FlexShopper Inc (FPAY) 2023 Q3 法說會逐字稿

Greetings. Welcome to the FlexShopper third quarter financial results conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Carlos Sanchez of Investor Relations. You may begin.

問候。歡迎參加 FlexShopper 第三季財務業績電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行問答環節。 （操作員說明）請注意，本次會議正在錄製中。現在我將會議交給東道主投資者關係部門的 Carlos Sanchez。你可以開始了。

Thank you and good morning. Welcome to FlexShopper's third quarter 2023 financial results conference call. With me today are Russ Heiser, our Chief Executive Officer; and John Davis, our Chief Operating Officer. We issued our earnings release yesterday and corresponding Investor Relations presentation this morning, and we'll be referencing these during the call today. Both can be found in our Investor Relations section of our website. We will be available for Q&A following today's prepared remarks.

謝謝你，早安。歡迎參加 FlexShopper 2023 年第三季財務業績電話會議。今天與我在一起的有我們的執行長 Russ Heiser；和我們的首席營運長約翰·戴維斯。我們昨天發布了收益報告，今天早上發布了相應的投資者關係演示文稿，我們將在今天的電話會議中引用這些內容。兩者都可以在我們網站的投資者關係部分找到。在今天準備好的發言之後，我們將接受問答。

Before we begin, I would like to remind everyone that this call will contain forward-looking statements regarding future events and our financial performance, including statements regarding our market opportunity, the impact of our growth initiatives and future financial performance.

在開始之前，我想提醒大家，本次電話會議將包含有關未來事件和我們財務業績的前瞻性陳述，包括有關我們的市場機會、我們的成長計劃的影響和未來財務業績的陳述。

These should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC reports, including our quarterly report 10-Q for the quarter ending September 30, 2023.

這些內容應與我們的收益發布和公司最近的定期 SEC 報告中包含的警示性聲明結合起來考慮，包括我們截至 2023 年 9 月 30 日的季度 10 季度報告。

These statements reflect management's current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially from those statements. Except as required by law, we undertake no obligation to publicly update or revise any of these statements, whether as a result of new information, future events or otherwise.

這些陳述反映了管理層目前的信念、假設和期望，並受到許多因素的影響，這些因素可能導致實際結果與這些陳述有重大差異。除法律要求外，我們不承擔公開更新或修改任何這些聲明的義務，無論是由於新資訊、未來事件或其他原因。

During today's discussion of our financial performance, we will provide certain financial information that contains non-GAAP financial measures under SEC rules. These include measures such as EBITDA, net income, and adjusted net income. These non-GAAP financial measures should not be considered replacements and should be read together with our GAAP results.

在今天討論我們的財務業績時，我們將提供某些財務信息，其中包含 SEC 規則下的非 GAAP 財務指標。其中包括 EBITDA、淨利潤和調整後淨利潤等指標。這些非公認會計原則財務指標不應被視為替代品，並應與我們的公認會計原則結果一起閱讀。

Reconciliation to GAAP measurements and certain additional information are also included in today's earnings release, which is available on the Investors section of our website. This call is being recorded and a webcast will be available for replay on our Investor Relations section of our website. I will now turn the call over to our CEO, Russ Heiser.

今天的收益發布中還包含了 GAAP 衡量指標的對帳以及某些附加信息，您可以在我們網站的投資者部分查看該收益發布。本次電話會議正在錄音，並且可以在我們網站的投資者關係部分重播網路廣播。我現在將把電話轉給我們的執行長 Russ Heiser。

Thanks, Carlos, and good morning, everyone. Thank you for joining us. Yesterday we reported Q3 financial results that are on the whole could be better than prior quarter and the same quarter last year. EBITDA increased over $11 million versus the same quarter last year, and net income was up over $7 million versus the same quarter last year.

謝謝卡洛斯，大家早安。感謝您加入我們。昨天我們報告了第三季的財務業績，整體上可能比上一季和去年同期好。 EBITDA 與去年同期相比成長超過 1,100 萬美元，淨利潤與去年同期相比成長超過 700 萬美元。

We continue to be in a difficult operating environment with inflation continuing to significantly impact our customer base, balanced by an economy that still hasn't experienced meaningful job loss in the non-prime sector. Out of an abundance of caution we continue to be selective in our underwriting and are very active in monitoring and managing our portfolio to provide significant cushion if the environment and customer payment behavior does start to move away from us.

我們仍然處於困難的經營環境中，通貨膨脹繼續對我們的客戶群產生重大影響，但非主要行業的經濟仍然沒有明顯的失業現象。出於高度謹慎，我們繼續對核保進行選擇性，並非常積極地監控和管理我們的投資組合，以便在環境和客戶支付行為確實開始遠離我們時提供重要的緩衝。

While historically, our customers have demonstrated resilience in a recessionary environment, we face uncertain times want to be positioned for any negative shifts, whether from the resumption of student loan payments or continued deterioration of the economy.

雖然從歷史上看，我們的客戶在經濟衰退的環境中表現出了韌性，但我們面臨著不確定的時期，希望為任何負面變化做好準備，無論是恢復學生貸款支付還是經濟持續惡化。

FlexShopper has continued to evolve its direction over the last several months we are leaning into the direct-to-consumer marketplace as our primary growth engine going forward. We have worked diligently over the last few quarters to evolve from utilizing our website solely as a method of generating leases.

在過去的幾個月裡，FlexShopper 不斷發展其方向，我們正傾向於將直接面向消費者的市場作為我們未來的主要成長引擎。在過去的幾個季度裡，我們一直在努力工作，從僅僅利用我們的網站作為產生租賃的方法來發展。

We are transitioning to a more fulsome e-commerce site that focuses on merchandising efforts to enable the company to profit not only from generating leases on our site but also capturing a retailer margin on more of our goods.

我們正在過渡到一個更豐富的電子商務網站，該網站專注於商品推銷工作，使公司不僅可以從我們網站上的租賃中獲利，還可以從我們的更多商品中獲得零售商利潤。

Furthermore, we have worked to increase conversion opportunities on our site by enabling risk-based pricing initiatives and recognize that all of our customers are not the same or fit into a single lease to own offer while maintaining attractive asset level returns. Setting that idea even further, we are exploring partnerships with other financing channels provide an even broader selection of purchase options to consumers that do not have the current liquidity to transact on more traditional e-commerce platforms.

此外，我們也致力於透過實施基於風險的定價計劃來增加我們網站上的轉換機會，並認識到我們所有的客戶都不相同，也不適合單一租賃到擁有的報價，同時保持有吸引力的資產水平回報。更進一步地，我們正在探索與其他融資管道的合作夥伴關係，為目前沒有流動性在更傳統的電子商務平台上進行交易的消費者提供更廣泛的購買選擇。

FlexShopper's positioning itself as a marketplace with an assortment of payment options for the larger universe of credit-challenged consumers that will extend beyond our historical lease to own options. In addition, we are utilizing generally a eye towards decrease smaller versions of our main site focused on product verticals. These micro sites are expected to provide significant marketing leverage that will allow us to reach and monetize customers at decreased acquisition costs.

FlexShopper 將自己定位為一個為廣大信用困難的消費者提供各種支付選項的市場，這將超越我們歷史上的租賃，擴展到擁有選項。此外，我們正在著眼於減少專注於產品垂直領域的主網站的較小版本。這些微型網站預計將提供重要的行銷槓桿，使我們能夠以降低的獲取成本接觸客戶並從中獲利。

With all these changes in place, we believe FlexShopper in our marketplace will have greater control of its growth opportunities. First, it allows us to direct marketing spend where it is most efficient, a marketing spend online is only constrained by acquisition cost and achieving the appropriate return on capital like other verticals where we might be dependent upon foot traffic to a store.

隨著所有這些變化的到位，我們相信我們市場上的 FlexShopper 將更好地控制其成長機會。首先，它使我們能夠將行銷支出引導到最有效的地方，線上行銷支出僅受購買成本和實現適當資本回報的限制，就像我們可能依賴商店客流量的其他垂直行業一樣。

Second, it allows us to be focused on achieving the ideal asset level return without trying to hit benchmark approval rates or spending limits as can occur with our enterprise customers. It doesn't mean that we are continuing to grow the direct brick and mortar and online enterprise relationships. In fact, a lot of the technologies developed for our marketplace are providing more value to our large enterprise customers and permitting higher approval rates and conversion rates among these customers.

其次，它使我們能夠專注於實現理想的資產水平回報，而無需試圖達到企業客戶可能出現的基準批准率或支出限制。這並不意味著我們正在繼續發展直接的實體和線上企業關係。事實上，為我們的市場開發的許多技術正在為我們的大型企業客戶提供更多價值，並在這些客戶中實現更高的批准率和轉換率。

Our enterprise experience continues to result in big wins, we are in the final stages of another 1,000 plus store contract that will grow our enterprise leasing originations by at least 25%. We just want to be thoughtful in terms of making sure that we don't chase new doors or originations instead stay focused on the bottom line.

我們的企業經驗繼續帶來巨大的勝利，我們正處於另一份 1,000 多家商店合約的最後階段，這將使我們的企業租賃起源增加至少 25%。我們只是想深思熟慮，確保我們不追求新的門或起源，而是專注於底線。

Finally, the storefront lending business that we acquired late last year is gaining momentum. As we have mentioned in the past, the goal is to develop a framework that can allow us to reach large non-prime customer segments with our combination of state, licensed and leased to own products complemented by other liquidity providers.

最後，我們去年底收購的店家借貸業務正蓬勃發展。正如我們過去所提到的，我們的目標是開發一個框架，使我們能夠透過我們的國家、授權和租賃自有產品的組合以及其他流動性提供者的補充來接觸大型非主要客戶群。

We continue to believe that by providing the widest assortment of products and payment options to consumers, we can leverage and grow the exclusive arrangements. We have with a wider assortment of retailers and service providers.

我們仍然相信，透過向消費者提供最廣泛的產品和支付選項，我們可以利用和發展獨家安排。我們擁有更廣泛的零售商和服務提供者。

Looking forward to the holiday season and early next year, we expect to see continued growth in originations as a result of our improvements to the FlexShopper marketplace and new enterprise partners. Combined with the focus on asset level performance, our allowance for doubtful accounts as a percentage of gross billings will decline resulting in a leap forward in net revenue.

展望假期和明年初，由於我們對 FlexShopper 市場和新企業合作夥伴的改進，我們預計訂單量將持續成長。結合對資產水準績效的關注，我們的呆帳準備金佔總帳單的百分比將下降，從而導致淨收入的飛躍。

The continued merchandising efforts should continue to increase the margin on our products, resulting in relative declines and the depreciation of lease merchandise. All this will enhance gross profit over the near term. The management team of FlexShopper believes we are at an inflection point in the business look forward to demonstrating our progress going forward.

持續的銷售努力應該會繼續增加我們產品的利潤，導致租賃商品的相對下降和折舊。所有這些都將提高短期內的毛利。 FlexShopper 的管理團隊相信我們正處於業務轉折點，並期待展示我們未來的進步。

With that I will turn the call over to our COO, John Davis.

接下來，我會將電話轉給我們的營運長約翰戴維斯 (John Davis)。

Thanks, Russ. We continue to be pleased with the asset quality of both our lease and loan segment. As we have mentioned in previous calls, the transition from government stimulus coming out of the pandemic to a high inflationary environment was difficult for our customers.

謝謝，拉斯。我們仍然對租賃和貸款部門的資產品質感到滿意。正如我們在先前的電話會議中提到的，對於我們的客戶來說，從疫情結束後的政府刺激措施過渡到高通膨環境是困難的。

During this time, our efforts were targeted towards improving bad debt levels on our lease channel, continuing to develop enterprise and smaller partnership distribution opportunities, expand retail margins within our marketplace lease channel, the manufacturer and distributor partnerships and continue to develop our state model lending business through our revolution finance platform.

在此期間，我們的努力目標是改善租賃管道的壞帳水平，繼續開發企業和小型合作夥伴分銷機會，擴大我們的市場租賃管道、製造商和分銷商合作夥伴關係中的零售利潤，並繼續發展我們的國家模式貸款透過我們的革命金融平台開展業務。

I am pleased with the results of all of these activities just setting up FlexShopper to achieve sustainable profitable growth. These fundings were 4% higher versus Q2 2023 and 11% lower versus Q3 of 2022. An important point to note is that September lease fundings were higher year-over-year, which was the first monthly positive comp since July of 2022.

我對所有這些活動所取得的成果感到非常高興，因為 FlexShopper 的設立旨在實現可持續的獲利成長。這些資金與2023 年第二季相比增加了4%，與2022 年第三季相比減少了11%。值得注意的重要一點是，9 月的租賃資金年增，這是自2022 年7 月以來首次月度正補償。

October lease fundings were also higher year-over-year, had the highest lease dollar funding for all of 2023. November is also trending higher year-over-year, as of the middle of the month. Gross lease billings and fees were 19% lower year-over-year were $7.3 million lower versus last year. As a reminder, this line item has a lag to fundings as this revenue is recognized over the term of the lease.

10 月的租賃資金也較去年同期增加，是 2023 年全年最高的租賃資金金額。截至月中，11 月也呈現同比增加的趨勢。總租賃帳單和費用年減 19%，比去年減少 730 萬美元。提醒一下，該行項目的資金存在滯後性，因為該收入是在租賃期間內確認的。

Key factor in the asset profitability of our lease business include gross lease billings and fees, provision for doubtful accounts, depreciation and impairment of lease merchandise and market. While we look at these components, we are seeing improvements based on the initiatives we have been undertaking.

租賃業務資產獲利能力的關鍵因素包括總租賃帳單和費用、呆帳撥備、租賃商品和市場的折舊和減損。當我們研究這些組件時，我們看到了基於我們一直在採取的措施的改進。

The provision for bad debt expense was $10.2 million in Q3 2023 versus $14.1 million in Q3 of 2022, which was an improvement of $3.9 million year-over-year. As a percentage of gross lease billings, 2023 Q3 was 32.6% versus 36.5% for the same quarter last year, or a 390 basis point improvement year-over-year even with including some sales of delinquent receivables last year, which did not occur this year.

2023 年第三季的壞帳費用撥備為 1,020 萬美元，而 2022 年第三季為 1,410 萬美元，年增 390 萬美元。佔總租賃帳單的百分比，2023 年第三季為 32.6%，而去年同期為 36.5%，即使包括去年拖欠的應收帳款銷售（今年並未發生），也同比提高了 390 個基點年。

This improvement is a result of our underwriting tightening as well as continued enhancements to our fraud and credit risk capabilities and strategies. We have recently upgraded our operational leadership team as well as adding new collection agencies to work on our past two portfolios. We expect that this new leadership and capabilities will result in continued improvement in past-due liquidations, which will provide future support to keeping this expense trending in a favorable way.

這項改進是我們收緊承保以及不斷增強我們的詐欺和信用風險能力和策略的結果。我們最近升級了我們的營運領導團隊，並增加了新的催收機構來處理我們過去的兩個投資組合。我們預計，這種新的領導力和能力將導致逾期清算的持續改善，這將為未來保持這一支出的有利趨勢提供支持。

Depreciation and impairment of lease merchandise expense was $13.1 million in Q3 of 2023 versus $18.8 million in Q3 of 2022 or 5% lower year-over-year. As a percentage of gross lease billings, 2023 Q3 was 41.8% versus 48.6% for the same quarter last year, were 680 basis point improvement year-over-year. This is a result of the rollout of our retail product margin initiatives into the portfolio, which in a similar way to gross lease billing and fees spread out over the life of the lease.

2023 年第三季租賃商品費用的折舊和減損為 1,310 萬美元，而 2022 年第三季為 1,880 萬美元，年減 5%。 2023 年第三季佔總租賃帳單的百分比為 41.8%，去年同期為 48.6%，較去年同期提高 680 個基點。這是我們將零售產品利潤計劃推出到投資組合中的結果，這與在整個租賃期內分攤的總租賃計費和費用類似。

We are constantly evaluating the selection of products that we offer to better match our customers' wants and needs as well as to continue to improve gross product margin on what we sell. Additionally, we are investing in our technology platform to add flexibility and scalability to this important initiative, which is already adding significant value to the company.

我們不斷評估我們提供的產品選擇，以更好地滿足客戶的需求，並繼續提高我們銷售產品的毛利率。此外，我們正在投資我們的技術平台，以增加這項重要措施的靈活性和可擴展性，這已經為公司增加了巨大的價值。

Marketing costs were $1.7 million in Q3 of 2023 versus $2.4 million in Q3 of 2022 for $700,000 lower year-over-year. Importantly, total marketing spend was 30% lower year-over-year, while funding was only 11% lower year-over-year.

2023 年第三季的行銷成本為 170 萬美元，而 2022 年第三季的行銷成本為 240 萬美元，年比減少 70 萬美元。重要的是，行銷總支出比去年同期減少了 30%，而資金僅比去年同期減少了 11%。

We are seeing more efficiency in our marketing efforts in comparison to last year with the difference between year-over-year spend and origination volume. And we are continuing to improve this efficiency by way of testing new marketing partners for better targeting and personalization, adding new capabilities and generative AI content creation on our marketplace to entry, increased traffic and conversion and price testing on both our products as well as our lease costs to optimize revenue and risks.

與去年相比，我們的行銷工作效率更高，與比支出和發起量之間存在差異。我們正在繼續提高這種效率，方法是測試新的行銷合作夥伴以實現更好的定位和個人化，在我們的市場上添加新功能和生成人工智慧內容創建以進入市場，增加流量和轉換以及對我們的產品和我們的產品進行價格測試。租賃成本以優化收入和風險。

Adding all these components of our lease revenue, less provision for loss, depreciation of lease goods and marketing was $6.4 million for Q3 of 2023 versus $3.4 million for the same quarter last year, or $3 million better year-over-year. With the underlining -- underlying components of our lease business at favorable levels, our goal now is to increase revenue.

將租賃收入的所有這些組成部分相加，減去損失撥備、租賃商品折舊和行銷費用，2023 年第三季的收入為 640 萬美元，而去年同期為 340 萬美元，年增 300 萬美元。強調的是，我們的租賃業務的基礎組成部分處於有利的水平，我們現在的目標是增加收入。

As I mentioned earlier, lease funding levels in September and October were up year-over-year, which will if that trend continues eventually result in higher top line lease revenue. We are also introducing new financing and payment option partners on our marketplace that will allow for increased revenue for retail product margin and customers either do not invert with our lease pricing or customers that we decline the subsequent funding partner approves.

正如我之前提到的，9 月和 10 月的租賃融資水準較去年同期上升，如果這種趨勢持續下去，最終將導致更高的頂線租賃收入。我們還在我們的市場上引入新的融資和支付選項合作夥伴，這將增加零售產品利潤的收入，並且客戶要么不會反轉我們的租賃定價，要么我們拒絕後續融資合作夥伴批准的客戶。

We expect little cannibalization on our lease origination as our partner payment offerings are controlled from a credit profile standpoint to minimize overlap. On the enterprise and smaller partnership point of sale lease channel, our partner door count that had our lease product available increased approximately 15% from last quarter.

我們預計我們的租賃發起不會被蠶食，因為我們的合作夥伴付款產品是從信用狀況的角度進行控制的，以盡量減少重疊。在企業和小型合作夥伴銷售點租賃管道上，提供我們租賃產品的合作夥伴數量比上季增加了約 15%。

We expect that this will continue into Q4 2023 and into 2024 with new potential partners currently in different stages of discussion. We are excited about this growth channel, not only for the direct revenue that these partnerships provide, but for the increased customers that may also take advantage of our marketplace offerings.

我們預計這種情況將持續到 2023 年第四季和 2024 年，新的潛在合作夥伴目前正處於不同的討論階段。我們對這個成長管道感到興奮，不僅是因為這些合作關係提供的直接收入，而且是因為越來越多的客戶也可能利用我們的市場產品。

On our lending front, we originated $14.8 million in Q3 through our revolution finance platform and $0.1 million through our loan participation program. This compares to $10.4 million in Q2 of last year in our loan participation program, no originations through revolution, which we acquired in Q4 of last year.

在我們的貸款方面，我們在第三季透過我們的革命融資平台籌集了 1,480 萬美元，並透過我們的貸款參與計劃籌集了 10 萬美元。相較之下，去年第二季我們的貸款參與計畫為 1,040 萬美元，沒有透過革命發起，我們在去年第四季獲得了該計畫。

As a reminder, we issued consumer loans within approximately 100 storefronts consisting of owned physical locations and virtual locations within Liberty Tax stores using state lending licenses. We are seeing incremental growth within revolution with a 6% increase in originations from last quarter and a 42% year-over-year increase in overall lending related fundings.

提醒一下，我們使用州貸款許可證在大約 100 個店面（包括 Liberty Tax 商店內的自有實體店和虛擬店）發放了消費貸款。我們看到革命中的增量成長，與上季相比，發起量增加了 6%，整體貸款相關資金較去年同期增加了 42%。

Similar to our lease operations, we have invested in leadership within the revolution platform and expect growth to accelerate into Q4 of this year and into 2024. As we invest in our leadership team, our technology capabilities and our servicing and lease and loan distribution partners, we expect to simultaneously achieve top line growth and favorable economics within the P&L.

與我們的租賃業務類似，我們在革命平台內的領導力方面進行了投資，預計今年第四季和2024 年將加速成長。當我們投資於我們的領導團隊、我們的技術能力以及我們的服務、租賃和貸款分銷合作夥伴時，我們期望在損益表內同時實現收入成長和良好的經濟效益。

To that end, we saw an increase in our bank participation portfolio collections due to our investments in operations and agency partnerships that I mentioned earlier, which has resulted in a $7.1 million positive net change in the fair value of loan receivables due to higher future expected cash flows from the portfolio. As we continue with these investments in people, Strategy and Technology, I'm personally very excited about what our business can do.

為此，由於我之前提到的對營運和代理合作夥伴關係的投資，我們的銀行參與投資組合集合有所增加，這導致應收貸款公允價值出現710 萬美元的正淨變化，原因是未來預期更高來自投資組合的現金流量。隨著我們繼續對人員、策略和技術進行這些投資，我個人對我們的業務可以做的事情感到非常興奮。

With that let me turn the call back over to the operator for any questions.

這樣，如果有任何問題，我就把電話轉給接線生。

Thank you. And at this time we will be conducting a question and answer session. (Operator Instructions)

謝謝。此時我們將進行問答環節。 （操作員說明）

Scott Buck with H.C. Wainwright.

巴克 (Scott Buck) 與 H.C.溫賴特。

Hi, good morning, guys. Thanks for taking my questions. First one, on the enterprise roll -- door rollouts, can you remind us what the typical kind of cadence is for those new relationships to mature? I mean, is it 6 months or 12 months before you really start to see some momentum there?

嗨，早上好，夥計們。感謝您回答我的問題。第一個，關於企業滾動——門發布，你能提醒我們這些新關係成熟的典型節奏是什麼嗎？我的意思是，是 6 個月還是 12 個月後你才真正開始看到一些勢頭？

Good morning, Scott. I wish it was it's as simple as having a standard cadence for all of these enterprises. We have it's a recent one that just fully rolled out into about 600 locations, and it was a pilot for six months. And then as we started that a fuller rollout and then it was just paused for the for the summer and then took a little while so that entire process was probably 15 months or so.

早安，史考特。我希望這就像為所有這些企業制定標準節奏一樣簡單。我們最近推出了一項服務，剛剛在大約 600 個地點全面推出，並且試點了六個月。然後當我們開始更全面的部署時，它只是在夏天暫停了，然後花了一點時間，所以整個過程可能需要 15 個月左右。

This most recent one that I mentioned on the call earlier was probably it will be five months from start to finish. So it doesn't really have a fixed pattern. I think the approach has been less. We look for opportunities where we can achieve at the right acquisition cost, the right type of growth to expend resources to focus on it. And hope to continue to I'd add in the area of 1,500 to 2000 stores a year. That looks like we've for the past couple of years, we've done a little bit better than that.

我之前在電話會議上提到的最近一次是從開始到結束可能需要五個月的時間。所以它實際上沒有固定的模式。我認為這種方法已經比較少了。我們尋找能夠以正確的收購成本實現正確的成長類型的機會，以投入資源來專注於此。我希望繼續每年增加 1,500 至 2000 家商店。看起來我們在過去幾年裡做得比這要好一些。

Great. That's helpful for us. And then a second one, can you give us an update on the competitive environment? Anybody encroaching on your space? Are you seeing anybody generally more aggressively?

偉大的。這對我們很有幫助。第二個問題，可以為我們介紹一下競爭環境的最新情況嗎？有人侵犯你的空間嗎？您是否發現有人普遍更具攻擊性？

What we've seen actually is a pullback in a couple of our sectors as the bank partnership programs have become a little bit more difficult to sustain as more banks have ended those programs we've seen some pullback there. I think all of it is about choosing the right verticals. Obviously, some are more interested than others, but no new entrants.

我們實際上看到的是我們的幾個行業出現了回調，因為隨著越來越多的銀行結束了這些項目，銀行合作夥伴計劃變得更加難以維持，我們已經看到了一些回調。我認為所有這一切都是關於選擇正確的垂直領域。顯然，有些人比其他人更感興趣，但沒有新進入者。

Great. And then just last one for me, if you could give us some kind of an update on where we are in the fourth quarter versus what we've seen historically with the seasonal bump, I guess in originations.

偉大的。最後一個問題是，如果您能給我們一些最新情況，說明我們第四季度的情況與歷史上季節性增長的情況相比，我想是在起源方面。

Sir, I'll let John take this one.

先生，我會讓約翰拿走這個。

Yeah. We are pretty pleased with what we're seeing early. I had mentioned earlier in my prepared remarks. The September had a positive comp, and this was both on our enterprise side as well as our marketplace. And we're actually seeing those comps increase as we are getting closer and closer to the holiday period.

是的。我們對早期看到的情況非常滿意。我之前在準備好的發言中已經提過。九月的業績比較積極，這不僅體現在我們的企業方面，也體現在我們的市場方面。事實上，隨著假期的臨近，我們看到這些補償正在增加。

Our holiday period really accelerate from Black Friday into Cyber Monday and then peaking probably mid-December. But if we compare the trend coming into the festive period, we are favorable to what we've seen in the past couple of years.

我們的假期確實從黑色星期五加速到網路星期一，然後可能在 12 月中旬達到頂峰。但如果我們比較節日期間的趨勢，我們對過去幾年所看到的情況是有利的。

Great. That's helpful. I appreciate the added color, guys. Thank you. Thank you again and congrats on the quarter.

偉大的。這很有幫助。我很欣賞添加的顏色，夥計們。謝謝。再次感謝您並恭喜本季。

Thanks.

謝謝。

Michael Diana with Maxim Group.

邁克爾·戴安娜 (Michael Diana) 與馬克西姆集團 (Maxim Group) 合作。

Hey, thank you. Hay Russ.

嘿，謝謝你。海拉斯.

Good morning.

早安.

Actually I was going to ask about the same two topics. Let me just ask a little different question. So on the 1,000 store enterprise rollout, (technical difficulty) the value you correctly in saying that you think this should increase your lease volume by 25%?

其實我想問同樣的兩個主題。讓我問一個不同的問題。那麼，在1000家商店企業推出時，（技術難度）您認為這應該使您的租賃量增加25％的價值是正確的嗎？

Sure. And well that, the enterprise leased volume by 25%.

當然。好吧，該企業的租賃量增加了 25%。

Okay.

好的。

And -- Yeah?

還有——是嗎？

Right. And I guess you just said you expect that program to be fully up and running about five months, right? So it should impact the holiday season that's coming on here, but it won't be fully rolled out, is that right?

正確的。我想您剛剛說過您預計該計劃將完全啟動並運行大約五個月，對吧？所以它應該會影響即將到來的假期，但不會完全推出，對嗎？

That's correct. I would expect the -- as you can imagine, the retailer partners have a lot of priorities during the holiday season. It's not always our rollout, but it should be fully rolled out before the end of the first quarter.

這是正確的。我預計，正如你可以想像的那樣，零售商合作夥伴在假期期間有很多優先事項。這並不總是我們的推出，但應該在第一季末之前全面推出。

Okay. And then that relates to my next question, which is say you're obviously expecting a big holiday quarter in the fourth quarter. Do you expect the first quarter of '24 to evidence the typical big downturn or because of everything you've been doing lately, it may be less of a follow-up.

好的。這與我的下一個問題有關，也就是說，您顯然預計第四季度會有一個大型假期。您是否預計 24 年第一季會出現典型的大衰退，或者由於您最近所做的一切，這可能不會是後續行動。

Hey, this is John. Yeah in typically will see a drop from Q4 to Q1. But if the trends continue as we are seeing them right now, we're expecting a higher year-over-year Q1 versus 2023. But you'll always see that seasonal downtick, roughly 40% of our origination volume comes from Q4 every year.

嘿，這是約翰。是的，通常會從第四季下降到第一季。但如果趨勢像我們現在看到的那樣繼續下去，我們預計第一季的同比增長率將高於 2023 年。但你總會看到季節性下降，每年大約 40% 的發貨量來自第四季度。

So obviously, it's a very important season. But the good thing about, especially this enterprise, rollouts that we're bringing online, those are not as seasonally dependent, if you look at a tire store and that is a year-round sale for us. So that should help us smooth out our overall lease origination line.

顯然，這是一個非常重要的賽季。但好處是，尤其是這家企業，我們在網路上推出的產品，這些產品不那麼依賴季節性，如果你看看輪胎商店，這對我們來說是全年銷售。因此，這應該有助於我們理順整個租賃起始線。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

And we have reached the end of the question-and-answer session, and I'll now turn the call back over to management for closing remarks.

我們的問答環節已經結束，我現在將把電話轉回給管理層做總結發言。

We appreciate everyone dialing in this morning with us, want to thank the team for all their hard work over this past quarter and the results I generate, and we look forward to a great holiday season and catching up with you all to report our full year results shortly.

我們感謝今天早上與我們聯繫的每個人，感謝團隊在過去一個季度的辛勤工作和我所取得的成果，我們期待著一個美好的假期，並與大家一起報告我們的全年情況很快就會有結果。

And this concludes today's conference, and you may disconnect your line at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。