NASDAQ$OPRT

Oportun Financial Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong operating results and profitability, maintained a solid credit profile, and advanced all of its 2021 strategic objectives.

Oportun Financial Corporation reported strong first quarter 2021 financial results with GAAP diluted EPS of $0.10 and Adjusted EPS of $0.41. The company's credit performance demonstrated the efficacy of its A.I.-driven models and reflected the favorable economic environment and stimulus impact.

  • Delivered strong operating results and profitability.
  • Maintained a solid credit profile.
  • Advanced all of 2021 strategic objectives.
  • Credit performance demonstrated the efficacy of A.I.-driven models.

Headline financials

Total Revenue

$135M

Previous: $163M-17.2%
EPS (adj)

$0.41

Previous: -$0.04+1125.0%
Net Charge-Off Rate

8.6%

Previous: 8.9%-3.4%
30+ Day Delinquency Rate

3.0%

Previous: 3.8%-21.1%
Aggregate Originations

$335M

No prior period
ROE

2.6%

No prior period
Adjusted ROE

10.6%

No prior period
Managed Principal Balance

$1.83B

No prior period
Capital Expenditures

-$873K

Previous: -$1.62M+45.9%
Free Cash Flow

$2.15M

Previous: -$14.9M+114.4%
Net Income

$3.02M

Previous: -$13.3M+122.7%
Operating Income

$121M

Previous: $157M-23.0%
Gross Profit

$135M

Previous: $163M-17.2%
Cash & Equivalents

$140M

Previous: $145M-3.1%
Total Assets

$1.99B

Previous: $2.12B-5.9%
Stock-Based Comp

$5.09M

Previous: $4.15M+22.6%

Revenue & EPS history

Oportun · Revenue · Quarterly

$135M

Q1 2021-17.2%vs Q1 2020
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Revenue by segment

Oportun · $260M total across 2 segments · Q1 2023

  • Interest Income
    $238M
  • Non-interest Income
    $21.9M

Forward guidance

Oportun is providing the following guidance for 2Q 2021 and full year 2021 as follows:

Tailwinds

  • Aggregate Originations $425 M (2Q 2021), $2.1 B (Full Year 2021)
  • Total Revenue $135 M (2Q 2021), $600 - $605 M (Full Year 2021)
  • Adjusted EBITDA $(2) - $(1) M (2Q 2021), $0 - $5 M (Full Year 2021)
  • Adjusted Net Income (1) $1 - $2 M (2Q 2021), $50 - $54 M (Full Year 2021)
  • Adjusted EPS $0.03 - $0.07 (2Q 2021), $1.69 - $1.82 (Full Year 2021)

Headwinds

  • Annualized Net Charge-Off Rate 6.8% +/- 10 bps (2Q 2021)
  • Annualized Net Charge-Off Rate 7.6% +/- 15 bps (Full Year 2021)
  • Management's guidance assumes the following for 2Q 2021 and FY 2021, respectively
  • With respect to 2Q 2021, for loans which are projected to have a weighted average life of 0.78 years, the Company is assuming a June 30, 2021 interpolated LIBOR/Swap rate of 0.22%, based on the forward rates from May 3, 2021.
  • For notes, which have original terms of 2 or 3 years, the Company interpolates between the forward swap rates. The Company is assuming a June 30, 2021 interpolated LIBOR/Swap rate of 0.25%, based on the forward rates from May 3, 2021.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+3.1%

Avg return

Earnings day

+4.2%

Avg return

5 days after

+1.2%

Avg return

30 days after

71%

22 / 31 earnings

Positive

+37.6%

Q1 2023

Best reaction

-51.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%-7.5%-17.1%
Q4 2025-5.1%-2.7%-17.9%
Q3 2025+1.6%-7.6%+3.9%
Q1 2025+9.1%+16.3%+14.3%
Q4 2024+8.3%+47.2%-6.6%
Q3 2024-6.3%-3.1%+20.9%
Q2 2024-2.4%+7.3%-1.4%
Q1 2024+21.4%+16.2%-19.2%
Q4 2023-2.1%-17.7%-37.5%
Q3 2023-51.5%-59.0%-52.6%
Q2 2023+27.4%+24.4%+39.5%
Q1 2023+37.6%+26.9%+51.0%
Q4 2022-36.6%-15.7%-7.4%
Q3 2022+22.0%+53.1%+28.1%
Q2 2022-24.1%-24.1%-50.6%
Q1 2022+1.8%-1.6%+4.5%
Q4 2021-0.5%-10.2%-20.0%
Q3 2021+8.9%+15.1%-11.4%
Q2 2021+15.1%+14.9%+18.7%
Q1 2021+10.8%+2.6%+4.5%
Q4 2020-1.1%-3.8%+27.3%
Q3 2020+5.8%+10.5%+20.7%
Q2 2020+5.3%+0.4%-11.5%
Q1 2020+9.4%+9.9%+104.5%
Q4 2017+9.5%+9.3%-41.7%
Q4 2019+4.7%+5.4%-42.8%
Q2 2019+4.4%+3.8%+8.0%
Q4 2018+4.4%+3.8%+8.0%
Q3 2018+4.4%+3.8%+8.0%
Q1 2019+4.4%+3.8%+8.0%
Q3 2019+8.5%+7.7%+6.3%
Q2 2018
Q1 2018
Q3 2017
Q2 2017
Q1 2017

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