NASDAQ$OPRT

Oportun Financial Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a 21% year-over-year revenue increase and implemented expense optimization measures.

Oportun Financial Corporation reported its Q1 2023 financial results, which showed a 21% increase in revenue year-over-year to $260 million. The company also outperformed each guidance metric and is implementing further expense optimization measures to provide an additional $78M to $83M in annualized savings.

  • Revenue grew 21% year-over-year to $260 million.
  • Credit tightening actions are proving effective with a sequential charge-off rate decline of 70 basis points from Q4 2022.
  • The company is implementing further personnel and cost savings measures, anticipating $78 to $83 million in annualized run rate cost savings.
  • Adjusted EBITDA guidance for full-year 2023 was upwardly revised while maintaining total revenue guidance.

Headline financials

Total Revenue

$260M

Previous: $215M+20.9%
EPS (adj)

-$2.60

Previous: $1.58-264.6%
Net Charge-Off Rate

12.1%

Previous: 8.6%+40.7%
Aggregate Originations

$408M

Previous: $800M-49.0%
ROE

-82.5%

Previous: 29.5%-379.7%
Adjusted ROE

-71.3%

Previous: 34.1%-309.1%
Free Cash Flow

-$102M

Previous: $45.7M-323.6%
Net Income

-$102M

Previous: $45.7M-323.6%
Operating Income

$135M

Previous: $208M-35.1%
Gross Profit

$260M

Previous: $215M+20.9%
Cash & Equivalents

$74.1M

Previous: $110M-32.6%
Total Assets

$3.5B

Previous: $2.99B+17.0%
Stock-Based Comp

$4.88M

Previous: $6.77M-28.0%

Revenue & EPS history

Oportun · Revenue · Quarterly

$260M

Q1 2023+20.9%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Oportun provided guidance for Q2 2023 and full year 2023, including total revenue, annualized net charge-off rate, and adjusted EBITDA.

Tailwinds

  • Total Revenue (2Q 2023): $250 - $255 million
  • Total Revenue (Full Year 2023): $975 - $1,000 million
  • Annualized Net Charge-Off Rate (2Q 2023): 12.8% +/- 15 bps
  • Annualized Net Charge-Off Rate (Full Year 2023): 11.6% +/- 40 bps
  • Adjusted EBITDA (2Q 2023): $2 - $7 million

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 Q1 2023

Historical avgQ1 2023

+3.1%

Avg return

Earnings day

+4.2%

Avg return

5 days after

+1.9%

Avg return

30 days after

68%

21 / 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 2026-0.1%-7.8%
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%
Q1 2019+4.4%+3.8%+8.0%
Q4 2018+4.4%+3.8%+8.0%
Q3 2018+4.4%+3.8%+8.0%
Q2 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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