Open Lending Corp (LPRO) 2024 Q3 法說會逐字稿

Good afternoon, and welcome to the Open Lending third-quarter 2024 earnings conference call. As a reminder, today's conference call is being recorded. On the call today are Chuck Jehl, Chief Executive Officer and Interim Chief Financial Officer; and Marissa Vidaurri, Vice President of Investor Relations and Corporate Communications. To get us started, I will pass the call over to Marissa Vidaurri. Please go ahead.

下午好，歡迎參加 Open Lending 2024 年第三季財報電話會議。提醒一下，今天的電話會議正在錄音。今天參加電話會議的有執行長兼臨時財務長 Chuck Jehl；以及投資者關係和企業傳播副總裁 Marissa Vidaurri。首先，我會把電話轉給 Marissa Vidaurri。請繼續。

Thank you. Appreciate you joining us. Prior to the start of this call, the company posted the third-quarter 2024 earnings release and supplemental slides to its Investor Relations website. In this release, you will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed on this call.

謝謝。感謝您加入我們。在本次電話會議開始之前，該公司在其投資者關係網站上發布了 2024 年第三季財報和補充投影片。在本新聞稿中，您將找到非 GAAP 財務指標與本次電話會議中討論的最具可比性的 GAAP 財務指標的對帳表。

Before we begin, I would like to remind you that this call may contain estimates and other forward-looking statements that represent the company's view as of today, November 7, 2024. Open Lending disclaims any obligation to update these statements to reflect future events or circumstances.

在我們開始之前，我想提醒您，本次電話會議可能包含代表本公司截至今天（2024 年 11 月 7 日）的觀點的估計和其他前瞻性陳述。Open Lending 不承擔更新這些聲明以反映未來事件或情況的義務。

Please refer to today's earnings release and our filings with the SEC for more information concerning factors that could cause actual results to differ from those expressed or implied with such statements. And now, I will pass the call over to Chuck to give an update on our business and financial results in the third quarter.

有關可能導致實際結果與此類聲明所表達或暗示的結果不同的因素的更多信息，請參閱今天的收益報告和我們向美國證券交易委員會提交的文件。現在，我將把電話轉給查克，讓他報告我們第三季的業務和財務表現。

Thank you, Marissa. I would like to officially welcome you to the Open Lending team, and good afternoon, everyone, and thank you for joining us today. Before we get into our update on the business, I would like to say how grateful I am for the Board's trust and confidence in me as the next CEO of Open Lending. I'm extremely honored to carry on the legacy built by our founders, proud to lead our talented team of professionals and to continue to work with our lenders, insurance carriers and other partners to serve the near and non-prime consumers who need us and our lender customers now more than ever.

謝謝你，瑪麗莎。我謹正式歡迎您加入開放借貸團隊，大家下午好，感謝您今天的加入我們。在我們討論業務進展之前，我想說我非常感謝董事會對我作為 Open Lending 下一任執行長的信任和信心。我非常榮幸能夠繼承我們創始人的遺產，自豪地領導我們才華橫溢的專業團隊，並繼續與我們的貸方、保險公司和其他合作夥伴合作，為需要我們和我們的貸款客戶現在比以往任何時候都多。

As we and the industry continue to navigate through challenging market conditions, we are focused on taking prudent steps to maximize the opportunity ahead. Specifically, we are focused on driving new customer acquisitions and certified loan growth from both new and existing customers, optimizing results from our lenders, our insurance carrier partners and ultimately Open Lending, and making targeted investments to improve the experience of our lender customers and their borrowers and bring more value to the Open Lending market.

隨著我們和產業繼續在充滿挑戰的市場條件下前行，我們專注於採取審慎的措施，以最大限度地抓住未來的機會。具體來說，我們專注於推動新客戶獲取和新舊客戶的認證貸款成長，優化我們的貸方、保險公司合作夥伴以及最終的開放貸款的結果，並進行有針對性的投資，以改善我們的貸方客戶及其客戶的體驗。

With these actions and the inevitable recovery in the Open Lending market, I believe we are positioned well to return the business to growth in the near term. I am pleased to report that in the third quarter 2024, we were near or above the high end of our guidance range for certified loans, revenue, and adjusted EBITDA, excluding the negative change in estimate associated with our profit share. For the quarter, we certified 27,435 loans. We delivered total revenue of $23.5 million and adjusted EBITDA of $7.8 million.

透過這些措施以及開放式借貸市場的必然復甦，我相信我們有能力在短期內恢復業務成長。我很高興地報告，在 2024 年第三季度，我們的認證貸款、收入和調整後的 EBITDA 接近或超過了我們的指導範圍的高端（不包括與我們的利潤份額相關的估計負面變化）。本季度，我們認證了 27,435 筆貸款。我們實現的總收入為 2,350 萬美元，調整後 EBITDA 為 780 萬美元。

As I mentioned, our results for the third quarter 2024 were negatively impacted by a $7 million profit share change in estimate. It is important to note that this downward revision is primarily due to elevated delinquencies and defaults associated with vintages originated in 2021 and 2022, the time of peak vehicle values. Lower performance from these vintages continues to represent an industry-wide headwind and is not unique to Open Lending or our lender customers.

正如我所提到的，我們 2024 年第三季的業績受到 700 萬美元利潤份額預期變動的負面影響。值得注意的是，此次下調主要是由於 2021 年和 2022 年（汽車價值達到高峰的時期）的汽車拖欠和違約率上升。這些年份的業績表現較差持續代表著整個產業面臨的不利因素，而這現象並非只出現在 Open Lending 或我們的貸款客戶身上。

As we continue to navigate past these lower-performing vintages, we anticipate that Open Lending's profit share revenue performance should be less volatile. That said, we have been focused on optimizing the performance of loans that we are underwriting and certifying on behalf of our lenders. As previously mentioned, we have taken numerous pricing and credit tightening actions over the last two years that we believe will improve the performance of the loans in our portfolio.

隨著我們繼續走出這些表現較差的時期，我們預期 Open Lending 的利潤份額收入表現波動性會更小。儘管如此，我們一直專注於優化我們代表貸方承保和認證的貸款的績效。如前所述，過去兩年我們採取了多項定價和信貸緊縮措施，我們相信這些措施將改善我們投資組合中貸款的表現。

As a reminder, these actions included increased insurance premiums to appropriately price for the risk we take; implemented a newly enhanced lenders protection proprietary scorecard, which has further improved our ability to predict the probability of default and price risk; raised our minimum score cutoff to tighten our credit aperture; and implemented targeted price optimization, leveraging our new enhanced scorecard and historical performance data to increase prices on lower-performing credit bands.

提醒一下，這些措施包括提高保險費，以便適當定價我們所承擔的風險；實施了新增強的貸款人保護專有記分卡，進一步提高了我們預測違約機率和價格風險的能力；提高了最低分數線以收緊信用限額；並實施有針對性的價格優化，利用我們新的增強型記分卡和歷史績效數據來提高績效較低信用等級的價格。

As part of our ongoing review of credit performance, we review and analyze internal and external data to identify pockets of incremental risk within our model. Through this calibration cycle, the net impact has been an additional level of credit tightening in late third quarter 2024.

作為我們對信貸表現的持續審查的一部分，我們審查並分析內部和外部數據，以識別我們模型中的增量風險環節。透過此校準週期，淨影響是 2024 年第三季末信貸進一步緊縮。

We expect these actions to lower our overall approval rates and have a negative impact on our certified loan volume. As we have adjusted our credit and pricing metrics throughout this challenging and volatile cycle over the past several years, we are committed to optimizing our unit economics and volume while minimizing volatility for our lenders, carrier partners, and ultimately, Open Lending.

我們預計這些措施將降低我們的整體核准率，並對我們認證的貸款量產生負面影響。在過去幾年充滿挑戰和動盪的周期中，我們不斷調整信貸和定價指標，致力於優化單位經濟和產量，同時最大限度地減少貸方、承運合作夥伴以及開放貸款的波動。

Turning to market conditions. We continue to be encouraged by the trends we are seeing in the automotive industry, specifically improvement in inventory levels, retail sales volumes and affordability, all of which have shown modest year-over-year improvement. However, our core credit union customers continue to be challenged with elevated loan-to-share ratios, low share or deposit growth, and low loan growth.

轉向市場狀況。我們繼續對汽車行業的趨勢感到鼓舞，特別是庫存水準、零售量和負擔能力的改善，所有這些都顯示出同比略有改善。然而，我們的核心信用合作社客戶仍面臨著貸款與份額比率上升、份額或存款成長率較低以及貸款成長率較低的挑戰。

First, on to the automotive industry. Inventory levels on both new and used vehicles have stabilized. New vehicles have been trending at 2.8 million units, up 25% year-over-year, while used vehicles have stabilized at approximately 2.2 million units. That said, there is still room for improvement as both new and used inventory levels remain 20% to 25% below their pre-COVID levels.

首先，談談汽車產業。新車和二手車的庫存水準都已穩定。新車銷量持續維持在280萬輛，較去年成長25%，二手車銷量穩定在220萬輛左右。儘管如此，仍有改進空間，因為新舊庫存水準仍比疫情前的水準低 20% 至 25%。

Affordability improved on a year-over-year basis, primarily driven by declining auto prices. For new vehicles, average transaction prices are down 0.4% compared to this time last year, while used vehicle average list prices were down 5% year-over-year.

與去年同期相比，負擔能力提高，主要原因是汽車價格下降。對於新車而言，平均交易價格與去年同期相比下降了 0.4%，而二手車平均標價比去年同期下降了 5%。

As a result of improving new vehicle inventory levels, OEM incentives have increased to over 7% of the average transaction prices and are approaching pre-COVID levels of 10%. This is a positive sign that new vehicle market is returning to some level of normalcy, which should drive an increase in new vehicle sales that will eventually turn into improved used vehicle inventories.

由於新車庫存水準的提高，OEM激勵措施已提高至平均交易價格的7％以上，並接近新冠疫情之前的10％的水平。這是一個積極的信號，表明新車市場正在恢復到一定程度的正常狀態，這將推動新車銷售的成長，並最終轉化為二手車庫存的改善。

However, affordability continues to be a challenge for consumers. While the Fed funds rate decreased by 50 basis points in September, the average auto loan rate through October remains near recent highs, 14% for used and 9.5% for new. Interest rates will eventually come down, but this will take time as lenders try to maximize returns in the face of challenging market conditions and elevated delinquencies.

然而，負擔能力對消費者來說仍然是一個挑戰。儘管 9 月聯邦基金利率下降了 50 個基點，但截至 10 月的平均汽車貸款利率仍接近近期高點，二手車貸款利率為 14%，新車貸款利率為 9.5%。利率最終會下降，但這需要時間，因為貸方在嚴峻的市場條件和高拖欠率的情況下試圖實現收益最大化。

The Cox Automotive October forecast increased used car sales by 0.5 million units and updated its Manheim forecast to be effectively flat between December of 2023 and December of 2024. New retail sales are in line with prior forecast and 2023 sales at 12.7 million units. The Manheim Used Vehicle Value Index, a measure of wholesale used vehicle prices, which serves as a leading indicator of retail used prices, increased in mid-October to 203.5, up almost 4% compared to full month June 2024 of 196.1. In addition, Cox is projecting 2024 to end at 202.7.

Cox Automotive 10 月預測二手車銷售將增加 50 萬輛，並更新了 Manheim 預測，預測結果為 2023 年 12 月至 2024 年 12 月期間二手車銷售量基本持平。新零售額與先前的預測一致，2023 年的銷售量為 1,270 萬輛。曼海姆二手車價值指數是衡量二手車批發價格的指標，也是二手車零售價格的領先指標，該指數 10 月中旬上漲至 203.5，較 2024 年 6 月全月的 196.1 上漲近 4%。此外，考克斯預測 2024 年將達到 202.7。

Now, let's turn to our core credit union customers. Across the industry, loan-to-share ratios remain elevated, which continues to constrain credit union lending capacity and ultimately, our volume at Open Lending as they are our largest customer base. Preliminary data from Callahan & Associates, a leading third-party data provider within the credit union industry, suggests that industry average loan-to-share ratio, a measure of lending capacity has declined to 84.2% as compared to a recent high of 85.2%. Share growth has increased 4.5%, up from a low of 1.2% in Q3 of 2023.

現在，讓我們來談談我們的核心信用合作社客戶。在整個行業中，貸款與股份比率仍然很高，這繼續限制了信用合作社的貸款能力，並最終限制了我們在開放貸款的業務量，因為他們是我們最大的客戶群。信用合作社行業領先的第三方數據提供商 Callahan & Associates 的初步數據顯示，行業平均貸款份額比率（衡量貸款能力的指標）已從近期高點 85.2% 下降至 84.2%。份額成長率從 2023 年第三季的 1.2% 的低點上升了 4.5%。

This now represents the fourth consecutive quarter of share growth improvement, which will translate into lower loan-to-share ratios and improved lending capacity. Historically, it takes 18 to 24 months of consecutive share growth improvement to see a meaningful lift in loan growth within credit unions.

這已是該股連續第四個季度實現增長，這將轉化為貸款與股票比率的下降和貸款能力的提高。從歷史上看，信用合作社的份額需要連續 18 到 24 個月的成長才能實現貸款成長的顯著提升。

Based on the data, we believe we are now 12 months into this recovery. Importantly, we are seeing early signs of stabilization in loan growth with preliminary Q3 2024 data coming in at 3.9%, relatively flat compared to Q2 2024.

根據數據，我們認為復甦已持續了 12 個月。重要的是，我們看到貸款成長穩定的早期跡象，2024 年第三季的初步數據顯示貸款成長 3.9%，與 2024 年第二季相比相對持平。

We continue to focus on enhancing our product, our technology, and our operations. While we continue to pay close attention to the challenges in the auto lending market, we are executing on the priorities that I previously highlighted in order to drive new customer and certified loan growth, optimize results, and make targeted investments.

我們將繼續致力於改進我們的產品、技術和營運。在我們繼續密切關注汽車貸款市場的挑戰的同時，我們也在執行我之前強調的優先事項，以推動新客戶和認證貸款的成長，優化結果，並進行有針對性的投資。

On driving new customer acquisitions, we signed 21 new customers in Q3 2024 compared to 8 in the same quarter of last year. This represents an all-time record for new customer acquisitions at Open Lending and demonstrates the value of the Lenders Protection program even in low light of ongoing market challenges.

在推動新客戶獲取方面，我們在 2024 年第三季簽約了 21 位新客戶，而去年同期只有 8 位。這創下了 Open Lending 吸引新客戶的歷史新高，並證明了即使在持續的市場挑戰面前貸款人保護計劃的價值。

Additionally, this is a testament to the strategic changes we made to our go-to-market strategy earlier in the year, where we aligned sales and account management teams incentives. On a year-to-date basis through the end of September, we have signed 45 new customers compared to 29 last year. I am pleased to report that over 50% of the customers signed year to date have already produced a certified loan with Open Lending.

此外，這也證明了我們今年稍早對行銷策略所做的策略調整，我們調整了銷售和客戶管理團隊的激勵措施。截至九月底，我們已簽約 45 位新客戶，去年同期為 29 位。我很高興地報告，今年迄今為止簽約的客戶中超過 50% 已經通過 Open Lending 獲得了認證貸款。

We recently hosted our annual Executive Lending Roundtable in Austin, Texas, welcoming over 250 attendees. This event provided a fantastic opportunity to engage in meaningful conversations, better understand customer challenges, and demonstrate how our technology investments can transform these challenges into opportunities.

我們最近在德州奧斯汀舉辦了年度高階主管貸款圓桌會議，吸引了超過 250 名與會者。這次活動提供了一個絕佳的機會來進行有意義的對話，更好地了解客戶挑戰，並展示我們的技術投資如何將這些挑戰轉化為機會。

Additionally, it provided valuable networking opportunities, allowing attendees to connect with peers and industry experts, fostering innovative solutions and improve business outcomes. Overall, the conference highlighted Open Lending's dedication to supporting our customers' success.

此外，它還提供了寶貴的交流機會，讓與會者與同行和行業專家建立聯繫，促進創新解決方案並改善業務成果。總的來說，這次會議強調了 Open Lending 致力於支持客戶成功的決心。

Now, turning to our product and technology. As previously highlighted, we are actively developing solutions to improve the experience of our lenders and their borrowers by enhancing our technology, too. Increase lenders' ability to automate and speed up decisioning, increasing the probability of capturing a loan, explore solutions to minimize dealer and borrower friction, facilitate access to alternative sources of capital for our lenders to increase their lending capacity through all economic cycles, and evaluate opportunities to improve the value of our lenders protection product by expanding insurance coverages.

現在，談談我們的產品和技術。正如之前所強調的那樣，我們也在積極開發解決方案，透過增強我們的技術來改善我們的貸方及其借款人的體驗。提高貸款機構自動化和加快決策的能力，提高獲得貸款的機率，探索解決方案以盡量減少經銷商和借款人之間的摩擦，為我們的貸款機構提供獲取替代資本來源的管道，以在所有經濟週期中提高其貸款能力，並評估透過擴大保險覆蓋範圍來提高我們的貸款人保護產品的價值。

As an example of our execution, we recently announced a partnership with Point Predictive, experts in predictive science. We are leveraging Point Predictive's industry-leading technology and data to automate the proof of income verification process. This is a key pain point for many of our lenders as the current process requires pay stubs, W-2s, or other similar tax forms from the borrower while at the dealership, where a dealer may be receiving multiple offers from different lenders.

作為我們執行的一個例子，我們最近宣布與預測科學專家 Point Predictive 建立合作夥伴關係。我們正在利用 Point Predictive 業界領先的技術和數據來自動化收入證明驗證流程。這是我們許多貸款機構的關鍵痛點，因為目前的流程要求借款人在經銷店提供薪資單、W-2 表或其他類似的稅務表格，而經銷商可能會收到來自不同貸款機構的多個報價。

The dealer likely chooses a lender who is not making a similar request. By automating the proof of income process, we can eliminate this friction while the consumer is at the dealership and increase the close rate for our lenders. Our expectation is by leveraging data and insights to quickly and automatically validate income and employment, our lenders and ultimately Open Lending should win more of the approved loans.

經銷商可能會選擇沒有提出類似要求的貸方。透過自動化收入證明流程，我們可以消除消費者在經銷店時的這種摩擦，並提高貸款人的成交率。我們的期望是，透過利用數據和見解快速自動地驗證收入和就業情況，我們的貸方以及最終的開放貸款應該獲得更多的批准貸款。

Based on our pilot results, we are encouraged by the early data in increasing our capture rate and ultimately our volume. Last week, we launched the technology across our customer base. We are excited about this partnership and the value it provides to our lender customers, their borrowers, and Open Lending. We are continuing to look for other opportunities to drive innovative enhancements for our customers.

根據我們的試點結果，早期數據鼓舞著我們提高捕獲率並最終提高捕獲量。上週，我們向客戶群推出了這項技術。我們對此次合作以及它為我們的貸款客戶、他們的借款人以及開放借貸提供的價值感到非常興奮。我們將繼續尋找其他機會來為我們的客戶提供創新改進。

Additionally, we have made early progress towards assisting lenders with accessing alternative sources of capital to increase their lending capacity through economic cycles. While some of our lenders with above-average lending capacity are delivering increased volumes year-over-year, others continue to look for ways to improve capacity. We have been in dialogue with customers on how to best facilitate capital market transactions that will increase their Lenders Protection volumes.

此外，我們在幫助貸方獲取其他資本來源以在經濟週期中增加其貸款能力方面已取得初步進展。雖然我們的一些放款能力高於平均水準的放款機構的放貸量逐年增加，但其他放款機構仍在繼續尋找提高放款能力的方法。我們一直在與客戶對話，討論如何最好地促進資本市場交易，以增加他們的貸款人保護量。

Specifically, we are committed to using our capabilities to assist our customers in forward flow agreements, loan participations, and sales of seasoned loan portfolios. We are pleased to report that during the quarter, certain of our credit union customers have completed participation transactions of lender protection loans.

具體來說，我們致力於利用我們的能力協助客戶達成正向流動協議、貸款參與和成熟貸款組合的銷售。我們很高興地報告，在本季度，我們的部分信用合作社客戶已經完成了貸款人保護貸款的參與交易。

Most importantly, these pools of seasoned loans were transacted at price levels above par, thereby resulting in a gain on sale of assets. This is especially notable since the pool of loans included vintages originated during the period of 2021 to 2023. We continue to look for opportunities to utilize automation to improve the way our credit union customers serve their members, and I personally continue to believe that the Lenders Protection Program can help all auto lenders serving near and non-prime borrowers to minimize risk and optimize their yield.

最重要的是，這些成熟貸款池的交易價格高於票面價格，從而產生了資產出售收益。這一點尤其值得注意，因為貸款池中包含的貸款年份是在 2021 年至 2023 年期間。我們將繼續尋找機會利用自動化來改善我們的信用合作社客戶為其會員提供服務的方式，我個人仍然相信，貸款人保護計劃可以幫助所有為近優質和非優質借款人提供服務的汽車貸款機構最大限度地降低風險，並優化他們的屈服。

Now, an update on our financial results for the third quarter of 2024. During the third quarter of 2024, we facilitated 27,435 certified loans compared to 29,959 certified loans in the third quarter of 2023. Total revenue for the third quarter of 2024 was $23.5 million, which includes an ASC 606 negative change in estimate, related to historic vintages associated with our profit share of $7 million compared to $26 million in revenue in the third quarter of 2023, which included a negative change in estimate of $8 million.

現在，讓我們來更新 2024 年第三季的財務表現。2024 年第三季度，我們促成了 27,435 筆認證貸款，而 2023 年第三季度促成了 29,959 筆認證貸款。2024 年第三季的總收入為2,350 萬美元，其中包括與歷史年份相關的ASC 606 估計負變化，與我們的利潤份額700 萬美元相比，2023 年第三季的收入為2,600 萬美元，其中包括估計負變化800萬美元。

To break down total revenues in the third quarter, program fee revenues were $14.2 million, profit share revenues were $6.8 million, net of the previously mentioned negative change in estimate and claims administration fees and other revenue were $2.5 million.

第三季的總收入包括：項目費收入為 1,420 萬美元，利潤分成收入為 680 萬美元（扣除前面提到的估計負面變動）以及理賠管理費和其他收入為 250 萬美元。

As a reminder, profit share revenue comprises the expected earned premiums less the expected claims to be paid over the life of the contracts and less expenses attributable to the program. The net profit share to us is 72% and the monthly receipts from our insurance carriers reduces our contract asset. Profit share revenue in the third quarter of 2024 associated with new originations was $13.8 million or $502 per certified loan as compared to $16.1 million or $537 per certified loan in the third quarter of 2023.

提醒一下，利潤分享收入包括預期賺取的保費減去合約有效期內預期支付的索賠，再減去歸屬於該計劃的費用。我們獲得的淨利潤份額為72%，而保險公司每月的收入減少了我們的合約資產。2024 年第三季與新發放貸款相關的利潤分享收入為 1,380 萬美元或每筆認證貸款 502 美元，而 2023 年第三季為 1,610 萬美元或每筆認證貸款 537 美元。

The $7 million negative profit share change in estimate recorded in the current quarter is associated with cumulative total profit share previously recognized of approximately $403 million for periods dating back to January 2019, the ASC 606 implementation date, and represents over 411,000 insured in-force loans in the portfolio. The cumulative profit share change in estimate since 2019 is negative $6.2 million.

本季度記錄的700 萬美元負利潤份額估計變化與先前確認的累計總利潤份額約4.03 億美元有關，這些利潤份額可追溯到2019 年1 月（ASC 606 實施日期），代表了超過411,000 筆有效保險貸款在投資組合中。自 2019 年以來估計的累計利潤份額變化為負 620 萬美元。

Operating expenses were $15.5 million in the third quarter of 2024 compared to $16.1 million in the third quarter of 2023. Operating expenses were down about 4% in Q3 2024 as a result of our measured and controlled approach to only incurring incremental costs that drive near-term revenue growth. Operating income was $1.9 million in the third quarter of 2024 compared to operating income of $4.5 million in the third quarter of 2023.

2024 年第三季的營運費用為 1,550 萬美元，而 2023 年第三季的營運費用為 1,610 萬美元。由於我們採取了衡量和控制的方法，僅承擔推動近期收入成長的增量成本，2024 年第三季的營運費用下降了約 4%。2024 年第三季的營業收入為 190 萬美元，而 2023 年第三季的營業收入為 450 萬美元。

Net income for the third quarter of 2024 was $1.4 million compared to net income of $3 million in the third quarter of 2023. Basic and diluted net income per share was $0.01 in the third quarter of 2024 as compared to $0.02 in the third quarter of 2023. Adjusted EBITDA for the third quarter of 2024 was $7.8 million as compared to $10.3 million in the third quarter of 2023.

2024 年第三季的淨收入為 140 萬美元，而 2023 年第三季的淨收入為 300 萬美元。2024 年第三季每股基本和攤薄淨利潤為 0.01 美元，而 2023 年第三季為 0.02 美元。2024 年第三季的調整後 EBITDA 為 780 萬美元，而 2023 年第三季為 1,030 萬美元。

Excluding profit share revenue change in estimate, we generated $14.8 million in adjusted EBITDA in the third quarter of 2024. There's a reconciliation of GAAP to non-GAAP financial measures that can be found at the back of our earnings press release.

不包括預期的利潤份額收入變動，我們在 2024 年第三季的調整後 EBITDA 為 1,480 萬美元。在我們的收益新聞稿後面可以找到 GAAP 與非 GAAP 財務指標的對帳表。

We exited the third quarter with $395.7 million in total assets, of which $250.2 million was in unrestricted cash, $39.9 million in contract assets, and $65.6 million in net deferred tax assets. We had $175.2 million in total liabilities, of which $141.5 million was outstanding debt.

截至第三季度，我們的總資產為 3.957 億美元，其中 2.502 億美元為非限制現金，3,990 萬美元為合約資產，6,560 萬美元為淨遞延稅務資產。我們的總負債為 1.752 億美元，其中未償還債務為 1.415 億美元。

Moving to our fourth quarter 2024 guidance. The following factors were considered in our fourth quarter 2024 guidance: continued elevated auto loan interest rates despite the Fed funds rate cut and the anticipation for additional cuts later this year; lower than pre-COVID inventory levels and higher than historical vehicle prices continue to present affordability challenges for consumers; near historic high loan-to-share ratios that continue to limit credit unions lending capacity; additional credit tightening actions taken in the third quarter of 2024; implementation of automated proof of income, which should drive improvement in closure rate and volume; and continued ramp of customers signed and went live in 2024.

轉向我們的 2024 年第四季指引。我們在製定 2024 年第四季指引時考慮了以下因素：儘管聯邦基金利率下調且預計今年稍後還會進一步下調，但汽車貸款利率仍持續走高；低於新冠疫情之前的庫存水準和高於歷史水準的汽車價格持續給消費者帶來負擔能力挑戰；接近歷史高點的貸款與股份比率繼續限制信用合作社的貸款能力； 2024 年第三季採取的額外信貸緊縮措施；實施自動化收入證明，這應能提高結案率和結案量；並持續增加 2024 年簽約和上線的客戶數量。

Additionally, we accounted for normal course of seasonality that we see between the third and fourth quarter. Accordingly, guidance for the fourth quarter of 2024 is as follows: total certified loans to be between $20,000 and $24,000, total revenue to be between $22 million and $26 million, and adjusted EBITDA to be between $7 million and $10 million.

此外，我們也考慮了第三季和第四季之間正常的季節性變化。因此，2024 年第四季的預期如下：認證貸款總額在20,000 美元至24,000 美元之間，總收入在2200 萬美元至2600 萬美元之間，調整後的EBITDA 在700 萬美元至1000 萬美元之間。

In closing, we believe we are well-positioned for when the market recovers and remain optimistic that market conditions are trending positive. Delinquency rates are stabilizing in the near term. Lending capacity is showing improvement and inventory levels are increasing, and we will continue to make intentional investments in our technology to improve the experience of our lender customers and their borrowers.

最後，我們相信，當市場復甦時，我們已做好準備，並且對市場狀況呈現正面趨勢保持樂觀。短期內違約率正在趨於穩定。貸款能力正在改善，庫存水準正在增加，我們將繼續有意投資我們的技術，以改善我們的貸款客戶及其借款人的體驗。

We have strong conviction that the near and non-prime consumers and their lenders need us now more than ever as evident by the record level of new customers added in the third quarter of 2024. I want to personally thank our entire Open Lending team for their dedication to our company and thank our customers and our partners for their support.

我們堅信，近優質和非優質消費者及其貸方現在比以往任何時候都更需要我們，2024 年第三季新增客戶數量創下歷史新高就證明了這一點。我要親自感謝我們整個 Open Lending 團隊對我們公司的奉獻，並感謝我們的客戶和合作夥伴的支持。

I'm also grateful for their support as I begin my new role as Chief Executive Officer of Open Lending. I believe we have a bright future ahead, and I am excited to move forward together. We will now take your questions.

當我開始擔任 Open Lending 執行長的新職務時，我也非常感謝他們的支持。我相信我們的未來一片光明，我很高興能夠共同前進。我們現在將回答大家的提問。

(Operator Instructions) Joseph Vafi, Canaccord.

(操作員指示) Joseph Vafi，Canaccord。

Hey, everyone. Good afternoon and congratulations on the new roles to both to you. Maybe I'll just kind of start -- I know, Chuck, you mentioned some tightening of some of your underwriting standards and how that may kind of affect certain volumes. Can we kind of drill down on that a little bit and perhaps what you may expect to see in terms of kind of approval rates as a result of that tightening? And then I'll have a quick follow-up.

嘿，大家好。下午好，祝賀你們擔任新的職位。也許我只是開始 - 我知道，查克，你提到了一些承保標準的收緊以及這可能會對某些交易量產生影響。我們能否深入探討這個問題，以及您預計收緊政策之後批准率會如何？然後我會快速跟進。

Thanks for the question, Joe. If we think about the factors that went into the Q4 guide, particularly, as we mentioned, normal seasonality, I mean, Q3 to Q4 normally is 8% to 10% down. So you think that's there, and the midpoint of where we're guiding for Q4 is down a little below 20%. So what we saw, our risk team, in credit performance and obviously, keep our close eye on that, and what we had seen over the last few quarters is an increase in thin credit files and thin files.

謝謝你的提問，喬。如果我們考慮第四季度指南中的因素，特別是我們所提到的正常季節性，我的意思是第三季到第四季通常會下降 8% 到 10%。所以您認為這個數字是存在的，並且我們預測的第四季度中點略低於 20%。因此，我們的風險團隊在信貸表現方面顯然密切關注這一點，並且我們在過去幾個季度中看到的是薄信用文件和薄文件有所增加。

They just don't have a deep credit history and are higher exposure and higher risk. So as we've continued through the last two years, as we've tightened, we're looking for quality loans in the portfolio and looking to limit the higher risk. So we felt it was prudent to go ahead and tighten there this quarter and definitely, it will impact our Q4 volume, but the right thing to do.

他們只是沒有深厚的信用記錄，而且風險敞口和風險較高。因此，正如我們過去兩年所堅持的那樣，隨著我們收緊政策，我們在投資組合中尋找優質貸款，並尋求限制較高的風險。因此，我們認為本季繼續收緊政策是明智之舉，這肯定會影響我們第四季度的銷量，但這是正確的做法。

If you think about on the Point Predictive partnership, and that's a positive to our business and that's going to eliminate some of the friction and risk that consumers see at the dealership as we said in the prepared remarks. So that's going to be a positive uplift there as well, more driving into '25 on that as we kind of move forward because we just launched that. We basically increased pricing on those thin files that I discussed. So again, it's the right thing to do.

如果你考慮與 Point Predictive 的合作關係，這對我們的業務來說是積極的，它將消除消費者在經銷店遇到的一些摩擦和風險，正如我們在準備好的評論中所說的那樣。所以這也將是一個積極的推動，隨著我們向前邁進，這將進一步推動 25 年，因為我們剛剛啟動了這項計劃。我們基本上提高了我所討論的那些薄文件的價格。所以再說一次，這是正確的做法。

Approval rates on that are probably going to be down about 4%, is what we're estimating.

我們估計，批准率可能會下降約 4%。

Got it. That's helpful color. And then, nice to see some business model expansion with the alternative sources of capital you mentioned, Chuck. Maybe kind of just drill down on that. What kind of demand you think you may see from some of your lending partners there and how potentially that alternative sources of capital may change your unit economics on certs and whatever else you think may be relevant there? Thanks a lot.

知道了。這是很有幫助的顏色。然後，很高興看到一些商業模式透過你提到的替代資本來源擴展，查克。或許只是深入研究這一點。您認為您可能會從那裡的一些貸款合作夥伴那裡看到什麼樣的需求，以及替代資本來源可能如何改變您在證書方面的單位經濟狀況以及您認為可能相關的其他事項？多謝。

Thanks for the question. As we've kind of seen through this cycle, Joe, one, our credit union customers loan-to-share ratios have been near historic highs on a loan-to-share. So as we kind of looked at that and as we looked into the future and future cycles, we've got a team in place that -- on the capital markets, [Steve Mahay] is heading that up for us and doing a good job in getting that kicked off.

謝謝你的提問。正如我們在這一週期中看到的，喬，首先，我們的信用合作社客戶的貸款與股份比率一直接近歷史最高水平。因此，當我們審視這一點，展望未來和未來的周期時，我們已經組建了一支團隊，在資本市場上，[史蒂夫·馬哈伊] 正在為我們領導，做得很好開始吧。

And we're looking at ways that we can help our customers, not just with our technology, our platform and all we do with our core product is also then help them through cycles. And if it's the loan participations and we've got deep relations across the credit union industry and some institutions have healthy loan-to-share and then some of our larger customers are a little higher.

我們正在尋找能夠幫助客戶的方法，不僅是透過我們的技術、我們的平台，我們用我們的核心產品所做的一切也都是為了幫助他們度過整個週期。如果是貸款參與，我們與信用合作社行業有著深厚的關係，一些機構擁有健康的貸款份額，那麼我們的一些大客戶的貸款參與率會更高一些。

So our capability to help them facilitate those participation transactions definitely helps us, helps them, and ultimately, [open] our loans back in flow for that institution that may have been lent out. So really excited about the work we're doing there and look forward to expanding that, it's around -- if it's forward flow transactions or whole loan sales.

因此，我們幫助他們促進這些參與交易的能力無疑對我們有幫助，對他們也有幫助，並且最終使該機構能夠重新獲得可能已經貸出的貸款。所以對於我們在那裡所做的工作感到非常興奮，並期待擴大它，無論是正向交易還是整體貸款銷售。

So that's kind of where we're at. As it relates to unit economics on that, it's more of a service that we're providing to our customers. And at this point, I wouldn't see a change in our unit economics, just more of an opportunity for volume.

這就是我們現在的狀況。就單位經濟學而言，它更像是我們為客戶提供的一種服務。而目前，我不會看到我們的單位經濟發生變化，只是有更多的產量機會。

Okay, great. Thanks very much, Chuck. And I'll turn it over.

好的，太好了。非常感謝，查克。我會把它翻過來。

John Davis, Raymond James.

約翰戴維斯、雷蒙詹姆斯。

Hey, guys. Thanks for taking the question. This is Taylor on for JD. Maybe just to start with the profit share revision during the quarter of $7 million. I heard your commentary on mostly still being driven from the problem cohorts. But I think you've mentioned in the past that the peak claim period should be passing later this year or early into 2025. I just wanted to get your updated thoughts on if you think this is still the case or if expectations have changed at all?

嘿，大家好。感謝您回答這個問題。這是 JD 的 Taylor。或許只是從 700 萬美元的季度利潤份額修訂開始。我聽到了您的評論，大部分評論仍受到問題群體的推動。但我想您過去曾提到過，索賠高峰期應該會在今年晚些時候或 2025 年初過去。我只是想知道您的最新想法，您是否認為情況仍然如此或預期是否已經改變？

Thanks, Taylor, for the question. Yes, as we think about '21 and '22, those are worst performers in recent history. 18 to 24 months is definitely the peak of claims. What we've seen with these vintages is that they're not necessarily coming down at that point on a typical cycle. There's really been nothing normal about this. But we are seeing delinquencies starting to lower on the newer pools.

謝謝泰勒提出這個問題。是的，當我們思考21年和22年時，它們是近代史上表現最差的。 18至24個月絕對是索賠的高峰期。從這些年份的葡萄酒來看，它們的價格不一定會按照典型的週期下降。這實在沒有什麼不正常的。但我們發現較新的貸款池中的拖欠率開始降低。

We're working through those older pools as we think about those vintages. And we are, I guess, in a positive note, starting to see those bend down from a peak claims perspective. So that is good news, but it's maybe a little early to declare there on where we are, but we're encouraged that we believe we're working through them.

當我們思考這些年份時，我們正在研究那些較舊的池子。我想，我們的正面情緒是，從索賠高峰的角度來看，這些數字開始下降。這是個好消息，但現在宣布我們目前的狀況可能還為時過早，但我們很高興相信我們正在努力解決這些問題。

That's helpful. And then maybe just one more. So it was good to hear the elevated client signings during the quarter of ['21]. So now, I'm just curious where you're seeing the most success, whether it be with credit unions or banks? Just curious if you could size these clients at all? Thanks.

這很有幫助。然後也許只剩下一個了。因此，很高興聽到本季客戶簽約量增加。['21]。所以現在，我只是好奇您在哪裡看到了最大的成功，是信用合作社還是銀行？只是好奇您是否可以確定這些客戶的規模？謝謝。

Yes. In the quarter, the 21, obviously, is a record. We're proud of the team and our changes earlier this year that we had implemented. And of those 21, I think all of them were credit unions in the third quarter. We did sign a bank previously in the year. Banks are longer sales cycle. Obviously, we've talked about that and so are OEMs.

是的。在本季度，21 顯然是一個記錄。我們為我們的團隊和今年早些時候實施的變革感到自豪。在這 21 家機構中，我認為第三季它們全部都是信用合作社。我們今年早些時候確實簽了一家銀行。銀行的銷售週期較長。顯然，我們已經討論過這個問題，OEM 也是。

But the success this quarter was really in our sales team and their execution, working along with a very talented sales and account management team and really executing. We're focused on larger institutions, and we've talked about that for several quarters. And I think of these 21, I think we had 10 or 11 were $1 billion-plus institutions, which was really nice in asset size.

但本季的成功實際上歸功於我們的銷售團隊及其執行力，以及一支非常有才華的銷售和客戶管理團隊的合作和真正的執行。我們重點關注的是較大的機構，我們已經討論了幾個季度了。我覺得在這 21 家機構中，有 10 家或 11 家是資產規模超過 10 億美元的機構，這在資產規模上確實很不錯了。

And we've got a great pipeline, a strong pipeline going forward. And I think it's a testament just to Open Lending, the value prop and what we deliver and provide to our customers, and it's resonating now more than ever.

我們擁有出色的管道，強大的前進管道。我認為這是對開放式借貸的證明，其價值主張以及我們向客戶提供和提供的服務，現在它比以往任何時候都更能引起共鳴。

Awesome. Thanks for taking the questions.

驚人的。感謝您回答這些問題。

(Operator Instructions) Peter Heckmann, D.A. Davidson.

（操作指示） Peter Heckmann，D.A.戴維森。

Chuck, congratulations on the CEO role. Acknowledging that this has been a dynamic market, and there's been some difficulties with predicting used car prices and the direction of rates and whatnot. I guess, do you think that Open Lending can get to a point where we can kind of resume annual guidance instead of just kind of this one-quarter forward guidance?

查克，祝賀你擔任執行長。承認這是一個充滿活力的市場，預測二手車價格、利率走向等都存在一些困難。我想，您是否認為開放式借貸可以達到這樣的程度：我們可以恢復年度指導，而不是僅僅恢復這種單季的前瞻性指導？

I mean, I'm sure you're struggling with the numbers as much as anyone else. But when we see six or seven quarters in a row of negative revisions to profit sharing, I was under the assumption that many of the variables that had gone into these estimates were very conservative. It's just frustrating.

我的意思是，我確信你和其他人一樣，也在為數字而苦苦掙扎。但當我們看到連續六、七個季度對利潤分享進行負面修正時，我認為這些估算中的許多變數都非常保守。這真是令人沮喪。

So I look at it and I hear what you're saying about a potential turn. And certainly, it's encouraging to hear more financial institutions coming back. But I guess, is there any probability that Open Lending gets back to some level of normality where we have much, much smaller quarterly revisions to profit sharing and we can have a higher level of confidence in the overall revenue and earnings stream?

所以我看了看並且聽到了你所說的潛在的轉變。毫無疑問，聽到更多金融機構回歸是令人鼓舞的。但我想，Open Lending 是否有可能恢復到某種正常水平，即我們對利潤分享的季度修訂幅度會小得多，並且我們對整體收入和盈利流的信心會更高？

Yes. I mean, I appreciate the question, Pete. Yes, if you think about the volumes we were producing during those worst performers, '21 and '22, and really, the actions we've taken that we've talked about now for a couple of years and the recent actions, we do feel good about where we're heading into '25 and beyond.

是的。我的意思是，我很感謝你提出這個問題，皮特。是的，如果你想想我們在表現最差的 21 年和 22 年期間的產量，以及我們幾年來一直在談論的行動以及最近的行動，我們確實對我們25年及以後的發展方向感到很滿意。

I think the tightening that we've done has slowed volume intentionally as everybody in the industry is working through those worst performers. But I do believe there's going to be a point, and I said it in the prepared comments, that the profit share is going to be less volatile, and we're going to work through that.

我認為，我們採取的緊縮措施有意減緩了交易量，因為業內每個人都在努力解決那些表現最差的企業。但我確實相信會有一個觀點，而且我在準備好的評論中也說過，利潤份額的波動性將會降低，我們將努力解決這個問題。

You know as well as I do that, back in '21, when things weren't performing very well, we had multiple quarters of positive adjustments in a row. So I think we've just worked through this cycle and continue to work through it. But I think it will be less volatile going forward.

您和我都很清楚，早在 21 年，當情況不太好時，我們就已經連續多個季度進行了積極的調整。所以我認為我們已經完成了這個週期並且將繼續完成它。但我認為未來波動性會減少。

I think our new scorecard, I think a lot of things we're doing with our risk and actuarial teams are helping us to be more predictable on the newer vintages and they're performing better. And we're seeing 6 months on book, for example, for Q1 of '23, vintage is -- the delinquency rate is down 25% if you compare back.

我認為我們的新記分卡，我認為我們與風險和精算團隊一起做的很多事情正在幫助我們對較新的年份更加可預測，而且它們的表現更好。以 2023 年第一季的 6 個月帳面資料為例，如果回顧一下，拖欠率下降了 25%。

So I do believe we're going to get to some level of normalcy, and it's going to stabilize. And your point about getting back to annual guidance, that's the goal. And yes, it's been frustrating for us as well, but not having visibility to go out a year is the reason we went to quarterly. So I think as we get the company growing again, and which I believe we will, and we said it in the prepared remarks, we got some really good things going on that can do that.

因此我確實相信我們會恢復到某種程度的正常狀態並且趨於穩定。您提到的恢復年度指導就是我們的目標。是的，這對我們來說也非常令人沮喪，但是由於無法預見一年內的情況，我們決定按季度進行報告。因此，我認為，隨著公司再次發展，我相信我們一定會發展，而且我們在準備好的評論中也說過，我們正在做一些非常好的事情來做到這一點。

So long answer to your question, but I do think it will stabilize, and we'll have the company growing and we're looking forward to 2025.

那麼，回答你的問題就這麼長了，但我確實認為它會穩定下來，我們的公司也會不斷發展，我們期待 2025 年。

Okay. Well, that's great to hear. And again, I'm sorry, I was late to the call. I didn't see or hear anything in the release about a new potential share repurchase authorization. Is that something that the Board is considering? Or would there be something that would prohibit you from doing that?

好的。嗯，聽到這個消息真是太好了。我再次表示抱歉，我接電話遲到了。我在新聞稿中沒有看到或聽到有關新的潛在股票回購授權的任何內容。這是董事會正在考慮的事情嗎？或是有什麼事情阻止你這樣做？

Yes. We did not announce a new authorization, and that is -- our previous authorization expired, as you know. And from a capital allocation perspective, I was buying stock at prices higher than where we are today. So I think we believe in that is a good use of capital. But it is a Board-level decision and a Board authorization that I currently do not have, but it's something that we work closely with the Board on and evaluate.

是的。我們沒有宣布新的授權，也就是說——如你所知，我們之前的授權已經過期。從資本配置的角度來看，我買的股票價格高於現在的價格。所以我認為我們相信這是對資本的良好利用。但這是董事會級別的決定，我目前還沒有獲得董事會的授權，但我們會與董事會密切合作並進行評估。

Okay. I appreciate it, Chuck. We'll keep watching and [hope for] that turn.

好的。我很感激，查克。我們會繼續關注並期待這一轉變。

Okay, Pete. Thank you.

好的，皮特。謝謝。

Thank you. Ladies and gentlemen, as there are no further questions, I will now hand the conference over to Chuck Jehl for his closing comments.

謝謝。女士們、先生們，由於沒有其他問題，我現在將會議交給查克·傑爾 (Chuck Jehl) 作結束語。

I would like to thank everyone for joining us today. And again, thank you to all of the Open Lending team members and all you do for our company and your dedication and support. And I hope everyone has a good afternoon. Thanks again.

我感謝大家今天的出席。再次感謝所有 Open Lending 團隊成員為我們公司所做的一切以及你們的奉獻和支持。我希望大家下午愉快。再次感謝。

This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful evening.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接並享受美好的夜晚。