NASDAQ$OPRT

Oportun Financial Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and full year, meeting guidance metrics and achieving a record $1.1 billion in total revenue for FY23.

Oportun Financial Corporation reported its Q4 and full year 2023 financial results, with Q4 total revenue of $263 million and FY23 total revenue reaching a record $1.1 billion, up 11% year-over-year. The company focused on improving profitability and operating efficiencies, reducing quarterly operating expenses by 15%. Initial full year 2024 guidance reflects expectations for markedly improved profitability on an adjusted basis, supported by an additional $30 million in run-rate operating expense savings to be achieved by 4Q24.

  • Total revenue for Q4 2023 was $263 million, flat compared to the prior year.
  • Net loss was $41.8 million, compared to a net loss of $8.4 million in the prior-year quarter.
  • Operating expenses decreased by 15% year-over-year.
  • Adjusted EBITDA was $6.1 million, up $40 million from the prior year quarter.

Headline financials

Total Revenue

$263M

Previous: $262M+0.3%
EPS (adj)

-$0.54

Previous: $0.14-485.7%
Net Charge-Off Rate

12.3%

Previous: 12.8%-3.9%
30+ Day Delinquency Rate

5.9%

No prior period
Aggregate Originations

$437M

Previous: $610M-28.4%
Portfolio Yield

32.7%

No prior period
Owned Principal Balance

$2.9B

No prior period
OpEx Ratio

17.5%

No prior period
Adjusted OpEx Ratio

14.5%

No prior period
ROE

-39.0%

Previous: -6.1%-539.3%
Adjusted ROE

-8.0%

Previous: 3.3%-342.4%
Capital Expenditures

-$6.12M

Previous: $6M-202.1%
Net Income

-$41.8M

Previous: -$8.4M-397.6%
Operating Income

-$57.3M

Previous: -$7.9M-625.3%
Gross Profit

$263M

Previous: $105M+150.6%
Stock-Based Comp

$4.88M

Previous: $6.87M-28.9%

Revenue & EPS history

Oportun · Revenue · Quarterly

$263M

Q4 2023+0.3%vs Q4 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 financial outlook for Q1 2024 and full year 2024.

Tailwinds

  • Total Revenue for Q1 2024 is expected to be between $233 - $238 million
  • Total Revenue for FY 2024 is expected to be between $975 - $1,000 million
  • Annualized Net Charge-Off Rate for Q1 2024 is expected to be 12.1% +/- 15 bps
  • Annualized Net Charge-Off Rate for FY 2024 is expected to be 11.9% +/- 50 bps
  • Adjusted EBITDA for FY 2024 is expected to be $60 - $70 million

Headwinds

  • Adjusted EBITDA for Q1 2024 is expected to be $(14) - $(12) million

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 Q4 2023

Historical avgQ4 2023

+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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