OppFi Inc (OPFI) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to OppFi' second quarter 2023 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. After management's presentation, there will be a question-and-answer session. (Operator Instructions) It is now my pleasure to introduce your host, Shaun Smolarz, Head of Investor Relations. You may begin, sir.

下午好，歡迎參加 OppFi 2023 年第二季度財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。管理層演講結束後，將進行問答環節。 （操作員說明） 現在我很高興向您介紹主持人，投資者關係主管 Shaun Smolarz。您可以開始了，先生。

Thank you, operator. Good afternoon. On today's call are Todd Schwartz, Chief Executive Officer and Executive Chairman, and Pam Johnson, Chief Financial Officer. Our second quarter 2023 earnings press release and supplemental presentation can be found at investors.oppfi.com.

謝謝你，接線員。下午好。首席執行官兼執行主席托德·施瓦茨 (Todd Schwartz) 和首席財務官帕姆·約翰遜 (Pam ​​Johnson) 出席了今天的電話會議。我們的 2023 年第二季度收益新聞稿和補充演示文稿可在 Investors.oppfi.com 上找到。

During this call, OppFi will discuss certain forward-looking information. These forward-looking statements are based on assumptions and assessments made by OppFi's management in light of their experience and assessment of historical trends, current conditions, expected future developments and other factors they believe to be appropriate.

在本次電話會議中，OppFi 將討論某些前瞻性信息。這些前瞻性陳述基於 OppFi 管理層根據其經驗以及對歷史趨勢、當前狀況、預期未來發展和他們認為適當的其他因素的評估而做出的假設和評估。

Any forward-looking statements made during this call are made as of today and OppFi undertakes no duty to update or revise any such statements, whether as a result of new information, future events, or otherwise. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in the company's filings with the United States Securities and Exchange Commission, including the sections entitled Risk Factors.

本次電話會議期間做出的任何前瞻性陳述均截至今日，OppFi 不承擔更新或修改任何此類陳述的義務，無論是由於新信息、未來事件還是其他原因。該公司向美國證券交易委員會提交的文件中描述了可能導致實際結果、發展和業務決策與前瞻性陳述存在重大差異的重要因素，包括標題為“風險因素”的部分。

In today's remarks by management, the company will discuss certain non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in the earnings press release issued earlier this afternoon. This call is being webcast live and will be available for replay on our website. I would now like to turn the call over to Todd.

在今天管理層的講話中，該公司將討論某些非公認會計準則財務指標。這些非公認會計原則財務指標與最具可比性的公認會計原則指標的調節表可以在今天下午早些時候發布的收益新聞稿中找到。此次電話會議正在進行網絡直播，並將在我們的網站上重播。我現在想把電話轉給托德。

Thanks, Shaun, and good afternoon, everyone. I'm very pleased with our second quarter results, which further demonstrate our focus on profitability. In the second quarter of 2023, we more than doubled adjusted net income year over year, while achieving double digit revenue growth. I believe this result clearly indicates our ability to balance growth and risk while maintaining expense discipline. Pam will review our second quarter results in detail as well as discuss our full year guidance update, which includes raising our earnings outlook.

謝謝肖恩，大家下午好。我對我們第二季度的業績非常滿意，這進一步證明了我們對盈利能力的關注。 2023 年第二季度，我們的調整後淨利潤同比增長了一倍以上，同時實現了兩位數的收入增長。我相信這一結果清楚地表明了我們在保持支出紀律的同時平衡增長和風險的能力。帕姆將詳細審查我們第二季度的業績，並討論我們的全年指導更新，其中包括提高我們的盈利前景。

Before she does, I will cover three topics: one, the key highlights from our Q2 2023 financial performance. Two, our progress on strategic business priorities for 2023. And three, an update on our corporate development initiative. Second quarter results were driven by improvement in credit performance due to adjustments made last year and recent modeling enhancements as well as continued total expense leverage and growth and recoveries.

在她發言之前，我將討論三個主題：一是我們 2023 年第二季度財務業績的主要亮點。第二，我們在 2023 年戰略業務重點方面取得的進展。第三，我們企業發展計劃的最新情況。第二季度業績的推動因素是信貸業績的改善，這是由於去年的調整和最近的模型增強以及持續的總費用槓桿以及增長和復蘇所致。

The key highlights for the second quarter this year compared to last year are: solid 14% total revenue growth to $122.5 million. The strong rebound in both net income with 90% growth to $18.1 million and adjusted net income with 138% growth to $16.3 million. We achieved these results while holding ending receivables steady at approximately $398 million, further demonstrating our renewed focus on profitability over portfolio growth. To this end, we realized additional gains and cost efficiency in both marketing and operations. Marketing cost per funded loan decreased 23%. Total expenses as a percentage of total revenue decreased by 16%.

與去年相比，今年第二季度的主要亮點是：總收入穩定增長 14%，達到 1.225 億美元。淨利潤強勁反彈，增長 90% 至 1810 萬美元，調整後淨利潤增長 138% 至 1630 萬美元。我們取得了這些成果，同時將期末應收賬款穩定在約 3.98 億美元，這進一步表明我們重新關注盈利能力而不是投資組合增長。為此，我們在營銷和運營方面實現了額外的收益和成本效率。每筆融資貸款的營銷成本下降了 23%。總支出佔總收入的百分比下降了 16%。

Now I'd like to provide updates on our core strategic initiatives. During the second quarter, credit performance continued to strengthen. Net charge-off rates improved year over year and sequentially, both as a percentage of total revenue and average receivables. Net charge-off rate as a percentage of total revenue decreased 17% or 7 percentage points, falling to 36.2% from 43.5% in Q2 last year. Further illustrating the effects of credit modeling enhancements and adjustments at the end of the second quarter. The total first payment default rate decreased 23% and the total delinquency rate declined by 10%.

現在我想提供有關我們核心戰略計劃的最新信息。第二季度，信貸表現繼續增強。淨沖銷率在總收入和平均應收賬款中所佔的百分比逐年提高。淨核銷率佔總收入的百分比下降了 17%，即 7 個​​百分點，從去年第二季度的 43.5% 降至 36.2%。進一步說明第二季度末信用模型增強和調整的效果。首次付款違約率總額下降了 23%，拖欠率總額下降了 10%。

I want to take this opportunity to remind investors about the overall seasonality of the business. Since this effect sequential credit trends, loan vintages originated during late first quarter to early second quarter are historically weaker than other times of the year, which affects credit performance in the third and fourth quarters. Therefore, partly due to seasonality, we expect net charge-off rates to increase sequentially in both the third and fourth quarters while continuing to improve on a year-over-year basis. This year our recovery strategy continues to contribute strongly to our net charge-off rate improvement.

我想藉此機會提醒投資者註意業務的整體季節性。由於這會影響連續的信貸趨勢，第一季度末至第二季度初的貸款年份歷來弱於一年中的其他時間，這影響了第三和第四季度的信貸表現。因此，部分由於季節性因素，我們預計第三季度和第四季度的淨沖銷率將連續上升，同時同比繼續改善。今年，我們的複蘇策略繼續為我們的淨核銷率改善做出巨大貢獻。

During the second quarter, recoveries increased 91% year over year to $6.5 million. Our plan this year is to remain disciplined and prioritize strong unit economics and profitability over originations growth. Last year's adjustments to credit modeling have yielded positive results. Our product and marketing teams continue to focus on cost effective initiatives to generate lower risk origination volume. We have worked hard to optimize our marketing funnel to lower origination costs and yield better quality.

第二季度，回收金額同比增長 91%，達到 650 萬美元。我們今年的計劃是保持紀律，優先考慮強勁的單位經濟效益和盈利能力，而不是創始增長。去年的信用模型調整取得了積極成效。我們的產品和營銷團隊繼續專注於具有成本效益的舉措，以降低風險發起量。我們努力優化我們的營銷渠道，以降低原始成本並提高質量。

We remain very focused on realizing operational efficiencies. This is demonstrated by the 16% improvement year over year for total expenses as a percentage of total revenue during the second quarter. We achieved this with more efficient marketing spend, effective management of general and administrative expenses, and the previously announced streamlining of our customer support operations. These improvements were made despite interest expense increasing by approximately $3 million or 43% year over year.

我們仍然非常注重實現運營效率。第二季度總支出佔總收入的比例同比提高 16% 就證明了這一點。我們通過更高效的營銷支出、有效管理一般和行政費用以及之前宣布的客戶支持業務精簡來實現這一目標。儘管利息支出同比增加約 300 萬美元或 43%，但仍取得了這些改進。

Before I conclude my remarks, I'll provide a brief update on our corporate development initiatives. As discussed on our Q4 2022 conference call in March, diversifying the business is one of our strategic growth priorities. We are most interested in potential accretive acquisitions in adjacent customer or product categories where we believe we can leverage our core competencies and brand equity to create value and serve more customers. We believe there are opportunities in the market and are starting to see more realistic valuation expectations.

在結束髮言之前，我將簡要介紹一下我們的企業發展計劃。正如我們在 3 月份的 2022 年第四季度電話會議上討論的那樣，業務多元化是我們的戰略增長重點之一。我們最感興趣的是鄰近客戶或產品類別的潛在增值收購，我們相信我們可以利用我們的核心競爭力和品牌資產來創造價值並服務更多客戶。我們相信市場上存在機會，並開始看到更現實的估值預期。

In summary, the strength of our business during the first half of the year gives me confidence that our strategic decision-making last year put us on the right path and is generating positive results. This confidence is why my family and I continued to purchase shares during the recent open trading window following our Q1 earnings release. We also expect to be more proactive with investor relation activities in the second half of this year with plans to meet with investors at conferences and related events.

總而言之，我們上半年的業務實力讓我相信，我們去年的戰略決策使我們走上了正確的道路，並正在產生積極的成果。這種信心就是為什麼我和我的家人在第一季度收益發布後的最近開放交易窗口期間繼續購買股票的原因。我們還預計今年下半年將更加積極主動地開展投資者關係活動，計劃在會議和相關活動中與投資者會面。

With that, I'll turn the call over to Pam.

這樣，我就把電話轉給帕姆。

Thanks, Todd, and good afternoon, everyone. Q2 was a solid quarter as credit performance continued to improve during the seasonally strongest period of the year. Total revenue increased 13.5% to $122.5 million. Net originations decreased 10.8% year over year to $200.6 million due to our strategic focus on profitable growth that emphasizes quality over quantity and the narrow credit box open to the lowest risk credit segments in the addressable market.

謝謝托德，大家下午好。第二季度是一個穩健的季度，信貸表現在一年中季節性最強的時期持續改善。總收入增長 13.5%，達到 1.225 億美元。由於我們的戰略重點是盈利增長，強調質量而不是數量，以及對目標市場中風險最低的信貸細分市場開放的狹窄信貸框，淨發起額同比下降 10.8% 至 2.006 億美元。

New customer originations for the quarter decreased by 30.3% year over year, while existing customer originations increased by 13.8%. Our annualized net charge-off rate as a percentage of average receivables was 46.6% for the second quarter compared to 51.9% for the prior year quarter and 61.8% in the first quarter of 2023. As a percentage of total revenue, the annualized net charge-off rate for the second quarter was 36.2% compared to 43.5% in the comparable period last year and 49% in the first quarter of 2023.

本季度新客戶數量同比下降 30.3%，而現有客戶數量增長 13.8%。我們第二季度的年化淨沖銷率占平均應收賬款的百分比為 46.6%，而去年同期為 51.9%，2023 年第一季度為 61.8%。第二季度的折扣率為36.2%，去年同期為43.5%，2023 年第一季度為49%。

To reiterate what Todd discussed earlier, we now expect the net charge-off rates to increase sequentially in the third and fourth quarters due to seasonally weaker loan vintages from earlier this year, while improving in both of those quarters on a year-over-year basis. For the full year, we anticipate significant improvement from last year.

重申托德之前討論的內容，我們現在預計，由於今年早些時候的貸款年份季節性疲軟，第三和第四季度的淨沖銷率將連續上升，同時這兩個季度的同比都有所改善基礎。就全年而言，我們預計較去年會有顯著改善。

Turning to expenses, total expenses for the second quarter totaled $56.2 million or 45.9% of total revenue compared to $58.8 million or 54.5% of total revenue for the second quarter of 2022. The year-over-year decrease was primarily the result of lower direct marketing spend due to the mix shift, partially offset by higher interest expense.

說到費用，第二季度的總費用總計5,620 萬美元，佔總收入的45.9%，而2022 年第二季度的總費用為5,880 萬美元，佔總收入的54.5%。同比下降主要是由於直接費用減少由於組合轉變而產生的營銷支出，部分被較高的利息支出所抵消。

Interest expense for the second quarter totaled $11.2 million or 9.2% of total revenue compared to $7.9 million or 7.3% of total revenue for the same period last year. The increase was due to higher interest rates on our credit facilities utilized to fund originations over the past year.

第二季度利息支出總計 1,120 萬美元，佔總收入的 9.2%，而去年同期利息支出為 790 萬美元，佔總收入的 7.3%。這一增長是由於過去一年我們用於資助發起的信貸額度的利率較高。

Adjusted EBITDA totaled $35.7 million for the second quarter, a 78.7% increase from $20 million for the comparable period last year, driven by both lower net charge-offs and operating expenses. Adjusted net income was $16.3 million for the second quarter, more than doubling from $6.8 million for Q2 last year. Adjusted earnings per share was $0.19 compared to $0.08 for the second quarter last year. For the three months ended June 30, 2023, OppFi had 84.8 million weighted average diluted shares outstanding.

第二季度調整後 EBITDA 總計 3570 萬美元，比去年同期的 2000 萬美元增長 78.7%，這得益於淨沖銷和運營費用的下降。第二季度調整後淨利潤為 1630 萬美元，比去年第二季度的 680 萬美元增加了一倍多。調整後每股收益為 0.19 美元，去年第二季度為 0.08 美元。截至 2023 年 6 月 30 日的三個月，OppFi 的加權平均稀釋後流通股為 8480 萬股。

Our balance sheet remains strong with cash, cash equivalents, and restricted cash of $62.1 million, total debt of $331.9 million, ending receivables of $397.8 million, and equity of $177 million as of quarter end. We believe we have ample liquidity available to support our current growth plans with $537.1 million in total capacity to fund receivables at the end of the second quarter.

截至季度末，我們的資產負債表依然強勁，現金、現金等價物和限制性現金為 6210 萬美元，債務總額為 3.319 億美元，期末應收賬款為 3.978 億美元，股本為 1.77 億美元。我們相信，我們有充足的流動性來支持當前的增長計劃，第二季度末的應收賬款融資總能力為 5.371 億美元。

In late July, we also announced the upsizing our revolving credit facility with affiliates of Atalaya Capital Management to $250 million. We appreciate Atalaya's confidence in us and the strengthening our business relationship. The increased capacity will be used to fund receivables growth, which we expect to generate incremental profitable growth.

7 月底，我們還宣布將與 Atalaya Capital Management 附屬公司的循環信貸額度擴大至 2.5 億美元。我們感謝 Atalaya 對我們的信心以及加強我們的業務關係。增加的產能將用於為應收賬款增長提供資金，我們預計這將帶來增量利潤增長。

Turning now to our outlook, for full year 2023, we are reaffirming guidance for total revenue of $500 million to $520 million which implies growth of 10% to 15% year over year. In addition, we are increasing guidance for adjusted net income to between $29 million and $35 million from the $24 million to $30 million prior range. As a result, we are also raising our outlook for adjusted earnings per share to between $0.34 and $0.41 from the $0.28 to $0.35 previous range.

現在轉向我們的展望，對於 2023 年全年，我們重申總收入為 5 億至 5.2 億美元的指導，這意味著同比增長 10% 至 15%。此外，我們還將調整後淨利潤指引從之前的 2400 萬美元至 3000 萬美元提高至 2900 萬美元至 3500 萬美元。因此，我們還將調整後每股收益的預期從之前的 0.28 美元至 0.35 美元上調至 0.34 美元至 0.41 美元。

While we're not providing formal quarterly guidance, I'd like to share additional details for how we're thinking about the second half of the year. We expect to resume year-over-year originations growth in the third and fourth quarters for revenue, we're anticipating low to mid-single digit growth in Q3 and then acceleration to low double digit growth in Q4.

雖然我們沒有提供正式的季度指導，但我想分享更多關於我們如何看待下半年的細節。我們預計第三季度和第四季度的收入將恢復同比增長，我們預計第三季度將實現低至中個位數增長，然後在第四季度加速至低兩位數增長。

With that, I would now like to turn the call over to the operator for Q&A. Operator?

現在，我想將電話轉給接線員進行問答。操作員？

(Operator Instructions)

（操作員說明）

David Scharf, JMP Securities.

大衛·沙夫，JMP 證券。

Thank you, good afternoon, and thanks for taking my questions. Todd, a little bit of a -- I guess, more of a philosophical or strategic question for you, this whole earnings season investors and analysts been asking. Management is about, after credit tightening, what do they need to see to get more aggressive or to open their credit box a bit. But I'm more interested in kind of hearing your thoughts about how we ought to think about what your kind of longer-term vision is for OppFi in terms of growth rate?

謝謝你，下午好，謝謝你回答我的問題。托德，我想，這對你來說更像是一個哲學或戰略問題，整個財報季投資者和分析師一直在問。管理層的意思是，在信貸緊縮之後，他們需要看到什麼才能變得更加激進或稍微打開信貸箱。但我更感興趣的是聽聽您的想法，我們應該如何思考您對 OppFi 增長率的長期願景是什麼？

You've talked a lot about quality over quantity, maximizing great returns over just top line or balance sheet growth. Do you have a certain ceiling in your mind in terms of regardless of the opportunities out there of how much you're willing to sort of grow the portfolio or rather is it going to continue to be sort of opportunistic depending on the cycle?

您已經談論了很多關於質量而不是數量、最大化巨大回報而不是營收或資產負債表增長的問題。無論有多少機會，您願意在多大程度上擴大投資組合，您心中是否有一定的上限，或者更確切地說，根據周期，它是否會繼續保持機會主義？

Yes. Thanks, David. Good question. So first of all, I pointed this out on other calls. Back in 2019, we were originating two segments that today we originate zero of, and we could double our addressable market essentially overnight. But it's obviously there's cyclicality to the business and the consumer segment. The consumers had a great run. We founded this business in 2012. We had a credit cycle for seven straight years where we had really, really strong performance, and then obviously, with COVID and everything else that happened, we've adjusted. And what's great about our team, we're nimble, we're able to adjust to the market dynamics.

是的。謝謝，大衛。好問題。首先，我在其他電話中指出了這一點。早在 2019 年，我們就發起了兩個細分市場，而今天我們發起了零個細分市場，而且我們可以在一夜之間將我們的潛在市場翻倍。但很明顯，商業和消費者領域存在周期性。消費者表現出色。我們於 2012 年創立了這項業務。我們的信貸週期連續七年，我們的業績非常非常強勁，然後顯然，隨著新冠疫情和其他發生的事情，我們進行了調整。我們團隊的優點是我們很靈活，能夠根據市場動態進行調整。

Right now, I'm proud that we've been able to increase revenue and grow even with -- and with much stronger quality on the credit side. And also we're seeing -- we're still being a little bit -- we're being real disciplined on the credit. I do think though, that there's going to be a time when the consumer -- this cycle is out and we will be able to open up some more segments. And like I said, it's virtually doubles our addressable market. 40% of our originations I mentioned, new loans in 2019 came from those segments and we're no longer originating those.

現在，我感到自豪的是，我們能夠增加收入並實現增長，甚至在信貸方面的質量也提高了。而且我們還看到——我們仍然有點——我們在信用方面確實很嚴格。但我確實認為，總有一天消費者的周期會結束，我們將能夠開闢更多的細分市場。正如我所說，這實際上使我們的目標市場翻了一番。我提到的 40% 的貸款，2019 年的新貸款都來自這些細分市場，但我們不再發放這些貸款。

So for that being said, I think I'm really proud of the team and our marketing funnel optimization has been really great. We brought on some new partners. We have actually some strategic initiatives in the pipeline to open up potentially some new geographies, but we have nothing to report now, but we're working on some of that as well. So right now, we're comfortable with where we're at and with the credit originating. We also were able to find some model enhancements. We were able to take some of the data from some of the losses last year and have been able to actually increase growth in certain segments and pockets because of that data. So that's really exciting as well.

話雖這麼說，我認為我真的為我們的團隊感到自豪，我們的營銷渠道優化非常出色。我們引入了一些新的合作夥伴。實際上，我們正在醞釀一些戰略舉措，以開闢一些新的地區，但我們現在沒有什麼可報告的，但我們也在努力其中的一些。所以現在，我們對我們所處的位置和信用來源感到滿意。我們還發現了一些模型增強功能。我們能夠從去年的一些損失中獲取一些數據，並且由於這些數據，我們實際上能夠增加某些細分市場和領域的增長。這也非常令人興奮。

No. It's helpful. I mean, it kind of sounds like we're not going to be drinking from a fire hose as soon as you see sort of macro factors change, it's going to be more measured in kind of predictable growth going forward.

不，這很有幫助。我的意思是，聽起來好像我們不會在宏觀因素發生變化時就喝水，而是會以未來可預測的增長來衡量。

Yeah, that's --.

是的，那就是——。

One follow up; you mentioned on the marketing side and I know I think in your prepared remarks or in the press release, you talked about the marketing cost per funded loan down over 20%. Can you just update us on sort of the channel mix. I mean, where direct mail versus digital, whether there's any kind of concentration with particular sites like a LendingTree or so forth, it's just?

1次跟進；你提到了營銷方面，我知道我認為在你準備好的講話或新聞稿中，你談到每筆資助貸款的營銷成本下降了 20% 以上。您能否向我們介紹一下渠道組合的最新情況？我的意思是，直郵與數字相比，是否存在對特定網站（如 LendingTree 等）的集中？

Yeah. So we don't -- we keep all our partners at less than 10%. We really make sure that we don't have that type of risk or concentration as some others in the place. We've also -- direct mail is actually something that we see tremendous amount of ability to improve in. We really have been -- with COVID and with kind of what went on with the consumer, some of the modeling has become less predictive. So we have huge room to improve. And so we're achieving these results kind of even without that muscle. I would say, fully at 100%, but are really have some interesting things there to deploy in the upcoming quarters. We have partnerships with some of the ones you mentioned.

是的。所以我們不會——我們將所有合作夥伴的持股比例控制在 10% 以下。我們確實確保我們不會像該地方的其他一些人那樣存在那種類型的風險或集中度。我們還——直郵實際上是我們看到巨大改進能力的東西。我們確實——隨著新冠肺炎和消費者的變化，一些模型的預測能力變得越來越差。所以我們還有很大的改進空間。因此，即使沒有這種力量，我們也能取得這些成果。我想說，完全達到 100%，但我們確實有一些有趣的東西可以在接下來的幾個季度部署。我們與您提到的一些公司有合作夥伴關係。

One thing that's been really great is our SEO is up 65%. Our search engine marketing optimizations have yielded 65% increase, I believe in that in applications and qualified apps. Our referral program continues to be a really strong driver of high-quality consumers that we're able to originate for on behalf of the bank partners. And so we have a nice mix shift where we don't allow any one partner or a vertical to be too much of our current origination platform to keep it fully diversified.

一件非常棒的事情是我們的 SEO 提高了 65%。我們的搜索引擎營銷優化已帶來 65% 的增長，我相信在應用程序和合格的應用程序中也是如此。我們的推薦計劃仍然是高品質消費者的真正強大驅動力，我們能夠代表銀行合作夥伴發起這些計劃。因此，我們有一個很好的混合轉變，我們不允許任何一個合作夥伴或垂直領域過多地佔據我們當前的創始平台，以保持其完全多元化。

Got it. Hey, last question, just on the guidance, maybe clarification. I was -- originally I had scribbled down here to ask about maybe what was behind the second half trajectory in terms of earnings being much more kind of front end loaded after the Q2 results. But Pam commented about the loss rates. If I correct in that, that's pretty much the predominant driver in a more pronounced seasonality versus maybe what we had modeled. It is the increase in loss rates seasonally in the second half?

知道了。嘿，最後一個問題，只是關於指導，也許是澄清。我最初在這裡寫下這篇文章是為了詢問下半年業績軌跡背後的原因，即在第二季度業績公佈後，盈利更多地被前端加載。但帕姆對損失率發表了評論。如果我糾正這一點，那麼與我們建模的情況相比，這幾乎是更明顯的季節性的主要驅動因素。是下半年損失率季節性上升嗎？

Yeah, and I think it's the continued discipline of growing at high single digit. It also affects that number as a percentage of revenue. So we're going to be remain disciplined in a normalized environment. If there was maybe a little bit more growth out there, obviously, that may be a little bit of a different conversation. But we had a really strong fourth quarter vintage coming into the first quarter of tax refund. And we also -- our real great story is our recoveries. Our recoveries are up 90% year over year. Our values-based recovery strategy that we implemented also, our tech and product team revamped the whole payments portal for our consumers and made it easier for consumers to interact with payments and our service delivery to be able to power that.

是的，我認為這是持續保持高個位數增長的紀律。它還會影響該數字佔收入的百分比。因此，我們將在正常化的環境中保持紀律。顯然，如果那裡有更多的增長，那可能會有所不同。但我們在第一季度的退稅中第四季度的表現非常強勁。我們也——我們真正偉大的故事是我們的康復。我們的康復率同比增長 90%。我們還實施了基於價值的恢復策略，我們的技術和產品團隊為消費者改進了整個支付門戶，使消費者更容易與支付和我們的服務交付進行交互，從而能夠為其提供支持。

And so we did a lot of those strategic decisions last year, and they were very tough decisions and we kind of had told the Street and our analysts and our investors, kind of there was going to be minimal profitability. We remained profitable for the year. But all those things we did came better than expected in the second quarter, and we'll continue to benefit from that in the third and fourth quarters. But yeah, I mean, as you start to originate throughout the year, there's a little normalization on the losses, but we still are very, very encouraged about our approach. Our OpEx is at the right level of where we think the business needs to be. And I think with our acquisition costs and losses kind of trending normally, we're in a good spot.

因此，我們去年做了很多戰略決策，它們都是非常艱難的決定，我們告訴華爾街、我們的分析師和投資者，盈利能力將是最低的。我們全年保持盈利。但我們所做的所有這些事情在第二季度都好於預期，我們將在第三和第四季度繼續從中受益。但是，是的，我的意思是，當你開始全年開始時，損失會有點正常化，但我們仍然對我們的方法感到非常非常鼓舞。我們的運營支出處於我們認為業務需要的正確水平。我認為，由於我們的收購成本和損失呈正常趨勢，我們處於有利位置。

Got it. Perfect. Thanks so much.

知道了。完美的。非常感謝。

Mike Grondahl, Northland Securities.

邁克·格隆達爾，北國證券。

Hey, guys, thank you. Hey, one thing you called out besides improving credit and expense leverage was some recent modeling enhancements. Can you just describe kind of what those were?

嘿，伙計們，謝謝你們。嘿，除了提高信貸和費用槓桿之外，您提到的一件事是最近的一些建模增強功能。你能簡單描述一下那些是什麼嗎？

Yeah. I mean, without getting too technical, some of the stuff we've seen on some of the customers' income and on the bank side of attributes have been very, very helpful. Obviously, like with inflation taking hold last year and people kind of having less discretionary to pay their obligations, we took a lot of that data and analyze it very heavily and compared it back to years past. And that's one advantage we have is we have a really, really strong set of 10 years of data to pull from and find things that have become more predictive in this environment, and inflationary environment.

是的。我的意思是，在不涉及太多技術性的情況下，我們在一些客戶的收入和銀行方面的屬性中看到的一些東西非常非常有幫助。顯然，就像去年通脹佔據主導地位一樣，人們在支付債務方面的自由裁量權也有所減少，我們收集了大量數據並進行了深入分析，並將其與過去幾年進行了比較。我們擁有的一個優勢是，我們擁有一組非常非常強大的 10 年數據，可以從中提取和發現在這種環境和通貨膨脹環境中變得更具預測性的東西。

Albeit, unemployment remains low, people are employed. And so that's the positive here. And we were able to derive some additional attributes in our credit modeling that has helped increase originations. I mean, ultimately, we are a credit access business and we're trying to find more borrowers that we can serve, but we have to do within the confines of loss rates and what's acceptable for our business. And so that's what's great about some of those modeling as you can increase some volume while also reducing some losses. And so feel really good about the contribution the credit team made there, and we'll continue to find more attributes and more analysis to help.

儘管失業率仍然很低，但人們仍然就業。這就是積極的一面。我們能夠在信用模型中得出一些額外的屬性，這有助於增加起源。我的意思是，歸根結底，我們是一家信貸准入企業，我們正在努力尋找更多我們可以服務的借款人，但我們必須在損失率和我們的業務可接受的範圍內進行。這就是其中一些建模的優點，因為您可以增加一些體積，同時也減少一些損失。因此，對信用團隊所做的貢獻感到非常滿意，我們將繼續尋找更多屬性和更多分析來提供幫助。

Got it. And It looks like you have ample liquidity, how are you seeing the competitive environment today?

知道了。看起來你們的流動性很充足，您如何看待今天的競爭環境？

Yeah. I mean, listen, we are -- we always judge our competitive by the match rate. So we have a turn-up program where when customers come to us organically, we first check them against a consortium of lower cost lenders before we engage. That's one of our brand promises is to provide a lower rate or the best available product if we can. And that metric has increased in the second quarter. The first part of the year, it was running at about 10%, it's kind of gone. So there is definitely some increased competition from lower APR providers.

是的。我的意思是，聽著，我們總是根據匹配率來判斷我們的競爭力。因此，我們有一個出現計劃，當客戶有機地來找我們時，我們首先將他們與低成本貸方聯盟進行比較，然後再進行合作。我們的品牌承諾之一是盡可能提供更低的價格或最好的產品。該指標在第二季度有所增加。今年上半年，它的運行速度約為 10%，現在已經消失了。因此，來自年利率較低的提供商的競爭肯定會加劇。

Listen, as much as that does inhibit our [growth], it's actually part of our brand process and we're happy for our customers that they can get a lower rate. That really is kind of what we set out to do when we founded OppFi, so it is part of the thing. I have to say, though, if you look at our mix shift and you look at the lower risk segments, we've originated significantly more of the lower risk credit despite that in the quarter and in the first quarter as well. And they're performing on par with our expectations of having a much a higher quality book.

聽著，儘管這確實抑制了我們的[增長]，但這實際上是我們品牌流程的一部分，我們很高興我們的客戶能夠獲得較低的價格。這確實是我們創立 OppFi 時就打算做的事情，所以它是事情的一部分。不過，我不得不說，如果你看看我們的組合轉變，看看低風險領域，我們已經創造了更多的低風險信貸，儘管在本季度和第一季度也是如此。他們的表現符合我們對一本更高質量的書的期望。

Got it. And then just lastly, it looks like SalaryTap and the OppFi card, you guys are kind of shutting down. Any charge associated with that or cost savings we should think about going forward?

知道了。最後，看起來像 SalaryTap 和 OppFi 卡，你們有點關閉了。我們今後應該考慮與此相關的任何費用或成本節省嗎？

We have written that portfolio down, Mike, and you'll note that when you read our 10-Q. It was originally held for sale. We are no longer marketing it so winding it down, it's what we're looking at.

邁克，我們已經寫下了該投資組合，當您閱讀我們的 10-Q 時，您會注意到這一點。它最初是為了出售而持有的。我們不再對其進行營銷，因此逐漸減少它，這就是我們所關注的。

Got it.

知道了。

And then the people working on it, are they reallocated? Or is there any cost saves by winding those down or --?

然後，從事這方面工作的人員是否會被重新分配？或者通過逐步減少這些項目是否可以節省成本，或者——？

Minimal. Most of the people have been redeployed in other aspects of our business.

最小。大多數人已被重新部署到我們業務的其他方面。

Got it. Okay. Thank you.

知道了。好的。謝謝。

(Operator Instructions) Since there are no further questions at this time, I would like to turn the floor back over to Todd Schwartz, CEO and Executive Chairman, for closing comments.

（操作員說明）由於目前沒有其他問題，我想將發言權轉回首席執行官兼執行主席托德·施瓦茨 (Todd Schwartz)，以徵求結束意見。

Thanks, everyone, for joining us today. We look forward to speaking with you again in November when we report third quarter results.

謝謝大家今天加入我們。我們期待在 11 月份報告第三季度業績時再次與您交談。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。