Enova International Inc (ENVA) 2023 Q3 法說會逐字稿

Hello, and welcome to the Enova Third Quarter 2023 Conference Call.

您好，歡迎參加 Enova 2023 年第三季電話會議。

(Operator Instructions)

（操作員說明）

Please note, this event is being recorded. I would now like to turn the conference over to Lindsay Savarese, Investor Relations for Enova. Please go ahead.

請注意，此事件正在被記錄。我現在想將會議交給 Enova 投資者關係部門的 Lindsay Savarese。請繼續。

Thank you, operator, and good afternoon, everyone. Enova released results for the third quarter of 2023 ended September 30, 2023, 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.

謝謝接線員，大家下午好。今天下午收盤後，Enova 發布了截至 2023 年 9 月 30 日的 2023 年第三季業績。如果您沒有收到我們的收益新聞稿副本，您可以從我們網站 ir.enova.com 的投資者關係部分取得。

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.

與我一起參加今天電話會議的是執行長 David Fisher；和財務長史蒂夫坎寧安。此次電話會議正在網路上直播，並將存檔在我們網站的投資者關係部分。

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 differ materially as a result from various important risk factors, including those discussed in our earnings press release and in our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

在我將電話轉給大衛之前，我想指出，今天的討論將包含前瞻性陳述，因此存在風險和不確定性。由於各種重要風險因素的影響，實際結果可能存在重大差異，包括我們的收益新聞稿和 10-K 表年度報告、10-Q 表季度報告和 8-K 表當前報告中討論的風險因素。

Please note that any forward-looking statements that are made on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events.

請注意，本次電話會議中所做的任何前瞻性陳述均基於截至目前的假設，我們不承擔因新資訊或未來事件而更新這些陳述的義務。

In addition to U.S. GAAP reporting, Enova reports certain financial measures that do not conform to generally accepted accounting principles. We believe these non-GAAP measures enhance the understanding of our performance. Reconciliations between these GAAP and non-GAAP measures are included in the tables found in today's press release. As noted in our earnings release, we have posted supplemental financial information on the IR portion of our website.

除了美國公認會計準則報告外，Enova 還報告了某些不符合公認會計原則的財務指標。我們相信這些非公認會計原則衡量標準可以增強對我們績效的了解。這些 GAAP 和非 GAAP 指標之間的調整包含在今天新聞稿中的表格中。正如我們的收益發布中所指出的，我們已在網站的投資者關係部分發布了補充財務資訊。

And with that, I'd like to turn the call over to David.

說到這裡，我想把電話轉給大衛。

Thanks, and good afternoon, everyone. I appreciate you joining our call today.

謝謝，大家下午好。感謝您今天加入我們的電話會議。

I'll begin with an overview of our third quarter results, and then I'll discuss our strategy going forward. After that, I'll turn the call over to Steve Cunningham, our CFO, who will discuss our financial results and outlook in more detail.

我將首先概述我們第三季的業績，然後討論我們的未來策略。之後，我將電話轉給我們的財務長 Steve Cunningham，他將更詳細地討論我們的財務表現和前景。

We are pleased to have produced another strong quarter with record originations and revenue driven by solid demand and stable credit. The scopeful execution of our team, combined with our world-class machine learning analytics and technology has allowed us to continue to do well in the current macroeconomic environment. While there's a lot of uncertainty in the economy today, both internal and external data lead us to believe that both our consumer and small business customers are navigating it well.

我們很高興在強勁的需求和穩定的信貸的推動下，又創造了一個強勁的季度，創紀錄的起源和收入。我們團隊的廣泛執行力，加上我們世界一流的機器學習分析和技術，使我們能夠在當前的宏觀經濟環境中繼續表現出色。儘管當今的經濟存在著許多不確定性，但內部和外部數據都讓我們相信，我們的消費者和小型企業客戶都在順利應對。

Inflation continues to moderate, while the labor market and wage growth continue to be very strong. And while prime and super prime borrowers are facing higher interest expense due to the increase in the Fed funds rate, we have not raised our pricing. As a result, we generated more than $1 billion in originations for the eighth straight quarter driven by growth in both our consumer and small business products, even as we balance growth and credit during this uncertain economic environment. Originations grew 13% sequentially to over $1.2 billion as we were moderately more aggressive with originations during the third quarter especially in our consumer businesses where Q3 consumer originations were up 19% sequentially.

通貨膨脹持續溫和，而勞動力市場和工資成長持續強勁。儘管優質和超級優質借款人因聯邦基金利率上升而面臨更高的利息支出，但我們尚未提高定價。因此，在消費者和小型企業產品成長的推動下，我們連續第八個季度創造了超過 10 億美元的創收，儘管我們在這種不確定的經濟環境中平衡了成長和信貸。起源環比增長 13%，超過 12 億美元，因為我們在第三季度對起源更加積極，特別是在我們的消費者業務中，第三季度消費者起源環比增長了 19%。

We also generated strong revenue growth with revenue of $551 million equating to 21% year-over-year and 10% sequential growth. Adjusted EBITDA increased 5% year-over-year but was down 5% sequentially and adjusted EPS was down 14% year-over-year and 13% sequentially, lagging our expectations for the quarter. There were 2 primary drivers underlying the lower-than-expected EPS in Q3.

我們的營收也實現了強勁成長，營收達到 5.51 億美元，年增 21%，季增 10%。調整後 EBITDA 年成長 5%，但季減 5%，調整後每股盈餘較去年同期下降 14%，季減 13%，低於我們對本季的預期。第三季每股收益低於預期有兩個主要驅動因素。

First, as I mentioned, we continue to lean into the solid demand and good credit metrics with increased marketing spend. And our marketing activities continue to be efficient with marketing at 21% of revenue compared to 22% of revenue in Q3 of last year. While marketing as a percentage of revenue declined year-over-year, it was slightly elevated compared to our expectations. Given the stronger-than-anticipated consumer demand we were seeing during Q3, we made the decision to increase our marketing spend to capture this demand at attractive unit economics.

首先，正如我所提到的，隨著行銷支出的增加，我們繼續依靠穩定的需求和良好的信用指標。我們的行銷活動持續高效，行銷佔營收的 21%，而去年第三季佔營收的 22%。雖然行銷佔收入的百分比年減，但與我們的預期相比略有上升。鑑於我們在第三季度看到的消費者需求強於預期，我們決定增加行銷支出，以有吸引力的單位經濟效益來抓住這一需求。

Marketing spend is one of the levers we use intra-quarter, and we do so on a daily and weekly basis. As is evident from the strong origination growth we generated in the quarter, this was largely successful. However, much of the origination growth came late in the quarter, resulting us incurring the additional marketing expense, but not generating much incremental revenue in the period to offset. However, these additional loans should drive additional revenue and income over the next few quarters.

行銷支出是我們在季度內使用的槓桿之一，我們每天和每週都會這樣做。從我們在本季度實現的強勁的發起成長中可以明顯看出，這在很大程度上是成功的。然而，大部分原創成長出現在本季末，導致我們產生了額外的行銷費用，但在此期間沒有產生太多增量收入來抵消。然而，這些額外的貸款應該會在未來幾季帶來額外的收入和收入。

The second driver of the lower-than-expected profitability in Q3 was continued credit normalization in our SMB portfolio. Let me be clear, credit performance in that portfolio as a whole remains good. However, as I mentioned, in each of the last 2 quarters, we did see slightly higher-than-expected default and vintages from the second half of 2022.

第三季獲利能力低於預期的第二個驅動因素是我們的中小企業投資組合的信貸持續正常化。讓我澄清一下，整個投資組合的信用表現仍然良好。然而，正如我所提到的，在過去兩個季度中，我們確實看到 2022 年下半年的違約率和年份略高於預期。

As you would expect, our underwriting models adjusted based on this data and vintages since January of this year are back in line with our expectations. But since there is a 9- to 12-month emergence period for charge-offs in our small business products, charge-offs from those second half 2022 vintages were at their peak in Q3 of this year. We expected this and included in our forecast, but we're just off a bit in the timing as we thought a bit more would come in early Q4 and not late Q3.

正如您所期望的那樣，我們的核保模型根據今年 1 月以來的數據和年份進行了調整，恢復了我們的預期。但由於我們的小型企業產品有 9 至 12 個月的沖銷出現期，2022 年下半年年份的沖銷在今年第三季達到了頂峰。我們預料到了這一點，並將其納入我們的預測中，但我們在時間上稍有偏差，因為我們認為第四季度初而不是第三季度末會出現更多情況。

The upside of this is that we now expect lower SMB charge-offs in Q4, particularly given that early stage delinquencies and vintages in this portfolio this year are well below those we saw in the late 2022 vintages. I also think that it's important to point out that while charge-offs from those 2022 SMB vintages were higher than our expectations. Those vintages still generated solid ROEs above our cost of capital.

這樣做的好處是，我們現在預計第四季度的中小企業沖銷將會減少，特別是考慮到今年該投資組合的早期拖欠和年份遠低於我們在 2022 年末年份看到的情況。我還認為必須指出的是，雖然 2022 年 SMB 年份的沖銷額高於我們的預期。這些年份仍然產生了高於我們資本成本的穩定股本回報率。

So to be clear, Enova overall is in great shape, and we're feeling good about Q4 and next year. Our strong growth and solid credit metrics position us well for future success. We just misforecasted these 2 items this quarter. We've been very consistent with our forecasting, guidance and results over the last several years and we believe this quarter will prove to be an aberration.

需要明確說明的是，Enova 整體狀況良好，我們對第四季和明年感覺良好。我們強勁的成長和可靠的信用指標為我們未來的成功奠定了良好的基礎。我們只是錯誤地預測了本季的這兩項。我們與過去幾年的預測、指導和結果非常一致，我們相信本季將被證明是一種異常。

In addition, we continue to demonstrate the importance of having a diversified portfolio. As we discussed in the past, this diversification enables us to lean into products with the strongest unit economics and that's further resiliency to our balanced approach to growth.

此外，我們也持續證明擁有多元化投資組合的重要性。正如我們過去所討論的，這種多元化使我們能夠專注於具有最強單位經濟效益的產品，這進一步增強了我們平衡成長方式的彈性。

In the third quarter, our small business products represented 61% of our total portfolio and consumer was 39%, roughly in line with Q3 of last year. Outside of our core products, we are now producing very strong growth in Brazil after a few years of adapting to changes in the banking regulations there. In Q3, we generated record originations, which were almost 300% higher than Q3 of last year. While still a small business for us, we are excited about the potential for this business going forward.

第三季度，我們的小型企業產品占我們總投資組合的 61%，消費者產品佔 39%，與去年第三季大致相當。除了我們的核心產品之外，經過幾年適應巴西銀行法規的變化，我們現在在巴西實現了非常強勁的成長。第三季度，我們創造了創紀錄的創紀錄數量，比去年第三季高出近 300%。雖然對我們來說仍然是一家小型企業，但我們對這項業務的未來潛力感到興奮。

Before I wrap up, I'd like to spend a few moments talking about our progress and unlocking shareholder value. We've been very thoughtful about building a strong balance sheet and ended the quarter with nearly $1 billion in excess liquidity, which we believe gives us significant flexibility to accomplish this. As I mentioned on our earnings call last quarter, while we were looking at a number of possible alternatives, given the current economic environment and high interest rates, our near-term focus is to return capital to our shareholders through opportunistic stock buybacks.

在結束之前，我想花一些時間談談我們的進度並釋放股東價值。我們在建立強大的資產負債表方面一直深思熟慮，本季結束時擁有近 10 億美元的過剩流動性，我們相信這為我們實現這一目標提供了巨大的靈活性。正如我在上季度的財報電話會議上提到的，雖然我們正在考慮多種可能的替代方案，但考慮到當前的經濟環境和高利率，我們近期的重點是透過機會性股票回購將資本返還給股東。

As Steve will discuss in more detail, we are pleased to successfully complete the consent solicitation on our 2025 senior notes, which increased the amount of stock we are permitted to buyback under the terms of those notes. Following the successful consent solicitation, our Board of Directors has authorized a new $300 million share repurchase program, which is the largest in our history and equates approximately 20% of our outstanding shares at current prices.

正如史蒂夫將更詳細地討論的那樣，我們很高興成功完成 2025 年優先票據的同意徵求，這增加了我們根據這些票據的條款獲準回購的股票數量。在成功徵求同意後，我們的董事會批准了一項新的 3 億美元的股票回購計劃，這是我們歷史上最大的計劃，相當於以當前價格計算的約 20% 的已發行股票。

Overall, we believe these actions will help us on our path to close the disconnect between our business fundamentals and our current valuation. Looking ahead, we remain committed to repurchasing shares and bonds but also continue to explore additional options to further unlock shareholder value.

總的來說，我們相信這些行動將幫助我們彌合業務基本面與當前估值之間的脫節。展望未來，我們仍然致力於回購股票和債券，但也會繼續探索其他選擇以進一步釋放股東價值。

In sum, our flexible online-only business model, nimble machine learning powered credit risk management capabilities, diversified product offerings and solid balance sheet, position us well to continue to drive profitable growth, effectively manage risk and further unlock shareholder value.

總而言之，我們靈活的純線上業務模式、靈活的機器學習驅動的信用風險管理能力、多元化的產品供應和穩健的資產負債表，使我們能夠繼續推動盈利增長、有效管理風險並進一步釋放股東價值。

With that, I would like to turn the call over to Steve, who will discuss our financial results and outlook in more detail. And following Steve's remarks, we'll be happy to answer any questions you may have. Steve?

說到這裡，我想將電話轉給史蒂夫，他將更詳細地討論我們的財務表現和前景。在史蒂夫的演講之後，我們將很樂意回答您可能提出的任何問題。史蒂夫？

Thank you, David, and good afternoon, everyone. We delivered another solid quarter of financial results, driven by record levels of quarterly originations and revenue. Our diversified product offerings, machine learning risk management algorithms, our strong balance sheet continue to allow us to nimbly lean into market opportunities to drive growth with strong unit economics while maintaining solid profit margins.

謝謝大衛，大家下午好。在季度創紀錄水準的推動下，我們又實現了穩健的季度財務表現。我們多樣化的產品、機器學習風險管理演算法和強大的資產負債表繼續使我們能夠靈活地抓住市場機會，以強勁的單位經濟效益推動成長，同時保持穩健的利潤率。

Turning to our third quarter results. Total company revenue increased 21% in the third quarter of 2022 to a record $551 million. The year-over-year increase in revenue was driven by the growth of total company combined loan and finance receivables balances, which on an amortized basis increased 15% from the end of the third quarter of 2022 to $3.1 billion at September 30. Total company originations this quarter rose to a record $1.3 billion. Small business revenue increased 13% from the third quarter of 2022 to $195 million as small business receivables on an amortized basis ended the quarter at $1.9 billion or 17% higher than the end of the third quarter of last year as small business originations totaled $783 million.

轉向我們第三季的業績。 2022 年第三季度，公司總營收成長 21%，達到創紀錄的 5.51 億美元。營收年增率是由公司貸款和金融應收帳款餘額總額增長推動的，截至 9 月 30 日，按攤銷基礎計算，該餘額較 2022 年第三季末增長 15%，達到 31 億美元。本季度的發起額增至創紀錄的13 億美元。小型企業營收較2022 年第三季成長13%，達1.95 億美元，本季末小型企業應收帳款攤銷額為19 億美元，比去年第三季末成長17%，小型企業起源總額為7.83 億美元。

Revenue from our consumer businesses increased 26% in the third quarter of 2022 to $348 million. Consumer receivables on an amortized basis ended the third quarter at $1.2 billion or 14% higher than the end of the third quarter of 2022. As David mentioned last quarter, with the consumer demand and credit performance [we're seeing], especially in our line of credit products, we continue to be moderately more aggressive with consumer originations this quarter, which grew 19% sequentially and 21% from the third quarter of 2022 to $479 million. Consumer line of credit products comprised 74% of total quarter consumer originations and grew 21% sequentially and 82% from the third quarter of 2022.

2022 年第三季度，我們的消費者業務收入成長 26%，達到 3.48 億美元。第三季末以攤銷計算的消費者應收帳款為12 億美元，比2022 年第三季末高出14%。正如David 上季所提到的，隨著消費者需求和信貸表現（我們看到），特別是在我們的在信貸產品方面，本季我們繼續適度加大消費者發起力度，消費者發起額環比增長 19%，較 2022 年第三季度增長 21%，達到 4.79 億美元。消費者信貸產品佔季度消費者發起總額的 74%，較上季成長 21%，較 2022 年第三季成長 82%。

Looking ahead to the fourth quarter, we expect total company revenue to grow between 5% and 7% sequentially, resulting in revenue growth for the full year of 2023 compared to 2022 in excess of 20%. This expectation will depend upon the level, timing and mix of originations growth during the quarter.

展望第四季度，我們預期公司總營收將較上季成長5%至7%，進而導致2023年全年營收較2022年成長超過20%。這一預期將取決於本季發起成長的水平、時間和組合。

Now turning to credit, which is the most significant driver of net revenue and portfolio fair value. Credit remained solid in the quarter, resulting in a consolidated net revenue margin of 58% in the third quarter, which was generally in line with our expectations of around 60%. In addition, expectations for lifetime credit losses, which are reflected by changes in fair value premiums for our portfolios, remains stable for the consumer portfolio and improved slightly for the small business portfolio, resulting in a 2 percentage point increase in our consolidated company fair value ratio to 114%.

現在轉向信貸，這是淨收入和投資組合公允價值的最重要驅動因素。本季信貸維持穩健，導致第三季綜合淨收入利潤率為 58%，整體符合我們 60% 左右的預期。此外，消費者投資組合的終身信用損失預期（透過我們投資組合公允價值溢價的變化反映出來）保持穩定，小型企業投資組合略有改善，導致我們的綜合公司公允價值增加了 2 個百分點比例達到114%。

As we've discussed in previous quarters, quarter-to-quarter net charge-off rates, delinquency rates and net revenue margins for our portfolios are heavily influenced by the seasoning of origination vintages along their expected loss curves.

正如我們在前幾個季度所討論的，我們投資組合的季度淨沖銷率、拖欠率和淨收入利潤率在很大程度上受到原始年份沿預期損失曲線的變化的影響。

As a result, these metrics may temporarily fall above or below typical ranges as we've seen for both our consumer and small business portfolios over the past year. It will be influenced by sequential changes in the growth and mix of originations arising from our typical origination seasonality as well as our balanced approach to growth in this macro environment. Total company ratio of net charge-offs as a percentage of average combined loan and finance receivables for the third quarter was 9.4% compared to 7.6% last quarter and 8.4% in the third quarter of 2022.

因此，這些指標可能會暫時高於或低於典型範圍，正如我們在過去一年中針對消費者和小型企業投資組合所看到的那樣。它將受到我們典型的起源季節性以及我們在這一宏觀環境下平衡增長方法所產生的增長和起源組合的連續變化的影響。第三季公司淨沖銷佔平均貸款和融資應收帳款總額的百分比為 9.4%，而上一季為 7.6%，2022 年第三季為 8.4%。

The net charge-off ratio for the consumer portfolio increased sequentially, settling at more typical levels from the low and unsustainable levels last quarter and was below the rate for the third quarter of 2022. Sequential and year-over-year changes in the net charge-off ratio for the small business portfolio were driven by the continued seasoning of that portfolio over the past year, as David discussed in his remarks.

消費者投資組合的淨沖銷率環比上升，從上個季度的低位和不可持續水平穩定在更典型的水平，並且低於 2022 年第三季度的比率。淨沖銷的連續和同比變化正如大衛在講話中所討論的那樣，小型企業投資組合的關閉比率是由過去一年中該投資組合的持續老化所驅動的。

Importantly, the consolidated portfolio delinquency rate at September 30 was relatively stable, reflecting a continued solid outlook of future credit performance. The percentage of total portfolio receivables past due 30 days or more was 7.9% at September 30 compared to 7.7% at June 30 driven by an increase in consumer delinquencies to more typical levels, offset by a decline in small business delinquencies.

重要的是，截至 9 月 30 日的綜合投資組合拖欠率相對穩定，反映出未來信貸表現的持續穩健前景。截至9 月30 日，逾期30 天或以上的應收帳款總額佔組合應收款的百分比為7.9%，而6 月30 日為7.7%，這是由於消費者拖欠率增加至更典型的水平，但被小企業拖欠率下降所抵銷。

Looking ahead, as recent vintages season along their expected loss curves and small business net charge-offs move lower, we expect the total company net revenue margin for the fourth quarter of 2023 to be between 55% and 58%. Future net revenue margin expectation will depend upon portfolio payment performance and the level of timing and mix of originations growth.

展望未來，隨著最近年份的預期損失曲線和小型企業淨沖銷走低，我們預計 2023 年第四季公司總淨收入利潤率將在 55% 至 58% 之間。未來的淨收入利潤率預期將取決於投資組合支付績效以及起源成長的時機和組合水準。

Now turning to expenses. Third quarter operating costs were driven by efficient marketing activity, supporting our strong sequential growth, the continued leverage inherent in our online-only model and thoughtful expense management. Total operating expenses for the third quarter, including marketing, were $206 million or 37% of revenue compared to $184 million or 40% of revenue in the third quarter of 2022. As David noted, third quarter marketing spend remained efficient, is in the higher end of our expected range and drove an acceleration in originations, especially later in the quarter.

現在轉向開支。第三季的營運成本是由高效的行銷活動推動的，支持了我們強勁的連續成長、我們純線上模式固有的持續槓桿作用以及深思熟慮的費用管理。第三季的總營運費用（包括行銷費用）為2.06 億美元，佔營收的37%，而2022 年第三季的營運費用為1.84 億美元，佔營收的40%。正如David 指出的，第三季度的營銷支出仍然高效，處於較高水平。超出了我們預期範圍的末端，並推動了啟動的加速，尤其是在本季度末。

Marketing costs increased to $117 million or 21% of revenue compared to $101 million or 22% of revenue in the third quarter of 2022. We expect marketing expenses as a percentage of revenue to range in the low 20% for the fourth quarter, but will depend upon the growth and mix of originations. Operations and technology expenses for the third quarter increased to $52 million or 9% of revenue compared to $46 million or 10% of revenue in the third quarter of 2022 driven by growth in receivables and originations over the past year.

行銷成本增加至 1.17 億美元，佔營收的 21%，而 2022 年第三季為 1.01 億美元，佔營收的 22%。我們預計第四季行銷費用佔營收的百分比將在 20% 左右，但取決於起源的增長和混合。由於去年應收帳款和來源的成長，第三季的營運和技術費用增加至5,200 萬美元，佔收入的9%，而2022 年第三季的營運和技術費用為4,600 萬美元，佔收入的10%。

Given the significant variable component of this expense category, sequential increases in O&T costs should be expected in an environment where originations and receivables are growing. It should be around 9% of total revenue. Our fixed costs continue to reflect our focus on operating efficiency and thoughtful expense management.

考慮到此費用類別的顯著可變成分，在原始資金和應收帳款不斷增長的環境中，營運與技術成本預計將連續增加。應該佔總收入的9%左右。我們的固定成本繼續反映了我們對營運效率和周到的費用管理的關注。

General and administrative expenses for the third quarter increased only slightly to $38 million or 7% of revenue and $37 million or 8% of revenue in the third quarter of 2022. While there may be slight variations from quarter-to-quarter, we expect G&A expenses as a percentage of revenue of around 7% in the fourth quarter.

2022 年第三季的一般和管理費用僅小幅增長至3,800 萬美元，佔收入的7%；2022 年第三季的一般和管理費用則小幅增長至3,700 萬美元，佔收入的8%。儘管季度與季度之間可能存在細微差異，但我們預計G&A第四季費用將佔收入的比例約為7%。

Our solid balance sheet and ample liquidity gives us the financial flexibility to successfully navigate a range of operating environments and has allowed us to deliver on our commitment to driving long-term shareholder value through continued investments in our business as well as share repurchases and open market purchases and retirement of our senior notes.

我們穩健的資產負債表和充足的流動性為我們提供了財務靈活性，能夠成功應對各種營運環境，並使我們能夠履行透過持續投資業務以及股票回購和公開市場來推動長期股東價值的承諾購買和贖回我們的優先票據。

We ended the third quarter with just under $1 billion of liquidity including $204 million of cash and marketable securities and $748 million of available capacity on facilities. The stable credit performance of our portfolio continues to allow us to attract new cost-effective funding.

截至第三季末，我們的流動資金略低於 10 億美元，其中包括 2.04 億美元的現金和有價證券以及 7.48 億美元的可用設施容量。我們投資組合的穩定信用表現繼續使我們能夠吸引新的具有成本效益的資金。

Last week, we increased the capacity of our secured corporate revolver by $75 million to $515 million with no change in terms. During the third quarter, we acquired 693,000 shares at a cost of approximately $36 million. The recent bondholder approval of our request for additional share repurchase capacity under our 2025 senior note indenture and our confidence in the continued strength of our business relative to our current valuation.

上週，我們將擔保公司左輪手槍的容量增加了 7,500 萬美元，達到 5.15 億美元，條款沒有變化。第三季度，我們以約 3,600 萬美元的成本收購了 693,000 股股票。最近債券持有人批准了我們根據 2025 年高級票據契約增加股票回購能力的請求，以及我們對我們的業務相對於當前估值的持續強勁充滿信心。

Our Board authorized a new $300 million share repurchase program that will expire at the end of 2024. The new authorization replaces our existing authorization and following the retirement of our 2024 senior notes, will allow us to create even more meaningful opportunities to drive value for our shareholders. During the quarter, we also opportunistically purchased an additional $10 million of our 2024 senior unsecured notes in the open market.

我們的董事會批准了一項新的3 億美元股票回購計劃，該計劃將於2024 年底到期。新的授權將取代我們現有的授權，並且在我們的2024 年優先票據退役後，將使我們能夠創造更有意義的機會來推動我們的價值股東。本季度，我們也趁機在公開市場上額外購買了 1,000 萬美元的 2024 年優先無擔保票據。

We had $170 million remaining of the 2024 senior notes at September 30. We'll likely retire all remaining 2024 senior notes by early 2024. Our cost of funds for the third quarter was stable sequentially at 8.3% or approximately 180 basis points higher than the third quarter of 2022, primarily due to increases in SOFR over the same time period. We expect our cost of funds to remain at a similar level in the near term, but will depend primarily upon changes in SOFR.

截至9 月30 日，我們還剩1.7 億美元的2024 年優先票據。我們可能會在2024 年初之前註銷所有剩餘的2024 年優先票據。我們第三季的資金成本連續穩定在8.3%，比去年同期高出約 180 個基點。2022 年第三季度，主要是由於同期 SOFR 增加。我們預計短期內我們的資金成本將保持在類似水平，但主要取決於 SOFR 的變化。

And finally, we continued to deliver solid profitability this quarter with an adjusted EBITDA margin of 22%. Adjusted earnings, a non-GAAP measure, was $48 million or $1.50 per diluted share compared to $57 million or $1.74 per diluted share in the third quarter of last year.

最後，本季我們持續實現穩健的獲利能力，調整後 EBITDA 利潤率為 22%。調整後收益（非公認會計準則衡量標準）為 4,800 萬美元，即稀釋後每股收益 1.50 美元，而去年第三季調整後收益為 5,700 萬美元，即稀釋後每股收益 1.74 美元。

As David mentioned earlier, our adjusted EPS was lower than expected for the quarter, largely due to our decision to lean into solid demand and good credit metrics with increased marketing during the quarter and the continued credit normalization in our small business portfolio.

正如大衛之前提到的，我們本季調整後的每股盈餘低於預期，這主要是由於我們決定依靠穩定的需求和良好的信用指標，增加本季的行銷力度，以及我們小型企業投資組合的持續信用正常化。

To wrap up, let me summarize our fourth quarter expectations. We expect revenue to grow between 5% and 7% as we continue to focus on an origination strategy that balances growth and risk against the current macro environment. This should lead to continued stable credit, resulting in a total company net revenue margin between 55% and 58%. In addition, we expect marketing expenses as a percentage of revenue to be in the low 20%, O&T costs of around 9% of revenue and G&A costs of around 7% of revenue.

最後，讓我總結一下我們第四季的預期。我們預計營收將成長 5% 至 7%，因為我們將繼續專注於在當前宏觀環境下平衡成長和風險的創始策略。這應該會帶來持續穩定的信貸，使公司總淨利潤率在 55% 至 58% 之間。此外，我們預計行銷費用佔收入的比例將在 20% 以下，O&T 成本佔收入的 9% 左右，G&A 成本佔收入的 7% 左右。

These expectations should lead to sequential adjusted EPS growth of 10% to 20% in the fourth quarter. Our fourth quarter expectations will depend upon customer payment rates and the level timing and mix of originations growth.

這些預期應導致第四季度調整後每股收益環比增長 10% 至 20%。我們第四季的預期將取決於客戶支付率以及發起成長的時間水準和組合。

Our third quarter results continued to demonstrate the ability of our team to deliver record levels of growth in revenue while maintaining solid credit and profit margins. Our strong financial position, diversified product offerings, flexible balance sheet, competitive position and new opportunity to return meaningful capital to our shareholders as is well positioned to deliver on our commitment to driving long-term shareholder value.

我們的第三季業績繼續證明我們的團隊有能力實現創紀錄的收入成長水平，同時保持穩健的信用和利潤率。我們強大的財務狀況、多元化的產品供應、靈活的資產負債表、競爭地位以及向股東返還有意義的資本的新機會，足以兌現我們推動長期股東價值的承諾。

With that, we'd be happy to take your questions. Operator?

因此，我們很樂意回答您的問題。操作員？

(Operator Instructions)

（操作員說明）

Today's first question comes from David Scharf with JMP Securities.

今天的第一個問題來自 JMP 證券的 David Scharf。

A couple of things I wanted to drill down in. First, I'm not sure if I've ever asked this before, but do credit trends in the small business asset class ever historically serve as sort of a leading indicator for consumer. I'm just thinking about if the local dry-cleaning chain is running into problems that might mean they have to lay off people 6 or 12 months later. Is there any correlation between the 2 segments in that regard?

我想深入探討一些事情。首先，我不確定我以前是否曾問過這個問題，但小型企業資產類別的信貸趨勢歷史上是否曾作為消費者的領先指標。我只是在想，當地的乾洗連鎖店是否遇到了問題，可能意味著他們必須在 6 或 12 個月後裁員。在這方面，這兩個部分之間是否存在相關性？

I mean it's not as correlated, it's not super correlated, but to the extent there is correlation, it's the other way around. So if the consumer falls on their face, small businesses are in big trouble. We saw that during COVID, but if the consumer is still spending and doing well, the small businesses tend to be a big beneficiary of that incremental spend.

我的意思是它沒有那麼相關，也不是超級相關，但就相關程度而言，情況恰恰相反。因此，如果消費者跌倒了，小企業就有大麻煩了。我們在新冠疫情期間看到了這一點，但如果消費者仍在消費且表現良好，小型企業往往會成為增量支出的一大受益者。

We've talked about this before. The consumer has like somewhat fixed spending they have to do. They got to pay their mortgage or rent, they got to pay for their car. They got to pay for their phone, their electricity, their power, the gas like those all go to big companies, the big businesses, the incremental spend, do I take the dog to get those nails (inaudible) to get groom. Do I go out to dinner one extra time, those tend to be more small business. So, yes, like I said, if anything, it's the other way around. If you see consumer really, really starting to struggle, small businesses are likely to come next.

我們之前已經討論過這個問題。消費者有一些他們必須做的固定支出。他們必須支付抵押貸款或租金，他們必須支付汽車費用。他們必須支付電話費、電費、電費、瓦斯費，就像這些都交給大公司、大企業一樣，增量支出，我要帶狗去釘那些釘子（聽不清楚）去美容嗎？我是否會多出去吃一次晚餐，這些往往都是小生意。所以，是的，就像我說的，如果有的話，那就是相反的情況。如果你看到消費者真的、真的開始陷入困境，那麼小企業可能會成為下一個受害者。

Okay. Got it. And just drilling down a little bit into the guide, and I recognize it's a lot of variables. It's hard to nail it perfectly. The net revenue outlook, it seems to be trending a little more towards kind of the lower end of that 55 to 65 normalized kind of range. It's obviously below 60 for fourth quarter. Given that it sounded like some of your expected losses in SMB were actually more front-end loaded in the third quarter. Is this just a reflection of a bigger mix of new borrowers? So can you just give a little help on kind of what's behind maybe what seems like a little bit of a reduction in the fourth quarter.

好的。知道了。只要深入研究一下指南，我就會發現其中有許多變數。想要完美地釘住它是很難的。淨收入前景似乎更傾向於 55 至 65 標準化範圍的下端。第四季明顯低於 60。鑑於聽起來您對中小型企業的一些預期損失實際上更多是在第三季度的前端負載。這是否只是新借款人數增加的反映？那麼，您能否就第四季度似乎略有減少的背後原因提供一些幫助。

Yes. I mean it's a good question. And I talked a little bit about it, just to set up in the commentary where in our portfolio then at the consolidated level, as we are navigating the seasonality that we have in some of our portfolios or just some of the balance that we've been talking about, which can exacerbate some of that seasonality from period to period.

是的。我的意思是這是一個好問題。我對此進行了一些討論，只是為了在我們的投資組合中的評論中進行闡述，然後在綜合層面上，因為我們正在應對某些投資組合中的季節性，或者只是我們已經實現的一些平衡一直在談論的，這可能會加劇不同時期的季節性。

You can see us move around in the range. That doesn't mean that credit quality is worsening. And so I will just tell you like we can land in our typical ranges for consumer and for small business. So small business we talked about should improve quarter-over-quarter.

你可以看到我們在範圍內走動。這並不意味著信用品質正在惡化。因此，我只想告訴您，我們可以進入針對消費者和小型企業的典型範圍。因此，我們談到的小型企業應該會逐季有所改善。

I would expect it to be in our typical sort of more normal 4% to 5% range and with consumer relatively stable. The seasonality that we've seen over the past couple of quarters and that we expect going into Q4 is going to be the difference. So if you take a look at the fair value of the portfolio, that's a little bit better indicator of what we're seeing in terms of the lifetime expectations after you consider the charge-offs and the remaining delinquency stocks and what we think the overall performance of the portfolio will be as it's tracking along its expected loss curve.

我預計它會在我們典型的更正常的 4% 到 5% 範圍內，消費者相對穩定。我們在過去幾個季度看到的季節性以及我們預計進入第四季度的季節性將會有所不同。因此，如果您看一下投資組合的公允價值，那麼在您考慮沖銷和剩餘拖欠股票以及我們對整體的看法之後，這可以更好地表明我們在生命週期預期方面所看到的情況。投資組合的表現將隨著其沿著預期損失曲線而變化。

Got it. Last question. I guess it's bigger picture in terms of, obviously, the elevated demand kind of leaning in to meet more of that with marketing. How do you think about -- in this environment, just given some of the uncertainties and to the extent that, at least for a lot of your consumers, unemployment can't get any better.

知道了。最後一個問題。我想這是一個更大的圖景，顯然，需求的增加傾向於透過行銷來滿足更多的需求。您如何看待——在這種環境下，考慮到一些不確定性，並且至少對於許多消費者來說，失業狀況不會有任何改善。

Do you get us -- are you worried that there's market share that you're going to lose if you don't lean in as heavily that once you lose that borrower, you don't get a second crack at him. I'm just trying to get a sense of the broader kind of macro thought process because Enova does stand out among a lot of the companies we follow just in terms of the positivity towards customer acquisition, whereas a lot are stepping back.

你是否明白我們的意思——你是否擔心，如果你不大力傾斜，一旦失去借款人，你就不會再對他進行第二次攻擊，你就會失去市場份額。我只是想了解更廣泛的宏觀思維過程，因為 Enova 確實在我們關注的許多公司中脫穎而出，只是在獲取客戶的積極性方面，而許多公司正在退縮。

Yes. Look, I mean, it's a balance. We want to get every customer we can, but we don't want to be too aggressive and either spend too much to acquire those customers or build a portfolio of bad loans. And so that's the balance that we've managed super well over the last 10 years or so. We are comfortable pulling back when we need to because the flip side is way worse. It's better to lose some customers than to find yourself with the portfolio that's not looking so good.

是的。聽著，我的意思是，這是一種平衡。我們希望獲得盡可能多的客戶，但我們不想過於激進，要么花太多錢來獲得這些客戶，要么建立不良貸款組合。這就是我們在過去十年左右的時間裡管理得非常好的平衡。當我們需要時，我們很樂意撤退，因為另一面更糟。失去一些客戶比發現自己的產品組合看起來不太好要好。

And given that the relatively short nature of especially -- well, even small business loans, both of them, the relatively short nature and especially on the consumer side where people don't -- they're not always borrowing. They're coming in and out of the market based on credit needs, onetime expenses, dislocations between their income and expenses that we have the opportunity to get those customers back over time if we miss them the first time.

鑑於特別是相對短期的性質——好吧，甚至是小型企業貸款，兩者都具有相對短期的性質，尤其是在人們不這樣做的消費者方面——他們並不總是藉貸。他們根據信貸需求、一次性支出、收入和支出之間的錯位進出市場，如果我們第一次錯過他們，我們有機會隨著時間的推移讓這些客戶回來。

So it's something we've gotten very good at over time and have learned that it's better to be a little bit more conservative than more aggressive in most market environments.

因此，隨著時間的推移，我們已經非常擅長這一點，並且了解到，在大多數市場環境中，保守一點比激進一點更好。

The next question comes from John Hecht with Jefferies.

下一個問題來自傑弗里斯的約翰·赫克特。

I mean, I just -- I guess sticking a little bit with the credit theme. Maybe can you talk about like payment rates and payment behaviors and even borrowing behaviors? And then beyond that, kind of what -- is there something like in terms of mix within the SMB category that may have influenced the kind of temporary pickup in losses and your comfort that they're going to decline into the fourth quarter?

我的意思是，我只是——我想堅持一點信用主題。也許你能談談付款率和付款行為，甚至借貸行為？除此之外，中小企業類別中是否存在類似的混合因素，可能會影響虧損的暫時回升以及您對虧損將在第四季度下降的信心？

Yes. Let me talk at a high level and Steve will probably jump in with a couple of numbers. But let me be very clear. I tried to be in my script, I'll do it again. We look at payment rates every single day, every week, every month. And these loans that charge off at a higher rate than we've seen over the last few years, are all from the back half of 2022, like almost all of them. And we can see payment rates by vintage for all the loans since then.

是的。讓我從高層次談，史蒂夫可能會跳出幾個數字。但讓我說得非常清楚。我試著在我的劇本中，我會再做一次。我們每天、每週、每月都會查看付款率。這些以比過去幾年更高的利率沖銷的貸款都來自 2022 年下半年，就像幾乎所有貸款一樣。我們可以看到自那時以來所有貸款的按年份劃分的付款率。

So all this year, and if you look at those payment curves, every vintage this year is below every vintage last year. I mean it's -- the curve looks like a giant spread-out plan, which is what you -- when you're trying to improve is exactly what you want to see. Basically, each month this year is better than the month before when you're looking in on vintage curves. So was the mix -- was it a change in product, was it a change in competition?

因此，今年全年，如果您查看這些付款曲線，您會發現今年的每個年份都低於去年的每個年份。我的意思是——曲線看起來像一個巨大的展開計劃，這正是你——當你試圖改進時所希望看到的。基本上，當你觀察復古曲線時，今年的每個月都比前一個月更好。組合也是如此——是產品的變化，還是競爭的變化？

Just we got a little bit too aggressive with our originations in the back half really 3 or 4 months of 2022, kind of late Q3 into Q4. And the loss emergence period in the small -- on the small business products is kind of 9-ish months. And we knew that, and we tried to forecast it. And again, we were just off by a little bit in terms of the timing, kind of thought the hit we took in Q3 would be more spread between Q3 and Q4, kind of September to October.

只是我們在 2022 年下半年的 3 或 4 個月（即第三季末到第四季）開始的時候有點過於激進了。小型企業產品的虧損出現期約 9 個月左右。我們知道這一點，並且我們試圖預測它。再說一遍，我們在時間上稍微有偏差，我們認為我們在第三季度受到的打擊會在第三季和第四季之間（從 9 月到 10 月）更加分散。

If we weren't a public company, it wasn't calendar, both in a calendar quarter, I wouldn't think twice about it that they came like a couple of weeks earlier versus a couple of weeks later, but it did come in Q3 instead of Q4, and that's where we ended up. But when we look at the credit performance of the loans that we've originated over the last 9 months, they look very, very good and that makes us confident about Q4 and going forward.

如果我們不是一家上市公司，就不是日曆，無論是在日曆季度，我都不會三思而後行，因為它們是提前幾週出現的，而不是幾週後出現的，但它確實出現了第三季度而不是第四季度，這就是我們的結局。但是，當我們查看過去 9 個月發放的貸款的信用表現時，它們看起來非常非常好，這讓我們對第四季度和未來充滿信心。

And the only other thing I'll add that I did say in the script also is even those loans that had higher charge-off rates than we were forecast at the time we originated them, still positive ROEs. I mean we still make money on these loans, just not as much as we would have thought we would have made. But given the loss given the default in the loans we've originated since so this year, right back, we expect to be right back at our target ROEs.

我要補充的唯一一件事是，我在腳本中確實說過，即使是那些核銷率高於我們發起時預測的貸款，淨資產收益率仍然為正。我的意思是，我們仍然可以透過這些貸款賺錢，只是沒有我們想像的那麼多。但考慮到今年以來我們發放的貸款違約造成的損失，我們預計將立即回到我們的目標股本回報率。

John, let me add a couple of things to think about as well. I mean if you look at the quarterly metrics, and I've talked about this before, you kind of have to look at those in combination with our fair values, which give a better view of the overall expectation of how we expect the portfolio to perform. So there can be some variability quarter-to-quarter. You can see our loss rate ticked up a touch above the 5% for the quarter for the reasons we talked about.

約翰，讓我也加入一些需要考慮的事情。我的意思是，如果你查看季度指標，我之前已經討論過這一點，那麼你必須將這些指標與我們的公允價值結合起來，這可以更好地了解我們對投資組合的整體預期履行。因此，季度與季度之間可能存在一些變化。您可以看到，由於我們談到的原因，本季度我們的損失率略高於 5%。

Delinquencies came down. And as we look out, the fair values of the portfolio actually ticked up a bit, which is reflecting the fact that a very large amount of the portfolio now consists of those vintages that David mentioned that are from early this year onward. So we expect that we're going to settle in at a more typical range from here as we've been adjusting. And obviously, we'll continue to adjust where we see uncertainty. But I think that's how you should think about from here how the credit quality should play out for the SMB boat.

拖欠率下降了。正如我們所看到的，投資組合的公允價值實際上有所上升，這反映出這樣一個事實：投資組合中的很大一部分現在由大衛提到的從今年年初開始的年份組成。因此，我們預計，隨著我們一直在調整，我們將穩定在一個更典型的範圍內。顯然，我們將繼續調整我們所看到的不確定性。但我認為這就是您應該從這裡考慮中小企業船的信用品質應如何發揮作用的方式。

Okay. That's very helpful. I appreciate that. And then maybe talk about kind of your big buyback, I think that -- obviously, that will be appreciated by the shareholders. Maybe do you have some sort of -- is this going to be opportunistic? Is this going to be -- do you have a kind of cadence you're thinking about or some combination thereof?

好的。這非常有幫助。我很感激。然後也許可以談談您的大規模回購，我認為，顯然，這會受到股東的讚賞。也許你有某種——這會是機會主義嗎？這會是——你正在考慮一種節奏還是它們的某種組合？

So I think our Board authorized the program to run through the end of next year. And I think we'll be looking very seriously at how we have typically done in the past of using that authorization to opportunistically take shares out of the market. As you know, John, there's a number of different ways you can go about doing that. But I think overall, our plan is once we have the 2024 senior notes retired, we'll be very active in terms of trying to repurchase more actively than we have historically in the market.

所以我認為我們的董事會授權該計劃持續到明年年底。我認為我們將非常認真地審視我們過去通常如何利用該授權來伺機將股票撤出市場。約翰，如您所知，您可以透過多種不同的方式來做到這一點。但我認為總體而言，我們的計劃是，一旦 2024 年優先票據退役，我們將非常積極地嘗試比市場歷史上更積極地回購。

Yes. Okay. And then any -- obviously, you're leaning into marketing, leaning into growth, particularly in the consumer, it seems like at this point, is I guess, sort of 2 basic questions on that. Number one is, is part of that because you're seeing more opportunity because others in the segment are pulling back? And then the second is -- just I'm always curious are you using pretty much the same channels of marketing? Or is there any changes to how you're deploying marketing spend?

是的。好的。然後，顯然，你正在傾向於行銷，傾向於成長，特別是在消費者方面，我想，在這一點上，有兩個基本問題。第一個問題是，這是否是因為該領域的其他公司正在撤退而讓您看到了更多機會？第二個問題是──我一直很好奇你們是否使用幾乎相同的行銷管道？或者您部署行銷支出的方式是否有任何變化？

No. Nothing meaningful. No.

不，沒什麼意義。不。

And then what about the competitive environment? Is that enabling this more proactive?

那麼競爭環境又如何呢？這是否能讓事情變得更主動？

I think -- yes. Sorry, I forgot about that first. I think the competitive environment is still pretty benign, like we've been talking about for a while. Nothing new on the small business side. I think -- we've seen, as we talked about competitors struggle liquidity, also a couple move more towards the prime space in SMB. And then in consumer, again, no new entrants, lots of pulling back, lots of refocusing. So I would say pretty benign competitive environment on both sides.

我想是的。抱歉，我一開始就忘了。我認為競爭環境仍然相當良性，就像我們已經討論了一段時間一樣。小企業方面沒有什麼新鮮事。我認為，當我們談論競爭對手流動性困難時，我們已經看到，還有一些公司更多地轉向中小企業的黃金領域。然後在消費者領域，同樣沒有新的進入者，大量的撤退，大量的重新關注。所以我想說雙方的競爭環境都非常良性。

(Operator Instructions)

（操作員說明）

The next question comes from Vincent Caintic with Stephens.

下一個問題來自文森特凱恩蒂克和史蒂芬斯。

First one on the marketing spend this quarter. First, just wondering in terms of the opportunities you're seeing, is it sort of -- more on the consumer side, more to the SMB or fairly equal, like what opportunities are you seeing for marketing spend? And then the direction of that marketing spend, is it sort of like direct mail or lead generation or already anything specific there?

第一個是關於本季的行銷支出。首先，只是想知道您所看到的機會，是否更多是在消費者方面，更多是在中小企業方面，還是相當平等，例如您在行銷支出方面看到了哪些機會？然後行銷支出的方向，是不是有點像直郵或潛在客戶開發，或是已經有什麼具體的東西了？

Yes. I mean, I think we saw opportunities in both small business. We're a little bit more conservative in kind of our -- in our originations during the first half of the year. So that probably resulted in seeing that more opportunity as we went into Q3. And on the consumer side, we've been getting more aggressive all year in the face of good demand and some very, very stable credit.

是的。我的意思是，我認為我們在這兩家小企業中都看到了機會。在今年上半年的啟動中，我們有點保守。因此，當我們進入第三季時，這可能會導致我們看到更多的機會。在消費者方面，面對良好的需求和一些非常非常穩定的信貸，我們全年都變得更加積極。

And I think in Q3, we just saw a strong -- again, a strong consumer with super high employment rates, rising wages in a typical, fairly good seasonal period that kind of hold back, end of summer back-to-school season tends to be good from the consumer side. So you put that together, I think it was really very much demand-driven on the consumer side. And then in terms of marketing spend, we've gotten very, very good over the last 7, 8 years about having a balanced approach to marketing.

我認為在第三季度，我們再次看到了強勁的消費者，就業率超高，工資在典型的、相當好的季節性時期上漲，這種抑制，夏末返校季往往會出現從消費者的角度來說是好的。所以你把它們放在一起，我認為這實際上是消費者方面的需求驅動的。然後就行銷支出而言，過去七、八年我們在採取平衡的行銷方法方面取得了非常非常好的進展。

In the subprime consumer side, lead -- traditional lead providers are a portion of the business, but not a majority like they were many years ago for us. We do a lot of direct mail. We do a lot of TV given our scale. We're one of the only players in the industry who is large enough to do TV at scale on the consumer side. And so really kind of all channels.

在次貸消費者方面，傳統主導的供應商是業務的一部分，但不像多年前那樣佔多數。我們做了很多直郵業務。鑑於我們的規模，我們製作了很多電視節目。我們是該行業中僅有的一家規模足夠大、能夠在消費者方面大規模生產電視的參與者之一。所有管道都如此。

On the small business side, still a lot coming through the wholesale channel through ISOs, but we continue to grow our direct channel. It's a very fast-growing channel for us. And direct is the same stuff as we do on the consumer side. So it's all stuff we know how to do TV, some direct mail, plenty of digital. And definitely, our experience on the consumer side has helped us grow that direct channel very quickly on the small business side.

在小型企業方面，仍然有許多來自 ISO 的批發管道，但我們繼續發展我們的直接管道。這對我們來說是一個成長非常快速的管道。直接與我們在消費者方面所做的事情是一樣的。所以這都是我們知道如何製作電視的東西，一些直郵，大量的數字。當然，我們在消費者方面的經驗幫助我們在小型企業方面非常快速地發展直接管道。

Okay. Great. Yes, certainly been seeing more advertisements on the CNBC lately. Yes, very effective. In terms of -- so leaning into marketing, a lot of opportunities there. You also have that big share repurchase authorization. If you could remind us in terms of the opportunities and how you decide between putting more capital towards loan growth opportunities versus your cheap stock updates.

好的。偉大的。是的，最近 CNBC 上確實看到了更多廣告。是的，非常有效。就行銷而言，那裡有很多機會。您還擁有大筆股票回購授權。您能否提醒我們相關機會以及您如何在將更多資金用於貸款成長機會與廉價股票更新之間做出決定。

Yes, sure. So first of all, we're not capital-constrained, so we can do it all. And when you think about when we've become indifferent based on what we think the value of our firm should be given our performance and our outlook versus making another loan. And then you move from there, we can become as aggressively as you can be legally every day. So we do have a method that we've followed for many years.

是的，當然。首先，我們不受資金限制，所以我們可以做到這一切。當你想到我們何時變得漠不關心時，我們認為我們公司的價值應該考慮到我們的業績和前景，而不是發放另一筆貸款。然後你從那裡開始，我們每天都可以變得像你一樣合法地積極進取。所以我們確實有一個多年來一直遵循的方法。

I would expect that we'll continue to -- at a minimum, continue to follow that with a larger repurchase program, and there's other -- there could be other opportunities as well to tackle a larger buyback program. But I think the key thing is we can continue to grow our business with meaningful rates and return capital to shareholders while generating good IRRs on all of it.

我預計我們將繼續——至少，繼續遵循更大規模的回購計劃，還有其他機會來解決更大規模的回購計劃。但我認為關鍵是我們可以繼續以有意義的利率發展我們的業務，並向股東返還資本，同時產生良好的內部報酬率。

Okay. Great. And last one from me, Steve, on the fair values continue to increase, which I presume it means that the risk-adjusted margins and the launch you're putting in continue to improve. I'm just wondering, since I get the investor questions, just what's built into that, the level of conservatism and the opportunities in terms of the ROEs that you're now able to generate in your originations?

好的。偉大的。史蒂夫，我的最後一篇關於公允價值的持續成長，我認為這意味著風險調整後的利潤率和您投入的產品將繼續改善。我只是想知道，既然我收到了投資者的問題，那麼保守主義的程度以及您現在能夠在您的創始中產生的股本回報率方面的機會是什麼？

Yes. So we don't -- I mean, as you can imagine, Vincent, we're not building in levels of conservatism in our fair value marks. We're trying to give the best view of the value of the portfolios based on the credit quality and a few other things that matter less than credit quality. But at the end of the day, it's about what we think the lifetime credit performance of those portfolios is going to look like and discount it back.

是的。所以我們不會——我的意思是，正如你可以想像的，文森特，我們並沒有在我們的公允價值標記中建立保守主義的水平。我們試圖根據信用品質和其他一些與信用品質無關的因素來最好地了解投資組合的價值。但歸根結底，問題在於我們認為這些投資組合的終生信用表現將會是什麼樣子，並將其折回。

Obviously, with the short duration discounting doesn't matter as much. So I think the ROE hurdle rates that we've built in, that's kind of where they start to show up a little bit because the cash flows of the portfolios, the richer they become on a net basis. So more cash flow for a given level of loss will get you a higher fair value, all things being equal.

顯然，短期折扣並不那麼重要。因此，我認為我們建立的股本回報率（ROE）門檻率，這就是它們開始顯現出來的地方，因為投資組合的現金流，它們在淨值基礎上變得越豐富。因此，在所有條件相同的情況下，給定損失水準的更多現金流量將為您帶來更高的公允價值。

So again, you can have some variations as I've talked about now for many quarters in your quarterly metrics from quarter-to-quarter, but our fair values have been fairly stable to ticking up over time, reflecting that higher ROE hurdle and the stability and credit that we've been pointing to now for some time.

再次強調，正如我在許多季度中所討論的那樣，季度指標中的季度指標可能會出現一些變化，但我們的公允價值隨著時間的推移相當穩定地上升，反映出較高的股本回報率障礙和一段時間以來我們一直在強調的穩定性和信用。

The next question comes from John Rowan with Janney.

下一個問題來自約翰·羅文和珍妮。

Just one quick question for me. Is -- just thinking around 10,000-foot view, is this the environment that you looked out when you chose to do fair value accounting, right? You've got others that are pulling back. And yes, you missed earnings because you spent a lot more on marketing, but you didn't get the double whammy of having to build allowances for an asymmetric type growth rate. Is this kind of the -- where the benefit comes in fair value that you can go after all these incremental customers that are not being -- that are not getting offers from other lenders who may be pulling back or whatever credit reasons or because they would have to build allowances. I'm just trying to take it through a little bit.

只是問我一個簡單的問題。只是想想一萬英尺的視野，這就是你選擇進行公允價值會計時所看到的環境，對嗎？還有其他人正在退縮。是的，你錯過了收益，因為你在行銷上花費了更多，但你沒有受到必須為不對稱類型的成長率建立津貼的雙重打擊。是不是這種——收益以公平價值體現，你可以追隨所有這些增量客戶，這些客戶沒有獲得其他貸方的報價，這些貸方可能會撤回或任何信貸原因，或者因為他們會必須建立津貼。我只是想把它經歷一點點。

Yes. I mean, I think you've really seen over the last 2 years as the books built back up following COVID. As the business is doing well, as we're growing and putting on good loans, the financial statements looks good because of fair value. And I'd say we have the great recession again and the book was bad, the financial statements would look bad.

是的。我的意思是，我想你確實看到了過去兩年新冠疫情之後書籍的累積。由於業務表現良好，隨著我們的發展和良好的貸款，財務報表看起來不錯，因為公允價值。我想說，我們再次經歷了大衰退，這本書很糟糕，財務報表看起來也很糟糕。

And that's what we would want everyone to see as opposed to under the old incurred method, when the business look crappy and originations were slowing, all of a sudden, you were making a lot of money by releasing provision, which never made a ton of sense to us. So yes, we've been happy that we've been able to really accelerate our originations over the last couple of years coming out of COVID and had financial statements that reflected the positive trends of the business.

這就是我們希望每個人都看到的，而不是在舊的招致方法下，當業務看起來很糟糕並且起源正在放緩時，突然之間，你通過釋放供應賺了很多錢，而這從來沒有賺到很多錢對我們來說。所以，是的，我們很高興在過去的幾年裡，我們能夠真正加速我們的創業進程，擺脫新冠疫情的影響，並擁有反映業務積極趨勢的財務報表。

This concludes our question-and-answer session. I would now like to hand the call back to David Fisher for closing remarks.

我們的問答環節到此結束。現在我想將電話轉回給戴維費雪 (David Fisher)，讓其致閉幕詞。

Thanks, everyone, for joining our call today. We appreciate you taking your time, and we look forward to speaking with you again next quarter. Have a good evening.

感謝大家今天加入我們的電話會議。感謝您抽出寶貴時間，我們期待下個季度再次與您交談。祝你晚上愉快。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。