Financial Data and Key Metrics - Total revenue increased 23% to a quarterly record of nearly 39million[11]−AdjustedEBITDAincreasedby4512 million [11] - Net income attributable to common stockholders was 1.2millionor0.05 per diluted share [11] - Gross profit expanded 32.9% year-over-year, producing a 58% gross margin in Q3 2024 compared to 54% in Q3 2023 [34] - Adjusted EBITDA margin was 31.5% compared to 26.7% for the same period last year [48] Business Line Data and Key Metrics - B2B channel lease funding approvals increased 33% during the third quarter to 77million[11]−Signedstorecountincreasednearly250780,000 for the quarter ended March 31, 2024 to 1.2millionforthequarterendedSeptember30,2024[14]−Totalleasefundingapprovalswere3377 million in Q3 of 2024, versus 57.9millioninQ3of2023[42]MarketDataandKeyMetrics−Thecompanyhasannouncednewpartnershipswithleadingpaymentplatforms,includingPayTomorrow,TarisFinance,VersatileCredit,andPayPossible[11]−ThecompanyhasalsoannouncedretailpartnershipswithRANDYSWorldwideandMonro[11]−Thecompanyhasastrongpipelineofpotentialpaymentandretailpartnersandexpectstoannouncenewpartnersinthecomingmonths[12]CompanyStrategyandIndustryCompetition−ThecompanyisfocusedonpursuingproactivegrowthstrategieswithinitsB2CandB2Bchannels[11]−Thecompanyhasinvestedinenhancingitsinternalunderwriting,collections,andaccountservicingcapabilities[11]−ThecompanyhasfiledpatentinfringementlawsuitsagainstcompetitorsUpboundandKatapulttoprotectitsonlineLTOtechnology[20][21]−ThecompanyplanstoexpanditsmarketingspendtodrivetrafficandincreaseconversiononitsB2Cmarketplace[15]ManagementCommentaryonOperatingEnvironmentandFutureOutlook−Thecompanybelieves2024isshapinguptobeatransformativeyearasitsgrowthstrategiestakehold[9]−Thecompanyexpectsretailrevenuetocontinueincreasingoverthecomingquarters[15]−Thecompanyisoptimisticaboutthedirectionofitsbusinessandtheopportunitiestocreatesignificantvalueforshareholdersin2025andbeyond[26]−ThecompanyplanstointroduceAI−drivenautomationincollectorservicingcapabilitiesin2025[64]OtherImportantInformation−Thecompanyhastheopportunitytoredeem9144 million [22] - The redemption of the Series 2 Preferred Stock will be highly accretive to earnings and will contribute over $4 million to annual operating income [24] - The company has filed an S-1 registration statement with the SEC for a proposed rights offering to purchase up to 35 million units [54] Q&A Session Summary Question: Improvement in Payment Performance - The improvement in payment performance is driven by improved underwriting and fraud evaluation, quality of the customer, and servicing capabilities [62][63][64] Question: B2B Business Rollout Time - The rollout time for new locations typically takes six to nine months, with some variability due to seasonality and retailer adoption [66][67][68] Question: Revenue Mix Shift in Q4 - The fourth quarter typically sees a higher retail component, but many originations during the holiday season will not be fully represented until Q1 of the next year [69] Question: Gross Margin Benchmark - The company does not anticipate further significant reductions in bad debt but expects continued contribution from retail margin and top-line growth [71][72][73] Question: Retail Pipeline Acceleration - The acceleration in the retail pipeline is due to successful partnerships and the potential for more large deals in the future [81][82] Question: Debt Reduction and Net Income Utilization - The company plans to focus on deleveraging, growing the business, and lowering the cost of capital, with potential to transition to lower-cost debt capital as net income increases [84][85][86] Closing Remarks - The company looks forward to communicating its holiday season results on the next call [90]
