Financial Data and Key Metrics Changes - The company reported a 123% year-over-year increase in revenue, reaching $104.9 million [18] - Adjusted net income grew 286% year-over-year to $36.1 million, with a net income margin of 34.5% [18][23] - Gross margin for the quarter was 70.4%, reflecting strong unit economics [8][22] Business Line Data and Key Metrics Changes - Gross Merchandise Volume (GMV) rose 64% year-over-year, significantly outpacing the overall BNPL industry [8] - Monthly on-demand users and subscribers (referred to as mods) increased by 77% year-over-year to 658,000 [8][14] - The average quarterly purchase frequency increased from 4.5 to 6.1 times per quarter [15] Market Data and Key Metrics Changes - The company continues to represent less than 10% of the overall payments market, indicating significant growth potential [4] - The take rate increased to 13% at GMV, benefiting from strong subscriber engagement and the partnership with WebBank [19] Company Strategy and Development Direction - The company is focusing on expanding its product offerings, including new features like Pay in Five and auto couponing to enhance consumer experience [11][60] - There is a strategic push towards enterprise-level merchants and new categories such as grocery and bills, which have been slower to adopt BNPL [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's strength amid market volatility, highlighting improved margins and rapid portfolio turnover [21] - The company raised its 2025 guidance, projecting revenue growth of 60% to 65% and earnings per share of $3.25, reflecting strong demand and credit performance [24][26] Other Important Information - A $50 million share repurchase program was announced, along with a six-for-one stock split to enhance liquidity [12] - The company has seen a significant increase in cash from operations, growing nearly $20 million year-over-year to $58.8 million [24] Q&A Session Summary Question: Can you tell us about your funnel of new merchants? - The company is focusing on enterprise-level merchants while also engaging with mid-sized merchants, expanding into new categories like grocery and bills [29][30] Question: What is the frequency or optimism you're seeing from on-demand products? - Monthly sequential growth indicates strong performance, with a lower barrier to entry for consumers [33] Question: Can you quantify the financial benefit from the WebBank partnership? - The partnership has improved revenue yield as a percentage of GMV, allowing for optimized product offerings [42] Question: What contributes to the stickiness of monthly subscribers? - The ease of use and seamless integration of the product into consumer shopping habits contribute to high retention rates [44][46] Question: How is the company managing credit quality? - The company maintains a focus on ROI and gross margins while being open to adjusting credit quality to support growth [50][52] Question: Can you describe the new features Pay in Five and auto couponing? - Pay in Five allows for an additional payment option, while auto couponing aims to enhance customer value and retention by providing unexpected savings [56][60]

Financial Data and Key Metrics Changes - The company reported a 123% year-over-year increase in revenue, reaching $104.9 million, and a 286% year-over-year growth in adjusted net income to $36.1 million [18][10][24] - The gross margin for the quarter was 70.4%, with a net income margin of 34.5% [10][24] - Cash and cash equivalents increased by $15.7 million quarter-over-quarter, with cash from operations growing nearly $20 million year-over-year to $58.8 million [25][24] Business Line Data and Key Metrics Changes - Gross Merchandise Volume (GMV) rose 64% year-over-year, significantly outpacing the overall Buy Now Pay Later (BNPL) industry [8] - Monthly on-demand users and subscribers (referred to as mods) grew by 77% year-over-year to 658,000 [8][15] - The average quarterly purchase frequency increased from 4.5 to 6.1 times per quarter, indicating stronger consumer engagement [16] Market Data and Key Metrics Changes - The company continues to represent less than 10% of the overall payments market, indicating significant growth potential within the BNPL sector [4] - The take rate increased to 13% at GMV, reflecting improved monetization strategies [20] Company Strategy and Development Direction - The company is focusing on expanding its product offerings, including new features like Pay in Five and auto couponing, aimed at enhancing consumer experience and retention [12][56] - There is a strategic push towards enterprise-level merchants and new categories such as grocery and bills, which have been slower to adopt BNPL solutions [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive despite economic uncertainties, highlighting the demand for flexible payment options during challenging times [4][26] - The company raised its 2025 guidance for net income by nearly 50% to $120 million and adjusted EPS from $2.21 to $3.25, reflecting strong performance and market conditions [9][25] Other Important Information - The company announced a $50 million share repurchase program and completed a six-for-one stock split to enhance liquidity [13] - The partnership with WebBank has begun to show significant benefits, contributing to improved revenue yield and operational efficiency [39] Q&A Session Summary Question: Can you tell us about your funnel of new merchants? - The company is focusing on enterprise-level merchants while also maintaining a mid-sized funnel, with a push into new categories like grocery and bills [28][30] Question: What is the frequency or optimism you're seeing from on-demand products? - Monthly sequential growth indicates strong performance, with a lower barrier to entry for users, enhancing the potential for upselling subscription products [32][33] Question: Can you quantify the financial benefit from the WebBank partnership? - The partnership has improved revenue yield as a percentage of GMV, with operational efficiencies realized across various states [39] Question: How is the company managing credit quality? - The company is maintaining profitability levels while being open to higher costs, ensuring gross margins are preserved [48][50] Question: Can you describe the new features like Pay in Five and auto couponing? - Pay in Five allows for an additional payment option, while auto couponing aims to enhance customer loyalty by providing unexpected savings [52][56]