Upbound Group, Inc. (NASDAQ:UPBD) Q1 2023 Results Conference Call May 4, 2023 9:00 AM ET

Company Participants

Brendon Metrano - Vice President, Investor Relations

Mitch Fadel - Chief Executive Officer

Fahmi Karam - Chief Financial Officer

Conference Call Participants

Bobby Griffin - Raymond James

Jason Haas - Bank of America

Vincent Caintic - Stephens

Alex Fuhrman - Craig-Hallum Capital Group

Brad Thomas - KeyBanc Capital Market

Operator

Good day and thank you for standing by. Welcome to the Upbound Group Q1 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand it over to the conference to your speaker today, Brendon Metrano, Vice President of Investor Relations. Please go ahead.

Brendon Metrano

Good morning and thank you all for joining us to discuss the Company's performance for the first quarter of 2023. We issued our earnings release before the market opened today, and the release in all related materials, including a link to the live webcast are available on our website at investor.upbound.com. On the call today from Upbound Group we have Mitch Fadel, our CEO; and Fahmi Karam, our CFO.

As a reminder, some of the statements provided on this call are forward-looking and are subject to factors that could cause actual results to differ materially from our expectations. These factors are described in our earnings release as well as in the Company’s SEC filings. Upbound Group undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.

This call will also include references to non-GAAP financial measures, and our discussion of comparable year over year performance will generally refer to those non-GAAP results. Please refer to our first quarter earnings release, which can be found on our website for a description of the non-GAAP financial measures and the reconciliations to the most comparable GAAP financial measures.

With that, I will turn the call over to Mitch.

Mitch Fadel

Thank you, Brendan. Good morning everyone, and thank you for joining the call today. Our first quarter was a promising start to the year with revenue of just over a billion dollars, adjusted EBITDA of $112 million and adjusted EPS of $0.83. Top line trends were generally in line with our expectations. Gross margins improved due to fewer early payouts in the quarter, and coupled with lower expenses, we drove a 13% year over year growth in adjusted earnings per share.