Q2 2024 Open Lending Corp Earnings Call Transcript
Key Points
- Open Lending Corp (LPRO) reported near or above the high end of their guidance range for certified loans, revenue, and adjusted EBITDA, excluding a negative change in estimate associated with their profit share.
- The company certified nearly 29,000 loans in Q2 2024, representing approximately 3% sequential growth compared to Q1 2024.
- Open Lending Corp (LPRO) has taken actions to tighten underwriting standards, resulting in a decrease in 60-plus day delinquency rates from over 2% in mid-2022 to a range of 1% to 1.5% currently.
- The company signed 13 new credit union customers in Q2 2024, including four larger customers with almost $7 billion in combined total assets.
- Open Lending Corp (LPRO) added Securian Financial Group as an insurance partner, expanding their premium capacity in anticipation of growth.
- The company's results were negatively impacted by a $6.7 million profit share change in estimate due to elevated delinquencies and defaults from 2021 and 2022 vintages.
- Total revenue for Q2 2024 was $26.7 million, a decrease from $38.2 million in Q2 2023.
- Operating income for Q2 2024 was $4 million, down from $15.7 million in Q2 2023.
- Net income for Q2 2024 was $2.9 million, compared to $11.4 million in Q2 2023.
- The company faces challenges from elevated interest rates and affordability issues, impacting consumer demand and lending capacity.
Good afternoon and welcome to Open Lending's second-quarter 2024 earnings conference call. (Operator Instructions) On the call today are Chuck Jehl, Chief Financial Officer, Chief Operating Officer, and Interim Chief Executive Officer; and Cecilia Camarillo, Chief Accounting Officer.
Earlier today, the company posted its second quarter 2024 earnings release and supplemental slides to its Investor Relations website. In the release, you will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed on this call.
Before we begin, I would like to remind you that this call may contain estimated and other forward-looking statements that represent the company's view as of today, August 8, 2024. Open Lending disclaims any obligation to update these statements to reflect future events or circumstances. Please refer to today's earnings release and our filings with the SEC for more information concerning factors that could cause actual results to differ from those expressed or implied with such statements.
And now, I will pass the call
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