OppFi Inc (OPFI) 2023 Q3 法說會逐字稿

Good afternoon, and welcome to OppFi's third-quarter 2023 earnings conference call. All participants are in listen-only mode. 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 now begin.

下午好，歡迎參加 OppFi 2023 年第三季財報電話會議。所有參與者均處於僅監聽模式。謹此提醒，本次電話會議正在錄音中。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。你現在可以開始了。

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 third quarter 2023 earnings press release and supplemental presentation can be found at investors.oppfi.com.

謝謝你，接線生。午安.執行長兼執行主席 Todd Schwartz 和財務長 Pam Johnson 出席了今天的電話會議。我們的 2023 年第三季收益新聞稿和補充簡報可在 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. 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.

在本次電話會議中，OppFi 將討論某些前瞻性資訊。這些前瞻性陳述是基於 OppFi 管理層根據他們的經驗和對歷史趨勢、當前狀況、預期未來發展以及他們認為適當的其他因素的評估而做出的假設和評估。本次電話會議期間所做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，無論是由於新資訊、未來事件或其他原因。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.

在今天管理階層​​的演講中，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。這次電話會議正在進行網路直播，並將在我們的網站上重播。

I would now like to turn the call over to Todd.

我現在想把電話轉給托德。

Thanks, Shaun, and good afternoon, everyone. I'm very excited to discuss our third quarter results, which demonstrate that we are achieving the goals that we set out to accomplish. For the second consecutive quarter, our earnings significantly rebounded year over year while we generated solid revenue growth throughout this year, we have continued to make impactful adjustments to credit models with our bank partners that have resulted in improved credit performance and accelerated earnings growth. We believe the portfolio is as strong as it has ever been from a credit profile perspective, which gives me confidence in continued credit performance and earnings growth prospectively.

謝謝肖恩，大家下午好。我很高興討論我們第三季的業績，這表明我們正在實現我們設定的目標。我們的獲利連續第二個季度同比顯著反彈，同時我們全年收入穩步增長，我們繼續與銀行合作夥伴對信貸模式進行有效調整，從而改善了信貸績效並加速了盈利增長。我們相信，從信用狀況的角度來看，該投資組合與以往一樣強勁，這讓我對未來持續的信用表現和獲利成長充滿信心。

I strongly believe our results indicate yet again our ability to balance growth and risk while maintaining expense discipline. Pam will review our third quarter results in detail, as well as discuss our full year guidance update, which includes raising our earnings outlook for the third time this year. Before she does, I will cover two topics. The key highlights from our third quarter financial performance and our progress on strategic business priorities for 2023. The third quarter was highlighted by substantial improvement in credit performance year over year, including net charge-off rate as a percentage of revenue, yield, and recoveries.

我堅信我們的結果再次表明我們有能力在保持支出紀律的同時平衡成長和風險。帕姆將詳細審查我們第三季度的業績，並討論我們的全年指導更新，其中包括今年第三次提高我們的盈利前景。在她這樣做之前，我將討論兩個主題。我們第三季財務業績的主要亮點以及我們在 2023 年策略業務重點方面取得的進展。第三季的亮點是信貸業績同比大幅改善，包括淨沖銷率佔收入、收益率和回收率的百分比。

The key highlights for the third quarter this year compared to last year, our strong 7.2%, total revenue growth to $133.2 million, a solid 7.6% growth in originations to $195.7 million and significant rebounds in net income to $15.5 million from an approximate $1 million loss and adjusted net income to $13.8 million from an approximate $1 million profit. We achieved these results while maintaining disciplined in the approach to underwriting, considering the macro environment and our continued emphasis on profitability over portfolio growth.

與去年相比，今年第三季的主要亮點是，我們的總營收強勁成長7.2%，達到1.332 億美元，起源穩定成長7.6%，達到1.957 億美元，淨利潤從約100 萬美元大幅反彈至1550萬美元虧損，調整後淨利從約 100 萬美元的利潤增至 1,380 萬美元。考慮到宏觀環境以及我們持續強調獲利能力而非投資組合成長，我們在保持承保方式嚴謹的同時取得了這些成果。

Now I'd like to provide updates on our core strategic initiatives. For the third quarter, credit performance continued to improve as expected. The annualized net charge-off rate as a percentage of total revenue decreased 23% or 12 percentage points falling to 42.4% from 54.8% in Q3 last year. In addition, the annualized net charge-off rate as a percentage of average receivables decreased 17% or 11 percentage points falling to 54.5% from 65.9% in the year ago period. Credit modeling enhancements and adjustments have created dynamic credit models that continue to improve early-stage delinquency metrics as the portfolio shifts to the lowest risk segments. At the end of the third quarter year over year, the total first payment default decreased 9% and total delinquency rate declined 14%.

現在我想提供有關我們核心戰略計劃的最新資訊。第三季度，信貸表現持續改善，符合預期。年化淨沖銷率佔總營收的百分比下降23%，即12個百分點，從去年第三季的54.8%降至42.4%。此外，年化淨核銷率佔平均應收帳款的百分比下降17%或11個百分點，從去年同期的65.9%降至54.5%。信用模型的增強和調整創建了動態信用模型，隨著投資組合轉向風險最低的部分，該模型不斷改進早期拖欠指標。第三季末，首付款違約總額較去年同期下降9%，拖欠率總額下降14%。

As has been the trend this year, our recovery strategy performed well with a 58% increase compared to the third quarter last year. We also realized solid growth in yield, expanding to 129% compared to 120% in the year ago period and thereby strengthening our unit level economics. This was achieved with a decrease in delinquent loans in the portfolio, lower enrollment in hardship and assistance programs, and a relative shift away from states with lower interest rates. Our product and marketing team are focused on cost effective initiatives to attract greater lower risk of origination volume, including SEO and direct mail, while also strengthening our relationships and fine-tuning our competitive strategy in the partner channel. For the third quarter, this resulted in our marketing cost per funded loan being steady year over year. We also continued to be vigilant on expenses. Total expenses, excluding interest expense as a percentage of total revenue increased less than 1% to 36.1% from 35.8% in Q3 last year.

正如今年的趨勢一樣，我們的復甦策略表現良好，與去年第三季相比成長了 58%。我們也實現了產量的穩健成長，從去年同期的 120% 擴大至 129%，從而增強了我們的單位經濟效益。這是透過減少投資組合中的拖欠貸款、減少困難和援助計劃的入學人數以及相對遠離利率較低的州來實現的。我們的產品和行銷團隊專注於具有成本效益的舉措，以吸引更低的發起量風險，包括搜尋引擎優化和直郵，同時還加強我們的關係並微調我們在合作夥伴管道中的競爭策略。在第三季度，這導致我們每筆資助貸款的行銷成本較去年同期穩定。我們也繼續對費用保持警惕。總支出（不含利息支出）佔總收入的比例從去年第三季的 35.8% 上升到 36.1%，增幅不到 1%。

We have previously discussed our corporate development initiatives. While we are evaluating acquisition opportunities in adjacent customer or product categories, we will be patient to find the right fit. Concurrently, we are exploring other initiatives to create shareholder value given our strong balance sheet and the inherent options that it provides us. At its core, OppFi as a tech-enabled mission driven specialty finance platform that broadens the reach of community banks to extend credit access to everyday Americans. Through transparency, responsible lending, financial inclusion and an excellent customer service experience, the company supports consumers who are turned away by mainstream options to build better financial health.

我們之前已經討論過我們的企業發展計劃。當我們評估鄰近客戶或產品類別的收購機會時，我們將耐心尋找合適的人選。同時，鑑於我們強大的資產負債表及其為我們提供的固有選擇，我們正在探索其他措施來創造股東價值。從本質上講，OppFi 是一個以技術為支援、任務驅動的專業金融平台，它擴大了社區銀行的覆蓋範圍，為普通美國人提供信貸服務。透過透明度、負責任的貸款、金融包容性和卓越的客戶服務體驗，該公司為那些被主流選擇拒之門外的消費者提供支持，以建立更好的財務健康狀況。

In summary, we expect to continue to grow profitably with originations growth, improve credit performance, and prudent expense management. These dynamics, combined with our strong balance sheet and excess funding capacity, provide us with options next year to create additional shareholder value. We will remain disciplined with underwriting and expenses. We plan to share our detailed view of 2024 when we report Q4 results.

總而言之，我們預計，隨著資金來源的成長、信貸績效的改善和審慎的費用管理，利潤將持續成長。這些動態，加上我們強大的資產負債表和過剩的融資能力，為我們明年提供了創造額外股東價值的選擇。我們將繼續遵守承保和費用的紀律。我們計劃在報告第四季業績時分享我們對 2024 年的詳細看法。

Now I'll turn the call over to Pam to review our Q3 financial performance and updated full year outlook.

現在，我將把電話轉給 Pam，回顧我們第三季的財務表現和更新的全年展望。

Thanks, Todd, and good afternoon, everyone. Q3 was a strong quarter as credit metrics continued to improve, resulting in back-to-back quarters of solid performance. Total revenue increased 7.2% to $133.2 million. Net originations increased 7.6% year over year to $195.7 million due to greater customer demand in the lowest credit risk segments of our adjustable market. New customer originations for the quarter decreased by 5% year-over-year, while existing customer originations increased by 20.2%. The annualized net charge-off rate as a percentage of average receivables improved to 54.5% compared to 65.9% for the prior quarter. As a percentage of total revenue, the annualized net charge-off rate decreased to 42.4% from 54.8% in the comparable period last year.

謝謝托德，大家下午好。第三季度是一個強勁的季度，信貸指標持續改善，導致連續兩季表現穩健。總營收成長 7.2%，達到 1.332 億美元。由於我們可調整市場中信用風險最低的細分市場的客戶需求增加，淨發起額年增 7.6% 至 1.957 億美元。本季新客戶數量年減 5%，而現有客戶數量成長 20.2%。年化淨沖銷率佔平均應收帳款的百分比從上一季的 65.9% 提高至 54.5%。年化淨核銷率佔總收入的比例從去年同期的54.8%下降至42.4%。

Turning to expenses, total expenses, including interest expense were $60.1 million or 45.1% of total revenue compared to $53.6 million or 43.1% of total revenue for the third quarter of 2022. The year-over-year increase was primarily the result of higher interest expense. Interest expense totaled $12.1 million or 9.1% of total revenue compared to $9.1 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.

在費用方面，包括利息費用在內的總費用為 6,010 萬美元，佔總收入的 45.1%，而 2022 年第三季為 5,360 萬美元，佔總收入的 43.1%。同比增長主要是利息增加的結果費用。利息支出總計 1,210 萬美元，佔總收入的 9.1%，而去年同期為 910 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 $33 million for the quarter, a 149.8% increase from $13.2 million for the comparable period last year. Adjusted net income was $13.8 million compared to $0.8 million for Q3 last year. Adjusted earnings per share was $0.16 compared to $0.01 for the same period last year. For the three months ended September 30, 2023, OppFi had $85.3 million weighted average diluted shares outstanding on an adjusted basis. Our balance sheet remains strong, with cash, cash equivalents, and restricted cash of $66 million, total debt of $344.3 million, ending receivables of $415.9 million, and equity of $189.8 million as of quarter end. We believe we have ample liquidity available to support our current growth plans with $591 million in total capacity to fund receivables at the end of the third quarter.

本季調整後 EBITDA 總計 3,300 萬美元，比去年同期的 1,320 萬美元成長 149.8%。調整後淨利為 1,380 萬美元，而去年第三季為 80 萬美元。調整後每股收益為 0.16 美元，去年同期為 0.01 美元。截至 2023 年 9 月 30 日的三個月，OppFi 經調整後的加權平均稀釋後流通股數為 8,530 萬美元。我們的資產負債表依然強勁，截至季末，現金、現金等價物和限制性現金為 6,600 萬美元，負債總額為 3.443 億美元，期末應收帳款為 4.159 億美元，股本為 1.898 億美元。我們相信，我們有充足的流動性來支持我們目前的成長計劃，截至第三季末，應收帳款融資總能力為 5.91 億美元。

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 $40 million and $42 million from the $29 million to $35 million prior range. As a result, we are also raising our outlook for adjusted earnings per share to between $0.47 and $0.49 from the $0.34 to $0.41 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，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先前的 2,900 萬美元至 3,500 萬美元提高至 4,000 萬美元至 4,200 萬美元。因此，我們也將調整後每股收益的預期從先前的 0.34 美元至 0.41 美元上調至 0.47 美元至 0.49 美元。

Before concluding our prepared remarks, I will provide a brief update on our proactive Investor Relations strategy for the remainder of the year. We are very excited by our substantial earnings turnaround this year and are confident in our long-term growth strategy. We plan to amplify our message and communicate the story to a broader audience, both institutional and retail Investors through Investor conferences, non-deal roadshows, and other opportunities. In addition to further our engagement with retail Investors, we recently launched our participation on the Webull Corporate Connect Platform, where we can directly communicate with investors to highlight corporate news and answer questions.

在結束我們準備好的發言之前，我將簡要介紹今年剩餘時間我們積極主動的投資者關係策略的最新情況。我們對今年的獲利大幅好轉感到非常興奮，並對我們的長期成長策略充滿信心。我們計劃透過投資者會議、非交易路演和其他機會擴大我們的訊息，並向更廣泛的受眾（包括機構投資者和散戶投資者）傳達我們的故事。除了進一步與散戶投資者接觸外，我們最近還推出了微牛企業通平台，我們可以在該平台上直接與投資者溝通，重點介紹企業新聞並回答問題。

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。

Great. Thanks. Good afternoon. Thanks for taking my questions. Todd, we're obviously seeing the benefits of -- because of the credit tightening implemented last year and more disciplined underwriting, certainly translating into improved unit economics. You know, just big picture when we were kind of at the tail end of a reporting season where a lot of nonprime lenders have been communicating a little -- easing of the pace of credit normalization but still highlighting a lot of economic uncertainty. What are you seeing, if anything that signals potentially leaning into marketing and customer acquisition a little more. Just want to make sure kind of accurately interpret sort of what your view heading into next year is in terms of the health of the consumer or whether, you are still maintaining a pretty cautious outlook?

偉大的。謝謝。午安.感謝您回答我的問題。托德，我們顯然看到了好處——由於去年實施的信貸緊縮和更嚴格的承保，這肯定會轉化為單位經濟效益的改善。你知道，當我們正處於報告季末時，許多非主要貸款機構已經進行了一些溝通——放寬了信貸正常化的步伐，但仍然凸顯了許多經濟不確定性。您看到了什麼？是否有任何跡象表明您可能更傾向於行銷和客戶獲取。只是想確保準確地解釋您對明年消費者健康狀況的看法，或者您仍然保持相當謹慎的前景？

Yes, Thanks for the question, David. It's a good question.

是的，謝謝你的提問，大衛。這是一個好問題。

And you know, it becomes a little more challenging when you look back to the three prior years like last year being a tough one with inflation, '21 being the stimulus of COVID, in 2020 being COVID. So we kind of look back to 2019. That's how we've been. And we look at the loss curves compared to how we're performing today. There's a lot of growth out there, but obviously, we've got to be very disciplined, and I think we would need a sustained period of where we're confident in loss curves. Looking like 2019 and some macro factors as well to be able to lean into growth again.

你知道，當你回顧前三年時，情況會變得更具挑戰性，例如去年是通貨膨脹的艱難一年，21 世紀是新冠疫情的刺激因素，2020 年是新冠疫情。我們回顧 2019 年。我們就是這樣。我們將損失曲線與我們今天的表現進行比較。那裡有很多成長，但顯然，我們必須非常自律，我認為我們需要一段持續的時間，讓我們對損失曲線充滿信心。展望 2019 年，一些宏觀因素也能再次推動成長。

We're also still able to grow, though. I want to point out that we're still going to grow at 10% to 15% this year. We just have a much higher quality book of business right now, and we've been able to maintain acquisition costs. So really happy to do that as well. But, you know, as you look in the economy, there's a bunch of mixed signals. You have unemployment is still really low, but then you have these things like wars going on. So we're not prognosticators of the economy. And but we look at some key factors, but we also, based upon our past experience, one of the great things is that we've been around since 2011/'12, and we pull on that information and our team's experience, frankly, to make those decisions.

不過，我們仍然能夠成長。我想指出的是，今年我們仍將以 10% 至 15% 的速度成長。我們現在擁有更高品質的業務，而且我們已經能夠維持收購成本。我也很高興這樣做。但是，你知道，當你觀察經濟時，你會發現很多混合訊號。失業率仍然很低，但戰爭等事情仍在繼續。所以我們不是經濟的預測者。但我們會考慮一些關鍵因素，但我們也根據我們過去的經驗，最棒的事情之一是我們自 2011/'12 年以來一直存在，坦率地說，我們利用這些信息和我們團隊的經驗，做出這些決定。

Got it. No, I completely understood. Switching to the funding side, you highlighted the capacity you have right now. But can you just remind us about the fixed versus variable component of your facilities in how we ought to be thinking about sort of the near-term average borrowing rate in the next few quarters?

知道了。不，我完全明白。談到資金方面，您強調了您現在擁有的能力。但是，您能否提醒我們您的設施中的固定部分和可變部分，以便我們應該如何考慮未來幾季的近期平均借款利率？

Yes. Well, I mean, it's really -- we wish we had the interest rates of last period year. We have voting rate in our facilities, it's based on so far, as you know, as increased about 400 basis points year-over-year. It's something that we're definitely feeling. But I think like if you look at the business, even in probably the worst interest rate environment we've seen in 30 years, we're still able to generate strong returns, right? And that really is if you look at our OpEx, the leverage on OpEx, if you look at our loss curves and you look at our acquisition discipline, any reduction in rate, we're going to get the benefit of now. I don't know when that's going to happen. I think we're going to probably forecast it to stay probably at the certain -- maintain at the certain levels that they are today for next year. But I do think that that would be a nice thing for next year if rates were able to come down a little because we would get that benefit it.

是的。嗯，我的意思是，我們真的希望我們能擁有去年同期的利率。如您所知，我們設施中的投票率到目前為止比去年同期增加了約 400 個基點。這是我們肯定能感受到的。但我認為，如果你看看我們的業務，即使在 30 年來最糟糕的利率環境下，我們仍然能夠產生強勁的回報，對嗎？這確實是，如果你看看我們的營運支出，營運支出的槓桿，如果你看看我們的損失曲線，看看我們的收購紀律，任何利率的降低，我們現在都會受益。我不知道什麼時候會發生。我認為我們可能會預測明年它可能會保持在今天的特定水平。但我確實認為，如果利率能夠稍微下降，那麼明年這將是一件好事，因為我們將從中受益。

And just for modeling purposes, is there a number we -- Apologize, I don't know what your spread is offhand -- is there a good weighted average cost of borrowing we ought to factor in near term.

僅出於建模目的，我們是否有一個數字 - 抱歉，我不知道您的利差是多少 - 是否存在我們應該考慮的近期加權平均借貸成本。

Yes. I mean, there are weighted average like the rest of roughly 11% is what we're currently paying.

是的。我的意思是，有加權平均值，其餘約 11% 是我們目前支付的費用。

Got it. And then one final question just on the marketing side. As you noted, the expense per funded loan, it held pretty steady. I think last year there may have been a pretty big decline. There was something about the Q2 comp last year, but overall, CAC levels, should we pretty much assume that steady rate per funded loan going forward? Or are there any other potential improvements near term?

知道了。最後一個問題是關於行銷方面的。正如您所指出的，每筆資助貸款的費用保持相當穩定。我認為去年可能有相當大的下降。去年第二季的比較有一些問題，但總體而言，CAC 水平，我們是否應該假設每筆資助貸款的利率穩定？或者近期還有其他潛在的改進嗎？

Yes. I mean, there's minor fluctuations, but our goal is to keep it where it's at and we think we can. I think we have the full capabilities and the service capabilities to be able to keep it there. So that is our goal. And take that -- you see some others in the industry kind of chasing a little bit on the cost per -- we're not going to do that. We're going to be pretty disciplined on our cost.

是的。我的意思是，存在微小的波動，但我們的目標是將其保持在原位，並且我們認為我們可以。我認為我們有足夠的能力和服務能力來維持它。這就是我們的目標。考慮到這一點——你會看到行業中的其他一些人有點追求單位成本——我們不會這樣做。我們將嚴格控製成本。

Understood. Great. Thank you very much.

明白了。偉大的。非常感謝。

Thank you.

謝謝。

Mike Grondahl, Northland Securities.

麥克‧格隆達爾，北國證券。

Hi, guys. Congrats on the progress. Do you like your cost structure where it is today kind of going into '24? Any thoughts on that?

嗨，大家好。祝賀取得的進展。您喜歡現在進入 24 世紀的成本結構嗎？對此有什麼想法嗎？

Well, I mean, I think if you look -- we made -- we brought it down even further from last year. I think we were at 39% as a percentage of revenue in '22 and I think we're closer to 35%. So we've made significant progress. And that's in an environment, Mike, that you're seeing inflation on all services vendors, goods, and frankly, in wages. And so we're really proud that we've been able to scale OpEx in a year where most haven't been able to.

嗯，我的意思是，我想如果你看一下——我們所做的——我們比去年更進一步降低了。我認為 22 年我們佔收入的百分比為 39%，而且我認為我們更接近 35%。所以我們已經取得了重大進展。麥克，在這樣的環境下，你會看到所有服務供應商、商品，坦白說，薪資都在通貨膨脹。因此，我們非常自豪能夠在大多數人無法做到的一年內擴大營運支出。

And listen, we're always about continuous improvement here and always looking at things that we can be more efficient. And I think there are some potential optimizations and efficiencies that we can look to next year to offset some of increased costs and were something we're always going to be looking at. But we feel really good. I think if you remember when I came back as CEO, we were at 45%. As a percentage of revenue, we're now down in that 35% range as a percentage of revenue, 35%, 36% and feel really good that we've done a lot a lot there and continue to push on that.

聽著，我們始終致力於持續改進，並始終專注於可以提高效率的事情。我認為明年我們可以尋求一些潛在的優化和效率來抵消一些增加的成本，這也是我們一直在關注的事情。但我們感覺真的很好。我想如果你還記得我重新擔任執行長時，我們的比例是 45%。從佔收入的百分比來看，我們現在已經下降到 35% 的範圍內，即 35%、36%，我們在這方面做了很多工作並繼續推動這一點，這讓我們感覺非常好。

Got it.

知道了。

And then secondly, you guys are generating nice capital again, it looks like you're going to be generating cash for a while here after you tighten credit. You've mentioned you're looking at acquisitions a little bit. You've also mentioned you're really patient. I don't know. Could you just talk about what you're looking for on acquisition and you run the core business so well, and in the past, you've tried to do a couple things, new credit card, maybe the payroll product, that in a way didn't work. So how are you just thinking about an acquisition versus returning capital to shareholders? Like what kind of hurdle does that acquisition need to get over?

其次，你們再次產生了良好的資本，看起來在收緊信貸之後，你們將在這裡產生一段時間的現金。您提到您正在考慮一些收購。你還提到你真的很有耐心。我不知道。您能談談您在收購方面的需求嗎？您的核心業務運作得很好，在過去，您嘗試過做幾件事，新的信用卡，也許是薪資產品，在某種程度上沒用。那麼，您如何考慮收購與向股東返還資本呢？例如這次收購需要克服什麼樣的障礙？

Yes. I mean, in -- we could potentially even do both, so we're going to consider all the possibilities. It's good to have that optionality. I think when we're looking at inorganic opportunities on, the market's coming to us. There's definitely more rational sponsors out there and companies that I believe anything we do, we're going to kind of have the unit economics figured out, which is different than kind of when you do an in-house startup on the credit card and some of that salary type stuff. That's kind of stuff that had to be proven out and had to build models off of data.

是的。我的意思是，我們甚至可能兩者都做，所以我們將考慮所有的可能性。擁有這種選擇權是件好事。我認為，當我們尋找無機機會時，市場就會走向我們。肯定有更理性的贊助商和公司，我相信我們所做的任何事情，我們都會弄清楚單位經濟學，這與你用信用卡和一些公司進行內部創業時不同。工資類型的東西。這種東西必須經過驗證，並且必須根據數據建立模型。

So anything we look at, whether it's in the kind of credit repair, small business space, some of the themes I've kind of mentioned before, is going to be highly accretive to our business. It's going to have some proof of concept already in unit economics that we know if you look at our file can be scaled. We'll be deliberative and patient for the right price and right fit and brand and values that align with our values is important as well. We're a credit access business and brand matters. We have one of the strongest consumer facing brand, so we have to find something that aligns with that and provides real value to the customers.

因此，我們關注的任何事情，無論是信用修復、小型企業空間，還是我之前提到的一些主題，都將對我們的業務產生巨大的促進作用。單位經濟學中已經有一些概念證明，如果您查看我們的文件，我們知道可以擴展。我們將深思熟慮並耐心等待合適的價格和合適的款式，與我們價值觀相符的品牌和價值觀也很重要。我們是一家信用獲取企業和品牌事務。我們擁有最強大的面向消費者的品牌之一，因此我們必須找到與之相符並為客戶提供真正價值的東西。

Okay, fair. Thanks, guys.

好吧，公平。多謝你們。

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Todd Schwartz for any closing remarks.

我們的問答環節到此結束。我想將會議轉回托德·施瓦茨先生發表閉幕詞。

Thank you, everyone, for joining us today. We look forward to speaking with you again early next year when we report Q4 results.

謝謝大家今天加入我們。我們期待明年初報告第四季業績時再次與您交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。