Oportun Financial (US:OPRT)2020-05-15 11:48Loan Originations and Customer Impact - The company has originated over 3.8 million loans, representing more than $8.9 billion of credit extended to over 1.7 million customers[127]. - Customers have saved more than $1.7 billion in aggregate interest and fees compared to alternative products available to them[127]. - The company aims to expand its offerings beyond unsecured installment loans into auto loans and credit cards, responding to customer demand[129]. - Active Customers reached 743,232 as of April 30, 2020, indicating a strong customer base despite challenges posed by the COVID-19 pandemic[158]. - Aggregate Originations for the month ended April 30, 2020 were $41.8 million, with 11,555 loans originated, reflecting a significant operational scale[158]. Financial Performance - Total revenue for Q1 2020 was $163.428 million, up 18.9% from $138.328 million in Q1 2019[227]. - Interest income increased by 19.8% from $126.746 million in Q1 2019 to $150.700 million in Q1 2020[227]. - The net loss for Q1 2020 was $13.3 million compared to a net income of $14.6 million in Q1 2019[182]. - Adjusted EBITDA for Q1 2020 was $17,861 thousand, a decrease from $18,872 thousand in Q1 2019, reflecting a decline of 5.4%[232]. - Adjusted Net Income (Loss) for Q1 2020 was $(1,205) thousand, down from $9,595 thousand in Q1 2019[234]. Delinquency and Charge-Offs - The 30+ Day Delinquency Rate increased to 4.0% in April 2020, up from 3.8% at the end of Q1 2020[142]. - Annualized Net Charge-Off Rate for the month was 9.4%, reflecting an increase due to larger loan sizes and the impact of the pandemic[158]. - The remaining cumulative charge-offs increased from 10.00% in Q1 2019 to 14.56% in Q1 2020, indicating a rise in expected loan losses[220]. - The company anticipates an increase in charge-offs due to the impact of the COVID-19 pandemic[197]. Operational Adjustments and COVID-19 Response - The company has tightened lending criteria and reduced loan sizes in response to the COVID-19 pandemic, leading to a reduction in applications and origination volume[135]. - The company has implemented more stringent employment verification procedures and increased recency requirements for proof of income due to the economic impact of the pandemic[139]. - The company has invested significantly in technology, enabling rapid adjustments to credit underwriting and servicing capabilities in response to COVID-19[138]. - The company has not laid off any employees but is only hiring for critical positions in response to the COVID-19 pandemic[152]. Revenue and Expense Trends - Operating expenses rose by 25.3% from $78.691 million in Q1 2019 to $98.614 million in Q1 2020[227]. - Technology and facilities expenses increased by 42.2% from $21,641 thousand in Q1 2019 to $30,774 thousand in Q1 2020, representing 18.8% of total revenue[200]. - Sales and marketing expenses grew by 16.7% from $21,266 thousand in Q1 2019 to $24,827 thousand in Q1 2020, accounting for 15.2% of total revenue[202]. - Personnel expenses increased by 35.5% from $18,877 thousand in Q1 2019 to $25,582 thousand in Q1 2020, representing 15.7% of total revenue[204]. Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash totaled $206.1 million as of March 31, 2020, compared to $118.7 million in the prior year[256]. - Net cash provided by operating activities was $52.1 million for Q1 2020, an increase from $47.2 million in Q1 2019[258]. - The company anticipates sufficient liquidity to meet cash operating expenses and capital expenditure requirements for at least the next 12 months[261]. - As of March 31, 2020, the company was in compliance with all covenants and requirements of its debt facilities[250][251].