NASDAQ$LPRO

Open Lending Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Open Lending reported a record quarter with significant increases in certified loans, revenue, and Adjusted EBITDA compared to the second quarter of 2020.

Open Lending reported a record second quarter of 2021, with a 148% increase in certified loans, a 177% increase in revenue, and a 199% increase in Adjusted EBITDA compared to the second quarter of 2020. The company signed an agreement with a third insurance partner, American National, and sees a strong pipeline of new credit union and regional bank customers.

  • Facilitated 46,408 certified loans, a 148% increase year-over-year.
  • Total revenue reached $61.1 million, a 177% increase year-over-year.
  • Gross profit was $57.0 million, a 182% increase year-over-year.
  • Net income was $76.0 million, compared to a net loss of $(49.8) million in the same quarter last year.

Headline financials

Total Revenue

$61.1M

Previous: $22.1M+177.0%
EPS (adj)

$0.27

Previous: -$0.02+1450.0%
Certified Loans

46.4K

Previous: 18.7K+148.4%
Capital Expenditures

-$841K

Previous: -$424K-98.3%
Free Cash Flow

$75.1M

Previous: -$50.2M+249.6%
Net Income

$76M

Previous: -$49.8M+252.5%
Operating Income

$44.9M

Previous: $3.95M+1037.3%
Gross Profit

$57M

Previous: $20.2M+181.5%
Cash & Equivalents

$57.2M

Previous: $26.3M+117.7%
Total Assets

$261M

Previous: $187M+40.0%
Stock-Based Comp

$927K

Previous: $2.19M-57.7%

Revenue & EPS history

Open Lending · Revenue · Quarterly

$61.1M

Q2 2021+177%vs Q2 2020
Beat estimate in 8 of 11 quarters(73%)
ActualEstimate

Revenue by segment

Open Lending · $61.1M total across 3 segments · Q2 2021

  • Profit Share
    $38.8M+219.3%
  • Program Fees
    $20.6M+134.2%
  • Claims Admin & Other Service Fees
    $1.69M+51.8%

Forward guidance

The Company is reaffirming its previously issued guidance for the full year 2021.

Tailwinds

  • Total Certified Loans: 161,000 - 206,000
  • Total Revenue: $184 - $234 million
  • Adjusted EBITDA: $125 - $168 million
  • Adjusted Operating Cash Flow: $81 - $111 million

Headwinds

  • The impact of the COVID-19 pandemic has been unprecedented and the future effect of the pandemic on the global economy and our financial results remains uncertain.
  • General economic, political and business conditions
  • Applicable taxes, inflation, interest rates and the regulatory environment
  • The outcome of judicial proceedings to which Open Lending is, or may become a party
  • Failure to realize the anticipated benefits of the business combination

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.7%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+4.8%

Avg return

30 days after

54%

15 / 28 earnings

Positive

+26.7%

Q1 2023

Best reaction

-57.6%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+17.3%+14.2%
Q4 2025+19.2%+19.0%+19.8%
Q3 2025-8.9%+3.1%+13.7%
Q1 2025+19.2%+29.0%+29.7%
Q4 2024-57.6%-63.0%-53.6%
Q3 2024-12.5%-6.5%-13.1%
Q2 2024-0.2%-4.4%-1.6%
Q1 2024+6.3%+12.6%+32.6%
Q4 2023-7.8%-11.3%-21.3%
Q3 2023-7.6%-10.1%+5.5%
Q2 2023-23.8%-20.9%-22.1%
Q1 2023+26.7%+27.8%+44.8%
Q4 2022-21.2%-16.0%-14.5%
Q3 2022+0.7%-5.7%+4.4%
Q2 2022-0.6%-1.2%-14.5%
Q1 2022-7.4%-17.9%-13.7%
Q4 2021+21.6%+26.0%+20.6%
Q3 2021-17.4%-11.3%-33.3%
Q2 2021+1.2%-8.9%+6.9%
Q1 2021-1.9%+0.7%+8.5%
Q4 2020+11.9%+21.7%+16.1%
Q3 2019+2.0%+1.8%+11.9%
Q3 2020+2.8%+7.9%+19.9%
Q1 2019+5.3%+8.7%+16.7%
Q4 2019+5.3%+8.7%+16.7%
Q2 2019+5.3%+8.7%+16.7%
Q1 2020+5.3%+8.7%+16.7%
Q2 2020-2.4%+0.3%+16.4%

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