On August 9, 2024, Pagaya Technologies Ltd (PGY, Financial) released its 8-K filing detailing the financial results for the second quarter and the first half of 2024. Pagaya Technologies Ltd is a financial technology company that leverages machine learning, big data analytics, and AI-driven credit and analysis technology to reshape the lending marketplace. The company primarily generates its revenue from the United States.
Performance Overview
Pagaya Technologies Ltd reported record total revenue of $250 million for Q2 2024, surpassing the analyst estimate of $248 million. This represents a 28% year-over-year increase, driven by a 31% rise in revenue from fees. The company also achieved a record adjusted EBITDA of $50 million, exceeding the outlook of $40 million to $45 million. However, the net loss attributable to Pagaya shareholders was $75 million, impacted by non-cash items such as fair value adjustments and share-based compensation.
Key Financial Achievements
Pagaya Technologies Ltd's financial achievements in Q2 2024 include:
- Network volume of $2.3 billion, a 19% year-over-year increase.
- Record revenue from fees less production costs (FRLPC) of $97 million, a 49% year-over-year increase.
- Adjusted net income of $7 million, marking the fifth consecutive quarter of positive adjusted net income.
- Cash flow from operating activities of $15 million, the fourth consecutive quarter of positive operating cash flow.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue and Other Income | $250 million | $195.6 million |
| Production Costs | $145.6 million | $120.6 million |
| Operating Income | $5 million | $(10.2) million |
| Net Loss Attributable to Shareholders | $(75) million | $(31.3) million |
Balance Sheet and Cash Flow
As of June 30, 2024, Pagaya Technologies Ltd reported total assets of $1.45 billion, up from $1.21 billion at the end of 2023. The company's cash and cash equivalents stood at $233.6 million, an increase from $186.5 million. The total liabilities were $763.2 million, compared to $468.4 million at the end of 2023.
Commentary and Outlook
"We set ambitious goals for our business this year and delivered on all of them," said Gal Krubiner, co-founder and CEO of Pagaya Technologies. "We had another quarter of record financial results, expanded our network with more top lenders and enhanced our funding capacity. Our business has strong momentum as we continue to execute on our strategy in the second half."
Future Outlook
For the third quarter of 2024, Pagaya Technologies Ltd expects network volume to be between $2.3 billion and $2.5 billion, with total revenue and other income projected to be between $250 million and $260 million. Adjusted EBITDA is expected to range from $50 million to $60 million. For the full year 2024, the company anticipates network volume between $9.25 billion and $10.25 billion, total revenue and other income between $975 million and $1.05 billion, and adjusted EBITDA between $180 million and $210 million.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Pagaya Technologies Ltd for further details.
