Pagaya Technologies .(PGY)

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Pagaya Technologies .(PGY) - 2024 Q1 - Quarterly Report
2024-05-09 20:14
Financial Performance - Net loss including noncontrolling interests for Q1 2024 was $31.66 million, compared to $98.62 million in Q1 2023, representing a significant improvement[22] - Total revenue and other income for Q1 2024 was $245.28 million, up 31.4% from $186.64 million in Q1 2023[19] - Revenue from fees in Q1 2024 was $237.00 million, a 35.2% increase from $175.25 million in Q1 2023[19] - Operating income for Q1 2024 was $7.69 million, a turnaround from an operating loss of $24.98 million in Q1 2023[19] - Net loss attributable to Pagaya Technologies Ltd. for Q1 2024 was $21.22 million, compared to $60.97 million in Q1 2023[19] - Basic and diluted net loss per share for Q1 2024 was $0.33, improved from $1.03 in Q1 2023[19] - Comprehensive loss attributable to Pagaya Technologies Ltd. for Q1 2024 was $45.95 million, compared to $61.52 million in Q1 2023[22] - Net loss for the three months ended March 31, 2024, was $31.662 million, compared to a net loss of $21.223 million for the same period in 2023[25] - Net Loss Attributable to Pagaya Technologies Ltd. improved to $21.2 million in Q1 2024 from $61.0 million in Q1 2023[182] - Adjusted Net Income improved to $13.3 million in Q1 2024 from a loss of $11.0 million in Q1 2023[204] - Adjusted EBITDA rose to $39.8 million in Q1 2024 from $2.0 million in Q1 2023[204] - Net loss per share attributable to ordinary shareholders for Class A and Class B shares was $0.33 for the three months ended March 31, 2024, compared to $1.03 for the same period in 2023[127] Revenue and Fees - Revenue from fees for Q1 2024 increased by $61.8 million (35%) to $237.0 million, driven by a $65.1 million increase in Network AI fees[186] - Network AI fees totaled $215.3 million for Q1 2024, up from $150.2 million in Q1 2023[43] - Contract fees for Q1 2024 were $21.7 million, down from $25.1 million in Q1 2023[45] - Total revenue from fees for Q1 2024 was $237.0 million, compared to $175.3 million in Q1 2023[50] - Revenue from related parties totaled $178.5 million for Q1 2024, up from $153.8 million in Q1 2023, primarily from securitization vehicles[90] - Revenue from fees grew by 35% to $237.0 million in Q1 2024 compared to $175.3 million in Q1 2023[185] - Total Revenue and Other Income increased by 31% to $245.3 million in Q1 2024 from $186.6 million in Q1 2023[185] - Interest income decreased by 26% to $7.7 million in Q1 2024 from $10.4 million in Q1 2023[185] - Investment income declined by 46% to $528,000 in Q1 2024 from $987,000 in Q1 2023[185] - Fee Revenue Less Production Cost (FRLPC) increased to $92.1 million in Q1 2024 from $50.2 million in Q1 2023[204] Expenses and Costs - Production Costs rose to $144.9 million in Q1 2024, up from $125.1 million in Q1 2023, driven by increased Network Volume[173] - Technology, data, and product development expenses decreased to $19.4 million in Q1 2024 from $21.1 million in Q1 2023[182] - Sales and marketing expenses dropped to $10.3 million in Q1 2024 from $14.3 million in Q1 2023[182] - General and administrative expenses increased to $63.1 million in Q1 2024 from $51.1 million in Q1 2023[182] - General and administrative costs rose by $11.9 million (23%) to $63.1 million in Q1 2024, driven by transaction-related expenses and miscellaneous costs[195] - Other expense, net decreased by $32.6 million (49%) in Q1 2024, primarily due to lower credit-related impairment losses[196] - Share-based compensation expense was $17.30 million in Q1 2023[24] - Share-based compensation expense for the three months ended March 31, 2024, was $15.5 million, compared to $16.4 million for the same period in 2023[119] Balance Sheet and Assets - Total cash, cash equivalents, and restricted cash decreased to $310.048 million as of March 31, 2024, compared to $316.762 million as of December 31, 2023[28] - Total assets increased to $1.483 billion as of March 31, 2024, up from $1.208 billion as of December 31, 2023[17] - Total liabilities rose to $683.026 million as of March 31, 2024, compared to $468.377 million as of December 31, 2023[17] - Shareholders' equity increased to $725.911 million as of March 31, 2024, up from $665.749 million as of December 31, 2023[17] - Cash and cash equivalents increased to $274.495 million as of March 31, 2024, up from $186.478 million as of December 31, 2023[17] - Investments in loans and securities increased to $892.853 million as of March 31, 2024, compared to $714.303 million as of December 31, 2023[17] - Secured borrowing increased to $331.156 million as of March 31, 2024, up from $271.713 million as of December 31, 2023[17] - Accumulated deficit increased to $563.860 million as of March 31, 2024, compared to $542.637 million as of December 31, 2023[17] - Secured borrowings as of March 31, 2024, were $331.2 million, up from $271.7 million as of December 31, 2023[54] - The outstanding principal balance under repurchase agreements was $310.1 million as of March 31, 2024, with a weighted average interest rate of approximately 14%[55] - Investments in loans and securities available for sale had unrealized losses of $3.166 million as of March 31, 2024[68] - The allowance for credit losses for investments in loans and securities was $126.36 million as of March 31, 2024[70] - Proceeds from sales/maturities/prepayments of investments in loans and securities were $35.897 million for Q1 2024[70] - Total investments in Pagaya SmartResi F1 Fund, LP and other proprietary investments amounted to $26.9 million as of March 31, 2024, up from $26.4 million in December 2023[71][72] - The company's consolidated VIEs (Risk Retention Entities) held net assets of $122.9 million as of March 31, 2024, down from $132.7 million in December 2023[76] - The company's direct interest in unconsolidated VIEs had a carrying amount of $777.5 million and maximum exposure to loss of $777.5 million as of March 31, 2024, up from $591.0 million in December 2023[79] - Operating lease liabilities totaled $48.5 million as of March 31, 2024, with maturities of $59.7 million through 2032[82] - The company has a remaining contractual obligation of $7.3 million with a cloud computing provider, with $4.9 million due in the next 12 months[84] - The maximum potential future payments under guarantees totaled $29.0 million as of March 31, 2024[85] - Investments in loans and securities available for sale had a fair value of $894.2 million as of March 31, 2024, with gross unrealized losses of $31.3 million[65] - The warrant liability decreased to $1.3 million as of March 31, 2024 from $3.2 million in December 2023 due to a $1.9 million change in fair value[95] - The company's long-term debt outstanding was $235.0 million as of March 31, 2024[61] - Cash, cash equivalents, and restricted cash increased to $310.0 million as of March 31, 2024, up from $222.5 million as of December 31, 2023[100] - Total assets not measured at fair value on a recurring basis were $432.6 million as of March 31, 2024, compared to $336.2 million as of December 31, 2023[100] - Investments in loans and securities available for sale increased to $894.2 million as of March 31, 2024, up from $507.2 million as of March 31, 2023[97] Capital and Financing - The company completed a 1-for-12 reverse share split on March 8, 2024, with all share amounts retroactively adjusted[31] - The company entered into a Credit Agreement on February 2, 2024, providing a $25 million Revolving Credit Facility, later increased to $35 million, and a $255 million Term Loan Facility[57] - As of March 31, 2024, the company had $10.0 million in letters of credit issued and $25.0 million remaining capacity under the Revolving Credit Facility[62] - The company issued 298,057 shares under the Equity Financing Purchase Agreement for net proceeds of $5.2 million during Q1 2024[108] - The company priced an offering of 7,500,000 Class A Ordinary Shares, raising approximately $90.0 million in net proceeds[109] - The company has the right to sell up to $300 million of Class A Ordinary Shares to B. Riley Principal Capital II under the Equity Financing Purchase Agreement, with 298,057 shares issued for net proceeds of $5.2 million in Q1 2024[220][221] - The company filed a shelf registration statement allowing it to offer and sell up to $500 million of Class A ordinary shares, debt securities, and/or warrants[222] - The company priced an offering of 7,500,000 Class A Ordinary Shares, generating approximately $90.0 million in proceeds after deducting underwriting discounts and fees[223] - The company expects to fund operations with existing cash, cash equivalents, and cash generated from operations, including cash flows from investments in loans and securities, and additional secured borrowings[215] - The company may raise additional capital through borrowings under a new credit facility entered into in February 2024, or through the sale or issuance of equity or debt securities, including up to 1,666,666 Series A Preferred Shares[215] - The company could receive up to $169.6 million in proceeds if all public and private placement warrants are exercised for cash, with each warrant entitling the holder to purchase one Class A Ordinary Share at $138 per share[217] - As of May 8, 2024, the price of the company's Class A Ordinary Shares was $10.50 per share, making it unlikely for warrant holders to exercise warrants if the market price remains below $138[218] Cash Flow - Net cash provided by operating activities was $20.47 million for Q1 2024, compared to a net cash outflow of $23.67 million in Q1 2023[224] - Net cash used in investing activities was $230.89 million in Q1 2024, compared to $99.67 million in Q1 2023[224] - Net cash provided by financing activities was $298.74 million in Q1 2024, compared to $103.02 million in Q1 2023[224] AI and Technology - The company has evaluated over $2.0 trillion in application volume since inception, driven by improvements in AI technology and data network[154] - The company's AI technology enables partners to increase originations by up to 25% in some cases[152] - The company's economic model is evaluated using the metric FRLPC (fee revenue less Production Costs), which is highly correlated to Network Volume[149] - Network Volume increased to $2,419 million in Q1 2024, up from $1,850 million in Q1 2023, reflecting a 30.8% growth[164] - Network Volume grew by 31% from $1.9 billion in Q1 2023 to $2.4 billion in Q1 2024[186] Taxes and Compensation - The company's income from Preferred Technological Enterprise (PTE) is subject to a 12% tax rate, effective for tax years 2020 through 2024[120] - The company's effective tax rate for the three months ended March 31, 2024, was -18.8%, compared to -7.3% for the same period in 2023[124] - The company's tax rate is affected by recurring items such as tax rates in foreign jurisdictions and the relative amounts of income earned in those jurisdictions[124] - Unrecognized compensation expense related to unvested share options was approximately $46.7 million as of March 31, 2024, expected to be recognized over 1.0 year[112] - Unrecognized compensation expense related to RSUs was approximately $31.2 million as of March 31, 2024, expected to be recognized over 0.9 years[114] - Unrecognized compensation expense related to options to restricted shares was approximately $18.0 million as of March 31, 2024, expected to be recognized over 1.5 years[117] Fair Value and Valuation - The weighted average discount rate for Level 3 fair value measurement of loans and securities as of March 31, 2024, was 16.7%, with a range of 8.0% to 20.0%[98] - The weighted average loss rate for Level 3 fair value measurement as of March 31, 2024, was 17.2%, with a range of 6.2% to 31.0%[98] - The weighted average prepayment rate for Level 3 fair value measurement as of March 31, 2024, was 9.1%, with a range of 0.0% to 40.0%[98] Related Party Transactions - Total fee receivables from related parties increased to $88.7 million as of March 31, 2024, up from $84.8 million as of December 31, 2023[88] - Revenue from related parties totaled $178.5 million for Q1 2024, up from $153.8 million in Q1 2023, primarily from securitization vehicles[90] Noncontrolling Interests - Net loss attributable to noncontrolling interests decreased by $27.2 million (72%) in Q1 2024, driven by consolidated VIEs' performance[199]
Pagaya Technologies .(PGY) - 2024 Q1 - Earnings Call Presentation
2024-05-09 14:05
1Q24 Earnings Supplement 01 Operating Metrics 01 *Note: See "Appendix" for a reconciliation of non-GAAP measures to the most comparable GAAP measure PA G AYA T E C H N O L O G I E S LT D. Contents 02 Non-GAAP Reconciliations 1Q'24 financial highlights 4 $270 $45 $250 $210 $170 In $ millions; % in YoY growth FRLPC $40 1Q23 1Q24 1Q23 1Q24 ද 12.0% 8.0% 4.0% 0.0% 9.5% 9.5% 9.5% 8.8% 9.8% 6.8% 6.2% 6.1%5.6% 6.0% 2.7% 3.3% 3.4% 3.2% 3.8% 3 -4 % FRLPC target range D PAGAYA % contribution from lending partner and i ...
Pagaya Technologies .(PGY) - 2024 Q1 - Quarterly Results
2024-05-09 11:07
2 PAGAYA PAGAYA TECHNOLOGIES LTD. Q1 Letter to Shareholders $2.42B Record network volume of $2.42 billion exceeded our outlook of $2.2 to $2.4 billion and grew 31% year-over-year. $245M Record total revenue and other income of $245M exceeded our outlook of $225 to $240 million and grew 31% year-over-year, driven primarily by a 35% growth in revenue from fees, as we continued to monetize our lending partner product. Q3 2024 Q2 2024 Q1 2024 DATE ISSUED May 9, 2024 Q4 2024 "Disciplined execution drove another ...
Pagaya Technologies .(PGY) - 2023 Q4 - Annual Report
2024-04-25 12:55
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 001-41430 Pagaya Technologies Ltd. (Exact name of Registrant as specified in its charter) Israel 87-3083236 (State or other jurisdiction ...
Pagaya Technologies .(PGY) - 2023 Q4 - Annual Report
2024-03-08 14:07
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECU ...
Pagaya Technologies .(PGY) - 2023 Q4 - Earnings Call Transcript
2024-02-21 16:59
Pagaya Technologies Ltd. (NASDAQ:PGY) Q4 2023 Results Conference Call February 21, 2024 8:30 AM ET Company Participants Jency John - Head of IR Gal Krubiner - Chief Executive Officer Sanjiv Das - President Evangelos Perros - Chief Financial Officer Conference Call Participants Joseph Vafi - Canaccord Genuity Michael Legg - The Benchmark Company David Scharf - Citizens JMP Securities John Hecht - Jefferies Hal Goetsch - B. Riley Securities Operator Greetings, and welcome to Pagaya Q4 2023 Earnings Call. At t ...
Pagaya Technologies .(PGY) - 2024 Q1 - Quarterly Report
2024-02-21 11:54
Financial Performance - Record network volume of $2.4 billion, grew by 33% year-over-year, driven by new partnerships in auto and real estate verticals[6] - Record total revenue and other income of $218 million, grew by 13% year-over-year, with 18% growth in revenue from fees[7] - Record revenue from fees less production costs (FRLPC) of $76 million, increased 42% year-over-year, with FRLPC margin expanding to 3.2%[8] - Record Adjusted EBITDA of $34 million, exceeding outlook, with an annualized run-rate of over $135 million based on Q4 results[9] - Adjusted net income of $12 million, improved by $16 million year-over-year, marking the third consecutive quarter of positive adjusted net income[10] - The company achieved record network volume of $8.3 billion in 2023, with total revenue of $812 million and Adjusted EBITDA of $82 million[56] - In Q4 2023, network volume grew 33% year-over-year to $2.4 billion, with total revenue increasing 13% to $218 million and FRLPC growing 42% to $76 million[61][66][68] - The company delivered record adjusted EBITDA of $34 million in Q4 2023, with an adjusted EBITDA margin of 16%, marking the second consecutive quarter of positive GAAP operating income[76][77] - Revenue from fees increased to $772.8 million in 2023, up 12.7% from $685.4 million in 2022[103] - Net loss attributable to Pagaya Technologies Ltd. improved to $128.4 million in 2023, compared to $302.3 million in 2022[103] - Non-GAAP adjusted net income was $16.6 million in 2023, a significant improvement from a loss of $32.7 million in 2022[103] - Net Loss Attributable to Pagaya Technologies Ltd. for Q4 2023 was $(14.4 million), compared to $(34.0 million) in Q4 2022, showing a significant improvement[110] - Adjusted Net Income for Q4 2023 was $12.4 million, a substantial improvement from $(3.7 million) in Q4 2022[110] - Adjusted EBITDA for Q4 2023 was $34.2 million, compared to $(9.0 million) in Q4 2022, indicating strong operational performance[110] - Fee Revenue Less Production Costs (FRLPC) for Q4 2023 was $75.9 million, up from $53.5 million in Q4 2022, reflecting higher efficiency[110] - Fee Revenue Less Production Costs Margin (FRLPC Margin) for Q4 2023 was 3.2%, consistent with the previous year[110] - Network Volume for Q4 2023 was 2.38 billion, an increase from 1.79 billion in Q4 2022, showing growth in transaction volume[110] - Revenue from fees for Q4 2023 was $210.4 million, up from $178.2 million in Q4 2022, indicating revenue growth[110] - Production costs for Q4 2023 were $134.5 million, compared to $124.7 million in Q4 2022, reflecting increased operational scale[110] Partnerships and Integration - U.S. Bank integration progressing, with thousands of clients approved for personal loans using Pagaya's technology, achieving double the average activation rate[11] - Westlake integration completed Phase 1, expanding to ~4,000 dealerships, with full go-live expected by early 2025[14] - The company expects to add 2-4 large enterprise-level lending partners in 2024, with approximately 15 late-stage opportunities currently in the pipeline[45][46] - Approximately 40% of lending partnerships generate FRLPC from both lending and investor products, while 60% generate FRLPC only from the investor product, indicating significant future margin improvement potential[48] Capital and Liquidity - Closed a $290 million credit facility in February 2024, led by major financial institutions, strengthening capital and liquidity position[15] - Total cash as of December 31, 2023, was $223 million, with investments in loans and securities of $717 million, reflecting gross risk ownership holdings as an ABS sponsor[84] - Net holdings after accounting for non-controlling interest of $106 million amounted to $611 million, representing a 3.3% ratio of exposure for deals completed between 2019 and 2023, totaling over $20 billion in funding raised[84] - The company closed a $290 million credit facility with BlackRock, UBS O'Connor, and JPMorgan Chase, extending corporate debt maturity from 2025 to 2029 and bolstering liquidity and balance sheet strength[85] - In 2023, the company successfully executed 15 ABS deals and added 31 new investors, leveraging its 100% pre-funded model to generate billions in network volume[83] - The company has raised funding across 49 ABS transactions since 2018, supported by leading financial institutions like JPMorgan and BlackRock[86] - Investors' risk appetites are improving in 2024, reflected in positive price and demand dynamics for recent ABS structures[83] - Proceeds from secured borrowing increased to $338.5 million in 2023, up 142.7% from $139.4 million in 2022[109] Growth and Future Outlook - Expected adjusted EBITDA for 2024 in the range of $150 million to $190 million, with positive net cash flow anticipated by early 2025[26] - The company expects to achieve positive total net cash flow by early 2025, assuming no significant changes in the macroeconomic environment[51] - The company is actively developing new products, such as pre-screen online programs and a new car loan underwriting product, expected to become accretive to growth beginning in 2025[49] - The company expects Q1 2024 network volume to range between $2.2 billion and $2.4 billion, with full-year 2024 network volume projected between $9.0 billion and $10.5 billion[88] - Q1 2024 total revenue and other income are forecasted to be between $225 million and $240 million, with full-year 2024 estimates ranging from $925 million to $1,050 million[88] - Adjusted EBITDA for Q1 2024 is expected to be between $32 million and $38 million, with full-year 2024 projections ranging from $150 million to $190 million[88] - The company aims to achieve net cash flow generation by early 2025, driven by disciplined growth, liquidity optimization, and efficient funding strategies[88] Operational Metrics - Darwin platform added ~7,600 new homes in 2023, with ~4,600 more expected in H1 2024, totaling over 13,000 homes under management[13] - The fee-generating business makes up over 95% of total revenue, with stable and predictable fee revenues expected to be the key contributor to future earnings[43] - Total assets grew to $1.21 billion in 2023, up from $1.05 billion in 2022[107] - Cash and cash equivalents decreased to $186.5 million in 2023 from $309.8 million in 2022[107] - Investments in loans and securities increased to $714.3 million in 2023, up 54.3% from $463.0 million in 2022[107] - Share-based compensation decreased to $71.1 million in 2023, down 70.6% from $241.7 million in 2022[104] - Net cash provided by operating activities was $9.6 million in 2023, compared to a net cash used of $40.0 million in 2022[109] - Total liabilities increased to $468.4 million in 2023, up 67.5% from $279.7 million in 2022[107] - Share-based compensation for Q4 2023 was $13.7 million, down from $18.7 million in Q4 2022, indicating reduced equity-based expenses[110] - Impairment loss on certain investments for Q4 2023 was $12.6 million, up from $8.8 million in Q4 2022, reflecting higher write-downs[110] Corporate Strategy - The company moved its corporate headquarters to the U.S. and will voluntarily file on U.S. domestic issuer forms starting with Q1 2024 results to enhance transparency and attract institutional investors[58] - New investment firms added in 2023 contributed to 4% of the funding raised in 2023, with the top 5 ABS investors contributing 4% of ABS funding in 2023, compared to 70% in 2022[41]
Pagaya Technologies .(PGY) - 2023 Q3 - Earnings Call Presentation
2023-11-05 05:15
2. Model enhancements and data-driven improvements in conversion rate We also made critical updates to our auto underwriting technology. These updates include enriching our existing methodology with additional vehicle valuation data points, improving the predictive accuracy of asset performance over time. 3. Consistently raising capital with attractive financial products As a result of our scale, efficiency and innovative structuring, we are seeing growing investor demand. Our deals continue to be oversubsc ...
Pagaya Technologies .(PGY) - 2023 Q4 - Annual Report
2023-11-02 11:00
PAGAYA'S MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS You should read the following discussion and analysis of our financial condition and results of operations together with the unaudited condensed consolidated interim financial statements as of and for the three and nine months ended September 30, 2023 and 2022 included as Exhibit 99.3 to the Report of Foreign Private Issuer on Form 6-K furnished with the Securities and Exchange Commission (the "SEC") on November 2 ...
Pagaya Technologies .(PGY) - 2023 Q2 - Earnings Call Transcript
2023-08-11 01:35
Pagaya Technologies Ltd. (NASDAQ:PGY) Q2 2023 Earnings Conference Call August 10, 2023 5:00 PM ET Company Participants Jency John - Head of Investor Relations Gal Krubiner - Chief Executive Officer Michael Kurlander - Chief Financial Officer Conference Call Participants Eugene Simuni - MoffettNathanson Rayna Kumar - UBS Joseph Vafi - Canaccord Genuity Michael Legg - The Benchmark Company Hal Goetsch - B. Riley Financial David Scharf - JMP Securities Vincent Caintic - Stephens Operator Good day and welcome t ...