FlexShopper Inc (FPAY) 2024 Q2 法說會逐字稿

Thank you for standing by.

謝謝你的支持。

My name is Pam, and I will be your conference operator today.

我叫帕姆，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the FlexShopper’s second quarter financial results conference call.

此時，我謹歡迎大家參加 FlexShopper 第二季財務業績電話會議。

(Operator Instructions) I would now like to turn the conference over to Carlos Sanchez, Investor Relations.

（操作員指示）我現在想將會議轉交給投資者關係部門的 Carlos Sanchez。

You may begin.

你可以開始了。

Thank you, and good morning.

謝謝你，早安。

Welcome to FlexShopper’s second quarter 2024 financial results conference call.

歡迎參加 FlexShopper 2024 年第二季財務績效電話會議。

With me today are Russ Heiser, our Chief Executive Officer; and John Davis, our Chief Operating Officer.

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。

We issued an earnings release yesterday, which we'll be referencing during today's call.

我們昨天發布了收益報告，我們將在今天的電話會議中參考該報告。

Our earnings release and SEC filings can be found on our Investor Relations section of our website.

我們的收益發布和 SEC 文件可以在我們網站的投資者關係部分找到。

We will be available for Q&A following today's prepared remarks.

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 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 statements should be considered in conjunction with cautionary statements in our earnings release and the company's most recent periodic SEC reports, including our annual report and quarterly report 10-Q for the quarter ended June 30, 2024.

這些聲明應與我們的收益發布和公司最近的定期 SEC 報告中的警告聲明結合起來考慮，包括我們截至 2024 年 6 月 30 日的季度的年度報告和 10 季度季度報告。

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.

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。

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.

除法律要求外，我們沒有義務公開更新或修改任何這些聲明，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.

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。

These include measures such as EBITDA, net income and adjusted net income.

其中包括 EBITDA、淨利潤和調整後淨利潤等指標。

These non-GAAP financial measures should not be considered replacements and should be read together with our GAAP results.

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。

Reconciliations for these GAAP measurements and certain additional information are also included in today's earnings release, which is also available on the Investors section of our website.

這些 GAAP 衡量指標和某些附加資訊的調整也包含在今天的收益發布中，您也可以在我們網站的投資者部分獲取該收益發布。

This call is being recorded and a webcast will be available for replay on our Investor Relations section of our website.

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。

I will now turn the call over to our CEO, Russ Heiser.

我現在將把電話轉給我們的執行長 Russ Heiser。

Thank you, Carlos.

謝謝你，卡洛斯。

Thanks to every one joining us for this morning's call to review our second quarter performance.

感謝今天早上參加我們電話會議的每一個人，回顧我們第二季的業績。

I'll start today's call with an update on the growth strategies we are pursuing, and then we'll turn the call over to JD, who will discuss our operations and financial results in more detail before we take your questions.

我將在今天的電話會議開始時介紹我們正在追求的成長策略的最新情況，然後我們將電話轉給京東，他將在回答你們的問題之前更詳細地討論我們的營運和財務業績。

I'm pleased to report that FlexShopper produced a strong quarter of year-over-year growth, with total revenues increasing by over 29%.

我很高興地向大家報告，FlexShopper 本季度實現了強勁的同比增長，總收入增長了 29% 以上。

In addition, profitability increased significantly as we experienced a 90% expansion in gross profit.

此外，獲利能力顯著提高，毛利成長了 90%。

Adjusted EBITDA increased from approximately $300,000 in the 2023 second quarter to almost $5 million in the 2024 second quarter.

調整後 EBITDA 從 2023 年第二季的約 30 萬美元增加到 2024 年第二季的近 500 萬美元。

This was the highest second quarter adjusted EBITDA level in two years.

這是兩年來第二季調整後 EBITDA 的最高水準。

Overall, our 2024 second quarter performance reflects the success of the long-term strategies we're pursuing to drive profitable growth and to create lasting value for our shareholders.

總體而言，我們 2024 年第二季的業績反映了我們為推動獲利成長並為股東創造持久價值而追求的長期策略的成功。

It also demonstrates the differentiated platform we have created and the value we provide to our retail customers and B2B partners.

它還展示了我們創建的差異化平台以及我們為零售客戶和 B2B 合作夥伴提供的價值。

We have pursued strategies to expand our financing options, which have resulted in a full suite of payment solutions within our digital marketplace.

我們採取了擴大融資選擇的策略，從而在我們的數位市場中形成了一整套支付解決方案。

Today, our platform consists of traditional lease-to-own offerings, unsecured consumer loan products and a traditional e-commerce retail business with a growing range of financing options.

如今，我們的平台由傳統的先租後買產品、無擔保消費貸款產品和傳統電子商務零售業務組成，融資選擇範圍不斷擴大。

In addition, we offer diverse payment solutions to customers directly through our website, as well as through partnerships with leading e-commerce and brick-and-mortar retailers in the automotive, electronics and pawn segments.

此外，我們還直接透過我們的網站以及與汽車、電子和當鋪領域領先的電子商務和實體零售商合作，為客戶提供多樣化的支付解決方案。

There are several important components of the marketplace we have created that I'd like to review today.

今天我想回顧一下我們創建的市場的幾個重要組成部分。

We have partnered with multiple technology and funding partners to provide flexible payment solutions to any customer that engages with us directly or through one of our merchant partners.

我們與多個技術和融資合作夥伴合作，為直接或透過我們的商業合作夥伴之一與我們合作的任何客戶提供靈活的支付解決方案。

The technology we have created seamlessly routes applications through our network to find a payment solution for our customers unique credit profile.

我們創建的技術透過我們的網路無縫路由應用程序，為我們客戶獨特的信用狀況找到支付解決方案。

We have made significant investments over the past year, upgrading our digital resources, partners and systems to support our internal underwriting, collections and account servicing capabilities.

在過去的一年裡，我們進行了大量投資，升級了我們的數位資源、合作夥伴和系統，以支援我們的內部承保、催收和帳戶服務能力。

Not only does our tech enabled platform create value for our customers through a fast and convenient application process, but it also allows FlexShopper to proactively manage risk, enhance the effectiveness of our marketing initiatives.

我們的技術支援平台不僅透過快速且方便的申請流程為客戶創造價值，而且還使 FlexShopper 能夠主動管理風險，並提高我們行銷計劃的有效性。

We have recently added new capabilities that allow customers on our flexshopper.com website to receive payment options that fit their credit profile.

我們最近添加了新功能，允許我們的 flexshopper.com 網站上的客戶接收適合其信用狀況的付款選項。

In conjunction with this, we have broadened the product assortment available for sale on flexshopper.com. This expanded marketplace is resonating with consumers and broadens our addressable market to serve more customers regardless of their credit score.

同時，我們擴大了 flexshopper.com 上銷售的產品種類。這個擴大的市場引起了消費者的共鳴，並擴大了我們的潛在市場，以服務更多的客戶，無論他們的信用評分如何。

Since launching these capabilities during the 2024 first quarter, we have seen steady growth in retail revenue increase from $780,000 for the quarter ended March 31, 2024, to $1.4 million for the quarter ended June 30, 2024.

自 2024 年第一季推出這些功能以來，我們看到零售收入穩定成長，從截至 2024 年 3 月 31 日的季度的 78 萬美元增至截至 2024 年 6 月 30 日的季度的 140 萬美元。

In addition, since its launch, we have seen consistent growth in monthly retail revenue as the confidence in our capabilities increases, we expand our marketing spend to drive traffic and pursue opportunities to improve conversion.

此外，自推出以來，隨著對我們能力的信心增強，我們看到每月零售收入持續成長，我們擴大了行銷支出以增加流量並尋求提高轉換率的機會。

Based on our recent performance and the strategies we are pursuing to grow the FlexShopper marketplace, we expect retail revenue and gross profits to continue increasing over the coming quarters.

根據我們最近的業績以及我們為發展 FlexShopper 市場所採取的策略，我們預計零售收入和毛利將在未來幾季繼續成長。

As I briefly mentioned earlier, we also continue to add more SKUs and product categories to the FlexShopper site to gain a larger share of our customer spend.

正如我之前簡要提到的，我們也繼續為 FlexShopper 網站添加更多 SKU 和產品類別，以獲得更大的客戶支出份額。

We continue to expand in the furniture category supported by LTL freight shipping, and we have launched personal luxury categories such as handbags, sunglasses and watches.

我們在零擔貨運支援的家具類別上不斷拓展，推出了手袋、太陽眼鏡、手錶等個人奢侈品類別。

In addition, we have recently launched a microsite focused on electronics with many additional sites in the works to have a greater reach than the single flexshopper.com marketplace site.

此外，我們最近還推出了一個專注於電子產品的微型網站，還有許多其他網站正在建設中，其覆蓋範圍將比單一的 flexshopper.com 市場網站更大。

It is important to note that we do not take inventory of any products offered on our websites.

請務必注意，我們不會盤點我們網站上提供的任何產品的庫存。

We have developed strategic relationships with distributors and manufacturers who drop-ship products directly to customers.

我們與直接將產品直接運送給客戶的經銷商和製造商建立了策略關係。

We believe this provides us with a competitive advantage by eliminating inventory risks and reducing the capital requirements of our business.

我們相信，這透過消除庫存風險和降低我們業務的資本要求為我們提供了競爭優勢。

This in turn allows us to invest capital to support our technology roadmap, marketing programs and loan and lease growth.

這反過來又使我們能夠投資資金來支持我們的技術路線圖、行銷計劃以及貸款和租賃的成長。

In addition to our direct-to-consumer offerings, we continue to add retail partnerships with regional and national retailers.

除了直接面向消費者的產品外，我們還繼續增加與地區和國家零售商的零售合作夥伴關係。

We believe our financing solutions and technology capabilities offer retail partners with a seamless opportunity to add incremental sales to their business.

我們相信，我們的融資解決方案和技術能力為零售合作夥伴提供了無縫的機會，以增加其業務的增量銷售。

As a result, since the end of Q1 2024, the number of retail storefronts has increased by 150 by the end of the second quarter.

結果，自2024年第一季末以來，截至第二季末，零售店面數量增加了150個。

Additionally, we expect 500 incremental retail storefronts will launch in the second half of 2024.

此外，我們預計 2024 年下半年將新增 500 個零售店面。

As you can see, we have very robust and active pipeline of new potential enterprise level partnerships that are being discussed as other similar payment providers tighten their lending requirements.

正如您所看到的，我們擁有非常強大且活躍的新的潛在企業級合作夥伴關係管道，隨著其他類似的支付提供者收緊貸款要求，我們正在討論這些合作夥伴關係。

As you can see in our financials, marketing spend was up 71% versus the same quarter in 2023, reflecting strategic investments to ramp up marketing and grow total FlexShopper fundings as well as retail revenue.

正如您在我們的財務數據中看到的那樣，行銷支出比 2023 年同季度增長了 71%，反映出為加強行銷、增加 FlexShopper 總資金以及零售收入而進行的策略性投資。

Total lease funding approvals from this marketing activity and retail partner door expansion has resulted in doubling our total lease funding approvals this quarter versus the same period last year.

此次行銷活動和零售合作夥伴門禁擴張的租賃融資核准總額使本季我們的租賃融資核准總額與去年同期相比增加了一倍。

Marketing strategies underway include product category specific microsites, expanding use of AI and customer targeting, and outbound credit tier prospecting to attract a broader mix of credit types to the marketplace.

正在進行的行銷策略包括針對特定產品類別的微型網站、擴大人工智慧和客戶定位的使用以及對外信用等級勘探，以吸引更廣泛的信用類型進入市場。

The final growth objective I'd like to review today is a significant opportunity to increase customer conversion.

我今天要回顧的最終成長目標是提高客戶轉換率的重要機會。

In the past twelve months, our conversion rate has been under 1% of unique website visitors.

在過去 12 個月中，我們的獨立網站訪客轉換率低於 1%。

We're pursuing multiple strategies to enhance our conversion which we believe provides us with opportunities to significantly grow our revenue, especially with higher year-over-year funding approval levels.

我們正在採取多種策略來提高我們的轉換率，我們相信這為我們提供了顯著增加收入的機會，特別是在逐年提高資金批准水準的情況下。

This will be in large part driven by expansion of payment solutions available to our customers.

這在很大程度上是由我們客戶可用的支付解決方案的擴展所推動的。

Looking at the retail lending environment in more detail, our nonprime consumer continues to face headwinds from the macroeconomic environment.

更詳細地觀察零售貸款環境，我們的非主要消費者繼續面臨宏觀經濟環境的阻力。

This has been increased focused on enhancements to our risk based pricing to balance the cost to the consumer versus optimizing consumer engagement.

我們更加重視增強風險為基礎的定價，以平衡消費者的成本與優化消費者參與。

This has required significant enhancements to our fraud algorithms in order to grow a portfolio that produces the correct level of asset returns.

這需要對我們的詐欺演算法進行重大改進，以便發展能夠產生正確水準的資產回報的投資組合。

As JD will discuss in more detail, our prudent focus on risk management and pricing has created a stable and healthy portfolio that we believe will allow us to gain market share as other lenders and LTO providers continued to tighten standards.

正如京東將更詳細討論的那樣，我們對風險管理和定價的審慎關注創造了穩定健康的投資組合，我們相信這將使我們能夠在其他貸方和LTO 提供商繼續收緊標準的情況下獲得市場份額。

As you can see, our efforts over the past year to transform FlexShopper are producing strong growth and increased levels of profitability.

正如您所看到的，我們過去一年為 FlexShopper 轉型所做的努力帶來了強勁的成長和獲利水準的提高。

FlexShopper is supported by market leading payment solutions and best-in-class technology capabilities which are protected by multiple patents and pending patents.

FlexShopper 得到市場領先的支付解決方案和一流的技術能力的支持，這些解決方案受到多項專利和正在申請的專利的保護。

In addition, we have a strong and experienced team of associates that are committed to creating value for our customers, partners and shareholders.

此外，我們擁有一支強大且經驗豐富的員工團隊，致力於為我們的客戶、合作夥伴和股東創造價值。

We believe we have created a unique asset light and sensible business model and I'm excited by the direction FlexShopper is headed.

我們相信我們已經創建了獨特的輕資產和明智的商業模式，我對 FlexShopper 的發展方向感到興奮。

With this overview, I'll hand the call over to John Davis to dive into the company's second quarter performance.

有了這個概述，我將把電話轉給約翰戴維斯，深入了解公司第二季的業績。

Thanks, Russ.

謝謝，拉斯。

As I've stated on prior calls, our long-term plan for our lease business consists of three key items.

正如我在之前的電話中所說，我們的租賃業務長期計劃包括三個關鍵項目。

First, we want to improve overall asset quality from the more challenging time periods for removal of government stimulus, reduced savings and higher consumer price inflation caused deterioration in payment performance.

首先，我們希望在政府刺激措施取消、儲蓄減少和消費者物價上漲導致支付績效惡化等更具挑戰性的時期內改善整體資產品質。

Second, we want to continue to roll out our online retail strategy where we realize product margin revenue on the products we sell on our flexshopper.com marketplace.

其次，我們希望繼續推出我們的線上零售策略，透過我們在 flexshopper.com 市場上銷售的產品來實現產品利潤收入。

And third, we want to take these quality originations and grow them.

第三，我們希望利用這些優質資源並加以發展。

Our strong second quarter revenue growth and a significant improvement in profitability demonstrates the progress we are making executing against these strategies.

我們第二季營收的強勁成長和獲利能力的顯著改善表明我們在執行這些策略方面取得了進展。

On asset quality the provision for doubtful accounts as a percentage of gross lease billings and fees was 22.5% in Q2 of 2024.

在資產品質方面，2024 年第二季呆帳撥備佔總租賃帳單和費用的百分比為 22.5%。

This compares to 33.4% in Q2 of 2023, which is over a 1000-basis point improvement or a 32.6 reduction year-over-year.

相比之下，2023 年第二季為 33.4%，提高了 1000 個基點以上，年減了 32.6%。

Improved asset quality drove a $3.7 million benefit in the second quarter provision compared to the same period last year.

與去年同期相比，資產品質的改善推動第二季撥備收益達到 370 萬美元。

New originations continue to demonstrate favorable early payment performance versus the same period last year, which suggests the provision level should continue its year-over-year favorability absent any unforeseen short-term macroeconomic impacts.

與去年同期相比，新項目繼續表現出良好的提前付款表現，這表明在沒有任何不可預見的短期宏觀經濟影響的情況下，撥備水平應繼續保持同比有利的水平。

Regarding our online retail strategy, we continue to realize the benefits of introducing product margin to our business enabled by our flexshopper.com marketplace.

關於我們的線上零售策略，我們繼續認識到透過我們的 flexshopper.com 市場將產品利潤引入我們的業務的好處。

Our depreciation and impairment of lease merchandise cost as a percentage of gross lease billings and fees continues to improve and was 39.9% in Q2 of 2024 compared to 44.6% in the same quarter last year.

我們的租賃商品成本的折舊和減損佔總租賃帳單和費用的百分比持續改善，2024 年第二季為 39.9%，而去年同期為 44.6%。

The $636,000 year-over-year benefit in depreciation and impairment of lease revenue cost was driven by product margin on goods sold that is recognized over the term of the lease.

租賃收入成本的折舊和減損同比收益為 636,000 美元，這是由在租賃期內確認的已售商品的產品利潤所推動的。

In addition, I am pleased to report that our second quarter gross profit expanded 90% year over year.

此外，我很高興地報告，我們第二季的毛利年增了 90%。

This produced a 50% gross margin in Q2 2024 compared to 34% in Q2 2023.

這使得 2024 年第二季的毛利率為 50%，而 2023 年第二季為 34%。

The significant growth in gross profit and gross margin is a direct result of the strategies we are pursuing to capture retail revenue and margin.

毛利和毛利率的顯著成長是我們追求零售收入和利潤率策略的直接結果。

We now offer multiple payment solutions on our marketplace.

我們現在在市場上提供多種支付解決方案。

It provides more options for customers to transact on the marketplace with an offer that fits their credit profile than what they can obtain from another credit provider.

與從其他信貸提供者獲得的優惠相比，它為客戶提供了更多在市場上進行交易的選擇，並提供適合其信用狀況的優惠。

We are working to expand this panel of payment providers to attract a broader range of customers that should increase interest and subsequently sales on flexshopper.com. We are planning on adding a large prime credit issuer later this year in time for the Q4 holiday season and are working on specific partners to fill in multiple segments of our credit stack.

我們正在努力擴大這個支付提供者群體，以吸引更廣泛的客戶，從而增加對 flexshopper.com 的興趣和隨後的銷售額。我們計劃在今年稍後在第四季度假期期間增加一家大型主要信貸發行人，並正在尋找特定的合作夥伴來填補我們信貸堆疊的多個部分。

Our performance during the second quarter continues to show positive trends and improving levels of profitability.

我們第二季的業績持續呈現出正面的趨勢，獲利水準不斷提高。

As a result, we continue to strategically invest in the opportunities to drive revenue growth while maintaining robust asset quality.

因此，我們繼續對推動收入成長的機會進行策略性投資，同時保持穩健的資產品質。

FlexShopper lease origination dollars grew again year over year in Q2, which is driven both by expanded marketplace activity on our marketplace as well as growth within our partnership point of sale channel.

第二季度，FlexShopper 租賃發起美元再次同比增長，這是由我們市場上的市場活動擴大以及我們的合作夥伴銷售點管道內的增長推動的。

We launched a new partnership in Q1 within the tire space and this rollout is running ahead of our expectations.

我們在第一季在輪胎領域建立了新的合作關係，這次推出超出了我們的預期。

We have a growing pipeline of new potential partnerships and expect that this is an additional tailwind for origination growth over the coming quarters.

我們擁有越來越多的新潛在合作夥伴關係，預計這將成為未來幾季原創成長的額外推動力。

Total lease funding approvals were 102.2% higher year over year at $74.8 million in Q2 2024 versus $37.0 million in Q2 of 2023.

2024 年第二季核准的租賃融資總額為 7,480 萬美元，年增 102.2%，而 2023 年第二季為 3,700 萬美元。

First half lease funding approvals were 69.9% higher year over year, so the rate of higher lease funding approvals growth accelerated in Q2 versus Q1.

上半年租賃融資審批量年增 69.9%，因此第二季租賃融資審批量增速較第一季加快。

Net revenue for our state licensed loan business declined 10% year over year as we focus on profitability and managing risk in this business.

我們的國家許可貸款業務的淨收入年減 10%，因為我們專注於該業務的獲利能力和風險管理。

Additionally, we have seen better than expected collections on our bank partner loan portfolio, which resulted in 223% higher loan net revenue from an increased fair value assumption and purchasing the partnership interest from our bank partner.

此外，我們也看到我們的銀行合作夥伴貸款組合的收款情況好於預期，這使得公允價值假設增加以及從我們的銀行合作夥伴處購買合夥權益而導致貸款淨收入增加了 223%。

We stopped originating new loans into this portfolio last year since our bank partner chose to exit the high APR business.

由於我們的銀行合作夥伴選擇退出高年利率業務，我們去年停止向該投資組合發放新貸款。

However, we are actively pursuing a new bank partner to bring this back to our list of options to better serve our retail partners and customers.

然而，我們正在積極尋找新的銀行合作夥伴，將其帶回我們的選擇清單中，以更好地為我們的零售合作夥伴和客戶服務。

Combined results of these activities produced a material increase in adjusted EBITDA, which expanded from $297,000 in Q2 of 2023 to $4.9 million in Q2 of 2024.

這些活動的綜合結果使調整後的 EBITDA 大幅增加，從 2023 年第二季的 29.7 萬美元增加到 2024 年第二季的 490 萬美元。

As a percentage of total revenue, our adjusted EBITDA margin is 15.5% compared to 1.2% in the same period last year.

以佔總收入的百分比計算，我們調整後的 EBITDA 利潤率為 15.5%，而去年同期為 1.2%。

We believe the strategies we are pursuing combined with favorable asset quality will be supportive of our adjusted EBITDA margin for the remainder of 2024.

我們相信，我們正在實施的策略與良好的資產品質相結合，將支持我們在 2024 年剩餘時間內調整後的 EBITDA 利潤率。

Our strategic plan remains in place which is to continue to grow our lease and loan business with favorable asset performance that we are seeing and expand on the online retail opportunity that is in front of us.

我們的策略計劃仍然不變，即繼續發展我們的租賃和貸款業務，並利用我們所看到的良好資產表現，擴大我們面前的線上零售機會。

We will remain vigilant in regards to signs of any potential future economic slowdown.

我們將對未來任何潛在的經濟放緩跡象保持警惕。

And we continue to see customer interest in shopping within our channels, continued job growth and low unemployment rates, as well as stabilizing consumer prices.

我們繼續看到客戶對在我們的通路內購物的興趣、持續的就業成長和低失業率以及穩定的消費價格。

I want to thank our team for the hard work and results and look forward to what we can achieve in 2024 and beyond.

我要感謝我們團隊的辛勤工作和成果，並期待我們在 2024 年及以後能夠取得的成就。

With that, let me turn the call over to our operator for any questions that we may have.

就這樣，讓我將電話轉給我們的接線生，詢問我們可能有的任何問題。

Thank you.

謝謝。

We will now begin the question-and-answer session.

我們現在開始問答環節。

(Operator Instructions)

（操作員說明）

Scott Buck, H.C. Wainwright.

巴克 (Scott Buck)，H.C.溫賴特。

Hi, good morning, guys.

嗨，早上好，夥計們。

Thanks for taking my questions.

感謝您回答我的問題。

I think total lease funding approvals is a new metric you're providing.

我認為租賃融資核准總額是您提供的一個新指標。

Can you give just a little bit of color on why the change from total fundings?

您能否稍微解釋一下為什麼總資金會改變？

And then if possible, what were actual fundings in the quarter?

如果可能的話，該季度的實際資金是多少？

Sure Scott, so give me a second to compile actual fundings.

當然，斯科特，請給我一點時間來整理實際資金。

But in terms of switching the metric, given that a lot of our customers are getting approvals and then essentially using, may not be using it immediately, but using it over time, I think it was important to make it clear that we're putting a lot of approvals out there, and then it's a matter of just when those consumers decide to convert.

但就切換指標而言，考慮到我們的許多客戶正在獲得批准，然後基本上使用它，可能不會立即使用它，但隨著時間的推移使用它，我認為重要的是要明確我們將在那裡有很多批准，然後問題就在於這些消費者何時決定轉變。

Okay, that makes sense, Russ.

好吧，這是有道理的，拉斯。

And is it possible to get an update on what's going on with the microsites, kind of where you are with that process and rollouts?

是否有可能了解微型網站的最新情況，以及您在該流程和推出方面的進展？

Sure.

當然。

This is John.

這是約翰。

We are live with our first microsite, which focuses on gaming and electronics.

我們推出了第一個微型網站，專注於遊戲和電子產品。

And we've invested in some technology that allows us to leverage our backend infrastructure on fulfillment and accessing our various product catalogs.

我們投資了一些技術，使我們能夠利用後端基礎設施來履行和存取我們的各種產品目錄。

And the plan is to launch another two microsites in different categories by the end of this year before the holiday season.

計劃在今年年底假期前推出另外兩個不同類別的微型網站。

So generally what we're trying to do with the microsite strategy is to be more specific in a category, to be able to provide more focused content, which then gives us better marketing efficiency, better relevance when it comes to online searching, and a bit more information for customers that might be a bit more specific to the category versus our generic FlexShopper marketplace.

因此，一般來說，我們對微型網站策略的嘗試是在一個類別中更加具體，能夠提供更有針對性的內容，從而為我們提供更好的營銷效率，在線搜索時更好的相關性，以及與我們通用的FlexShopper 市場相比，為客戶提供的資訊可能更具體一些。

That's helpful, JD.

這很有幫助，JD。

And then last one for me.

然後是我的最後一張。

With the 500 potential new retail locations set for the second half of this year, can you remind us what it typically takes for a new location to mature or actually start generating meaningful volume?

今年下半年將成立 500 個潛在的新零售店，您能否提醒我們，新店要成熟或真正開始產生有意義的銷售通常需要什麼？

Yeah.

是的。

When it comes to getting those locations online our technology is such that it can be then a couple of days to get it set up.

當涉及到使這些地點聯網時，我們的技術使得可以在幾天內完成設定。

Then it's all about training for the local operators of the business, which we have a couple of different models.

然後就是對當地業務經營者的培訓，我們有幾種不同的模式。

We have virtual training that we can push out to stores.

我們有虛擬培訓，可以推廣到商店。

We have a team that will go out and do store visits to be able to support that.

我們有一個團隊將出去走訪商店來提供支援。

And then really, the acceptance of the new program is really then dependent on that partnership between the local operator and our team.

事實上，新計劃的接受實際上取決於當地運營商和我們團隊之間的合作關係。

And as I mentioned in the comments that we had the prepared statement, the partner that we just launched in the tire space has exceeded expectations in generating originations growth.

正如我在評論中提到的，我們已經準備好了聲明，我們剛剛在輪胎領域推出的合作夥伴在產生起源增長方面超出了預期。

And that's because the leadership team on our partner side has been very engaged and can see the value that this program creates, which serves an underserved credit customer and provides our retail partners with a fairly easy way of generating same-store sale comps.

這是因為我們合作夥伴方面的領導團隊非常投入，並且可以看到該計劃創造的價值，該計劃為服務不足的信貸客戶提供服務，並為我們的零售合作夥伴提供了一種相當簡單的方式來產生同店銷售補償。

So it really kind of depends on the leadership on the other side, but we've gotten our process down so that it's really customizable for the partner's needs.

因此，這實際上取決於另一方的領導力，但我們已經簡化了流程，以便真正可以根據合作夥伴的需求進行客製化。

(multiple speakers) I think a good metric -- the 580 stores that were launched at the very tail end of 1Q, early 2Q that we discussed on the last call.

（多位發言者）我認為一個很好的指標——我們在上次電話會議中討論的第一季末、第二季初開設的 580 家商店。

Within 60 days, they had approximately 80% active rate, meaning that a store had completed at lease.

60 天內，他們的活躍率約為 80%，這意味著商店至少已完成。

So as JD mentioned, it's really about how management engages with the product and pushes their store employees to use it.

正如京東所提到的，這實際上是管理層如何與產品互動並推動商店員工使用它的問題。

But it seems like over the last year and a half, we continue to see more and more engagement as people understand the value proposition to both their consumers and obviously to the retailer itself and we just continue to see it outperforming historical norms.

但似乎在過去的一年半中，隨著人們了解其對消費者以及顯然對零售商本身的價值主張，我們繼續看到越來越多的參與度，並且我們繼續看到它的表現優於歷史標準。

Okay, and what is the cadence in the second half of the rollout?

好的，下半年推出的節奏是怎麼樣的？

I mean, are they backend weighted or, I guess I'm just trying to figure out how I think about contribution for the second half of this year or is it more 2025?

我的意思是，它們是後端加權的，還是我想我只是想弄清楚我如何看待今年下半年的貢獻，還是 2025 年更多？

No, I think the best way to think through it is that most of the retailers don't want to do much between the, we'll say, Halloween to New Year's.

不，我認為最好的思考方式是，大多數零售商不想在萬聖節到新年之間做太多事情。

So think about all of them before the middle of October.

所以在十月中旬之前考慮一下所有這些。

Okay, perfect.

好的，完美。

That's helpful, guys.

這很有幫助，夥計們。

I appreciate the time.

我很感激時間。

Thank you.

謝謝。

Michael Diana, Maxim group.

邁克爾·戴安娜，Maxim 集團。

Okay, thank you.

好的，謝謝。

Hey, Russ, so my main question was also about your new metric lease funding approvals.

嘿，拉斯，我的主要問題也是關於您新的公制租賃融資批准。

So I heard your explanation, which is very good.

所以我聽了你的解釋，非常好。

What's your experience been in your customers actually using the approvals to engage?

您的客戶實際使用核准進行參與的體驗如何？

You, know, it's -- there's a lot of seasonality involved in it Michael, in terms of back-to-school, the Memorial Labor Days, obviously, the end of the year holidays tend to be when a lot of the engagement takes place, and we view it as a demand backlog, and it's difficult to understand exactly when it will take place.

你知道，這涉及到很多季節性因素，邁克爾，就返校而言，紀念勞動節，顯然，年末假期往往是很多活動發生的時候，我們將其視為需求積壓，很難準確了解它何時會發生。

But over time, we feel like we end up seeing based upon product sets, obviously tires and what we think of as more need to have items tend to have a much higher take rate, closer to 75%.

但隨著時間的推移，我們覺得我們最終會看到基於產品組，顯然是輪胎以及我們認為更需要擁有的物品往往有更高的採用率，接近 75%。

When it comes to consumer electronics and others, it can dip as low as 30%.

當涉及消費性電子產品和其他產品時，價格可能會下降 30%。

But it's more important to just give this marker out there so people understand that we are consistently soliciting new customers, handing out approvals, and it's really up to the customer and their lifecycle as to when they transact.

但更重要的是，把這個標記放在那裡，讓人們明白我們一直在招攬新客戶，發放批准，而交易時間實際上取決於客戶及其生命週期。

Right.

正確的。

And what's the time period of the approval?

以及批准的期限是多少？

It's typically has been as short of 90 days historically, but with some of our underwriting changes, we're extending that out now, understanding that the consumer in this environment is not quite going through some of the ups and downs that were experienced over the past few years.

從歷史上看，這個期限通常只有90 天，但隨著我們承保方面的一些變化，我們現在正在延長這個期限，因為我們了解到，在這種環境下的消費者並沒有完全經歷過去幾年所經歷的一些起起落落。

Okay.

好的。

And then on your retail partner locations, do I have it right that you added about 500 in the first half of the year, and you expect to add another 500 in the second half or double?

然後，關於你們的零售合作夥伴地點，我說得對嗎？

Sure.

當然。

Of course.

當然。

I think it was 580 from the rollout.

我認為從推出開始就已經是 580 了。

That was the end of 1Q beginning of 2Q.

那是第一季末第二季初。

There was additional 150 that rolled out in June.

6 月又推出了 150 個。

And then the sort of the low end of expectations for the second half of the year is the 500 that are slated to roll out.

今年下半年預期的最低值是計劃推出的 500 款產品。

Okay, remind me, what will the total locations be with the 500?

好的，提醒我一下，這 500 個地點的總數是多少？

I think total with the 500 will end up close to just short of 5000.

我認為 500 人的總數最終將接近 5000 人。

Okay, great.

好的，太好了。

Okay, so you added like 25% or more than that in the past, will have added in the past in 2024?

好的，那麼您比過去增加了 25% 或更多，那麼 2024 年會增加嗎？

Correct.

正確的。

Yes.

是的。

Okay, great.

好的，太好了。

All right, thank you.

好的，謝謝。

Thank you.

謝謝。

There are no more questions.

沒有更多問題了。

I will now turn the conference back over to CEO, Russ Heiser for closing remarks.

現在我將把會議轉回執行長 Russ Heiser 致閉幕詞。

We appreciate everyone dialing in this morning.

感謝大家今天早上撥電話。

I want to thank the team here at FlexShopper for all their hard work over the past quarter, which is evident by our results and we look forward to another great quarter.

我要感謝 FlexShopper 團隊在過去一個季度的辛勤工作，我們的業績證明了這一點，我們期待著另一個偉大的季度。

Ladies and gentlemen, that concludes today's call.

女士們、先生們，今天的電話會議到此結束。

Thank you all for joining.

感謝大家的加入。

You may now disconnect.

您現在可以斷開連線。