Q1 2024 Katapult Holdings Inc Earnings Call Transcript
Key Points
- Katapult Holdings Inc (KPLT) reported six consecutive quarters of gross originations growth, demonstrating strong and consistent performance.
- Revenue increased by 18.1% to $65.1 million in Q1 2024, reflecting robust gross originations trends and effective collection efforts.
- Gross profit for Q1 was approximately $16.5 million, an increase of nearly 39%, with a gross margin improvement of nearly 380 basis points compared to last year.
- The introduction of Katapult Pay and strategic partnerships with major retailers like Lowe's have expanded consumer choice and engagement, enhancing the company's market position.
- The launch of a new risk-based pricing model is expected to optimize pricing strategies, potentially increasing conversion rates and customer satisfaction.
- Despite overall growth, the business with Wayfair saw a decline of about 5%, reflecting challenges in the home furnishings sector.
- Katapult Holdings Inc (KPLT) faced macroeconomic headwinds, including a slowdown in consumer traffic and purchase activity in the retail sector.
- Historical financial misstatements required a restatement of financial results for 2022, which could impact investor confidence.
- The company anticipates ongoing challenges in the home furnishings retail category, projecting only 3% to 5% gross originations growth in Q2.
- There is uncertainty regarding the impact of potential changes in prime lending standards and access to credit, which could affect the company's core consumer base.
Hello, everyone. Thank you for waiting, and welcome to Katapult Holdings, Inc. first quarter 2024 earnings call. Please note that this call is being recorded. (Operator Instructions)
I'd now like to hand over the call first to Jennifer Kull. Please go ahead.
Welcome to Katapult's first quarter 2024 conference call. On the call with me today are Orlando Zayas, Chief Executive Officer; Nancy Walsh, Chief Financial Officer; and Derek Medlin, Chief Operating Officer. For your reference, we have posted materials from today's call on the Investor Relations section of the Katapult website, which can be found at ir.katapultholdings.com.
Please keep in mind that our remarks today include forward-looking statements related to our financial guidance, our business and our operating results as noted in the slide deck posted to our website for your reference, our actual results may differ materially Forward looking statements involve risks and uncertainties, some of which are described in today's earnings
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