OppFi, Inc. (NYSE:OPFI) Q2 2024 Earnings Conference Call August 7, 2024 9:00 AM ET

Company Participants

Shaun Smolarz - Head of Investor Relations
Todd Schwartz - Chief Executive Officer and Executive Chairman, Director
Pamela Johnson - Chief Financial Officer

Conference Call Participants

Dave Storms - Stonegate Capital Partners

[Starts Abruptly]

Shaun Smolarz

Thank you, operator. Good morning. On today's call are Todd Schwartz, Chief Executive Officer and Executive Chairman; and Pam Johnson, Chief Financial Officer. Our Q2 2024 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 statement, 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 United States 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 most comparable GAAP measures can be found in the earnings press release issued earlier this morning. 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 morning, everyone. We're excited to report record second quarter profitability and revenue, which substantially exceeded our expectations and enabled us to raise full-year earnings guidance by more than 20%. The strong profitability in the quarter was a result of operational and credit initiatives that drove strong loss payment and recovery performance as well as improved operating achievement on key metrics and net profit margin.

We're also proud that we have successfully executed many other strategic initiatives that we previously outlined during the past several quarters. We've realized more operational efficiencies that continue to strengthen the core business and increase profitability. We've also returned value to stockholders through a special dividend and share repurchases.

In addition, we strengthened the balance sheet by paying down debt and generating solid free cash flow. And we've identified adjacent verticals to expand our reach in facilitating credit access, including closing our first investment in Bitty Advance last week.