Open Lending Corporation (NASDAQ:LPRO) Q4 2023 Earnings Conference Call February 27, 2024 5:00 PM ET
Company Participants
Keith Jezek - CEO
Chuck Jehl - CFO
Conference Call Participants
Peter Heckmann - D.A. Davidson
David Scharf - JMP Securities
Kyle Peterson - Needham & Company
John Hecht - Jefferies
Operator
Good afternoon, and welcome to Open Lending's Fourth Quarter and Full Year 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 fourth quarter and full year 2023 earnings release and supplemental slides to its Investor Relations website. In the release, you will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed on this call.
Before we begin, I would like to remind you, that this call may contain estimated and other forward-looking statements that represent the Company's views as of today, February 27, 2024. 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
Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Open Lending's fourth quarter and full year 2023 earnings conference call.
I am pleased to report that excluding a negative change in estimate associated with our profit share, we exceeded the high end of our guidance range for certified loans and revenues in the fourth quarter. I am proud of our team and would like to thank each of our team members for delivering these results.
For the full year 2023, we certified nearly 123,000 loans and delivered total revenue of $117.5 million, adjusted EBITDA of $50.2 million, and generated $75.5 million in cash before repurchasing $37.3 million in our common stock.
As I reflect on 2023, the automotive lending environment, which directly impacts Open Lending, faced constrained inventory levels, the highest Fed funds rate in over 20 years, a high consumer affordability index, which represents the weeks of income needed to purchase a vehicle, and worsening credit availability and credit performance metrics. Additionally, credit unions experienced decades low share growth and the highest loan to share ratio since prior to the pandemic. Against this market backdrop, we continue to improve our product and technology, further refine our go-to-market strategy, and invest in key talent to position us well for growth as industry conditions improve.