Core Insights - Katapult Holdings, Inc. reported gross originations of approximately $75.2 million for Q4 2024, marking an 11.3% year-over-year increase, surpassing the company's previous growth outlook of 6-8% [2] - This performance represents the ninth consecutive quarter of year-over-year growth in gross originations and is the second highest in the company's history [2] - The strong performance was attributed to a successful holiday season, with significant engagement from both new and existing customers [2] Financial Performance - Gross originations for Q4 2024 reached approximately $75.2 million, reflecting an 11.3% increase compared to the same quarter in the previous year [2] - Total lease application volume grew by approximately 50% year-over-year, with new customer lease applications increasing by about 51% and existing customer lease applications also growing by 50% [6] - The repeat customer rate accounted for approximately 61.5% of gross originations in Q4 2024 [6] Strategic Initiatives - The company has transformed its go-to-market strategy since launching its app and KPay in late 2022, aiming for continued growth in both direct-to-merchant and direct-to-consumer channels [2] - Katapult's KPay gross originations grew approximately 52% year-over-year, indicating strong engagement with the platform [6] - The company is optimistic about its future growth prospects and plans to discuss final financial results in early March [2] Company Overview - Katapult is a technology-driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms, focusing on underserved U.S. non-prime consumers [3] - The company aims to provide simple, fast, and transparent payment solutions, emphasizing fairness and dignity in its services [3]

Core Insights - Katapult Holdings, Inc. reported gross originations of approximately $75.2 million for Q4 2024, marking an 11.3% year-over-year increase, surpassing the company's previous growth outlook of 6-8% [2] - This quarter represents the ninth consecutive quarter of year-over-year growth in gross originations and the second highest level in the company's history [2] - The strong performance was attributed to a successful holiday season, with significant engagement from both new and existing customers [2] Company Performance - The total lease application volume grew approximately 50% year-over-year, with new customer lease applications increasing by about 51% and existing customer lease applications by 50% [6] - Approximately 61.5% of gross originations in Q4 2024 came from repeat customers, indicating strong customer retention [6] - Engagement with Katapult Pay® (KPay) and the mobile app saw gross originations grow approximately 52% year-over-year [6] Strategic Outlook - The company aims to leverage its ecosystem to drive consumer engagement and sales for merchant partners, positioning itself well for future growth [2] - The launch of the app and KPay in late 2022 has transformed the company's go-to-market strategy, creating a roadmap for continued growth in both direct-to-merchant and direct-to-consumer channels [2]

Financial Data and Key Metrics - Gross originations grew 3.3% to $51.2 million in Q3 2024, marking the eighth consecutive quarter of growth [41] - Revenue increased by 10% to $60.3 million in Q3 2024, reflecting improved productivity and efficiencies [43] - Gross profit for Q3 2024 was $11.9 million, up nearly 4%, with a gross margin of 19.8% [44] - Adjusted EBITDA for Q3 2024 was $600,000, in line with expectations, while year-to-date adjusted EBITDA was $5.8 million, a $7.4 million improvement compared to the same period in 2023 [49] - Cash flow from operations improved by $3.6 million year-to-date in 2024 compared to 2023 [51] Business Line Performance - Katapult Pay (KPay) grew 86.1% to $16 million in gross originations in Q3 2024, representing 31% of total gross originations [24] - Automotive category grew more than 25% in Q3 2024, with an average order value higher than the home furnishings category [17] - The company added 40 new merchant pathways in Q3 2024, with 40% of launches involving existing merchant partners [19] - KPay applications nearly doubled in Q3 2024, and the company added seven merchants to KPay year-to-date, bringing the total to 30 [25] Market Performance - More than 58% of total Q3 gross originations (excluding Wayfair) grew 37% year-over-year, up from 20% growth in Q2 [9] - Applications for the non-Wayfair portion of the business grew by more than 50% year-over-year [9] - The home furnishings category, particularly Wayfair, underperformed, with Wayfair application flow down significantly [9] Strategic Direction and Industry Competition - The company is focusing on diversifying gross originations through direct and waterfall merchant integrations, as well as expanding KPay [13][17] - Katapult is leveraging its app to deepen customer relationships, with app downloads increasing by 83% year-over-year and unique app users growing by 52% [26] - The company is expanding referral networks and expects to launch new partnerships in Q1 2025, which could deliver gross originations comparable to a large enterprise merchant annually [28] Management Commentary on Operating Environment and Future Outlook - Management highlighted the challenging macroeconomic environment, particularly in the home furnishings category, but remains optimistic about growth opportunities [52] - The company expects Q4 2024 gross originations growth of 6% to 8%, with revenue growth of 5% to 7% and roughly breakeven adjusted EBITDA [55] - Full-year 2024 gross originations are expected to grow 2% to 4%, with revenue growth of at least 10% and positive adjusted EBITDA of $5.5 million [56] Other Important Information - The company settled litigation related to Daiwa Corporate Advisory for $3 million, with $1.5 million paid in Q4 2024 and the remainder to be paid over the next two years [47] - Katapult signed a non-binding letter of intent for a new revolving line of credit, working capital line of credit, and term loan to refinance its existing credit facility [50] Q&A Session Summary Question: What would it take to see a material change in home furnishings demand? - Orlando Zayas stated that a recovery in home purchases, driven by declining interest rates, could lead to a turnaround in the home furnishings category [58] Question: What is the average origination size today versus 12 months ago? - Nancy Walsh confirmed that the average origination size remains in the $600 to $700 range, with no material change [59] Question: What is driving demand in KPay? - Derek Medlin explained that KPay demand is diversified across multiple retailers, with no single merchant dominating the volume [61][62] Question: How long does it take for referral partnerships to mature? - Derek Medlin noted that while some partnerships can start quickly, the company takes a diligent approach to ensure quality and performance before fully scaling [65][66] Question: Any update on the Synchrony waterfall integration? - Orlando Zayas mentioned that Synchrony has only released pre-approval waterfall flow so far, with broader functionality expected in 2025 [68] Question: What are the terms and timing of the new credit facility? - Nancy Walsh indicated that the company is pursuing favorable market conditions but could not provide specific details or timing [69] Question: What is the impact of the Delaware Litigation Settlement on shares outstanding? - Nancy Walsh explained that 168,000 shares were released as part of the settlement, with additional shares or cash settlements possible over the next 12 months [71][72] Question: What percentage of Q4 originations come from the Thanksgiving to Cyber Monday period? - Nancy Walsh stated that a significant portion of Q4 originations typically comes from this period due to retailer promotions [76] Question: Any comments on the patent infringement lawsuit? - Orlando Zayas stated that the company is evaluating the lawsuit and intends to vigorously defend itself, with no current financial impact [77]

Katapult. Investor Presentation November 6, 2024 Katapult .. Disclaimer Forward-Looking Statements Certain statements included in this presentation, on our quarterly earnings call and in our related press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as "anticipate," "assume," "believe," "continue ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.0001 per share KPLT The Nasdaq Stock Market LLC Redeemable Warrants KPLTW The Nasdaq Stock Market LLC FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...

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Eight Consecutive Quarters of Year-Over-Year Gross Originations Growth Expecting A Strong Holiday SeasonUpdates Full Year 2024 Gross Originations Outlook PLANO, Texas, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the third quarter ended September 30, 2024. “We are continuing to grow across key financial and operating metrics including gross originations and ...

PLANO, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (NASDAQ: KPLT), an e-commerce-focused financial technology company, today announced it will release its third quarter 2024 financial results before the market opens on Wednesday, November 6, 2024. The company will host a conference call and webcast to discuss these results at 8:00 AM ET that same day. A live audio webcast of the conference call will be available on the Katapult Investor Relations website at http://ir.katapultholdings.co ...

PLANO, Texas, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. ("Katapult" or the "Company") (NASDAQ: KPLT), an e-commerce focused financial technology company, today announced that it has promoted Derek Medlin to the newly created role of president and chief growth officer (CGO). In this role, Derek will lead the business development, marketing and operations teams at Katapult, with a focus on accelerating gross originations and revenue growth while continuing to drive operational efficiencies and ...

Katapult Holdings, Inc. (NASDAQ:KPLT) Q2 2024 Earnings Call Transcript August 14, 2024 8:00 AM ET Company Participants Jennifer Kull - Head of IR Orlando Zayas - CEO Nancy Walsh - CFO Derek Medlin - COO Conference Call Participants Anthony Chukumba - Loop Capital Cameron White - Loop Capital Operator Hello everyone and welcome to the Katapult Holdings Second Quarter 2024 Earnings Conference Call. Please note that this call is being recorded. Everyone is on listen-only mode to avoid any background noise. You ...