Open Lending Corp (LPRO) Q2 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...

GuruFocus News
4 min read

In This Article:

  • Certified Loans: Nearly 29,000 loans certified, representing approximately 3% sequential growth compared to Q1 2024.

  • Total Revenue: $26.7 million for Q2 2024, down from $38.2 million in Q2 2023.

  • Adjusted EBITDA: $9.9 million for Q2 2024, compared to $20.7 million in Q2 2023.

  • Profit Share Change in Estimate: Negative $6.7 million impact due to elevated delinquencies and defaults.

  • Operating Expenses: $17 million in Q2 2024, up from $16.3 million in Q2 2023.

  • Operating Income: $4 million in Q2 2024, down from $15.7 million in Q2 2023.

  • Net Income: $2.9 million in Q2 2024, compared to $11.4 million in Q2 2023.

  • Net Income Per Share: $0.02 in Q2 2024, compared to $0.09 in Q2 2023.

  • Total Assets: $382.8 million at the end of Q2 2024.

  • Unrestricted Cash: $248 million at the end of Q2 2024.

  • Total Liabilities: $166 million, with $143.3 million in outstanding debt.

  • Q3 2024 Guidance: Certified loans between 25,000 and 28,000; revenue between $28 million and $31 million; adjusted EBITDA between $11 million and $14 million.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Open Lending Corp (NASDAQ:LPRO) reported near or above the high end of their guidance range for certified loans, revenue, and adjusted EBITDA, excluding a negative change in estimate associated with their profit share.

  • The company certified nearly 29,000 loans in Q2 2024, representing approximately 3% sequential growth compared to Q1 2024.

  • Open Lending Corp (NASDAQ:LPRO) has taken actions to tighten underwriting standards, resulting in a decrease in 60-plus day delinquency rates from over 2% in mid-2022 to a range of 1% to 1.5% currently.

  • The company signed 13 new credit union customers in Q2 2024, including four larger customers with almost $7 billion in combined total assets.

  • Open Lending Corp (NASDAQ:LPRO) added Securian Financial Group as an insurance partner, expanding their premium capacity in anticipation of growth.

Negative Points

  • The company's results were negatively impacted by a $6.7 million profit share change in estimate due to elevated delinquencies and defaults from 2021 and 2022 vintages.

  • Total revenue for Q2 2024 was $26.7 million, a decrease from $38.2 million in Q2 2023.

  • Operating income for Q2 2024 was $4 million, down from $15.7 million in Q2 2023.

  • Net income for Q2 2024 was $2.9 million, compared to $11.4 million in Q2 2023.

  • The company faces challenges from elevated interest rates and affordability issues, impacting consumer demand and lending capacity.

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