Enova(US:ENVA)2023-07-27 16:00Financial Performance - Consolidated total revenue increased by $91.4 million, or 22.4%, to $499.4 million for the three months ended June 30, 2023, compared to $408.0 million for the same period in 2022[140]. - Consolidated net revenue was $299.4 million in the current quarter, up from $264.6 million in the prior year quarter[140]. - Consolidated income from operations rose by $22.1 million, or 24.7%, to $111.6 million in the current quarter compared to $89.5 million in the prior year quarter[140]. - Consolidated net income was $48.1 million in the current quarter, down from $52.4 million in the prior year quarter[140]. - Consolidated diluted income per share was $1.50 in the current quarter, compared to $1.56 in the prior year quarter[140]. - Revenue increased by $189.0 million, or 23.8%, to $982.7 million for the six-month period ended June 30, 2023, compared to $793.7 million for the prior year[192]. - Net revenue for the current six-month period was $585.3 million, up from $533.2 million for the prior year, with a net revenue margin of 59.6% compared to 67.2%[193]. Loan and Finance Receivables - Enova International extended approximately $4.5 billion in credit to borrowers in 2022 and $2.2 billion in the first half of 2023[123]. - Loans and finance receivables revenue accounted for 98.7% of total revenue in the current quarter[141]. - The fair value of the loan and finance receivable portfolio was $3,092.4 million as of June 30, 2023, compared to $2,460.9 million as of June 30, 2022[156]. - The outstanding principal balance of the loan and finance receivables portfolio increased to $2,756.9 million as of June 30, 2023, from $2,300.7 million in the prior year[156]. - As of June 30, 2023, total loans and finance receivables amounted to $2,771,141, an increase from $2,312,529 in the previous year[158]. - The ending combined loans and finance receivables balance was $2,874,529 as of June 30, 2023, reflecting growth from $2,798,076 in the previous quarter[169]. - The ending balance of combined consumer loans and finance receivables increased by 6.6% to $1,085.7 million as of June 30, 2023, compared to $1,018.8 million at June 30, 2022, primarily due to originations outpacing repayments[172]. - The ending balance of small business loans and finance receivables increased by 30.3% to $1,788.8 million as of June 30, 2023, compared to $1,372.7 million at June 30, 2022, due to originations outpacing repayments[177]. Revenue by Segment - Revenue from the small business portfolio increased by 27.0% to $190.5 million for the three months ended June 30, 2023[153]. - The consumer portfolio revenue increased by 19.5% to $302.3 million for the same period[155]. - Revenue from consumer loans and finance receivables was $302.3 million for the current quarter, up from $253.0 million for the prior year quarter, driven by portfolio growth[174]. - Revenue from small business loans and finance receivables was $190.5 million for the current quarter, compared to $149.9 million for the prior year quarter, driven by overall portfolio growth[179]. Delinquency and Credit Performance - The delinquency rate for loans over 30 days increased to 7.7% as of June 30, 2023, up from 7.1% in the previous quarter[169]. - The percentage of loans greater than 30 days delinquent decreased to 6.8% at June 30, 2023, down from 7.1% at June 30, 2022, indicating improved credit performance[173]. - The percentage of loans greater than 30 days delinquent for small business loans rose to 8.3% at June 30, 2023, compared to 3.6% at June 30, 2022, reflecting increased delinquency rates[178]. Operating Expenses - Total operating expenses increased to $187.8 million in the current quarter from $175.1 million in the prior year quarter[141]. - Marketing expenses rose to $96.0 million in the current quarter from $91.5 million in the prior year quarter, primarily due to higher online advertising costs[181]. - Total expenses increased by $11.4 million, or 3.2%, to $364.4 million in the current six-month period compared to $353.0 million in the prior year[197]. Cash Flow and Liquidity - Net cash provided by operating activities increased by $189.2 million, or 48.2%, to $581.3 million for the six months ended June 30, 2023, compared to $392.2 million for the same period in 2022[217]. - Cash flows used in investing activities were $483.5 million for the current six-month period, a decrease from $751.3 million in the prior year[219]. - The company expects cash flows from operations and available cash balances to be sufficient to fund future operating liquidity needs[218]. Technology and Analytics - Approximately 90% of the analytical models used by Enova are machine learning-enabled, enhancing risk analytics and decision-making[125]. - The company has developed proprietary underwriting systems that utilize advanced risk analytics, including machine learning and artificial intelligence[125]. - Enova's technology platforms processed approximately 2.5 million transactions in 2022, indicating significant operational capacity[126]. Market Presence and Expansion - The company operates in 37 states in the U.S. and Brazil, providing loans and financing to consumers and small businesses[123]. - Enova's acquisition of On Deck Capital in October 2020 expanded its small business lending offerings across the U.S., Australia, and Canada[126]. - Enova's money transfer platform, acquired through Pangea, allows customers to send money from the U.S. to various countries, enhancing its service offerings[134].