Open Lending Corporation (NASDAQ:LPRO) Q2 2023 Earnings Conference Call August 9, 2023 5:00 PM ET

Company Participants

Keith Jezek - Chief Executive Officer and Director

Charles Jehl - Executive Vice President, Chief Financial Officer and Treasurer

Conference Call Participants

Kyle Peterson - Needham

John Davis - Raymond James

Faiza Alwy - Deutsche Bank

Joseph Vafi - Canaccord

James Faucette - Morgan Stanley

Alexander Villalobos - Jefferies

Vincent Caintic - Stephens

Operator

Good afternoon, and welcome to Open Lending's Second Quarter 2023 Earnings Conference Call. As a reminder, today's conference call is being recorded. On the call today are Keith Jezek, CEO; and Chuck Jehl, CFO.

Earlier today, the company posted its second quarter 2023 earnings release and supplemental slides to its Investor Relations website. In the release, you will find the reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed on this call.

Before we begin, I'd like to remind you that this call may contain estimated and other forward-looking statements that represent the company's view as of today, August 8, 2023, Open Lending disclaims any obligation to update these statements to reflect future events or circumstances. Please refer to today's earnings release and our filings with the SEC for more information concerning factors that could cause actual results to differ from those expressed or implied with such statements.

And now I'll pass the call over to Mr. Keith Jezek. Please, go ahead.

Keith Jezek

Well, thank you, operator, and good afternoon, everyone. Thank you for joining us today for Open Lending's second quarter 2023 earnings conference call. I am pleased to announce we exceeded the high end of our Q2 guidance range for all metrics certified loans, revenue and adjusted EBITDA. During the quarter, we certified 34,354 loans, generated total revenue of $38.2 million, and adjusted EBITDA of $20.7 million.

I would like to thank all of our team members at Open Lending who executed and delivered these positive results. Despite challenging sector and macroeconomic conditions. As we know, the auto industry continues to navigate through multiple challenges. As of June, there were 1.9 million new vehicles on dealer lots or in transit, representing a 75% increase compared to a year ago. While this is a significant year-over-year increase, these inventory levels are still well below pre-pandemic levels of approximately 4 million units.

The improved availability of supply led to an increase in the new vehicle SAAR to 15.7 million units at the end of July, up 5% sequentially since March 2023 and 15% higher than a year ago. Despite this increase, total new sales remain approximately 10% lower than pre-pandemic levels of approximately 17 million units. This improvement in new SAAR was bolstered by average transaction prices in July, declining 0.7% versus June of 2023.