Financial Data and Key Metrics Changes - In Q3 2024, the company certified 27,435 loans, down from 29,959 loans in Q3 2023 [39] - Total revenue for Q3 2024 was $23.5 million, a decrease from $26 million in Q3 2023, impacted by a $7 million negative change in profit share estimate [40] - Adjusted EBITDA for Q3 2024 was $7.8 million, down from $10.3 million in Q3 2023 [46] - Operating income decreased to $1.9 million in Q3 2024 from $4.5 million in Q3 2023 [45] Business Line Data and Key Metrics Changes - Program fee revenues in Q3 2024 were $14.2 million, profit share revenues were $6.8 million, and claims administration fees and other revenue were $2.5 million [41] - Profit share revenue associated with new originations was $13.8 million in Q3 2024, down from $16.1 million in Q3 2023 [43] Market Data and Key Metrics Changes - New vehicle inventory levels stabilized at 2.8 million units, up 25% year-over-year, while used vehicle inventory stabilized at approximately 2.2 million units [16] - Average transaction prices for new vehicles decreased by 0.4% year-over-year, and used vehicle average list prices decreased by 5% [17] - Loan-to-share ratios in the credit union industry declined to 84.2%, down from a recent high of 85.2% [23] Company Strategy and Development Direction - The company is focused on driving new customer acquisitions and certified loan growth, optimizing results from lenders and insurance partners, and making targeted investments to improve customer experience [7] - The company signed 21 new customers in Q3 2024, a record for new customer acquisitions, indicating the effectiveness of the Lenders Protection program [27] - The company is enhancing technology to automate processes and improve the experience for lenders and borrowers [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth, citing improvements in market conditions and stabilization of delinquency rates [51] - The company anticipates that profit share revenue performance will become less volatile as they navigate past lower-performing vintages [10] - Management acknowledged ongoing challenges in the auto lending market but remains committed to optimizing unit economics and minimizing volatility [14] Other Important Information - The company exited Q3 2024 with total assets of $395.7 million, including $250.2 million in unrestricted cash [47] - Fourth quarter 2024 guidance includes total certified loans expected to be between 20,000 and 24,000, total revenue between $22 million and $26 million, and adjusted EBITDA between $7 million and $10 million [50] Q&A Session Summary Question: Can you elaborate on the tightening of underwriting standards and its expected impact on approval rates? - Management indicated that tightening underwriting standards would likely result in a 4% decrease in approval rates, impacting Q4 volume [58] Question: What is the demand for alternative sources of capital from lending partners? - Management noted that they are exploring ways to assist customers with capital market transactions, which could help improve lending capacity [61] Question: What is the outlook on profit share revisions and peak claims? - Management acknowledged that while delinquencies are starting to lower, the peak claims period for certain vintages may extend longer than typical cycles [65] Question: Where is the company seeing the most success in customer signings? - Management reported that all 21 new customers signed in Q3 2024 were credit unions, with a focus on larger institutions [66] Question: Is there a possibility of resuming annual guidance? - Management expressed hope for stabilizing operations and returning to a point where annual guidance could be provided, aiming for growth in 2025 [76]

Financial Performance - Total revenue for Q3 2024 was $23.5 million, down 9.6% from $26.0 million in Q3 2023[49] - Operating income for Q3 2024 was $1.9 million, a decline of 57.8% compared to $4.5 million in Q3 2023[49] - Net income for Q3 2024 was $1.4 million, down 53.3% from $3.0 million in Q3 2023[49] - Adjusted EBITDA for Q3 2024 was $7.8 million, a decrease of 24.3% from $10.3 million in Q3 2023[49] - Total revenue decreased by $2.5 million, or 10%, for the three months ended September 30, 2024, compared to the same period in 2023, driven by a $1.2 million decrease in profit share revenue and a $1.3 million decrease in program fees[69] - Total revenue decreased by $21.6 million, or 21%, for the nine months ended September 30, 2024, compared to the same period in 2023, driven by a $14.4 million decrease in profit share revenue[69] - Total revenue for the three months ended September 30, 2024, was $23.476 million, a decrease from $26.006 million in the same period in 2023[86] - Total revenue for the nine months ended September 30, 2024, was $80.948 million, down from $102.521 million in the same period in 2023[86] Loan and Origination Metrics - Open Lending Corporation facilitated 27,435 certified loans in Q3 2024, a decrease of 8.4% from 29,959 in Q3 2023[49] - The average loan size per certified loan in Q3 2024 was $28,156, down from $29,489 in Q3 2023[51] - Certified loans totaled 27,435 for the three months ended September 30, 2024, down 8% from 29,959 in the same period in 2023[68] - Profit share revenue decreased by $1.2 million, or 15%, during the three months ended September 30, 2024, primarily due to a 14% decrease in profit share associated with new certified loan originations[69] - Profit share revenue decreased by $14.4 million, or 32%, during the nine months ended September 30, 2024, primarily due to a 13% decrease in certified loans[70] Revenue Sources - Earned premiums for Q3 2024 were $83.7 million, slightly down from $85.6 million in Q3 2023[57] - Program fees revenue decreased by $1.3 million, or 8%, during the three months ended September 30, 2024, due to an 8% decrease in certified loan volume[69] - Claims administration and other service fees revenue decreased by $0.1 million, or 3%, for the three months ended September 30, 2024, due to a 2% decrease in total earned premiums[70] - The company's largest insurance partner accounted for 35% of total revenue in Q3 2024, highlighting a concentration risk[62] - The company relies on three largest insurance partners for a significant portion of its profit share and claims administration service fee revenue[93] Income and Expenses - Gross profit decreased by $3.3 million, or 16%, for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to decreases in anticipated profit share and program fees[71] - Interest expense increased by $0.2 million, or 6%, for the three months ended September 30, 2024, compared to the same period in 2023[74] - Income tax expense decreased by $0.8 million, or 55%, during the three months ended September 30, 2024, compared to the same period in 2023, primarily due to a decrease in income before income taxes[76] - General and administrative expenses decreased by $0.3 million, or 3%, during the three months ended September 30, 2024, compared to the same period in 2023[73] - Research and development expenses decreased by $0.7 million, or 42%, during the three months ended September 30, 2024, compared to the same period in 2023[73] Cash Flow and Debt - Net cash provided by operating activities decreased by $44.9 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to decreased cash collections of $58.8 million[79] - The company had $141.5 million outstanding under its Term Loan due 2027 as of September 30, 2024[82] - The company had outstanding amounts of $142.5 million under the Term Loan due 2027 as of September 30, 2024[94] Share Repurchase - The company repurchased 5,233,065 shares at an average price of $7.13 for a total of $37.3 million during the year ended December 31, 2023[83] Market Conditions and Risk Management - The near-prime and non-prime automotive loan origination market is estimated at $270 billion annually, with the company currently serving approximately 1% of this market[47] - The company has established policies to manage market risks associated with economic conditions and consumer spending levels[92] Internal Controls - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the period covered by this Quarterly Report[97]

Core Insights - Open Lending (LPRO) reported a revenue of $23.48 million for the quarter ended September 2024, reflecting a decline of 9.7% year-over-year and falling short of the Zacks Consensus Estimate of $29.46 million by 20.32% [1] - The company's earnings per share (EPS) was $0.01, down from $0.02 in the same quarter last year, resulting in an EPS surprise of -80.00% against the consensus estimate of $0.05 [1] Revenue Breakdown - Profit share revenue was reported at $6.82 million, significantly below the four-analyst average estimate of $13.37 million, marking a year-over-year decline of 15% [3] - Program fees generated revenue of $14.16 million, slightly above the average estimate of $13.44 million, but still down 8.1% year-over-year [3] - Claims administration service fees amounted to $2.49 million, in line with the average estimate of $2.48 million, representing a year-over-year decrease of 2.9% [3] Stock Performance - Over the past month, Open Lending's shares have increased by 16.2%, outperforming the Zacks S&P 500 composite, which saw a change of 3.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Core Viewpoint - Open Lending (LPRO) reported quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.05 per share, representing an earnings surprise of -80% [1][2] Financial Performance - The company posted revenues of $23.48 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 20.32%, compared to year-ago revenues of $26.01 million [2] - Over the last four quarters, Open Lending has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance - Open Lending shares have declined approximately 20.8% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $30.02 million, and for the current fiscal year, it is $0.18 on revenues of $116.95 million [7] - The estimate revisions trend for Open Lending is mixed, and future changes in estimates will be closely monitored [6][7] Industry Context - The Financial - Consumer Loans industry, to which Open Lending belongs, is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - Total revenue for Q3 2024 was $23.5 million, compared to $26.0 million in Q3 2023, reflecting a decline of about 9.6%[3] - Adjusted EBITDA for Q3 2024 was $7.8 million, down from $10.3 million in Q3 2023, a decrease of approximately 24.3%[3] - Gross profit in Q3 2024 was $17.3 million, compared to $20.6 million in Q3 2023, indicating a decline of about 16.0%[3] - Net income for Q3 2024 was $1.4 million, down from $3.0 million in Q3 2023, a decrease of approximately 53.3%[3] - Net income for the nine months ended September 30, 2024, was $9,426,000, a decrease of 65% compared to $26,912,000 in 2023[11] - Adjusted EBITDA for the nine months ended September 30, 2024, was $30,146,000, down from $52,310,000 in 2023, reflecting a margin of 37%[12] - Total revenue for the nine months ended September 30, 2024, was $80,948,000, compared to $102,521,000 in the same period of 2023, indicating a decline of approximately 21%[12] Cash and Assets - Cash and cash equivalents as of September 30, 2024, were $250.2 million, an increase from $240.2 million as of December 31, 2023[9] - Total assets increased to $395.7 million as of September 30, 2024, compared to $374.0 million as of December 31, 2023[9] - Cash and cash equivalents at the end of the period increased to $260,947,000 from $238,411,000 at the end of the previous year[11] - The company reported a net change in cash and cash equivalents of $14,278,000 for the nine months ended September 30, 2024, compared to $29,892,000 in 2023[11] Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2024, was $20,976,000, significantly lower than $65,903,000 in 2023[11] Shareholder Compensation and Expenses - Share-based compensation for the nine months ended September 30, 2024, was $6,408,000, slightly down from $6,826,000 in 2023[11] - Interest expense for the nine months ended September 30, 2024, totaled $8,468,000, compared to $7,841,000 in 2023[12] - Capitalized software development costs for the nine months ended September 30, 2024, were $2,577,000, an increase from $1,485,000 in 2023[11] Future Guidance - The company has issued guidance for Q4 2024, projecting total revenue between $22 million and $26 million[1] Market Conditions - The company continues to focus on market conditions in the automotive industry, noting improvements in inventory levels and retail sales volumes[2] Profit Share Revenues - The company reported a $7.0 million reduction in estimated future profit share revenues in Q3 2024, compared to an $8.1 million reduction in Q3 2023[3] Non-GAAP Measures - Total adjustments for non-GAAP measures amounted to $20,720,000 for the nine months ended September 30, 2024, down from $25,398,000 in 2023[12]

Core Viewpoint - Open Lending Corporation will host a conference call on November 7, 2024, to discuss its third quarter 2024 financial results, with a press release to be issued after market close on the same day [1]. Group 1: Company Overview - Open Lending Corporation (NASDAQ: LPRO) specializes in automotive lending enablement and risk analytics solutions for financial institutions [1]. - The company has been providing loan analytics, risk-based pricing, risk modeling, and default insurance to auto lenders in the United States for over 20 years [2]. Group 2: Conference Call Details - The conference call will take place at 5:00 PM ET and will be accessible via the company's investor relations website and by phone [1]. - The conference ID for the call is LENDING, and an archive of the webcast will be available shortly after the call concludes [1].

AUSTIN, Texas, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Open Lending Corporation (NASDAQ: LPRO) ("Open Lending" or the "Company"), an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, today announced that its Board of Directors has appointed Chuck Jehl to serve as Chief Executive Officer and a member of the Board of Directors, effective immediately. Mr. Jehl will continue to serve as Open Lending's Interim Chief Financial Officer while the Company condu ...

AUSTIN, Texas, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Open Lending Corporation (Nasdaq: LPRO) ("Open Lending" or the "Company"), an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, today announced that the Company will be attending the Canaccord Genuity 44th Annual Growth Conference in Boston, MA. The Company will participate in a fireside chat discussion, which will begin at 11:00am ET and can be accessed by visiting the Company's investor relations ...

Open Lending Corporation (NASDAQ:LPRO) Q2 2024 Earnings Conference Call August 8, 2024 5:00 PM ET Company Participants Chuck Jehl - CFO and Interim CEO Cecilia Camarillo - Chief Accounting Officer Conference Call Participants Kyle Peterson - Needham & Company Michael Grae - Morgan Stanley Vincent Caintic - BTIG Taylor Reading - Raymond James Operator Good afternoon, and welcome to Open Lending's Second Quarter 2024 Earnings Conference Call. As a reminder, today's conference call is being recorded. On the ca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.01 per share LPRO The Nasdaq Stock Market LLC 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, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ ...