NASDAQ$UPBD

Upbound Group Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Upbound Group, Inc. reported strong first quarter 2024 results, exceeding mid-point targets for revenue, Adjusted EBITDA, and Non-GAAP Diluted EPS, driven by growth momentum in Acima GMV and Rent-A-Center U.S. same store sales.

Upbound Group, Inc. delivered a strong first quarter 2024, with total revenues increasing 7.9% year-over-year to $1,096.0 million. The company reported GAAP diluted EPS of $0.50 and Non-GAAP diluted EPS of $0.79, exceeding mid-point targets. Adjusted EBITDA was $109.1 million, with growth driven by Acima GMV and Rent-A-Center U.S. same store sales.

  • Consolidated revenues increased 7.9% year-over-year to $1,096.0 million, driven by higher rentals, fees, and merchandise sales.
  • GAAP operating profit was $61.8 million, a significant improvement from a $(35.1) million GAAP operating loss in the prior year period.
  • Adjusted EBITDA decreased 2.2% year-over-year to $109.1 million, with higher Rent-A-Center segment Adjusted EBITDA offset by lower Acima segment Adjusted EBITDA and higher Corporate costs.
  • Non-GAAP diluted earnings per share was $0.79, compared to $0.83 in the prior year period, exceeding mid-point targets.

Headline financials

Total Revenue

$1.1B

Previous: $1.02B+7.9%
EPS

$0.50

Previous: $0.84-40.5%
Capital Expenditures

-$11.8M

Previous: -$9.53M-23.9%
Free Cash Flow

$15.9M

Previous: $37.8M-58.0%
Net Income

$27.7M

Previous: $47.3M-41.5%
Operating Income

$61.8M

Previous: -$35.1M+275.9%
Gross Profit

$529M

Previous: $506M+4.5%

Revenue & EPS history

Upbound · Revenue · Quarterly

$1.1B

Q1 2024+7.9%vs Q1 2023
Beat estimate in 2 of 3 quarters(67%)
ActualEstimate

Revenue by segment

Upbound · $476M total across 1 segment · Q4 2023

  • Acima
    $476M

Forward guidance

Upbound Group, Inc. reaffirmed its full-year 2024 financial guidance, maintaining targets for revenue, Adjusted EBITDA, Non-GAAP Diluted Earnings Per Share, and Free Cash Flow.

Tailwinds

  • Acima's nearly 20% GMV growth and Rent-A-Center's same store sales growth contributed to revenue increases in both segments.
  • Disciplined underwriting resulted in overall LCOs slightly better than expectations, with Rent-A-Center's LCO rate decreasing year-over-year and Acima's LCO rate decreasing sequentially.
  • Progress on capital allocation strategy, reducing debt by approximately $19 million in the quarter.
  • Distribution of the first quarterly dividend of 2024 at $0.37, an increase from $0.34 last year.
  • Strong financial position with net debt of $1.2 billion and leverage of 2.7x at quarter-end.

Headwinds

  • The inherent uncertainty related to special items makes it difficult to provide a meaningful forecast of comparable GAAP measures.
  • The actual amount of special items during 2024 may significantly impact future GAAP results.
  • The company is mindful of headwinds facing consumers, despite strong employment metrics supporting demand.
  • The company does not provide a GAAP forecast or reconciliation due to the inherent uncertainty of special items.
  • The company is not obligated to publicly release any revisions to forward-looking statements unless required by law.

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 2024

Historical avgQ1 2024

+0.8%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.0%

Avg return

30 days after

58%

18 / 31 earnings

Positive

+19.1%

Q1 2025

Best reaction

-18.4%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%-1.1%+1.4%
Q4 2025+6.3%+3.5%-17.6%
Q3 2025-16.3%-14.5%-22.5%
Q1 2025+19.1%+17.2%+15.3%
Q3 2024-1.4%-8.1%-16.5%
Q2 2024+0.0%-3.8%+23.1%
Q1 2024+0.0%-6.3%-11.9%
Q4 2023+0.0%-3.5%+2.4%
Q3 2023+5.9%+10.9%+15.1%
Q3 2022+0.0%-2.8%-11.6%
Q2 2023-4.8%-3.3%-7.9%
Q1 2023+10.2%+16.6%+22.8%
Q2 2022+13.3%+13.3%-0.4%
Q1 2022+4.2%+1.9%-3.4%
Q3 2021-18.4%-19.5%-17.6%
Q2 2021+0.3%+4.7%+12.9%
Q1 2021+2.0%-4.0%+3.2%
Q3 2020-4.9%-3.9%+9.4%
Q2 2020+0.5%+2.7%-7.1%
Q1 2020+0.9%+1.0%+12.9%
Q3 2019-6.6%-0.9%+11.5%
Q2 2019+5.3%+8.7%-1.0%
Q1 2019-0.8%-9.5%-10.8%
Q3 2018+1.5%+1.9%+2.5%
Q2 2018-0.6%-0.1%-0.7%
Q1 2018+0.1%-1.7%+5.6%
Q3 2017+2.4%+4.0%+15.7%
Q2 2017+0.9%+4.1%-6.0%
Q1 2017+0.8%+0.6%+7.1%
Q3 2016+3.0%+7.1%+23.7%
Q2 2016-1.1%+5.8%+12.5%

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