FlexShopper Inc (FPAY) 2024 Q3 法說會逐字稿

Ladies and gentlemen, good morning and welcome to the Flex Shopper Inc third quarter earnings conference call at this time.

女士們、先生們，早安，歡迎此時參加 Flex Shopper Inc 第三季財報電話會議。

All participants are in a listen-only mode, a brief question and answer session will follow the formal presentation.

所有參與者均處於僅聽模式，正式演示後將進行簡短的問答環節。

If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad.

如果有人在會議期間需要接線員協助，請按電話鍵盤上的星號和零。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce your host, Andrew Berger from investor relations.

現在我很高興向您介紹主持人，投資者關係部的安德魯·伯傑 (Andrew Berger)。

Please go ahead.

請繼續。

Thank you Ryan and Good morning, everyone.

謝謝瑞安，大家早安。

Welcome to Flex Shoppers third quarter, 2024 financial results conference call with me today are Russ Heiser, our Chief Executive Officer and John Davis, our Chief Operating Officer.

歡迎參加 Flex Shoppers 2024 年第三季財務業績電話會議，我們的執行長 Russ Heiser 和營運長 John Davis 今天與我會面。

We issued an earnings release this morning which will be, which will be referencing during today's call.

我們今天早上發布了一份收益報告，該報告將在今天的電話會議中引用。

Our earnings release can be found on our investor relations section of our website.

我們的收益發布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 before we begin.

在開始之前，我們將在今天準備好的發言之後進行問答。

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 the growth initiatives underway and future financial performance.

我想提醒大家，本次電話會議將包含有關未來事件和財務表現的前瞻性陳述，包括有關我們的市場機會、正在進行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 contained in our earnings release and the company's most recent periodic sec reports including our annual report and most recent 10-Q.

這些聲明應與我們的收益發布和公司最近的定期證券報告（包括我們的年度報告和最近的 10-Q 報告）中包含的警告聲明結合起來考慮。

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.

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，但法律要求的情況除外。

We may undertake no obligation to publicly update or revise any of these statements whether as a result of any new information, future events or otherwise.

我們不承擔公開更新或修改任何這些聲明的義務，無論是由於任何新資訊、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，其中包含美國證券交易委員會規則下的非公認會計準則財務指標。

These include measures such as ebida net income and adjusted net income.

其中包括 ebida 淨收入和調整後淨收入等指標。

These non-GAAP financial measures should not be considered replacements and should be read together with our GAAP results, reconciliation of these measurements and certain additional information are also included in today's earnings release, which is also available on the investors relations section of our website.

這些非公認會計原則財務指標不應被視為替代品，應與我們的公認會計原則結果一起閱讀，這些指標的調節和某些附加資訊也包含在今天的收益發布中，該發布也可以在我們網站的投資者關係部分找到。

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 Russ.

我現在將把電話轉給我們的執行長 Russ Heiser Russ。

Go ahead.

前進。

Thank you Andy and thanks to everyone for joining us for this morning's call to review our third quarter performance.

謝謝安迪，也謝謝大家參加今天早上的電話會議，回顧我們第三季的業績。

We'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.

我們將在今天的電話會議中介紹我們正在追求的成長策略的最新情況，然後將電話轉給京東，他將更詳細地討論我們的營運和財務表現。

Before we take your questions.

在我們回答你的問題之前。

Third quarter was an exceptionally busy period demonstrating the growing momentum underway across our business.

第三季是一個異常繁忙的時期，展示了我們整個業務的成長勢頭。

As a result, we believe 2024 is shaping up to be a transformative year for flex shopper as the strategies we are pursuing to profitably grow our business take hold and more retail partners and consumers recognize the value of our unique payment solutions.

因此，我們相信 2024 年對於靈活購物者來說將是變革的一年，因為我們追求業務盈利增長的策略已得到落實，並且更多零售合作夥伴和消費者認識到我們獨特支付解決方案的價值。

More importantly, our strong third quarter results reflect the hard work and commitment of our team members.

更重要的是，我們強勁的第三季業績反映了我們團隊成員的辛勤工作和承諾。

As we mentioned last quarter, we have pursued strategies to expand our financing options which have resulted in a full suite of payment solutions within our digital marketplace.

正如我們上季度所提到的，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 leased owned 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租賃產品、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 our 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 paw spaces.

此外，我們還直接透過我們的網站以及與汽車電子和爪子領域領先的電子商務和實體零售商的合作夥伴關係，向客戶提供多樣化的支付解決方案。

After making meaningful investments across our business including enhancements to our internal underwriting collections and account servicing capabilities.

在我們的業務中進行了有意義的投資，包括增強我們的內部核保收款和帳戶服務能力。

We are now focused on pursuing proactive growth strategies within our B two C&B two B channels.

我們現在專注於在 B 2 C&B 2 B 管道內推行積極的成長策略。

Our third quarter of 2024 results demonstrate the successful transformation underway as we increase total revenue 23% to a quarterly record of nearly $39 million increased adjusted EBITDA by 45% to a quarterly record of more than $12 million and produced net income attributable to common stockholders of $1.2 million or 5 cent per diluted share.

我們2024 年第三季的業績顯示轉型正在進行中，我們的總營收增加了23%，達到近3,900 萬美元的季度記錄，調整後EBITDA 增加了45%，達到超過1,200 萬美元的季度記錄，並產生了歸屬於普通股股東的淨利潤稀釋後每股收益 120 萬美元或 5 美分。

So let's look at the third quarter's performance in more detail.

那麼讓我們更詳細地看看第三季的表現。

Starting with the growth in our B two B channel.

從我們的 B 2 B 頻道的成長開始。

Trends within our B to B business are accelerating.

我們的 B2B 業務趨勢正在加速。

As we partner with more payment platforms and retailers to date, we have announced new partnerships with leading payment platforms including pay tomorrow, Daris finance, versatile credit and pay possible.

到目前為止，隨著我們與更多支付平台和零售商合作，我們宣布與領先的支付平台建立新的合作夥伴關係，包括明天支付、達里斯金融、多功能信貸和支付可能。

As these platforms integrate flex shopper into their payment waterfalls.

隨著這些平台將彈性購物者整合到他們的支付瀑布中。

We can leverage their networks to provide our leading LTO solutions to their merchant partners.

我們可以利用他們的網路向他們的商業合作夥伴提供我們領先的 LTO 解決方案。

In addition, we continue to pursue retailers directly that need an LTO solution.

此外，我們繼續直接尋找需要 LTO 解決方案的零售商。

As a result of our efforts, total lease funding approvals compared to the prior year period increased 33% during the third quarter to $77 million to date.

經過我們的努力，第三季迄今批准的租賃融資總額與去年同期相比增加了 33%，達到 7,700 萬美元。

We have a signed store count of approximately 7,800 locations, nearly 250% increase from approximately 2,300 retail locations at the end of 2023.

我們的簽約門市數量約為 7,800 家，比 2023 年底的約 2,300 家零售店增加了近 250%。

This includes the upcoming rollout of over 3,700 new locations associated with our recent partnership with the aftermarket auto parts Alliance.

這包括即將推出的 3,700 多個新地點，這些新地點與我們最近與售後汽車零件聯盟的合作關係有關。

We have also recently announced retail partnership partnerships with Randy's worldwide and Monroe location growth has exceeded our projections.

我們最近也宣布與 Randy's 建立全球零售合作夥伴關係，門羅門市的成長超出了我們的預期。

We have a strong pipeline of potential payment and retail partners.

我們擁有強大的潛在支付和零售合作夥伴管道。

We expect to announce new partners in the coming months.

我們預計將在未來幾個月內宣布新的合作夥伴。

Higher demand for our payment solutions is being driven by the investments we have made to our platform and the growth strategies we are pursuing.

我們對平台的投資和我們追求的成長策略推動了對我們支付解決方案的更高需求。

In addition, as other lenders have tightened their credit box, we believe we have opportunities to provide our retail partners with the resources needed to capture incremental customers.

此外，隨著其他貸款人收緊信貸，我們相信我們有機會為零售合作夥伴提供吸引增量客戶所需的資源。

Looking at our emerging B to C marketplace.

看看我們新興的 B2C 市場。

We continue to pursue growth strategies to increase sales at Flexs Shopper dotcom which is the leading LTO marketplace in the industry.

我們持續推行成長策略，以增加 Flexs Shopper dotcom 的銷售額，該網站是業界領先的 LTO 市場。

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

我們新增了新功能，讓我們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 Flex shopper.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 Flex shopper.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 first quarter of 2024 we have seen steady growth in retail revenue increase from $780,000 for the quarter ended March 31st 2024 to $1.2 million for the quarter ended September 30th 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 9 月 30 日的季度的 120 萬美元。

We continue to test learn and adjust our approach to focus on profitably growing retail sales.

我們繼續測試學習並調整我們的方法，以專注於零售額的獲利成長。

We plan to expand our marketing spend to drive traffic and increase conversion based on our recent performance and the strategies we're pursuing to grow the Flex shopper marketplace.

根據我們最近的業績以及我們為發展 Flex 購物者市場所採取的策略，我們計劃擴大行銷支出，以增加流量並提高轉換率。

We expect retail revenue to continue increasing over the coming quarters, we also continue to add more skus and product categories to the flex shopper site to gain a larger share of our customer spend.

我們預計未來幾季的零售收入將繼續成長，我們也將繼續為彈性購物者網站添加更多的 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.

我們持續拓展零擔貨運支援的家具類別，並推出了手袋、太陽眼鏡、手錶等個人奢侈品類別。

In addition, we continue to look at launching micro sites that have the potential to reach more customers than a single Flex shopper.om marketplace site.

此外，我們繼續考慮推出微型網站，這些網站比單一 Flex shopper.om 市場網站有可能吸引更多客戶。

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

值得注意的是，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.

我們與分銷商和製造商建立了策略關係，他們將產品直接運送給客戶。

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。

As you can see positive growth trends are underway and we feel really good about the direction of our business.

正如您所看到的，積極的成長趨勢正在出現，我們對我們的業務方向感到非常滿意。

Before I turn the call over to JD to provide more detail on our performance.

在我將電話轉給 JD 之前，請提供有關我們績效的更多詳細資訊。

I want to review important actions that we have recently announced, including the patent infringement lawsuits we filed against two of our competitors, the opportunity to redeem our series two preferred Stock and I'll review the proposed rights offering at the end of the call as we've outlined historically Flexs shopper has invested heavily with both our time and capital to create an innovative next generation LTO platform and the five issue patents we have received are central to our business and strategies.

我想回顧我們最近宣布的重要行動，包括我們對兩個競爭對手提起的專利侵權訴訟、贖回我們的第二系列優先股的機會，我將在電話會議結束時回顧擬議的配股：我們已經概述了歷史上Flexs 購物者投入了大量時間和資金來創建創新的下一代LTO 平台，並且我們獲得的五項專利對於我們的業務和策略至關重要。

As a result, we have retained Quinn and Manuel to represent the company.

因此，我們保留了奎因和曼努埃爾代表公司。

We filed initial patent infringement lawsuits in the US district court for the eastern district of Texas against up bound and catapult.

我們向美國德州東區地方法院針對 upbound 和彈射器提起了初步專利侵權訴訟。

The lawsuits revolve around five key patents granted between 2018 and the present which protect flex shoppers online LTO technology.

這些訴訟圍繞著 2018 年至今授予的五項關鍵專利，這些專利保護彈性購物者的線上 LTO 技術。

The lawsuits against outbounding cat were initially filed on September 30th.

針對出境貓的訴訟最初於 9 月 30 日提起。

Investors should read our complaints to gain more insight into our rationale and position.

投資者應該閱讀我們的投訴，以更深入地了解我們的理由和立場。

We look forward to these two lawsuits moving forward quickly and we'll be updating investors along the way going forward.

我們期待這兩起訴訟迅速進展，我們將一路向投資者通報最新情況。

We plan to vigorously defend against LTO competitors who are infringing on our patented technologies.

我們計劃積極防禦 LTO 競爭對手侵犯我們專利技術的行為。

The next action I want to review today is the opportunity to redeem 91% of our series two preferred stock.

今天我想回顧的下一個行動是贖回我們第二系列優先股 91% 的機會。

This preferred stock is the last remaining investment from a fund that is winding down as a result.

該優先股是因此而結束的基金的最後剩餘投資。

We have the opportunity to redeem a majority of our preferred stock at a greater than 50% discount to its liquidation value of $44 million at September 30th 2024.

我們有機會在 2024 年 9 月 30 日以比 4,400 萬美元清算價值 50% 以上的折扣贖回大部分優先股。

We believe this opportunity will enhance shareholder value by improving our cost of capital, simplifying our capital structure and transferring the discount of $23 million of equity value to our common shareholders, representing approximately $1 per share.

我們相信，這一機會將透過改善我們的資本成本、簡化我們的資本結構以及將 2,300 萬美元的股權價值折扣轉移給我們的普通股東（相當於每股約 1 美元）來提高股東價值。

In addition, the redemption of our series two preferred stock will be highly accretive to earnings and will contribute over $4 million to annual operating income.

此外，我們第二系列優先股的贖回將大大增加收益，並將為年度營業收入貢獻超過 400 萬美元。

The 50% discount is based upon the date of repayments and the option to purchase lasts for a one year period.

50% 的折扣基於還款日期，購買選項有效期為一年。

In addition, further payments to the seller of the preferred stock may be required based upon the purchase price and a change of control in the next 12 months or patent settlement announcements in the next 24 months, we are working hard to redeem the series two preferred stock owned in the near term.

此外，根據未來 12 個月內的購買價格和控制權變更或未來 24 個月內的專利和解公告，可能需要向優先股賣方進一步付款，我們正在努力贖回第二系列優先股近期持有的股票。

So common shareholders can unlock the significant value.

因此普通股東可以釋放巨大的價值。

We believe our third quarter performance demonstrates the significant transformation underway at the company.

我們相信，我們第三季的業績顯示公司正在進行重大轉型。

The positive momentum and favorable trends underway across many aspects of our business are supporting additional opportunities to create significant value for our shareholders in 2025 and beyond.

我們業務的許多方面正在出現的積極勢頭和有利趨勢正在支持更多機會，以便在 2025 年及以後為我們的股東創造巨大價值。

I'm excited by the direction we're headed and I look forward to updating our investors on flex shopper success in the months ahead.

我對我們的發展方向感到興奮，並期待在未來幾個月向我們的投資者通報彈性購物者的成功情況。

Before I turn the call over to JD, I want to apologize for our last minute earnings release and mention that grant Thorton may need additional time to finalize the audit of the company's third quarter financial results.

在我將電話轉給京東之前，我想對我們最後一刻發布的收益表示歉意，並提到格蘭特·桑頓可能需要更多時間來完成對公司第三季度財務業績的審計。

If so, we plan to file an automatic extension of the SEC later today.

如果是這樣，我們計劃在今天晚些時候向 SEC 提交自動延期申請。

We'll file our 10-Q for the quarter ended September 30th 2024 within the five business day.

我們將在五個工作天內提交截至 2024 年 9 月 30 日的季度的 10-Q 報告。

Extension window.

擴展視窗。

We don't anticipate any changes to financial results presented in our earnings release or communicated in today's conference call.

我們預計我們的收益發布中或今天的電話會議中傳達的財務表現不會有任何變化。

So with this overview, I'll hand the call over to JD to dive into the company's third quarter performance.

因此，透過此概述，我將把電話轉交給京東，深入了解該公司第三季的業績。

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 where removal of government stimulus reduced savings and higher consumer price inflation cause a deterioration in payment performance.

首先，我們希望在更具挑戰性的時期提高整體資產質量，在這個時期，政府刺激措施的取消減少了儲蓄，消費者物價通膨上升導致支付績效惡化。

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 flex shopper.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 Flex shopper.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 our strong third quarter revenue growth and a significant improvement in profitability.

第三，我們希望利用這些優質產品，推動第三季營收的強勁成長和獲利能力的顯著提高。

Demonstrates the progress we are making executing against these strategies.

展示了我們在執行這些策略方面所取得的進展。

Let me start with asset quality.

讓我從資產品質開始。

The provision for doubtful accounts as a percentage of gross lease billings and fees was 22.2% in Q3 of 2024.

2024 年第三季度，呆帳撥備佔總租賃帳單和費用的百分比為 22.2%。

This compares to 32.1% in Q3 of 2023 which was a 990 basis point improvement or a 30.8% reduction year over year improved asset quality drove a $2 million benefit in the third quarter provision compared to the same period.

相較之下，2023 年第三季為 32.1%，提高了 990 個基點，或年減了 30.8%，資產品質的改善推動了第三季撥備與同期相比收益 200 萬美元。

Last year.

去年。

New originations continue to demonstrate favorable early payments versus the same period last year, which suggests that the provision level should continue its year over year favorability into two Q4 absent any unforeseen short term macroeconomic impacts.

與去年同期相比，新發源的提前付款繼續表現出有利的提前付款，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，第四季度的準備金水平應繼續保持同比有利水平。

I'm pleased with the quality of originations.

我對原創的品質感到滿意。

Today, we're accomplishing our first goal of continued asset performance improvement.

今天，我們正在實現持續改善資產績效的第一個目標。

Regarding our online retail strategy, we continue to realize the benefits of introducing product margin to our business enabled by our flex shopper dotcom marketplace for depreciation and impairment of lease merchandise cost.

關於我們的線上零售策略，我們繼續認識到將產品利潤引入我們的業務的好處，這是由我們的靈活購物者網路市場實現的折舊和租賃商品成本減損所帶來的。

As a percentage of gross lease billings and fees continued to improve and was 39.8% in Q3 of 2024 compared to 41.8% in the same quarter last year.

佔總租賃帳單和費用的百分比持續改善，2024 年第三季為 39.8%，去年同期為 41.8%。

This is a 200 basis point improvement year by year.

這是逐年提高200個基點。

As our product margins continue to improve and mature into the portfolio.

隨著我們的產品利潤率不斷提高並在產品組合中不斷成熟。

Overall depreciation and impairment costs increased by $1.4 million year to year.

整體折舊和減損成本年增 140 萬美元。

But this is due to a significant increase in lease revenue of $5.1 million.

但這是由於租賃收入大幅增加了 510 萬美元。

Adjusting for this year over year revenue increase.

對今年年收入成長進行調整。

This improved product margin improved lease profitability by $2.1 million this year versus the same quarter last year.

產品利潤率的提高使今年的租賃獲利能力比去年同期增加了 210 萬美元。

In addition, our third quarter gross profit expanded 32.9% year over year.

此外，我們第三季毛利年增32.9%。

This produced a 58% gross margin in Q3 of 2024 compared to 54% in Q3 of 2023 and 50% in Q2 of 2024 significant growth in gross profit and gross margin is a direct result of the strategies we are pursuing to capture retail revenue and margin.

這使得2024 年第三季的毛利率為58%，而2023 年第三季為54%，2024 年第二季為50%。戰略的直接結果。

I'm pleased with our progress on our second goal of improving gross margins and we continue to work on adding higher product margins to higher margin products to a marketplace including furniture, mattresses, jewelry and personal luxury items.

我對我們在提高毛利率的第二個目標上取得的進展感到高興，我們將繼續致力於為市場上的高利潤產品增加更高的產品利潤，包括家具、床墊、珠寶和個人奢侈品。

We now offer multiple payment solutions on our marketplace which provides more options for customers to transact on the marketplace with an offer that fits their credit profile and what they can obtain from another credit provider.

我們現在在我們的市場上提供多種支付解決方案，為客戶在市場上進行交易提供了更多選擇，提供適合他們的信用狀況以及他們可以從其他信用提供者獲得的優惠。

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.

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。

This includes a large prime credit issuer to expand our total addressable market to levels beyond the traditional subprime customer and increase online traffic of customers that already visit our site daily.

這包括一家大型優質信貸發行人，將我們的整體潛在市場擴大到傳統次級客戶之外的水平，並增加每天訪問我們網站的客戶的線上流量。

Providing a full spectrum of payment options on our marketplace can dramatically increase overall revenue, provide a positive impact in the quality of our lease originations and increase our marketing efficiency.

在我們的市場上提供全方位的支付選項可以顯著增加整體收入，對我們的租賃發起品質產生積極影響並提高我們的行銷效率。

Every incremental sale on our marketplace to customers outside our traditional LTO offerings expands income and cash flow that is immediately recognized versus advertised over a 12 month lease.

我們市場上向傳統 LTO 產品以外的客戶進行的每一次增量銷售都會增加收入和現金流，這一點會立即得到確認，而不是在 12 個月的租賃期內進行廣告宣傳。

Let me now discuss our third goal.

現在讓我討論我們的第三個目標。

Third goal of increasing profitable revenue overall net revenue grew by 22.9% year over year for Q3 versus to $38.6 million.

第三個目標是增加獲利收入，第三季整體淨收入年增 22.9%，達到 3,860 萬美元。

Gross lease revenues increased $5.1 million versus Q3 of 2023 to $36.4 million.

總租賃收入較 2023 年第三季增加 510 萬美元，達到 3,640 萬美元。

With total net lease revenues increasing by $7.3 million versus last year's Q3 to $28.4 million.

淨租賃總收入較去年第三季增加 730 萬美元，達到 2,840 萬美元。

This year over year increase in lease revenue accelerated from Q2 for comparative gross lease revenue grew by 6.7% year over year a quarter ago when it's up by $1.7 million from two Q2 of 2024 lease revenue is being fueled by a 14% increase in lease origination dollars compared to last year, which is coming from both increased lease counts and higher average lease value.

租賃收入年增率從第二季開始加速，相對總租賃收入較上一季年增6.7%，較2024 年第二季的第二季增加170 萬美元，租賃收入成長14%，推動了租賃收入的成長與去年相比，增加了 100 美元，這得益於租賃數量的增加和平均租賃價值的提高。

As Russ mentioned earlier, our signed store count is approximately 250% higher than the beginning of the year.

正如 Russ 之前提到的，我們的簽約商店數量比年初增加了約 250%。

Approximately 7,800 locations.

約 7,800 個地點。

Our location count has blown by our original target of 5,000 by year end 2024.

我們的營業地點數量已超出我們原定的 2024 年底 5,000 個目標。

The unique competitive advantage that Fox shopper has versus other companies in our industry is our marketplace which greatly enhances our ability to drive repeat originations versus a model that is mainly retail focused only as we add more new customers to our ecosystem.

與我們行業中的其他公司相比，Fox shopper 的獨特競爭優勢是我們的市場，與主要以零售為重點的模式相比，我們的市場極大地增強了我們推動重複起源的能力，因為我們向我們的生態系統增加了更多新客戶。

Through this expanding location base marketplace revenue will also benefit from repeat repeat purchases beyond our direct to consumer marketing efforts.

透過不斷擴大的地點基礎，市場收入也將受益於我們直接面向消費者的行銷工作之外的重複購買。

Total lease funding approvals were 33% higher at $77 million.

批准的租賃資金總額增加了 33%，達到 7,700 萬美元。

In Q3 of 2024 versus $57.9 million.

2024 年第三季為 5,790 萬美元。

In Q3 of 2023 submitted applications were 58% higher year over year showing the impact of strong consumer demand in our increasing location counts.

2023 年第三季度，提交的申請數量年增 58%，這表明強勁的消費者需求對我們不斷增加的地點數量產生了影響。

Our marketing team has developed a robust remarketing engine which will enable approved customers to more easily use their available spending limits on our marketplace during the upcoming holiday shopping season.

我們的行銷團隊開發了強大的再行銷引擎，使獲得批准的客戶能夠在即將到來的假期購物季更輕鬆地使用我們市場上的可用支出限額。

Overall, net loan revenues were $9 million this year versus $10.3 million.

總體而言，今年淨貸款收入為 900 萬美元，而今年為 1,030 萬美元。

Last year.

去年。

Net revenue in our state licensed business model increased 249% versus last year.

我們國家許可的商業模式的淨收入比去年增長了 249%。

While net revenues from our bank partner loan model dropped to a loss of $190,000 versus a $7.7 million gain.

我們的銀行合作夥伴貸款模式的淨收入下降至虧損 19 萬美元，而收益則為 770 萬美元。

Last year, our bank partner chose to exit the high APR business in 2023 our state licensed lending business was acquired in December 2022 and consists of branch based loan distributions among owned and operated as well as third party franchise owned locations in Q3.

去年，我們的銀行合作夥伴選擇在2023 年退出高年利率業務，我們的國家許可貸款業務於2022 年12 月收購，包括在第三季度擁有和經營的以及第三方特許經營地點之間基於分行的貸款分配。

We recorded again on the fair value estimate of the portfolio.

我們再次記錄了投資組合的公允價值估計。

As many of these loans were placed with a new third party collections partner that is demonstrating improved cash collections.

由於其中許多貸款都交給了新的第三方收款合作夥伴，該合作夥伴正在證明現金收款有所改善。

Overall origination counts were down at 8% in Q3 versus the same period last year.

第三季的整體發起數量與去年同期相比下降了 8%。

A new customer origination dollars were up 32% year every year in September and 28% year over year in October.

每年 9 月新客戶發起金額年增 32%，10 月年增 28%。

This improvement in new customer originations is in part due to new leadership we brought in in the middle of the third quarter.

新客戶來源的改善部分歸功於我們在第三季中期引入的新領導層。

A state licensed loan model customer has a high propensity to repeat to hire new customer volumes will create an annuity of repeat volume that will grow as new customer comps remain favorable.

國家許可的貸款模式客戶有很高的傾向重複僱用新客戶量，這將創造重複量的年金，隨著新客戶的競爭仍然有利，該年金將會增長。

Additionally, synergy between our loan and lease businesses through customer cross marketing and the sharing of back office risk, marketing and finance resources is a natural advantage that flexshopper has versus a monoline lending business.

此外，透過客戶交叉行銷以及分擔後台風險、行銷和財務資源，我們的貸款和租賃業務之間的協同效應是 Flexshopper 相對於單一貸款業務的天然優勢。

I am pleased with the initial momentum of our new, our new team is bringing to this business and I'm hopeful that they will bring continued revenue and profitability growth for our loan channel.

我對我們的新團隊為這項業務帶來的初步勢頭感到高興，我希望他們將為我們的貸款管道帶來持續的收入和獲利成長。

The combined result of the growth strategies underway produced a material increase in adjusted EBITA which expanded from $8.4 million for Q3 of 2023 to $12.2 million for Q3 of 2024 as a percentage of total revenue, our adjusted ebit margin was 31.5% compared to 26.7% for the same period last year.

正在進行的成長策略的綜合結果使調整後的息稅折舊攤銷前利潤(EBITA) 大幅增加，佔總收入的百分比從2023 年第三季的840 萬美元增加到2024 年第三季的1,220 萬美元，調整後的息稅前利潤率為31.5%，而2024 年第三季的調整後息稅前利潤率為26.7%。

In addition to the improvements in bad debt and lease depreciation as a percentage of revenue salaries and operating expenses excluding marketing as a percentage of revenue improved by approximately 130 basis points.

除了壞帳和租賃折舊佔收入的百分比有所改善之外，薪資和營運費用（不包括行銷費用）佔收入的百分比也提高了約 130 個基點。

Additionally, marketing and loan origination costs and fees as a percentage of revenue improved by approximately 280 basis points.

此外，行銷和貸款發放成本及費用佔收入的百分比提高了約 280 個基點。

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 the online retail opportunities 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，並擴大我們面前的線上零售機會。

We are achieving year over year and quarterly sequential revenue growth.

我們正在實現同比和季度連續收入成長。

We're seeing improved asset quality with lower bad debt.

我們看到資產品質得到改善，壞帳減少。

We're increasing product margin which has a material benefit to our income statement.

我們正在提高產品利潤，這對我們的損益表有實質的好處。

We are gaining leverage on our marketing and operating expenses.

我們正在提高行銷和營運費用的槓桿作用。

Result of these strategies has produced significant year over year ebida growth and positive net income.

這些策略的結果帶來了同比顯著的EBDA成長和正的淨利潤。

During the third quarter, we will remain vigilant in regards to signs of any potential future economic slowdown.

在第三季度，我們將對未來任何潛在的經濟放緩跡象保持警惕。

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

隨著就業持續成長、失業率較低以及消費價格穩定，我們繼續看到客戶對在我們通路內購物的興趣。

I want to thank our team for the hard work and results.

我要感謝我們團隊的辛勤工作和成果。

We look forward to what we can achieve in 2024 and believe we are well positioned for continued growth and improved profitability in 2025.

我們期待 2024 年能夠取得的成就，並相信我們已做好準備，能夠在 2025 年實現持續成長並提高獲利能力。

And beyond that, let me turn the call back over to Russ to review the rights offering in more detail.

除此之外，讓我將電話轉回給 Russ，以更詳細地審查配股。

Thanks JD a record third quarter revenue and adjust the EBITDA demonstrate the success of the growth strategy is underway as we have positioned the business for for sustainable sustainable growth and profitability.

感謝京東第三季創紀錄的收入，並調整了 EBITDA，這表明成長策略正在取得成功，因為我們將業務定位為永續成長和獲利能力。

We have simultaneously been pursuing actions that are intended to simplify and improve our capital structure and ultimately increase net income and earnings per common share.

我們同時一直在採取旨在簡化和改善我們的資本結構並最終增加淨利潤和每股普通股收益的行動。

Agreeing on a favorable purchase price to redeem 91% of our series two preferred stock at a 50% plus discount to its liquidation value has the added effect of negating the weighted average anti-dilution provision for the vast majority of the preferred stock and is a fundamental catalyst to raise equity capital assertively as we reduce interest and dividend expense.

商定有利的購買價格，以清算價值 50% 以上的折扣贖回我們第二系列優先股的 91%，具有否定絕大多數優先股的加權平均反稀釋條款的附加效果，並且是一種隨著我們減少利息和股利支出，積極提高股本資本的基本催化劑。

In addition, as I mentioned earlier, assuming our enterprise value stays constant redeeming the redeeming the preferred stock at a 50% discount has the potential to add approximately $1 per share to our enterprise value based on our current share count.

此外，正如我之前提到的，假設我們的企業價值保持不變，以 50% 的折扣贖回優先股，根據我們目前的股份數量，我們的企業價值每股可能會增加約 1 美元。

Therefore, on October 28th, 2024 we filed an S-1 registration statement with the SEC for a proposed rights offering.

因此，我們於 2024 年 10 月 28 日向 SEC 提交了擬議配股的 S-1 註冊聲明。

When the S one becomes effective, we plan to launch a rights offering to purchase up to 35 million units in which each shareholder as of the record date receives two nontransferable rights to purchase units.

當 S 生效後，我們計劃發起一項配股，購買最多 3,500 萬股，其中截至記錄日期的每位股東將獲得兩項不可轉讓的購買股權。

Unit consists of one share of common stock and A series A B&C, right, which expires 30 60 90 days respectively after the initial offering, these short dated rights permit from participants to make additional share purchases.

單位由一股普通股和 A 系列 A B&C（右）組成，分別在首次發行後 30、60、90 天到期，這些短期權利允許參與者購買額外的股票。

After learning the impact on balance sheet improvements from the proceeds of the initial raise, we believe raising capital through a rights offering is the best is in the best interest of shareholders because it allows existing investors the opportunity to maintain their level of ownership in the company.

在了解首次融資收益對資產負債表改善的影響後，我們認為透過配股籌集資金最符合股東的最佳利益，因為它使現有投資者有機會維持其在公司的所有權水平。

In fact holders who fully exercise their basic subscription rights will be entitled to oversubscribe for an additional number of units if available that are not purchased by other stockholders subject to pro rata allocation based on the oversubscription request, we intend to allocate the proceeds of the offering to actions that were produced the largest reduction to our cost of capital.

事實上，充分行使其基本認購權的持有人將有權超額認購額外數量的單位（如果有），而其他股東未購買的單位則根據超額認購請求按比例分配，我們打算分配本次發行的收益那些為我們的資本成本帶來最大程度降低的行動。

I know that equity raises are often viewed negatively at face value.

我知道，人們常常對股權融資的表面價值持負面看法。

However, in this instance, as I mentioned, as I mentioned previously, this transaction has a clear use of proceeds that we believe will be accretive to investors.

然而，在這種情況下，正如我之前提到的，這項交易的收益用途明確，我們相信這將為投資者帶來增值。

In fact, the more shares sold, the more creative the offering is and of course the higher the offering price, the more creative the transaction is for all shareholders and the free writing prospectus filed with the SEC on October 29th, we estimate that for every $25 million in net proceeds raised by the offering, we will increase net income by $4.5 million.

事實上，出售的股票越多，發行就越有創意，當然，發行價格越高，交易對所有股東來說就越有創意，根據10 月29 日向SEC 提交的免費招股說明書，我們估計，對於每一個此次發行籌集的淨收益為 2500 萬美元，我們的淨收入將增加 450 萬美元。

Looking at the accretive nature of the rights offering another way and assuming we raised $50 million of net proceeds, we have the flexibility to pay off the $10.9 million balance of our subordinated notes which will save us $2 million in annual interest expense.

從另一種方式來看配股的增值性質，假設我們籌集了 5000 萬美元的淨收益，我們可以靈活地償還我們的次級票據的 1090 萬美元餘額，這將節省 200 萬美元的年度利息費用。

Redeem 91% of our series two preferred stock which will reduce associated dividends by $4.4 million per year and use the remaining capital to pay down a portion of our credit facility agreement which will add an additional $2.6 million in annual interest savings.

贖回我們第二系列優先股的 91%，這將每年減少 440 萬美元的相關股息，並使用剩餘資本支付我們信貸安排協議的一部分，這將額外增加 260 萬美元的年度利息節省。

We estimate these actions combined to increase annual net income to common shareholders by approximately $9 million and increase earnings per common share.

我們估計，這些行動結合起來將使普通股股東的年淨利潤增加約 900 萬美元，並增加每股普通股收益。

Simplifying and equitizing our capital structure while reducing interest or dividend expense allow us to allocate earnings back into our business fund.

簡化和公平化我們的資本結構，同時減少利息或股息費用，使我們能夠將收益分配回我們的業務基金。

More of our growth internally and produce a higher return on equity.

我們的內部成長更多，並產生更高的股本報酬率。

Our third quarter performance demonstrates we're pursuing this rights offering from a position of strength and members of Flex Shoppers management team and board of directors plan to participate in the offering.

我們第三季的業績表明，我們正在以優勢地位尋求此配股，Flex Shoppers 管理團隊和董事會成員計劃參與此配股。

I look forward to completing the rights offering in the coming months and updating our investors on flex Shoppers continued success through upcoming press releases and on our next call, this completes our prepared remarks operator.

我期待在未來幾個月內完成配股發行，並透過即將發布的新聞稿向我們的投資者通報 Flex Shoppers 的持續成功，並在我們的下一次電話會議上完成我們準備好的評論操作員。

Please open the call for questions.

請打開電話提問。

Thank you, ladies and gentlemen.

謝謝你們，女士們、先生們。

We will now begin the question and answer session.

我們現在開始問答環節。

If you would like to ask a question, please press star and one on your telephone keypad.

如果您想提問，請按電話鍵盤上的星號和一。

A confirmation tone will indicate your line is in the question queue.

確認音將表示您的線路已在問題佇列中。

You may press star and two if you'd like to remove your question from the queue for participants using speaker equipment.

如果您想從使用揚聲器裝置的參與者的佇列中刪除您的問題，您可以按星號和二號鍵。

It may be necessary to pick up your handset before pressing the star keys.

按星號鍵之前可能需要拿起聽筒。

Ladies and gentlemen, we will wait for a moment while we poll for questions.

女士們先生們，我們將稍等片刻，然後進行投票提問。

The first question comes from the line of Scott Buck from HC Wainwright.

第一個問題來自 HC Wainwright 的 Scott Buck。

Please go ahead.

請繼續。

Hi, good morning guys.

嗨，大家早安。

Congrats on the results and thanks for taking my questions.

恭喜結果並感謝您提出我的問題。

I want to ask you about the improvement in payment performance.

我想向您詢問有關支付效能改進的問題。

How much of that is driven by improved underwriting versus quality of the borrower versus, you know, improvements in account servicing, just trying to kind of piece all that together and see if there's maybe some even some more room there for improvement.

其中有多少是由承保的改善、借款人的品質以及帳戶服務的改進所驅動的，你知道，只是試圖將所有這些拼湊在一起，看看是否還有更多的改進空間。

Sure.

當然。

Yeah, this is JD.

是的，這就是JD。

So I think if I had to rank order, the first one is improved underwriting and fraud evaluation.

因此，我認為如果必須排序，第一個是改進承保和詐欺評估。

So we've invested a lot in our risk and analytics team and have done a lot to to really make a lot of headway in that kind of you know, efforts.

因此，我們在風險和分析團隊上投入了大量資金，並做了很多工作，以便在這種努力方面真正取得很大進展。

I think the second one is going to be on the quality of the customer.

我認為第二個是關於客戶的品質。

So in our marketing, we actually have a lot of algorithms that look for ideal customers.

所以在我們的行銷中，我們實際上有很多尋找理想客戶的演算法。

And as a part of that, we've actually seen a bit of a mix upwards in you know, the way that we evaluate credit.

作為其中的一部分，我們實際上在評估信用的方式中看到了一些向上的混合。

I think another contributor to that is as companies above us are pulling back, their bottom customers are now not getting approved by that that credit provider above us and are coming down to us to take those offers.

我認為造成這種情況的另一個原因是，隨著我們上方的公司正在撤退，他們的底層客戶現在沒有得到我們上方信貸提供者的批准，而是來找我們接受這些報價。

So we're also seeing a bit of a, a tailwind when it comes to the quality.

因此，在品質方面，我們也看到了一些順風車。

And then, you know, I think, you know, third but not too far behind is our servicing capabilities.

然後，你知道，我認為，你知道，第三個但也不落後太多的是我們的服務能力。

You know, one big initiative for 2025 is actually to introduce a lot of A I driven automation in in collector servicing capabilities, both, you know, through first party, as well as some of our third party partners as that gets deployed and as the right offer is presented to the right customer at the right time through the right channel and there will be tailwind, which is going to be a bit of an initiative for us in 2025.

您知道，2025 年的一項重大舉措實際上是在收集器服務功能中引入大量人工智慧驅動的自動化，您知道，透過第一方以及我們的一些第三方合作夥伴進行部署並作為正確的選擇在正確的時間透過正確的管道向正確的客戶提供優惠，將會帶來順風，這對我們來說是2025 年的一項舉措。

Great.

偉大的。

I appreciate that.

我很欣賞這一點。

That color JD and then on the B to B business, can you remind us, you know, how long it takes to get some of these new locations kind of up to up to speed?

那顏色京東，然後是 B2B 業務，你能提醒我們，你知道，需要多長時間才能讓這些新地點加快速度？

And I can't remember, is there an 80% principle here where, you know, 20% of the locations are generating 80% of the leases or is it significantly different than that?

我不記得這裡是否有 80% 原則，即 20% 的地點產生 80% 的租賃量，還是與此有顯著不同？

No, you're, right.

不，你是對的。

I mean, I, I think you know what we have, I mean, it's not quite 80-20 but certainly the you know, that, those top few deciles certainly are responsible for the majority.

我的意思是，我，我想你知道我們擁有什麼，我的意思是，這不是 80-20，但你肯定知道，前幾個十分之一肯定佔了大多數。

And, and, you know, and on the other side, you know, the bottom decile or two, it doesn't contribute a whole lot.

而且，而且，你知道，另一方面，你知道，底部的十分之一或兩個，它並沒有做出很大的貢獻。

But, you know, much like in our underwriting process, right, we work off of the, the entire vintage.

但是，你知道，就像我們的核保過程一樣，我們是在整個年份進行工作的。

And so as we're thinking about, you know, that entire, a segment and how it comes, you know, comes together, we've noticed, certainly by segment, there's some discrepancies, but when it comes, you know, when it comes down to, you know, automotive, you know, versus other, you know, we tend to find that everyone rev reverts to a similar mean.

因此，當我們思考整個部分以及它如何組合在一起時，我們注意到，當然按部分來看，存在一些差異，但是當它出現時，你知道，當歸結為，你知道，汽車，你知道，與其他，你知道，我們傾向於發現每個人的轉速都會恢復到相似的平均值。

So I'm, you know, hopeful as we continue to stay in the automotive sector that will you continue to see similar progress and, and so adding this many stores, it will, you know, result in pretty significant gains on the B two B side.

所以，你知道，我希望，當我們繼續留在汽車行業時，你會繼續看到類似的進展，因此增加這麼多商店，你知道，這將為 B 兩個行業帶來相當大的收益B面。

What is, you know, in terms of rollout time, you know, that's, it's always an issue and, and, you know, when you factor in seasonality and upcoming holidays, you know, it always tends to, to, to slow down retailers a little bit, you know, on one hand, you know, you have that, you know, that top portion that really wants to drive growth, you know, we'll really embrace it during the holidays.

就推出時間而言，這始終是一個問題，並且，當您考慮季節性和即將到來的假期時，您知道，它總是傾向於放慢速度零售商一點點，你知道，一方面，你知道，你知道，你知道，真正想要推動成長的最大部分，你知道，我們會在假期期間真正擁抱它。

And so we'll get some significant lift and the ones that, you know, are slower to embrace, we will probably, you know, end up more sort of in that, you know, early part of next year before they really start to, to embrace the product.

因此，我們將獲得一些重大的提升，而那些，你知道，接受起來較慢的東西，我們可能會，你知道，在明年初他們真正開始之前就結束了。

You know, we'd like to, we like to think that in that 6 to 9 month time frame, we, we've, you know, outside of improvements to process.

你知道，我們願意，我們願意認為，在 6 到 9 個月的時間範圍內，我們，你知道，除了流程的改進之外。

Right.

正確的。

You know, maybe integrating more directly or making some other modifications when it comes to just the, the efforts within the stores and what the the teams are able to do in those stores, we find that, you know, you started to plateau, you know, store count being constant, you started to plateau within 6 to 9 months.

你知道，也許更直接地整合或進行一些其他修改，當涉及到商店內的努力以及團隊在這些商店中能夠做的事情時，我們發現，你知道，你開始趨於穩定，你要知道，如果商店數量保持不變，您會在6 到9 個月內開始趨於穩定。

So, so there is definitely a lead time, you know, maybe compounded by the upcoming holidays, but we'll so like I said, it's, it's really based upon how the individual store managers, team leaders, et cetera, you know, embrace it.

所以，肯定有一個交貨時間，你知道，可能會因即將到來的假期而變得更加複雜，但我們會像我說的那樣，這實際上取決於各個商店經理、團隊領導等的方式，你知道，擁抱它。

Yeah, I can appreciate that.

是的，我很欣賞這一點。

Thanks.

謝謝。

And then last one for me, just curious, given kind of seasonality and the holidays coming up, whether we should expect to see a bit of a revenue mix shift between the, the three verticals, you know, should we see a higher retail component here in the fourth quarter?

最後一個對我來說，只是好奇，考慮到季節性和即將到來的假期，我們是否應該期望看到三個垂直領域之間的收入組合發生一些變化，你知道，我們是否應該看到更高的零售成分在第四季嗎？

Well, as you know, having followed us for a while, you know, that the fourth quarter is a a big one for us.

嗯，正如你所知，關注我們一段時間後，你知道，第四季度對我們來說是一個重要的季度。

You know, certainly that, that, you know, flex shopper.com retail component definitely, grows a good bit, you know, from a, but it's also important to remember from a revenue perspective that a lot of these originations will take place in that, you know, Thanksgiving to Christmas time frame and won't be fully represented in the fourth quarter.

你知道，當然，你知道，flex shopper.com 零售組件肯定會增長一點，你知道，從收入的角度來看，記住這一點也很重要，其中很多起源將發生在你知道，感恩節到聖誕節的時間範圍不會在第四季充分體現。

You know, we usually think that, you know, you'll see the marketing spend, you'll see the origination counts.

你知道，我們通常認為，你會看到行銷支出，你會看到發起計數。

You'll see all of that take place in the fourth quarter, but doesn't really show itself until the, you know, the first quarter of the next year.

你會看到所有這些都發生在第四季度，但直到明年第一季才會真正顯現出來。

Yeah.

是的。

No, it makes sense.

不，這是有道理的。

I appreciate it guys.

我很感激你們。

Thanks for the time and congrats again on the results.

感謝您抽出時間並再次祝賀結果。

Thanks, sir.

謝謝，先生。

Thank you.

謝謝。

The next question comes from the line of Michael Diana from Maxim Group.

下一個問題來自 Maxim Group 的 Michael Diana。

Please go ahead.

請繼續。

Okay, thank you.

好的，謝謝。

So you, you all been extremely busy and a great quarter.

所以你們，你們都非常忙碌，度過了愉快的一個季度。

I, I want to go back to the credit quality and I think that that was the main reason for the gross margin improvement up to 58%.

我想回到信貸質量，我認為這是毛利率提高至 58% 的主要原因。

Is, is that sort of a new benchmark for you?

這對你來說是一個新的基準嗎？

Do you think, it seems like some of some of the, some of the improvement is, has had such a material effect.

你覺得，好像有的有的，有的改進是，已經有了這樣的實質效果。

You, you probably, you won't receive that sort of kick going forward.

你，你可能，你以後不會再受到這種刺激了。

Is that right or wrong?

這是對還是錯？

Yeah.

是的。

And I think when we look at how earnings increase over on from here.

我認為當我們看看接下來的收入如何成長時。

You know, I I think our goal is kind of getting the the her account profit levels to kind of where it is today, at least on the bad debt side, we don't really anticipate bad debt continuing to drop significantly from here.

你知道，我認為我們的目標是讓她的帳戶利潤水平達到今天的水平，至少在壞帳方面，我們並不真正預期壞帳會繼續大幅下降。

We do see, you know, more and more contribution from our retail margin which shows up as, you know, better depreciation as a percentage of lease revenue as more products are added to our marketplace.

我們確實看到，我們的零售利潤率的貢獻越來越大，隨著更多產品添加到我們的市場，折舊佔租賃收入的百分比會更好。

But then really the big thing is growing the top line so that the the irrs that we get with this kind of customer is very good.

但真正重要的是增加收入，這樣我們從這類客戶那裡得到的收入就非常好。

So you get to the place where if you continue to try to decrease that debt through tightening, then you actually restrict the ability to, to grow.

因此，如果你繼續嘗試透過緊縮來減少債務，那麼你實際上會限製成長的能力。

Now having said that, are we saying that we're, we've done everything we can do on the bad debt side.

話雖如此，我們是否是說我們已經在壞帳方面做了我們能做的一切。

The answer is no, we will have as I was mentioning earlier, you know, more A I driven capabilities on our servicing site, which you know, that will have a natural benefit to the bad debt levels.

答案是否定的，正如我之前提到的，我們的服務網站上將擁有更多人工智慧驅動的功能，這將對壞帳水準產生自然的好處。

And then our risk analytics team continue to work very hard every day to try to gain more benefit out of the existing book.

然後我們的風險分析團隊每天繼續努力工作，試圖從現有的書中獲得更多的好處。

And hopefully we actually continue to see more of a mix shift upward as you know, the whatever soft landing or however you would describe you know, how the economy evolves from here, will produce more customers that are more liquidity constrained than they are today.

希望我們實際上繼續看到更多的混合向上轉變，正如你所知，無論軟著陸或你如何描述你知道的，經濟如何從這裡發展，都會產生更多流動性比今天更受限制的客戶。

So, going forward, I, we don't plan for a lower at that level, but certainly kind of where it is is, you know, we, have some initiatives that hopefully will keep any potential upward pressure bedded down.

因此，展望未來，我們不打算降低這個水平，但肯定是這樣的，你知道，我們有一些舉措，希望能夠抑制任何潛在的上行壓力。

I think, adding on to that, I think the one piece that, you know, thinking at, you know, the gross profit level, I think that the, you know, the next puzzle we, we need to solve.

我認為，除此之外，我認為，你知道，考慮到毛利水平，我認為，你知道，我們需要解決的下一個難題。

Mike is that there is, you know, as we've talked about numerous times, there's a good number of people coming to our site that are, you know, spending time on our site.

麥克是，正如我們多次談到的那樣，有很多人訪問我們的網站，並在我們的網站上花費了時間。

But when it come time, you know, comes time to check out, they're looking at the different options they have and they might not think that they are in that, you know, that credit band that makes sense to choose what we have available on the site.

但是，當到了檢查的時候，他們正在考慮他們擁有的不同選擇，他們可能不認為自己處於那個信用範圍內，選擇我們擁有的東西是有意義的可以在網站上找到。

So what we've been focused on for a while and it's taken longer than we've expected is really trying to fill in an option for those consumers that, you know, are we say you better qual credit quality than traditional lease to own consumer, but, you know, don't have the liquidity to go, you know, purchase you know, pull out a credit card or debit card and, and purchase at their local store or, you know, a convenient website, et cetera and do need some of the credit options that we hope to soon have on our site.

因此，我們已經關注了一段時間，而且花費的時間比我們預期的要長，實際上是在嘗試為那些消費者提供一個選擇，你知道，我們說你比傳統的向自己的消費者租賃的信用品質更好，但是，你知道，沒有流動資金去購買，你知道，拿出信用卡或借記卡，然後在當地商店或便利的網站等處購買確實需要一些我們希望很快在我們的網站上提供的信用選項。

So, given how much volume we drive to our website, I think there is a lot of upside if we can, you know, solve that piece of, you know, an option for the, I don't know, we'll say sort of the low 600 credit score.

因此，考慮到我們網站的訪問量，我認為如果我們能夠解決這個問題，我不知道，我們會說，會有很大的好處信用評分低至 600 分。

I think that could be the, the next big move of, you know, we haven't, we haven't solved it yet and we're, you know, part of the way into the the fourth quarter, but trying to have something in place, you know, before we hit, December is certainly sort of top of mind if we can actually catch that last wave right before Christmas, that would be great and provide a lot of data for us.

我認為這可能是下一個重大舉措，你知道，我們還沒有解決這個問題，你知道，我們已經進入第四季度的一部分，但正在努力解決這個問題。是我們首要考慮的事情，如果我們能夠在聖誕節前趕上最後一波浪潮，那就太好了，並為我們提供了大量數據。

But that's, that's where we're, you know, as we think about continue to expand gross profit, that's where.

但這就是我們的處境，你知道，當我們考慮繼續擴大毛利時，那就是我們的處境。

Our and that margin.

我們和那個邊際。

Yeah, and that margin would show up in either a combination of additional retail revenue or a better marketing efficiency, which we've seen some improvement already.

是的，這種利潤將體現在額外的零售收入或更好的行銷效率的組合中，我們已經看到了一些改進。

But I think this effort that Russ was talking about hopefully will actually add more margin with higher marketing efficiency.

但我認為拉斯所說的這項努力有望實際上透過更高的行銷效率增加更多的利潤。

All right, thanks Ross.

好的，謝謝羅斯。

Thanks Judy.

謝謝朱迪。

Thank you.

謝謝。

The next question comes from the line of Steve Silva from August research, please.

下一個問題來自八月研究的史蒂夫席爾瓦（Steve Silva）。

Go ahead.

前進。

Thanks operator and good morning and thanks for taking the questions and congratulations as well on the strong results.

感謝操作員，早上好，感謝您提出問題並祝賀我們取得了優異的成績。

I was hoping you could provide some color on the retail pipeline.

我希望你能為零售通路提供一些資訊。

You guys mentioned in the prepared remarks, the strong expansion to date and the fact that you blew past your own internal estimates on the number of locations earlier in the year.

你們在準備好的發言中提到，迄今為止的強勁擴張，以及你們今年早些時候對地點數量的內部估計。

I was just curious as to whether there are any factors you can cite for that acceleration in the pipeline compared to your initial estimates and how you see the breadth of the retail pipeline continuing in 2025.

我只是想知道，與您最初的估計相比，您是否可以列出任何因素來推動通路的加速，以及您如何看待 2025 年零售通路的廣度。

Sure, of course, we, you know, we continue.

當然，當然，我們，你知道，我們會繼續。

So, so our our process which I'm sure is, you know, similar to, you know, to other companies in our space is there's a lot of work that goes around, you know, elephant hunting, so to speak and you know, you, you make sure you target a lot of them, you know, make sure you make them the right inroads.

所以，我們的流程，我確信，與我們領域的其他公司類似，有很多工作在進行，你知道，可以說，大象狩獵，你知道，你，你確保你瞄準了他們中的很多人，你知道，確保你讓他們取得了正確的進展。

And there always seem to be a number of these very a large, you know, high door count, high website volume, you know, potential retail partners that are out there, but you just don't know when you're going to close them right?

似乎總是有一些非常大的，你知道的，高門數，高網站量，你知道，潛在的零售合作夥伴在那裡，但你只是不知道什麼時候會關閉他們對嗎？

Conversations, you know, conversations are continuing tests are being planned.

對話，你知道，對話正在繼續，測試正在計劃中。

Technology integrations are being worked through, contracts being finalized, but you just don't know when it's going to hit.

技術整合正在進行中，合約也正在敲定中，但你只是不知道它什麼時候會發生。

So we've, you know, for, for many reasons, you know, we tend to take the approach that we're going to, you know, hit a lot of the singles and, you know, sort of have, have budgeted internally for, you know, that, that home run, once a year and it's, you know, this is a year where, you know, two of the, you know, we have two homers and, you know, that significantly changes our estimates.

所以我們，你知道，因為很多原因，你知道，我們傾向於採取這樣的方法，你知道，我們會擊中很多單曲，並且你知道，有點預算在內部，你知道，那個全壘打，每年一次，你知道，今年，你知道，我們有兩支全壘打，你知道，這極大地改變了我們估計。

But what is, you know, especially intriguing is that we continue to have a lot of these homer opportunities that I said are sort of sitting out there and sometimes success begets success, I think, as we continue to make more inroads, it becomes easier to to close these larger deals.

但是，你知道，特別有趣的是，我們仍然有很多這樣的本壘打機會，我說這些機會就在那裡，有時成功會帶來成功，我認為，隨著我們繼續取得更多進展，它會變得更容易來完成這些較大的交易。

So we're we're excited that, you know, the one, the normal one homer a year turned to two this year and we'll continue to stay at that pace going forward.

所以我們很興奮，你知道，正常的一年一個本壘打今年變成了兩支全壘打，我們將繼續保持這個速度前進。

Great.

偉大的。

I appreciate the color and one last one, if I may given the return to GAAP profitability this quarter and the expectation that the business remains favorable moving forward.

如果我可以考慮到本季度 GAAP 盈利能力的恢復以及對業務繼續有利發展的預期，我很欣賞這種顏色和最後一個。

I'm curious as to whether there are any implications for the company's ability to further bring down its debt over time, independent of the rights offering.

我很好奇，隨著時間的推移，這是否會對公司進一步減少債務的能力產生任何影響，而與配股無關。

Given the fact that the company has a lower capital risk, a lot of the investments are already in place.

鑑於該公司的資本風險較低，許多投資已經到位。

Just curious as to whether there are other uses for the positive income to invest back into the business or some of that net income could be utilized to bring down debt independent of the rights offering.

只是好奇這些正收入是否有其他用途可以投資回企業，或是部分淨收入可以用來減少獨立於配股發行的債務。

No, that's a good, a good question, Steve.

不，這是一個很好的問題，史蒂夫。

I think what I think the, the way we would most likely approach it and obviously, it's dependent upon, you know, the amount of you know, net proceeds in, in this rights offering.

我認為我認為，我們最有可能採取的方式，顯然，它取決於，你知道的，你知道的，在這次配股中的淨收益。

There is a, you know, inflection point at which you have delevered enough that's in, you know, increased net income enough that you do start to find a way to transition to lower cost of debt capital.

你知道，有一個拐點，在這個拐點上，你已經充分去槓桿化了，你知道，淨收入的增加足以讓你開始尋找一種方法來過渡到較低的債務資本成本。

And so, you know, I mean, I guess sort of in a vacuum, it, it might be a little bit difficult to answer.

所以，你知道，我的意思是，我想有點真空，這可能有點難回答。

But I think, I think sort of our, you know, sort of instinct would be to lead with, let's delever where we can, let's continue to focus on growing the business.

但我認為，我們的本能是，讓我們盡可能地去槓桿化，讓我們繼續專注於發展業務。

Let's be thoughtful around finding ways to lower cost of capital.

讓我們認真思考尋找降低資本成本的方法。

And, you know, look through all of this, it's about making the right ir decisions and thinking through how that impacts us in the long run.

而且，你知道，縱觀所有這一切，這是為了做出正確的決定，並思考這對我們的長期影響。

So I would think that we have, you know, given that we continue to have a lot of success growing this B to B business, which is not, you know, nearly as capital intensive in terms of head count servicing marketing costs, et cetera as the, the online business that, as you continue to grow that successfully, that, you know, you would start to, produce capital where, you know, you'll be able to sort of take a step back and think are there, you know, you know, do we, do we sort of continue to grow?

因此，我認為，鑑於我們在發展 B2B 業務方面繼續取得了很大成功，而就人員數量、服務行銷成本等而言，這並不是資本密集型的​​。時，你知道，你會開始產生資本，你知道，你將能夠退後一步思考是否存在，你知道，你知道，我們會繼續成長嗎？

I mean, I know you're a little bit new to the, the Flex Shopper story.

我的意思是，我知道您對 Flex Shopper 的故事有點陌生。

But so it's, so, you know, what we've always said is that, you know, we, you know, the advantage of the direct to consumer website is that, you know, you can continue to spend marketing dollars and drive people to the site, obviously, as you spend more, becomes less efficient.

但是，所以，所以，你知道，我們一直說的是，你知道，我們，你知道，直接面向消費者的網站的優勢在於，你知道，你可以繼續花費行銷資金並吸引人們顯然，當你花更多的錢時，網站的效率就會降低。

And at some point, it, you know, while you could continue to grow, it just doesn't make economic sense.

在某些時候，你知道，雖然你可以繼續成長，但它沒有經濟意義。

I the retailer, the B to B side that doesn't have any of those constraints, right?

我是零售商，B2B 方，沒有任何這些限制，對吧？

You are, you're plugging into a retailer, the retailers driving the consumers to you and you're just, you know, hopefully making very good underwriting decisions and, and moving forward.

你是，你正在連接零售商，零售商將消費者吸引到你身邊，你只是，你知道，希望做出非常好的承保決策，並繼續前進。

But we cannot make retailers do business with us as much as we would like to.

但我們無法讓零售商像我們希望的那樣與我們做生意。

So it's really about proving to them and growing that business.

所以這實際上是為了向他們證明並發展業務。

But like I said, you do get to a point where it's continuing to spend to grow through Flexs shopper dotcom isn't efficient anymore.

但就像我說的，你確實已經到了這樣一個地步：繼續透過 Flexs 購物者網路公司進行支出來實現成長已經不再有效。

And of course, at that point, you would certainly make the decision to, you know, rather than grow inefficiently, you would rather go and continue to delever other ways.

當然，到那時，你肯定會做出決定，你知道，與其低效增長，你寧願繼續以其他方式去槓桿化。

But you said it's, it's really about exploring all the options, you know, including looking for cheap, less restrictive forms of debt capital also along the way.

但你說過，這實際上是在探索所有的選擇，你知道，包括一路尋找廉價、限制較少的債務資本形式。

Okay, I appreciate the extra color and congratulations again on the quarter.

好的，我很欣賞額外的色彩，並再次祝賀本季。

Thanks so much.

非常感謝。

Thank you, ladies and gentlemen, this concludes our question and answer session.

謝謝女士們先生們，我們的問答環節到此結束。

I would now hand the conference over to Russ Heiser for his closing comments.

我現在將會議交給拉斯·海瑟 (Russ Heiser)，聽取他的結束語。

Thank you.

謝謝。

We appreciate all the questions today.

我們感謝今天提出的所有問題。

Thanks for everyone's time and we look forward to communicating our holiday season results on our next call.

感謝大家的寶貴時間，我們期待在下次電話會議上傳達我們的假期結果。

Thank you.

謝謝。

The conference of Flex Shopper has now concluded.

Flex Shopper 大會現已結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect your lines.

現在您可以斷開線路。