Oportun Financial (US:OPRT)2020-11-10 22:10Financial Performance - Total revenue was $1368 million, down 11% year-over-year[20] - Net loss was $(60) million, compared to a net income of $100 million in 3Q19, primarily due to current period charge-offs and a legal settlement of $(88) million[20] - Aggregate originations were $3024 million, down 44% year-over-year[20] - Managed principal balance at the end of the period was $18 billion, down 9% year-over-year[20] - Annualized net charge-off rate was 104%, compared to 81% in 3Q19, but down from 106% in 2Q20[21] - Adjusted EBITDA was $(12) million, compared to $186 million in 3Q19[20] Credit Quality & Deferrals - Emergency Hardship Deferrals declined to 10% and 15% at Oct 31 and Sept 30, compared to 50% at June 30[8] - The 30+ Day Delinquency Rate declined to 36% and 35% at Oct 31 and Sept 30, compared to 37% at June 30[8] - First Payment Defaults on new originations are below 2019 and pre-pandemic levels[8] - Aggregate Originations were $1336 million in October, a 15% increase from September, and 69% of the prior-year period[23] Capital & Liquidity - The company continues to maintain 12+ months of liquidity runway[12] - $1962 million of cash and restricted cash at October 31[12] - $4000 million warehouse line with $2080 million undrawn capacity at October 31[12] - Sold retained subordinate notes, raising $398 million, net, and co-sponsored $1880 million securitization of Oportun collateral by whole loan purchaser[12] Expense Management & Growth Strategy - 3Q20 total operating expenses were up 9% sequentially from 2Q20, but excluding the impact of a legal settlement, 3Q20 operating expenses were down 02% sequentially[12] - Quarter-over-quarter originations growth in 3Q20 of 92% as compared to 2Q20[14] - Year-over-year originations increased in October, September and August to 69%, 67% and 55% of last year[14] - The company announced a partnership with Metabank, N.A for expansion across the nation[14]