Open Lending(LPRO) - 2024 Q3 - Quarterly Results

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]