Q3 2024 Enova International Inc Earnings Call Transcript
Key Points
- Enova International Inc (ENVA) reported record originations and revenue, with a 28% year-over-year increase in originations to $1.6 billion.
- The company achieved over $1 billion in small business loan originations for the first time, marking a 33% year-over-year increase.
- Revenue grew by 25% year over year to $690 million, with adjusted EBITDA increasing by 42% and adjusted EPS by 63%.
- Credit quality remains strong, with net charge-offs as a percentage of average combined loan and finance receivables decreasing to 8.4% from 9.4% a year ago.
- Enova International Inc (ENVA) has a solid balance sheet with $1.2 billion in liquidity, supporting a new $300 million share repurchase program.
- Despite strong financial performance, Enova International Inc (ENVA) perceives a disconnect between its valuation and its results, with a PE ratio of only 8.2 times on 2025 estimates.
- The company faces a competitive environment, although it currently holds a strong market position.
- Consumer delinquencies have increased sequentially, reflecting a mix shift in the portfolio.
- The cost of funds increased to 9.6% in the third quarter, although future reductions in market rates are expected to benefit profitability.
- A one-time non-cash impairment charge of $17 million was recorded related to the write-off of interest in a company associated with OnDeck's legacy platform.
Good day and welcome to the Enova International third-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Cassidy Fuller, Investor Relations. Please go ahead. Thank you
Thank you, operator, and good afternoon, everyone. Enova released results for the third-quarter 2024 ended September 30, 2024, this afternoon after the market closed. 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 will contain forward-looking statements and as such, is subject to risks and uncertainties. Actual results may
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