Upbound (US:UPBD)2025-05-01 14:02Financial Data and Key Metrics Changes - First quarter revenue reached nearly $1,200,000,000, a 7.3% increase year over year, driven by the strength of Asima and the addition of Bridget [16][17] - Adjusted EBITDA was $126,000,000, reflecting a 16% increase compared to Q1 2024, with adjusted EBITDA margins at 10.7%, up 70 basis points from the previous year [16][17] - Non-GAAP diluted EPS was $1, representing a 27% increase from the same quarter last year [16][17] - Free cash flow generated was $127,000,000, nearly four times larger than the previous year's first quarter result [16][17] Business Line Data and Key Metrics Changes - Asima achieved GMV growth of nearly 9% year over year, with improved lease charge-offs by 70 basis points, leading to a 170 basis point increase in adjusted EBITDA margin [11][12] - Rent A Center reported a 2% decline in same-store sales, attributed to tightened underwriting and the removal of higher loss products [13][14] - Bridget experienced mid-twenty percent growth in both subscribers and cash advances, with revenue for the full quarter up 38% year over year [15][31] Market Data and Key Metrics Changes - Asima's GMV growth was driven by a diversified lineup of merchant relationships, with the top 10 merchants representing about 30% of total GMV [12][28] - Rent A Center's revenue was down 4.9% year over year due to fewer company-owned stores, with same-store sales reflecting fewer deliveries [33] - The average tax refund was slightly ahead of the prior two years, providing a boost to consumer spending power [17][18] Company Strategy and Development Direction - The company aims to become a holistic financial platform that improves customers' financial lives, focusing on underserved populations [6][9] - Expansion plans include launching a pilot in the Mexican market for Asima, leveraging existing Rent A Center infrastructure [21][22] - Digital investments are prioritized to enhance customer experience and drive growth across segments [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions present both challenges and opportunities, with a focus on maintaining customer trust and loyalty [10][18] - The company expects to see low double-digit GMV growth across the year, building on last year's 17% growth [12][44] - Management expressed confidence in achieving the revised guidance for 2025, citing strong first-quarter performance [44][47] Other Important Information - The company successfully resolved a long-standing regulatory matter with the CFPB, which had no changes to its business or financial penalties [48] - The Bridget acquisition is expected to enhance customer acquisition and mitigate losses through data collaboration [63][64] Q&A Session Summary Question: Can you provide more details on tariff exposure and price increases? - Management indicated no current price changes from suppliers, with some categories even seeing price reductions. They emphasized their ability to adjust pricing flexibly if needed [54][55][57] Question: What is the outlook for Bridget's integration and synergies? - Management confirmed good progress in integrating Bridget, with plans for marketing collaboration and data sharing to enhance customer approvals and mitigate losses [63][64] Question: Can you elaborate on the expansion of Asima in Mexico? - Management expressed excitement about the expansion, leveraging existing Rent A Center infrastructure to mitigate risks associated with entering a new market [76][78]