Katapult Holdings Inc (KPLT) 2022 Q4 法說會逐字稿

Good day and thank you for standing by. Welcome to the Katapult fourth-quarter 2022 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到 Katapult 2022 年第四季度財報電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Bill Wright, Head of Investor Relations. Please go ahead.

我現在想把會議交給今天的演講者，投資者關係主管 Bill Wright。請繼續。

Thank you, operator, and good morning. Welcome to Katapult's fourth-quarter and full-year 2022 conference call. With me today are Orlando Zayas, Chief Executive Officer; Nancy Walsh, our recently appointed Chief Financial Officer; and Derek Medlin, our Chief Operating Officer.

謝謝接線員，早上好。歡迎參加 Katapult 2022 年第四季度和全年電話會議。今天和我在一起的是首席執行官 Orlando Zayas；我們最近任命的首席財務官 Nancy Walsh；和我們的首席運營官 Derek Medlin。

We issued our earnings release and corresponding investor presentation this morning, and we will be referencing these during the call. Both can be found on the Investor Relations section of our website. We will be available for a Q&A following today's prepared remarks.

我們今天早上發布了收益報告和相應的投資者介紹，我們將在電話會議中參考這些內容。兩者都可以在我們網站的投資者關係部分找到。我們將在今天準備好的評論之後進行問答。

Before we begin, I would like to remind everyone that this call will contain forward-looking statements regarding our financial performance, our business outlook, and related assumptions that are subject to significant risks and uncertainties, including the future operating and financial performance of Katapult.

在我們開始之前，我想提醒大家，本次電話會議將包含有關我們的財務業績、我們的業務前景和相關假設的前瞻性陳述，這些陳述受到重大風險和不確定性的影響，包括 Katapult 的未來運營和財務業績。

These forward-looking statements should be considered in conjunction with cautionary statements contained in our earnings release and our Form 10-K for the year ended December 31, 2022, as well as the subsequent periodic and current reports we file with the SEC. 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.

這些前瞻性陳述應與我們截至 2022 年 12 月 31 日止年度的收益發布和 10-K 表格以及我們向美國證券交易委員會提交的後續定期和當前報告中包含的警示性陳述一起考慮。這些陳述反映了管理層當前的信念、假設和期望，並受許多因素的影響，這些因素可能導致實際結果與這些陳述存在重大差異。

The information contained in this call is accurate only as of the date discussed. Except as required by law, we undertake no obligation to publicly update or revise any of these statements, whether as a result of any new information, future events, or otherwise.

此電話中包含的信息僅在討論之日準確無誤。除非法律要求，否則我們沒有義務公開更新或修改任何這些聲明，無論是由於任何新信息、未來事件或其他原因。

During today's discussion of our financial performance, we will provide certain financial information that constitutes non-GAAP financial measures under SEC rule. These non-GAAP financial measures should not be considered replacements for, and should be read together with, our GAAP results. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are included with today's earnings release and are available on the Investor Relations section of our website.

在今天討論我們的財務業績時，我們將提供構成 SEC 規則下的非 GAAP 財務指標的某些財務信息。這些非 GAAP 財務指標不應被視為替代我們的 GAAP 結果，而應與我們的 GAAP 結果一起閱讀。非 GAAP 財務指標與最直接可比的 GAAP 財務指標的對賬包含在今天的收益發布中，可在我們網站的投資者關係部分獲取。

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

此通話正在錄製中，我們網站的投資者關係部分將提供網絡廣播以供重播。

I will now turn the call over to Orlando.

我現在將電話轉給奧蘭多。

Thank you, Bill. Good morning, everyone, and thank you for joining us. On today's call, we will review our fourth-quarter 2022 financial results. We'll also provide an update on our mission to provide underserved, non-prime consumers the flexibility they deserve to access the durable goods they need.

謝謝你，比爾。大家早上好，感謝您加入我們。在今天的電話會議上，我們將審查 2022 年第四季度的財務業績。我們還將更新我們的使命，即為服務不足的非主要消費者提供他們應得的靈活性，以獲取他們所需的耐用品。

I would first like to thank our team members for their dedication and hard work during this past year, driving our growth strategies forward and providing an enhanced experience for our customers.

我首先要感謝我們的團隊成員在過去一年中的奉獻和辛勤工作，推動我們的增長戰略向前發展，並為我們的客戶提供更好的體驗。

I would also like to introduce our new CFO, Nancy Walsh, who joined the company last December. Nancy is a highly accomplished senior finance executive, with global and domestic leadership experience in entrepreneurial, publicly traded growth companies. More recently, she was Executive Vice President and Chief Financial Officer of LL Flooring, a multichannel specialty retailer of hardwood flooring and hardwood flooring accessories. In that role, she led teams and functions at a broad-based strategic level while driving detailed, tactical execution. Nancy's financial and public company expertise at prominent retail brands like Timberland, Coach, and Pier 1 is the perfect fit, and I'm thrilled she is here.

我還想介紹一下去年 12 月加入公司的新任首席財務官 Nancy Walsh。 Nancy 是一位成就卓著的高級財務主管，擁有在全球和國內的創業型上市成長型公司的領導經驗。最近，她擔任 LL Flooring 的執行副總裁兼首席財務官，這是一家硬木地板和硬木地板配件的多渠道專業零售商。在擔任該職位期間，她在基礎廣泛的戰略層面領導團隊和職能，同時推動詳細的戰術執行。 Nancy 在 Timberland、Coach 和 Pier 1 等著名零售品牌的金融和上市公司專業知識非常適合，我很高興她能來。

We are passionate about helping our customers. Since becoming a public company, we have built a solid foundation with strong core capabilities. In 2022, we focused on expanding our key leadership team and embarked on a series of strategic investments to launch new products. This is highlighted by a new feature on our mobile app, Katapult Pay, that is showing promising results thus far. As we look forward, we plan to drive topline growth and improve profitability.

我們熱衷於幫助我們的客戶。上市以來，我們打下了堅實的基礎，擁有強大的核心能力。 2022 年，我們專注於擴大我們的主要領導團隊，並著手進行一系列戰略投資以推出新產品。我們的移動應用程序 Katapult Pay 上的一項新功能突出了這一點，該功能迄今為止顯示出可喜的成果。展望未來，我們計劃推動營收增長並提高盈利能力。

The early signs of success as a result of our strategic plan for growth were reflected in Q4 2022 results. We delivered a 1.5% increase in gross originations year over year, despite a challenging macro backdrop for our consumers and retailers. Gross originations improved as we progressed through the fourth quarter, and December grew mid-teens year over year.

2022 年第四季度的業績反映了我們增長戰略計劃帶來的早期成功跡象。儘管我們的消費者和零售商面臨充滿挑戰的宏觀背景，但我們的總發起額同比增長了 1.5%。隨著我們在第四季度的進展，總起源有所改善，12 月同比增長了十幾歲。

Supporting this growth was deeper penetration of our Wayfair sales volume to the highest level since a year ago and the integration of 21 new direct merchants. And finally, the launch of seven merchants through our mobile app featuring Katapult Pay, including Wayfair and Home Depot, bringing us to a total of 18 new merchants for the year.

支持這一增長的是我們 Wayfair 銷量的更深入滲透，達到一年前以來的最高水平，以及 21 家新的直銷商戶的整合。最後，包括 Wayfair 和 Home Depot 在內的 7 家商家通過我們的 Katapult Pay 移動應用程序推出，使我們今年的新商家總數達到 18 家。

During the quarter, we continued to identify cost-savings opportunities that are expected to result in significant cash operating expense reductions and sequential improvements in adjusted EBITDA in 2023 after one-time Q1 expenses related to severance. Our customer satisfaction remains strong with a net promoter score of 56 at year end. We achieved this success while keeping a close eye on all our core KPIs and maintaining prudent portfolio risk management.

在本季度，我們繼續尋找節省成本的機會，這些機會預計將在與遣散費相關的一次性第一季度費用後，在 2023 年顯著減少現金運營費用並使調整後的 EBITDA 連續改善。我們的客戶滿意度仍然很高，年底的淨發起人得分為 56。我們取得了這一成功，同時密切關注我們所有的核心 KPI 並保持審慎的投資組合風險管理。

Taking into context these Q4 2022 results, our operating priorities are centered around driving topline growth and executing a path to profitability. The levers for achieving these priorities include expanding customer usage of our mobile app, adding more merchants to our Katapult Pay feature, continuing to expand our direct merchant integrations, and improving our operating leverage by diligently managing expenses, something Nancy will touch upon in a moment.

考慮到 2022 年第四季度的這些結果，我們的運營重點圍繞推動收入增長和執行盈利之路。實現這些優先事項的槓桿包括擴大客戶對我們移動應用程序的使用，將更多商家添加到我們的 Katapult Pay 功能，繼續擴大我們的直接商家集成，以及通過努力管理費用來提高我們的運營槓桿，南希稍後會談到這些.

The success of our mobile app did not occur overnight. It's been driven by a series of strategic investments since early 2022 to develop functionality, create an engaging platform, and expand access to a variety of quality merchants that will continue to enhance our relationship with our customers. The results speak for themselves, whether measuring monthly active users or gross originations through our mobile app. Importantly, all these accomplishments have occurred without additional direct-to-consumer marketing expense.

我們移動應用程序的成功並非一蹴而就。它受到自 2022 年初以來的一系列戰略投資的推動，以開發功能、創建引人入勝的平台並擴大對各種優質商家的訪問，這將繼續加強我們與客戶的關係。結果不言而喻，無論是通過我們的移動應用程序衡量每月活躍用戶還是總來源。重要的是，所有這些成就都是在沒有額外的直接面向消費者的營銷費用的情況下發生的。

The driver of our mobile success has been our new feature, Katapult Pay. To refresh everyone's memory, Katapult Pay is our one-time-use virtual card technology, that makes lease purchasing simple and intuitive for our customers. On our mobile app, featuring Katapult Pay, our customers can complete a lease transaction, checking out with a one-time-use virtual card to facilitate the payment of a wide variety of merchants on our app.

我們移動成功的驅動力是我們的新功能 Katapult Pay。為了喚醒大家的記憶，Katapult Pay 是我們的一次性使用虛擬卡技術，它使我們的客戶的租賃購買變得簡單直觀。在我們的具有 Katapult Pay 功能的移動應用程序上，我們的客戶可以完成租賃交易，使用一次性虛擬卡結賬，以方便我們應用程序上的各種商家付款。

The Katapult Pay feature on our app offers merchants an accelerated option for adding Katapult's lease-to-own solution with minimal tech lift and lower costs, while giving Katapult more control over the end-to-end customer experience and improved conversion rates.

我們應用程序上的 Katapult Pay 功能為商家提供了一個加速選項，可以以最小的技術提升和更低的成本添加 Katapult 的租賃到擁有解決方案，同時讓 Katapult 更好地控制端到端的客戶體驗並提高轉化率。

Customer adoption is exceeding our expectations. Despite no direct-to-consumer marketing expense in Q4 and only targeting existing Katapult customers, as of December 2022 we generated more than $8 million in gross originations in just under four months since launching Katapult Pay, with Best Buy leading the way.

客戶採用率超出了我們的預期。儘管第四季度沒有直接面向消費者的營銷費用，並且只針對現有的 Katapult 客戶，但截至 2022 年 12 月，我們在推出 Katapult Pay 後不到四個月的時間裡就產生了超過 800 萬美元的總收入，其中百思買處於領先地位。

We believe this technology is industry disruptive, fueled by our proprietary AI algorithms. As you know, only durable goods can qualify for lease-to-own solution. The power of our Katapult Pay feature on our app is the ability to precisely detect whether a customer is leasing a refrigerator or a video game in their Best Buy shopping cart. At Home Depot, for example, there are many products that are not leasable. Our AI helps navigate the millions of products available to get the leasable items our customers need.

我們相信，在我們專有的 AI 算法的推動下，這項技術具有行業顛覆性。如您所知，只有耐用品才有資格使用先租后買解決方案。我們應用程序上 Katapult Pay 功能的強大之處在於能夠精確檢測客戶是否在他們的 Best Buy 購物車中租用了冰箱或視頻遊戲。例如，在 Home Depot，有許多產品是不可出租的。我們的 AI 幫助瀏覽數百萬種可用產品，以獲得客戶需要的可租賃物品。

Looking ahead, we plan to continue adding new merchants to the Katapult Pay feature on our mobile app. In addition, we believe by providing valuable customer insights, we can accelerate new opportunities for adopting Katapult's lease-to-own solution in our mobile app while we expect to drive higher gross originations volume in the future. Stay tuned.

展望未來，我們計劃繼續在我們的移動應用程序上為 Katapult Pay 功能添加新商戶。此外，我們相信，通過提供有價值的客戶洞察，我們可以加快在我們的移動應用程序中採用 Katapult 的租賃到擁有解決方案的新機會，同時我們預計未來將推動更高的總發起量。敬請關注。

And now, I will turn the call over to Nancy to share our financial details and our outlook. Nancy?

現在，我將把電話轉給南希，分享我們的財務細節和展望。南希？

Thank you, Orlando, and good morning, everyone. 2022's results reflected the ongoing challenging environment for both our consumers and retailers as the combination of rising inflation pressures and reduced consumer spending impacted our business. In response, we quickly adjusted and focused on managing our lease portfolio performance while still executing key investments and initiatives that we expect will drive growth in the future.

謝謝你，奧蘭多，大家早上好。 2022 年的業績反映了我們的消費者和零售商面臨的持續挑戰環境，因為通脹壓力上升和消費者支出減少共同影響了我們的業務。作為回應，我們迅速調整併專注於管理我們的租賃組合績效，同時仍在執行我們預計將推動未來增長的關鍵投資和計劃。

We began to see the results of these growth investments in Q4 of 2022 as gross originations increased by 1.5% year over year. Gross originations improved as we progressed through the quarter, and December grew by mid-teens year over year. This increase reflects the technology investments made in our mobile app and Katapult Pay.

我們在 2022 年第四季度開始看到這些增長投資的結果，總發起量同比增長 1.5%。隨著我們在本季度的進展，總起源有所改善，12 月同比增長了十幾歲。這一增長反映了對我們的移動應用程序和 Katapult Pay 進行的技術投資。

Total revenue for the quarter was $48.8 million. The year-over-year decrease is primarily driven by lower lease margins and $9 million related to the adoption of ASC 842. Please see slide 11 for more information on ASC 842 and the impact on our results.

本季度的總收入為 4880 萬美元。同比下降的主要原因是較低的租賃利潤率和與採用 ASC 842 相關的 900 萬美元。有關 ASC 842 的更多信息及其對我們結果的影響，請參閱幻燈片 11。

Overall operating expenses decreased $6 million year over year. Excluding the impact of eliminating bad debt expense due to the adoption of ASC 842 effective January 1, 2022, operating expenses increased $3.5 million, primarily related to our 2022 investment initiatives.

總體運營費用同比減少 600 萬美元。排除由於採用 ASC 842 於 2022 年 1 月 1 日生效而消除壞賬費用的影響，運營費用增加了 350 萬美元，這主要與我們 2022 年的投資計劃有關。

Adjusted EBITDA was negative $5 million, a decrease of $3.6 million year over year, due primarily to lower revenue trends and higher expenses to support our strategic investments for growth in the quarter.

調整後的 EBITDA 為負 500 萬美元，同比減少 360 萬美元，這主要是由於較低的收入趨勢和較高的支出以支持我們本季度增長的戰略投資。

Impairment charges as a percentage of gross originations in the fourth quarter of 2022 were 8.8%, a sequential improvement from 10.1% in the third quarter of 2022, which reflects prudent risk management in the face of rising inflation. We will continue to monitor the macro environment and we'll adjust underwriting accordingly.

2022 年第四季度減值費用佔總發起的百分比為 8.8%，較 2022 年第三季度的 10.1% 有所改善，這反映了面對通脹上升時審慎的風險管理。我們將繼續監控宏觀環境，並相應調整承保。

Earlier this week, we reached an agreement with our lender to amend our revolving line of credit and term loan facility to extend the maturity date to June 4, 2025. This agreement also optimizes utilization ratios and creates a more efficient capital structure that will result in overall interest expense savings. We're delighted by the continued support from our existing long-term lending partner to provide us financial flexibility to drive topline growth and improve profitability.

本週早些時候，我們與貸方達成協議，修改我們的循環信貸額度和定期貸款安排，將到期日延長至 2025 年 6 月 4 日。該協議還優化了利用率並創造了更高效的資本結構，這將導致總體利息支出節省。我們很高興現有長期貸款合作夥伴的持續支持為我們提供了財務靈活性，以推動收入增長和提高盈利能力。

The major terms of this amendment include the following. For the revolving line of credit: reduced the revolving line of credit commitment to $75 million, increased the spread above the benchmark rate to 8.5% from 7.5%. For the term loan: paid down $25 million of outstanding principal; the spread above the benchmark rate remains at 8%; issued warrants to purchase up to 2 million shares of common stock at an exercise price of $0.01 per share; subject to the occurrence of certain events under the warrant agreement on December 5, 2023, warrants may be issued to purchase up to an additional 2 million shares of common stock at an exercise price of $0.01 per share, exercisable three months after issuance.

本修正案的主要條款包括以下內容。對於循環信貸額度：將循環信貸額度承諾減少至 7500 萬美元，將高於基準利率的利差從 7.5% 提高至 8.5%。對於定期貸款：償還了 2500 萬美元的未償本金；高於基準利率的利差保持在 8%；發行認股權證，以每股 0.01 美元的行使價購買最多 200 萬股普通股；根據認股權證協議於 2023 年 12 月 5 日發生的某些事件，可以發行認股權證以每股 0.01 美元的行使價購買最多 200 萬股普通股，可在發行三個月後行使。

In addition, the benchmark rate was converted from LIBOR to SOFR, plus the applicable credit adjustment spread. The complete amendment was filed with our Form 10-K this morning. Except as set forth in the amendment, all of the terms and conditions and financial covenants of the credit agreement remain in place.

此外，基準利率從 LIBOR 轉換為 SOFR，加上適用的信用調整利差。完整的修正案已於今天早上與我們的 10-K 表格一起提交。除修正案中另有規定外，信貸協議的所有條款和條件以及財務契約仍然有效。

The company continues to navigate uncertainty in the macro environment related to inflation, consumer spending, and a challenging labor market. As a result, the company is not providing financial guidance at this time. The company is, however, providing 2023 commentary as follows.

公司繼續應對與通貨膨脹、消費者支出和充滿挑戰的勞動力市場相關的宏觀環境的不確定性。因此，該公司目前不提供財務指導。然而，該公司提供 2023 年評論如下。

The company expects consumer spending headwinds to persist in 2023. Historically, lease-to-own solutions benefit from periods of shrinking prime credit availability, creating a countercyclical hedge against a challenging macro environment. The company expects to see year-over-year gross originations growth continue into 2023. The company also expects sequential improvement in the second half of 2023, compared to the first half of 2023, as the company sees the full benefit of new merchants through direct integrations as well as on our mobile app featuring Katapult Pay.

該公司預計消費者支出逆風將在 2023 年持續存在。從歷史上看，租賃到擁有的解決方案受益於優質信貸供應減少的時期，從而為充滿挑戰的宏觀環境創造了逆週期對沖。該公司預計，到 2023 年，總發起量將繼續同比增長。該公司還預計，與 2023 年上半年相比，2023 年下半年將出現環比改善，因為該公司看到新商戶通過直接集成以及我們具有 Katapult Pay 功能的移動應用程序。

Entering 2023, the company believes the credit quality of our portfolio should continue to improve based on the advancement and ongoing development of our risk modeling, quality of our new merchants onboarded, as well as the engagement and quality of the consumers attracted to our mobile app featuring Katapult Pay.

進入 2023 年，公司認為，基於我們風險模型的進步和持續發展、新入駐商家的質量以及我們移動應用程序吸引的消費者的參與度和質量，我們投資組合的信用質量應該會繼續提高以 Katapult Pay 為特色。

The company expects the impact of expense reductions initiated in the fourth quarter of 2022 to reduce our total operating expenses by more than 10% for the full year 2023. Excluding underwriting and servicing costs, which are variable, and non-cash stock-based compensation expense, we expect fixed cash operating expenses to decrease by more than 20% for the full year 2023. The expense reduction efforts encompass all areas of spending and was effected as of January 1.

公司預計 2022 年第四季度開始的費用削減措施將使我們 2023 年全年的總運營費用減少 10% 以上。不包括可變的承保和服務成本以及非現金股票補償費用方面，我們預計 2023 年全年固定現金運營費用將減少 20% 以上。費用削減工作涵蓋所有支出領域，並於 1 月 1 日生效。

In the first quarter of 2023, we completed an additional company-wide headcount reduction to align our organization to our 2023 plan. As a result, first-quarter 2023 will be a transition quarter as one-time severance expense offsets the overall expense reductions.

2023 年第一季度，我們完成了全公司範圍內的額外裁員，以使我們的組織與 2023 年計劃保持一致。因此，2023 年第一季度將是一個過渡季度，因為一次性遣散費會抵消整體費用的減少。

For the full year 2023, the company expects to achieve year-over-year improvement in adjusted EBITDA as a result of gross origination improvement and reduced operating expenses. Through early March, gross originations have increased year over year, continuing the positive trend from Q4 and in line with our expectations, driven by merchants with direct integration and the company's 2022 strategic investments in technologies such as the mobile app featuring Katapult Pay.

對於 2023 年全年，公司預計由於總發起改善和運營費用減少，調整後的 EBITDA 將實現同比改善。截至 3 月初，總發起量同比增長，延續了第四季度的積極趨勢，符合我們的預期，這主要受到直接集成的商家以及公司 2022 年對技術的戰略投資（例如具有 Katapult Pay 的移動應用程序）的推動。

I will now turn it back to Orlando for final comments.

我現在將把它轉回奧蘭多徵求最終意見。

Thank you, Nancy, and thank you all for attending. I want to reiterate: we are intently focused on executing our growth strategies to drive gross originations and improve profitability in 2023 and position us for success over the long term. We have built an experienced team of executives, a suite of innovative technology, that I'm confident will help us weather the current macro uncertainty.

謝謝你，南希，感謝大家的出席。我想重申：我們專注於執行我們的增長戰略，以推動 2023 年的總發行量和提高盈利能力，並為我們的長期成功做好準備。我們已經建立了一支經驗豐富的高管團隊，一套創新技術，我相信這將幫助我們度過當前的宏觀不確定性。

We remain passionate about creating relationships with more customers and deepening our engagement by introducing new consumer access points, like our mobile app featuring Katapult Pay, to drive topline growth and improve profitability.

我們仍然熱衷於與更多客戶建立關係並通過引入新的消費者接入點來深化我們的參與，例如我們具有 Katapult Pay 功能的移動應用程序，以推動收入增長並提高盈利能力。

I'm excited about our team, our technology, and our results to date. I look forward to updating you on our mission to provide underserved, non-prime consumers the flexibility they deserve to access durable goods they need on our next call. Thank you.

我對我們的團隊、我們的技術和迄今為止的成果感到興奮。我期待著向您介紹我們的使命，即為服務不足的非優質消費者提供他們應得的靈活性，以便在我們下次通話時獲得他們所需的耐用品。謝謝。

(Operator Instructions) John Siegler (sic - "Josh Siegler"), Cantor.

（操作員說明）John Siegler（原文如此 - “Josh Siegler”），Cantor。

Yes, hi. Good morning. Thanks for taking my question. I think it'd be great if we could start with some additional color on Katapult Pay. Specifically, I was curious if you could walk us through your marketing strategy there. How has it evolved over time? And how do you expect to continue marketing the app in 2023? And further, do you expect Katapult Pay to meaningfully contribute in 2023? Thank you.

是的，嗨。早上好。感謝您提出我的問題。我認為，如果我們能在 Katapult Pay 上添加一些額外的顏色，那就太好了。具體來說，我很好奇您是否可以向我們介紹您在那裡的營銷策略。隨著時間的推移，它是如何演變的？您希望如何在 2023 年繼續營銷該應用程序？此外，您是否期望 Katapult Pay 在 2023 年做出有意義的貢獻？謝謝。

Hi, John, this is Derek. I'll take that question and thank you for it. So Katapult Pay thus far has been something that we've rolled out cautiously and with the objective of really trying to understand our customer, their behavior, and how to make this customer experience smooth, transparent, and easy for them to complete transactions, and it's been exceeding our expectations.

嗨，約翰，我是德里克。我會接受這個問題，謝謝你。因此，到目前為止，Katapult Pay 一直是我們謹慎推出的產品，其目的是真正嘗試了解我們的客戶、他們的行為，以及如何讓這種客戶體驗順暢、透明，並讓他們輕鬆完成交易，並且它超出了我們的預期。

Our focus thus far has been with existing consumers from Katapult. So really enlarging that lifetime value of the Katapult customer and then creating more engagement and value for our merchants for those who are in the Katapult ecosystem. So we expect to continue that strategy going forward for the immediate future, which is to focus on existing approved customers and those who are looking to do business with us.

到目前為止，我們的重點一直是 Katapult 的現有消費者。因此，真正擴大了 Katapult 客戶的終身價值，然後為 Katapult 生態系統中的商家創造更多的參與度和價值。因此，我們希望在不久的將來繼續實施這一戰略，即專注於現有的認可客戶和那些希望與我們開展業務的客戶。

And we think that this is a great solution because it gives customers more awareness of how they can be successful with Katapult, where they can use it at more retailers, and how to complete transactions successfully and get the goods -- and durable goods that they're looking for.

我們認為這是一個很好的解決方案，因為它讓客戶更加了解他們如何通過 Katapult 取得成功，他們可以在更多零售商處使用它，以及如何成功完成交易並獲得他們想要的商品和耐用品。正在尋找。

On a go-forward basis, we'll constantly be testing on new opportunities for us to grow and expand that community. And some of that will be through our new lightweight capabilities for new merchants to integrate with us using Katapult Pay versus a direct shopping cart integration. So more to come on that in the future, but we do believe that this will be a major growth driver for us going forward.

在前進的基礎上，我們將不斷測試新的機會，以便我們發展和擴大該社區。其中一些將通過我們新的輕量級功能讓新商家使用 Katapult Pay 與我們集成而不是直接購物車集成。未來會有更多的事情發生，但我們確實相信這將成為我們前進的主要增長動力。

Okay, understood. That's helpful. And then for 2023, as you're thinking about the year, do you expect to start seeing some of that tighter underwriting by the prime lenders and more consumers to start moving down the credit waterfall?

好的，明白了。這很有幫助。然後到 2023 年，當你考慮這一年時，你是否期望開始看到主要貸款人和更多消費者開始減少信貸瀑布的一些更嚴格的承銷？

Hi, John, it's Orlando. I'll take that question. Yes, we've already started seeing it. We track it pretty carefully since we're in the waterfall, and we have starting to see it rise with the prime customers, especially in the first quarter. We don't think it's going to be a meaningful impact. It's not like when COVID happened and, like, literally, it was in one week where we saw improved -- the prime lenders tightened up. So we have seen evidence of it. We're seeing a better flow of customers, and we think that will continue.

嗨，約翰，我是奧蘭多。我會回答這個問題。是的，我們已經開始看到了。因為我們處於瀑布中，所以我們非常仔細地跟踪它，我們已經開始看到它隨著主要客戶的增加而上升，尤其是在第一季度。我們認為這不會產生有意義的影響。這不像 COVID 發生的時間，從字面上看，我們在一周內看到了改善——主要貸款機構收緊了。所以我們已經看到了它的證據。我們看到更好的客戶流量，我們認為這種情況會持續下去。

Okay. Thank you.

好的。謝謝。

(Operator Instructions) Anthony Chukumba, Loop Capital.

（操作員說明）Anthony Chukumba，Loop Capital。

Good morning. Thank you for taking my question. Just one question on Katapult Pay. Just remind me, does the retailer have to opt into that? You specifically mentioned Best Buy and Home Depot, so I'm just wondering, is there some sort of partnership with them? How does that work?

早上好。謝謝你提出我的問題。只有一個關於 Katapult Pay 的問題。請提醒我，零售商必須選擇加入嗎？你特別提到了 Best Buy 和 Home Depot，所以我想知道，是否與他們有某種合作關係？這是如何運作的？

Hi, Anthony, this is Derek. Thanks again for your question and thanks for joining this morning. So the answer is it varies. We have retailers that we have direct partnerships with. We have affiliate relationships with others. And so it's a different type of situation with each retailer.

嗨，安東尼，我是德里克。再次感謝您的提問，也感謝您今天早上的加入。所以答案是不同的。我們有與我們有直接合作關係的零售商。我們與其他人有關聯關係。因此，每個零售商的情況都不同。

And what's really novel about this is how our technology works to integrate well with their websites, allowing a customer through -- over their mobile device to be able to shop, just like they would on their website, have a guided flow that will help them make sure they understand what durable goods are eligible, checkout, and have all the information they need to be successful with their lease. And so we've made it where it's really easy for us to partner and really easy for customers to shop.

真正新穎的是我們的技術如何與他們的網站很好地集成，讓客戶通過他們的移動設備能夠購物，就像他們在他們的網站上一樣，有一個引導流程可以幫助他們確保他們了解哪些耐用品符合條件，結帳，並擁有成功租賃所需的所有信息。因此，我們已經做到了我們很容易成為合作夥伴並且客戶也很容易購物的地方。

Got it. That's helpful. And then I know it's still relatively early, but have you seen any significant differences in, I guess, KPIs between Katapult Pay customers and other lease sources in terms of average ticket or merchandise write-off rates or anything like that? Any significant differences to call out?

知道了。這很有幫助。然後我知道現在還比較早，但我猜你是否看到 Katapult Pay 客戶和其他租賃來源之間的 KPI 在平均機票或商品註銷率或類似方面有任何顯著差異？有什麼重大差異需要指出嗎？

Yes, that's a great question. Thank you, Anthony. So what we're seeing right now is actually remarkably similar behavior in terms of average cart sizes and average performance. Everything is in line with our expectations; in fact, exceeding our expectations. I think the most exciting part is the frequency of our consumer who, now, having the ability to go to our marketplace on a website, understand that we have this large network of retailers that they can shop at.

是的，這是一個很好的問題。謝謝你，安東尼。因此，就平均購物車大小和平均性能而言，我們現在看到的實際上是非常相似的行為。一切都符合我們的預期；事實上，超出了我們的預期。我認為最令人興奮的部分是我們消費者的頻率，他們現在能夠在網站上訪問我們的市場，了解我們擁有他們可以購物的大型零售商網絡。

And so we are seeing an increased frequency and a shortened time between transactions, which, from our standpoint, is great from a lifetime value and an engagement standpoint. And consumers are performing extremely well. So it's early days, but we're really pleased with the results.

因此，我們看到交易頻率增加了，交易間隔時間縮短了，從我們的角度來看，從生命週期價值和參與度的角度來看，這是很好的。消費者的表現非常好。所以現在還為時尚早，但我們對結果非常滿意。

Got it. And not to bogart the Q&A session, but just had one final question. So you mentioned deeper penetration with Wayfair, so would that imply that your, I guess -- I don't cover Wayfair, so I'm not super close to it, but I know that their sales are declining. Would that imply that your gross originations with Wayfair declined at a slower rate than their US sales did? How should we think about that?

知道了。並不是為了結束問答環節，只是提出了最後一個問題。所以你提到了 Wayfair 的更深入滲透，所以這意味著你，我想 - 我沒有報導 Wayfair，所以我不是很接近它，但我知道他們的銷售額正在下降。這是否意味著您在 Wayfair 的總收入下降速度低於他們在美國的銷售額？我們應該如何考慮？

Hi, Anthony, it's Orlando. Yes, that's directionally the right way to look at it. Obviously, we look at their North America or the US sales and compare how we do to that. And so that's how we look at that penetration rate. And so while we can't affect their sales in the same magnitude as they make with other marketing and things that they do, but we like to see obviously that penetration improve, and we did. And we saw a nice improvement in the last quarter and continued to.

嗨，安東尼，我是奧蘭多。是的，這是方向性的正確看待它的方式。顯然，我們會查看他們在北美或美國的銷售額，並比較我們的做法。這就是我們看待滲透率的方式。因此，雖然我們不能像他們通過其他營銷和他們所做的事情那樣影響他們的銷售，但我們顯然希望看到滲透率提高，我們做到了。我們在上個季度看到了很好的改進，並繼續這樣做。

So it's all about working with their customers, getting them back in to buy more, making sure we market to them effectively, letting them know that they have the offer, and it's proven to be successful.

所以這一切都是關於與他們的客戶合作，讓他們回來購買更多，確保我們有效地向他們推銷，讓他們知道他們有報價，並且證明是成功的。

Got it. That's very helpful. Thank you.

知道了。這很有幫助。謝謝。

I show no further questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect.

我現在沒有進一步的問題。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。