NASDAQ$UPBD

Upbound Group Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Upbound Group, Inc. reported its fourth quarter and full year 2022 financial results, with total revenue of $990.5 million for the fourth quarter and $4.2 billion for the full year.

Upbound Group, Inc. (formerly Rent-A-Center, Inc.) announced its fourth quarter and full year 2022 results, showing a decrease in consolidated revenues primarily due to lower lease portfolio values. Despite challenging macroeconomic conditions, the company exceeded its revised outlook, driven by strong execution in top-line, risk management, and efficiency initiatives. The company also announced a corporate name change to Upbound Group, Inc. to align with its new enterprise brand and strategic vision.

  • Total revenue for the fourth quarter of 2022 was $990.5 million, a 15.4% decrease year-over-year.
  • GAAP diluted EPS for the fourth quarter of 2022 was $0.05, down from $0.15 in the prior year period.
  • Non-GAAP diluted EPS for the fourth quarter of 2022 was $0.86, compared to $1.08 in the prior year period.
  • The company announced a corporate name change to Upbound Group, Inc., effective February 27, 2023, to unify its resources and capabilities under a new enterprise brand.

Headline financials

Total Revenue

$990M

No prior period
EPS (adj)

$0.86

No prior period
Capital Expenditures

-$17.2M

No prior period
Free Cash Flow

$44.4M

No prior period
Net Income

$2.65M

No prior period
Operating Income

$42.3M

No prior period
Gross Profit

$495M

No prior period
Cash & Equivalents

$144M

No prior period
Total Assets

$2.76B

No prior period

Revenue & EPS history

Upbound · Revenue · Quarterly

$990M

Q4 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

The Company is providing guidance for its 2023 fiscal year, anticipating revenues between $3.8 billion and $4.0 billion, Adjusted EBITDA between $380 million and $415 million, Non-GAAP Diluted Earnings Per Share between $2.50 and $3.00, and Free Cash Flow between $180 million and $215 million.

Tailwinds

  • Anticipated revenues of $3.8 billion to $4.0 billion for full year 2023.
  • Projected Adjusted EBITDA of $380 million to $415 million for full year 2023.
  • Expected Non-GAAP Diluted Earnings Per Share of $2.50 to $3.00 for full year 2023.
  • Forecasted Free Cash Flow of $180 million to $215 million for full year 2023.
  • The guidance reflects the Company's confidence in addressing growing demand for flexible consumer financial solutions.

Headwinds

  • The guidance excludes the impact of special items due to inherent uncertainty, which may significantly impact future GAAP results.
  • Non-GAAP diluted earnings per share guidance excludes the impact of incremental depreciation and amortization related to acquired Acima assets.
  • Non-GAAP diluted earnings per share guidance excludes stock compensation expense associated with the Acima acquisition equity consideration.
  • Non-GAAP diluted earnings per share guidance excludes one-time transaction and integration costs related to the Acima acquisition.
  • Guidance excludes the impact of any future share repurchases, which could affect diluted earnings per share.

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

+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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