principal of 111.1% [165]. - The total loan and finance receivable principal balance for small business loans increased to $696.7 million in the first quarter of 2021, compared to $183.9 million in the first quarter of 2020 [181]. - The ending balance of small business loans and finance receivables increased 276.0% to $701.1 million as of March 31, 2021, compared to $186.5 million at the same date in 2020, primarily due to the acquisition of OnDeck [182]. Credit Quality and Risk Management - The number of loans with payment deferrals or modifications increased significantly during the pandemic but showed a meaningful decrease into 2021, indicating a recovery in borrower performance [139]. - Delinquencies and charge-offs in the first quarter of 2021 were below pre-COVID levels, suggesting improved credit quality [140]. - The percentage of loans greater than 30 days delinquent decreased to 4.3% at March 31, 2021, down from 8.4% at March 31, 2020, attributed to a more seasoned and lower risk portfolio [178]. - Charge-offs (net of recoveries) as a percentage of average combined loan balance decreased to 6.0% for the current quarter, compared to 18.7% for the prior year quarter, reflecting a more seasoned portfolio [179]. - The company monitors credit performance regularly, considering both internal factors like portfolio composition and external factors such as macroeconomic trends [172]. Strategic Initiatives and Acquisitions - The company acquired Pangea Universal Holdings in March 2021, which provides mobile international money transfer services, further diversifying its product offerings [121]. - The company plans to grow its analytics-as-a-service program, which currently constitutes less than 1% of total revenue, by increasing its sales team and enhancing technology [127]. - The company has developed proprietary underwriting systems based on over 16 years of experience, utilizing advanced risk analytics and machine learning [120]. - The company has a strong customer acquisition strategy, acquiring new customers through various channels, including direct marketing and affiliate marketing [123]. Cash Flow and Liquidity - Cash flows from operating activities decreased by $135.8 million, or 53.7%, to $117.0 million compared to $252.8 million in the prior year quarter [216]. - Total cash flows used in investing activities decreased by $142.4 million, or 76.2%, primarily due to a strategic reduction in originations and acquisitions of loans and finance receivables [218]. - The company believes cash flows from operations and available cash balances will be sufficient to fund future operating liquidity needs [217]. - As of March 31, 2021, cash, cash equivalents, and restricted cash totaled $374.2 million, with $49.9 million being restricted, compared to $369.2 million with $71.9 million restricted as of December 31, 2020 [200]. Debt and Interest Rate Risk - Total funding debt amounted to $581.5 million with a weighted average interest rate of 5.50% [1]. - Total corporate debt reached $750.8 million with a weighted average interest rate of 7.90% [1]. - The company is exposed to interest rate risk on loans and finance receivables, which have fixed interest rates [224]. - The fair value of loans is estimated using a discounted cash flow methodology, indicating sensitivity to changes in interest rates and credit spreads [224].

Financial Data and Key Metrics Changes - Revenue in Q1 2021 decreased 2% sequentially and 28% year-over-year, totaling $259 million [8][23] - Adjusted EBITDA rose 278% year-over-year to $137 million, marking a first-quarter record [8] - Adjusted EPS increased more than 8 times to $2.20, also a first-quarter record [8][43] - Total company originations were $506 million, a 7% increase from Q1 2020 [24] Business Line Data and Key Metrics Changes - Small business products represented 55% of the portfolio, with SMB originations increasing 11% sequentially to $322 million [15][25] - Revenue from SMB products increased 17% sequentially and more than tripled year-over-year to $76 million [15][23] - Consumer receivables decreased 9% sequentially and 41% year-over-year, totaling $572 million [25][26] - Consumer originations totaled $184 million, down 25% sequentially and 53% year-over-year [27] Market Data and Key Metrics Changes - U.S. retail sales jumped 9.8% in March 2021, indicating positive economic recovery [14] - Jobless claims dropped sharply to 576,000, a new low since the pandemic began [14] Company Strategy and Development Direction - The company is focusing on increasing its presence in SMB lending, anticipating a surge in demand as the economy reopens [13][15] - The integration of OnDeck is largely complete, with expected annual cost synergies of over $50 million [16][17] - The acquisition of Pangea Universal Holdings aims to enhance the company's offerings in the mobile international money transfer market [18][19] Management's Comments on Operating Environment and Future Outlook - Management expects growth in originations to continue as economic recovery accelerates [14][21] - The company remains committed to helping consumers access credit, with a strong credit quality outlook [22][40] - Management anticipates that consumer spending will increase as the economy reopens, benefiting small businesses [12][13] Other Important Information - The effective tax rate for Q1 2021 was 27%, down from 34% in Q1 2020 [42] - The company ended the quarter with $392 million in cash and marketable securities [43] - The cost of funds for the quarter was 8.6%, reflecting a slight increase from the previous quarter [44] Q&A Session Summary Question: What is the impact of PPP loans on small business demand? - Management noted that demand for small business loans rebounded quickly after the previous round of PPP, but emphasized that PPP primarily supports payroll, not inventory or rent [50] Question: Will marketing spend increase as demand rises? - Management indicated a willingness to spend more on marketing to capture demand, while maintaining discipline in spending [53][54] Question: How does the company view competition in the current environment? - Management observed that competition has decreased, particularly among storefront lenders, which have been significantly impacted by the pandemic [68][69] Question: What is the expected trend for G&A expenses in 2021? - Management expects G&A expenses to decline in absolute dollars and as a percentage of revenue throughout 2021 due to synergies from the OnDeck acquisition [62][63]

Financial Performance - Revenue increased at a compound annual growth rate of 14.0%, from $642.1 million in 2016 to $1,083.7 million in 2020[44]. - Adjusted EBITDA grew at a compound annual growth rate of 37.1%, from $117.7 million in 2016 to $415.3 million in 2020, with an adjusted EBITDA margin increase from 18.3% to 38.3%[44]. - Net income attributable to Enova International, Inc. was $377,844 thousand for 2020, compared to $36,612 thousand in 2019, indicating a significant increase[470]. - Earnings per share (EPS) for continuing operations was $11.86 for 2020, compared to $3.80 in 2019, reflecting a substantial increase of approximately 212.6%[470]. - Income from operations rose to $357,797 thousand in 2020, up from $248,210 thousand in 2019, representing a growth of approximately 44%[470]. - Net income for the year ended December 31, 2020, was $377,929 thousand, a significant increase from $36,612 thousand in 2019[475]. - Comprehensive income attributable to Enova International, Inc. for 2020 was $373,932 thousand, compared to $47,351 thousand in 2019[475]. - The company reported a gain on bargain purchase of $163,999 thousand in 2020, contributing positively to net income[470]. Market Opportunities - The U.S. consumer lending opportunity market is estimated at $69 billion, while Brazil's consumer loans market is estimated at $80 billion[41]. - The total U.S. small business loan market is estimated at $82 billion, with loans under $100,000 accounting for 60% of all small business loan growth[41]. - Approximately 22% of the population is unbanked or underbanked, with over 85% of those consumers using alternative financial service products[36]. Customer Acquisition and Marketing - Direct marketing generated approximately 52% of new consumer transactions in 2020, up from 32% in 2009[45]. - The company’s marketing strategy includes a multi-channel approach, utilizing television, digital, direct mail, and partner marketing to acquire new customers at low cost[60]. - The percentage of consumer loans sourced through direct marketing increased from approximately 32% in 2009 to 52% in 2020, indicating improved customer brand loyalty[61]. Technology and Data Analytics - The company has accumulated approximately 49 terabytes of consumer behavior data from over 53 million transactions in more than 16 years of operation[42]. - The decision engine utilizes more than 100 algorithms and over 1,000 variables, with a team of over 80 data and analytics professionals dedicated to its ongoing improvement as of December 31, 2020[53]. - The technology platforms are designed for scalability and flexibility, allowing the company to enter new markets and launch new products typically within three to six months from conception to launch[49]. Regulatory Compliance and Legal Matters - Enova's consumer loan business is subject to the federal Truth in Lending Act and Fair Credit Reporting Act, which mandate specific disclosures[88]. - The company has a commitment to compliance with various federal and state laws regarding consumer privacy and data security[96]. - The company faced a civil money penalty of $5 million from the CFPB due to issues related to loans made to active-duty military members[101]. - Enova agreed to pay a civil money penalty of $3.2 million in 2019 for failing to provide loan extensions to 308 consumers[104]. - The CFPB's Small Dollar Rule requires lenders to determine consumers' ability to repay loans before issuing them[103]. Operational Changes and Challenges - The company has altered or ceased making consumer loans in certain states due to newly introduced legislation that restricts its products and services[112]. - The company monitors proposed legislation that could impact its business operations regularly[112]. - The company faced challenges in the short-term loan industry due to increasing local regulations and restrictions[115]. Acquisition and Integration - The acquisition of On Deck Capital, Inc. was completed for a total purchase consideration of $115.7 million, with acquired loans and finance receivables recorded at a fair value of $528.6 million[456]. - The company has acquired OnDeck's proprietary data and analytics models, enhancing its ability to serve small businesses and manage risk of defaults[54]. - The acquisition of On Deck Capital, Inc. on October 13, 2020, expanded the company's financing offerings to small businesses in the U.S., Australia, and Canada[5]. Financial Position and Assets - Total assets increased to $2,108,075 thousand as of December 31, 2020, compared to $1,574,352 thousand in 2019, reflecting a growth of approximately 33.8%[463]. - Long-term debt decreased to $946,461 thousand as of December 31, 2020, down from $991,181 thousand in 2019, showing a reduction of about 4.5%[463]. - The company reported a net cash provided by operating activities of $740,871 in 2020, compared to $848,639 in 2019[1]. - Cash, cash equivalents, and restricted cash at the end of 2020 were $369,200, up from $80,964 at the end of 2019[1]. Employee and Leadership Insights - As of December 31, 2020, Enova had 1,549 employees, with 68 involved in servicing loans related to discontinued U.K. operations[82]. - Enova's leadership team has extensive experience from leading financial services companies and technology firms[84]. - The company maintains a culture of inclusion and provides resources for professional growth[83]. Accounting and Financial Reporting - The company’s internal control over financial reporting was deemed effective as of December 31, 2020, according to the independent auditor's report[448]. - The Company utilizes the fair value option for its entire loan and finance receivable portfolio starting January 1, 2020, impacting how loans are reported on the balance sheet[512]. - Marketing expenses are now fully expensed as incurred following the adoption of the fair value option on January 1, 2020, changing the accounting treatment from deferral and amortization[529].

Enova International, Inc. (NYSE:ENVA) Q4 2020 Earnings Conference Call February 4, 2021 5:00 PM ET Company Participants Monica Gould - Investor Relations David Fisher - Chief Executive Officer Steve Cunningham - Chief Financial Officer Conference Call Participants David Scharf - JMP Securities John Hecht - Jefferies John Rowan - Janney Operator Good afternoon and welcome to the Enova International Fourth Quarter and Full Year 2020 Earnings Conference Call. All participants will be listen-only mode. [Operato ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------------------------------------------------------|---------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Third quarter revenue was $205 million, a decline of 33% year-over-year, but adjusted EBITDA rose 112% to a record $136 million, and adjusted EPS grew 223% to $2.97 [10][43] - The net revenue margin for the third quarter was 89%, driven by strong credit quality and low net charge-off rates [28][29] - Net income from continuing operations was $94 million or $3.09 per diluted share, compared to $29 million or $0.83 per diluted share in the same quarter last year [43] Business Line Data and Key Metrics Changes - Third quarter originations decreased 77% year-over-year but increased 56% sequentially, with new customer originations rising to approximately 11% of total originations [15] - The loan portfolio contracted 36% year-over-year but only 14% from the second quarter, with installment products representing 72% of the portfolio [16] - OnDeck's total originations for the quarter were $148 million, up from $66 million in the second quarter [47] Market Data and Key Metrics Changes - The company observed strong credit performance from new loans, with net charge-off rates at 4.7%, significantly improved from 15.9% in the previous quarter [29] - The percentage of total portfolio receivables past due 30 days or more declined to 3.7% from 4.5% in the previous quarter [30] Company Strategy and Development Direction - The acquisition of OnDeck is expected to enhance product differentiation and increase presence in small business lending, with a focus on providing capital to small businesses post-pandemic [17][18] - The company plans to finalize its strategy on the optimal number of products and brands to serve SMB borrowers, utilizing market tests to gauge customer needs [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers and the economy, anticipating growth in originations despite ongoing COVID impacts [13][14] - The company noted that customer behavior has shifted, with subprime borrowers returning faster than near-prime borrowers [64] Other Important Information - The company ended the third quarter with $552 million in cash and marketable securities, including $490 million in unrestricted cash [44] - Total operating expenses for the third quarter were $56 million, down from $82 million in the same quarter last year [35] Q&A Session Summary Question: What is the consolidated loss rate embedded in the fair value calculation? - Management indicated that there is no specific charge-off rate provided, but delinquencies are a good indicator for future outlook [50][51] Question: How is the re-acceleration of originations for OnDeck and small business lending? - Management noted that re-acceleration is broad-based across states and marketing channels, with caution in industries heavily impacted by COVID [53][54] Question: What is the expected share count post-transaction? - The expected share count is just under 36 million shares following the transaction [57] Question: What is the outlook for revenue in Q4? - Management expects revenue to be flat to slightly lower than Q3 levels, depending on the timing and level of originations [26][60] Question: How much of the current portfolio has been underwritten post-COVID? - Approximately 25% to 30% of the portfolio has been underwritten since the onset of COVID [67]