NYSE$ENVA

Enova International Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Delivered strong growth with revenue topping guidance, driven by high new customer growth at attractive unit economics.

Enova reported a strong fourth quarter, with revenue growth of 25%, adjusted EBITDA growth of 34%, and adjusted EPS growth of 67%. The company saw high new customer growth, representing 38% of total originations. Domestic lending businesses drove growth and profitability, with revenue up 27% year-over-year.

  • Delivered 25% revenue growth, 34% adjusted EBITDA growth, and 67% adjusted EPS growth compared to Q4 last year.
  • Loans to new customers represented 38% of total originations, up from 30% in Q4 of last year.
  • NetCredit loan balances increased 30% year-over-year to $610 million with originations increasing 64%.
  • Small business originations grew 138% year-over-year, now representing 14% of the book.

Headline financials

Total Revenue

$345M

Previous: $313M+10.4%
EPS (adj)

$0.92

Previous: $0.52+76.9%
Net charge-off ratio

15.2%

Previous: 15.8%-3.8%
Capital Expenditures

$3.6M

Previous: $4.78M-24.6%
Free Cash Flow

$239M

Previous: $212M+12.8%
Net Income

$30M

Previous: $8.67M+246.0%
Operating Income

$66M

Previous: $40.5M+63.1%
Gross Profit

$127M

Previous: $115M+10.2%
Cash & Equivalents

$47M

Previous: $28.1M+67.2%
Total Assets

$1.34B

Previous: $1.33B+0.4%
Stock-Based Comp

$2.18M

Previous: $3.51M-37.8%

Revenue & EPS history

Enova · Revenue · Quarterly

$345M

Q4 2019+10.4%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Enova · $203M total across 1 segment · Q3 2020

  • Company owned revenue
    $203M-21.5%

Forward guidance

For Q1 2020, Enova expects total revenue of $328 million to $348 million, adjusted EBITDA of $85 million to $105 million, diluted EPS of $1.27 to $1.71, and adjusted EPS of $1.35 to $1.78. For full year 2020, Enova expects total revenue of $1.418 billion to $1.488 billion, adjusted EBITDA of $305 million to $365 million, diluted EPS of $4.21 to $5.50, and adjusted EPS of $4.53 to $5.82.

Tailwinds

  • Stable credit trends.
  • Continued recent domestic receivables growth trends.
  • Faster relative growth in consumer and small business installment, RPA and line of credit products.
  • Accelerated growth in the mix of new customers in originations.
  • Recent trends in operating leverage and funding cost to continue.

Headwinds

  • Assumes no significant impacts to businesses from new regulatory changes.
  • Net revenue margin is influenced by ongoing portfolio credit performance and expectations.
  • Net revenue margin is influenced by the mix of new versus returning customers in originations.
  • Net revenue margin is influenced by the mix of loans and financing in originations.
  • Net revenue margin is influenced by the level of customer prepayments and any changes to discount rates.

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 2019

Historical avgQ4 2019

+2.6%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+4.9%

Avg return

30 days after

59%

30 / 51 earnings

Positive

+30.7%

Q1 2018

Best reaction

-20.9%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.6%-0.5%-7.0%
Q4 2025+0.3%+9.3%-11.8%
Q3 2025+10.1%+6.4%+8.9%
Q2 2025-2.8%-2.2%+4.6%
Q1 2025-7.8%-6.0%-6.9%
Q4 2024+1.6%+0.7%-19.0%
Q3 2024+2.3%-0.7%+18.4%
Q2 2024+5.5%+11.3%+12.1%
Q1 2024+3.8%+3.3%-3.7%
Q4 2023-7.7%-8.5%+7.2%
Q3 2023-20.9%-12.9%-11.4%
Q2 2023-1.2%-3.7%-11.0%
Q1 2023-14.3%-9.6%-4.6%
Q4 2022+14.9%+13.1%+10.8%
Q3 2022+15.9%+18.8%+23.7%
Q2 2022+2.1%-1.2%+6.7%
Q1 2022-0.4%-11.6%-16.8%
Q4 2021+5.7%+17.7%-0.3%
Q3 2021+4.5%+12.7%+25.3%
Q2 2021+2.6%-0.2%+4.5%
Q1 2021-4.1%-2.2%+6.1%
Q4 2020+16.4%+20.1%+45.9%
Q3 2020-1.1%-9.4%+30.8%
Q2 2020+11.9%+17.4%+25.4%
Q1 2020+21.8%-6.9%-2.7%
Q4 2019+10.8%-13.4%-20.5%
Q3 2019+8.5%+13.6%+7.4%
Q2 2019+11.6%+20.4%+6.9%
Q1 2019+17.8%+6.6%-11.4%
Q4 2018+2.8%+2.8%+7.6%
Q3 2018+7.8%+10.5%-3.1%
Q2 2018-15.8%-17.1%-5.3%
Q1 2018+30.7%+34.5%+44.8%
Q4 2017+13.1%+9.8%+22.6%
Q3 2017+3.1%+3.8%+4.5%
Q2 2017-7.3%-11.4%-27.4%
Q1 2017-3.1%+0.7%-8.5%
Q4 2016+6.7%+2.5%-2.1%
Q3 2016+6.2%+3.4%+33.1%
Q2 2016-1.0%+0.3%+11.8%
Q1 2016-2.6%
Q4 2015-2.3%
Q3 2015-8.3%
Q2 2015-8.7%
Q1 2014-2.6%
Q1 2015+2.6%
Q2 2014+5.7%
Q4 2012+5.7%
Q4 2014+5.7%
Q3 2014-5.2%
Q4 2013-5.2%
Q3 2013
Q2 2013
Q1 2013
Q4 2011
Q3 2011
Q4 2010
Q3 2010

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