OppFi Inc. (NYSE:OPFI) Q3 2022 Earnings Conference Call November 9, 2022 5:00 PM ET

Company Participants

Shaun Smolarz – Head-Investor Relations

Todd Schwartz – Chief Executive Officer and Executive Chairman

Pam Johnson – Chief Financial Officer

Conference Call Participants

David Scharf – JMP Securities

Operator

Good afternoon and welcome to OppFi's Third Quarter 2022 Earnings Call. All participants are in a listen-only mode. As a reminder, this conference call is being recorded. After management's presentation there will be a question-and-answer session.

It is now my pleasure to introduce your host, Shaun Smolarz, Head of Investor Relations. You may begin.

Shaun Smolarz

Thank you, operator. Good afternoon. On today's call are Todd Schwartz, Chief Executive Officer and Executive Chairman; and Pam Johnson, Chief Financial Officer.

Our third quarter 2022 earnings press release and supplemental presentation can be found at investors.oppfi.com.

During this call, OppFi will discuss certain forward-looking information. These forward-looking statements are based on assumptions and assessments made by OppFi's management in light of their experience and assessment of historical trends, current conditions, expected future developments and other factors they believe to be appropriate.

Any forward-looking statements made during this call are made as of today, and OppFi undertakes no duty to update or revise any such statements, whether as a result of new information, future events, or otherwise. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the company's filings with the Securities and Exchange Commission, including the sections entitled Risk Factors.

In today's remarks by management, the company will discuss certain non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in the earnings press release issued earlier this afternoon. This call is being webcast live and will be available for replay on our website.

I would now like to turn the call over to Todd.

Todd Schwartz

Thanks, Shaun. And good afternoon everyone. Pam will review our third quarter results and provide additional details about our financial performance and balance sheet. Before she does so I will cover four topics. One, the key highlights of our third quarter performance. Two, an update on the key initiatives discussed on our second quarter call. Three, are macroeconomic outlook as well as quarter-to-date business trends. And four, our early view of 2023.

Our third quarter performance was in line with our expectations and we're pleased by these results given the challenging overall economic environment. The key highlights year-over-year are: net originations increased by 11% to $183 million; ending receivables grew by 39% to $408 million; total revenue expanded by 35% to $124 million; marketing costs per new funded loan decreased by 26% to $188. Operating expenses, excluding interest expense, as well as add backs, and one-time items decreased to $43.1 million or 34.7% of total revenue from $44.2 million or 48.1% of total revenue in the prior year period.