Q2 2024 Enova International Inc Earnings Call Transcript
Key Points
- Enova International Inc (ENVA) reported a 27% year-over-year increase in originations, reaching $1.4 billion.
- Combined loan and finance receivables grew 25% year over year to a record $3.6 billion.
- Revenue increased 26% year over year to $628 million, driven by strong demand and solid credit performance.
- Adjusted EBITDA rose 29% year over year to $163 million, and adjusted EPS increased 28% year over year to $2.21.
- The company ended Q2 with nearly $900 million in total liquidity, providing significant financial flexibility.
- Net charge-offs as a percentage of average combined loan and finance receivables were 7.7%, indicating some level of credit risk.
- Marketing expenses increased to $121 million, representing 19% of revenue, which could impact profitability if not managed efficiently.
- Operations and technology expenses rose to $55 million, driven by growth in receivables and originations, potentially affecting margins.
- General and administrative expenses increased to $40 million, reflecting higher operational costs.
- Interest expense as a percentage of revenue is expected to remain in the 10.5% to 11% range for the full year 2024, which could pressure net income.
Good day and welcome to the Enova International second quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Ms. Lindsay Savarese, Investor Relations for Enova. Please go ahead, ma'am.
Thank you, operator, and good afternoon, everyone. Enova released results for the second quarter 2024 ended June 30, 2024, this afternoon after market close. If you did not receive a copy of our earnings press release, you may obtain it from the Investor Relations section of our website at ir.enova.com.
With me on today's call are David Fisher, Chief Executive Officer, and Steve Cunningham, Chief Financial Officer. This call is being webcast and will be archived on the Investor Relations section of our website.
Before I turn the call over to David, I'd like to note that today's discussion we'll contain forward-looking statements and as such is subject to risks and uncertainties. Actual results may differ materially as
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