Oportun Financial Corp (OPRT) 2023 Q3 法說會逐字稿

Hello, and welcome to the Oportun Financial Third Quarter 2023 Earnings Conference Call and Webcast (Operator Instructions). As a reminder, this conference is being recorded.

您好，歡迎參加 Oportun Financial 2023 年第三季收益電話會議和網路廣播（操作員說明）。提醒一下，本次會議正在錄製中。

It's now my pleasure to turn the call over to Dorian Hare, Investor Relations. Please go ahead.

現在我很高興將電話轉給投資者關係部門的 Dorian Hare。請繼續。

Thanks, and hello, everyone. With me to discuss Oportun's third quarter 2023 results are Raul Vazquez, Chief Executive Officer; and Jonathan Coblentz, Chief Financial Officer and Chief Administrative Officer.

謝謝，大家好。與我一起討論 Oportun 2023 年第三季業績的是執行長 Raul Vazquez；財務長兼首席行政官喬納森‧科布倫茨 (Jonathan Coblentz)。

I'll remind everyone on the call or webcast that some of the remarks made today will include forward-looking statements related to our business, future results of operations and financial position, planned products and services, business strategy, expense savings measures and plans and objectives of management for future operations. Actual results may differ materially from those contemplated or implied by these forward-looking statements, and we caution you not to place undue reliance on these forward-looking statements.

我將提醒電話或網路廣播中的每個人，今天發表的一些言論將包括與我們的業務、未來營運業績和財務狀況、計劃的產品和服務、業務策略、費用節省措施和計劃以及未來營運的管理目標。實際結果可能與這些前瞻性陳述預期或暗示的結果有重大差異，我們提醒您不要過度依賴這些前瞻性陳述。

A more detailed discussion of the risk factors that could cause these results to differ materially are set forth in our earnings press release and in our filings with the Securities and Exchange Commission under the caption Risk Factors, including our upcoming Form 10-Q filing for the quarter ended September 30, 2023. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events other than as required by law.

關於可能導致這些結果出現重大差異的風險因素的更詳細討論，請參見我們的收益新聞稿以及我們向美國證券交易委員會提交的文件中“風險因素”標題下的文件，包括我們即將提交的10- Q 表格截至2023 年9 月30 日的季度。我們在本次電話會議中所做的任何前瞻性陳述均基於截至今天的假設，除法律要求外，我們不承擔因新資訊或未來事件而更新這些陳述的義務。

Also on today's call, we will present both GAAP and non-GAAP financial measures, which we believe can be useful measures for the period-to-period comparisons of our core business and which will provide useful information to investors regarding our financial condition and results of operations. A full list of definitions can be found in our earnings materials available at the Investor Relations section of our website.

此外，在今天的電話會議上，我們還將介紹公認會計原則和非公認會計原則財務指標，我們認為這些指標可以作為我們核心業務的同期比較的有用指標，並將為投資者提供有關我們財務狀況和業績的有用資訊的操作。完整的定義清單可以在我們網站投資者關係部分的收益資料中找到。

Non-GAAP financial measures are presented in addition to and not as a substitute for financial measures calculated in accordance with GAAP. A reconciliation of non-GAAP to GAAP financial measures is included in our earnings press release, our third quarter 2023 financial supplement and the appendix section of the third quarter 2023 earnings presentation, all of which are available on the -- at the Investor Relations section of our website at investor.oportun.com.

非公認會計原則財務指標是根據公認會計原則計算的財務指標的補充，而不是替代。我們的收益新聞稿、2023 年第三季財務補充資料以及 2023 年第三季收益演示的附錄部分中包含了非 GAAP 與 GAAP 財務指標的對賬，所有這些都可以在投資者關係部分找到。我們的網站Investor.oportun.com。

In addition, this call is being webcast. An archived version will be available after the call, along with a copy of our prepared remarks.

此外，該電話會議正在進行網路直播。電話會議後將提供存檔版本以及我們準備好的評論副本。

With that, I will now turn the call over to Raul.

現在，我將把電話轉給勞爾。

Thanks, Dorian, and good afternoon, everyone. Thank you for joining us. Today, I'll discuss our third quarter financial performance and update you Oportun's areas of focus.

謝謝，多里安，大家午安。感謝您加入我們。今天，我將討論我們第三季的財務業績，並向您介紹 Oportun 的重點領域的最新情況。

Let me begin with the following summary of our Q3 performance. We increased revenue by 7% year-over-year and set a new quarterly record of $268 million. This top line performance demonstrates the resilience of our business. We reached our quarterly GAAP operating expense target of $125 million, ahead of schedule. At $123 million in Q3, GAAP operating expenses were our lowest in 2 years and a 10% reduction sequentially. Additionally, we achieved another post-IPO record for adjusted operating efficiency of 40.8% attributable to our prudent cost management.

讓我先對第三季的業績進行總結。我們的營收年增 7%，創下 2.68 億美元的季度新紀錄。這項營收表現證明了我們業務的彈性。我們提前實現了 1.25 億美元的季度 GAAP 營運費用目標。第三季 GAAP 營運費用為 1.23 億美元，兩年來最低，比上一季減少 10%。此外，由於我們審慎的成本管理，我們再創IPO後調整後營運效率40.8%的記錄。

We're also working to ensure that Oportun is well funded to grow in a responsible and sustainable fashion. We recently executed new personal loan financing agreements totaling up to $267 million with 2 of our primary funding partners. That brings our total executed funding agreements since June to $967 million and exemplifies the confidence that fixed income investors have in the quality of our loans. While there were highlights to be proud of in Q3, we know we still have work to do to deliver the value that we and our shareholders expect.

我們也努力確保 Oportun 擁有充足的資金，以負責任和永續的方式發展。我們最近與 2 個主要融資合作夥伴簽署了總額高達 2.67 億美元的新個人貸款融資協議。這使得我們自 6 月以來執行的融資協議總額達到 9.67 億美元，反映了固定收益投資者對我們貸款品質的信心。儘管第三季有一些值得驕傲的亮點，但我們知道，要實現我們和股東期望的價值，我們仍有工作要做。

Our performance versus our prior guidance was mixed. We outperformed the top end of the range for total revenue and fell within the range for annualized net charge-offs at 11.8%, which represented sequential improvement in our loss rate of more than 70 basis points. I am, however, disappointed that at $16 million, our adjusted EBITDA fell well short of the $35 million to $40 million range we provided. This shortfall was driven by fair value adjustments to our adjusted EBITDA calculation and interest expense.

我們的表現與先前的指導相比好壞參半。我們的總收入表現優於區間上限，年化淨沖銷率則落在 11.8% 的區間內，這表明我們的損失率連續改善了 70 個基點以上。然而，令我失望的是，我們調整後的 EBITDA 為 1600 萬美元，遠低於我們提供的 3500 萬至 4000 萬美元的範圍。這一缺口是由於我們調整後的 EBITDA 計算和利息費用的公允價值調整所造成的。

Turning to credit. The dominant factor continues to be the performance of our back book of loans that was originated prior to the material tightening we made in July of 2022. We are seeing some of our members continue to struggle with the higher prices in our economy. And since our last earnings call, we have started to see some deterioration in our Q3 2022 vintage, which was the first quarterly vintage originated under our tighter criteria.

轉向信用。主導因素仍然是我們在 2022 年 7 月實施實質緊縮之前發放的貸款的表現。我們看到我們的一些成員繼續在經濟中與物價上漲作鬥爭。自從上次財報電話會議以來，我們開始看到 2022 年第三季業績出現一些惡化，這是我們在更嚴格的標準下第一個季度業績。

As you can see on Slide 9, after 12 months of performance, we are now seeing cumulative net charge-offs for that vintage of 6.1% or approximately 60 basis points higher than the comparable 2019 vintage. As you can also see on that page, Q4 2022 and 2023 vintages continue to be in line with 2019 or slightly better. As I've mentioned in prior earnings calls, we didn't just tighten back in July 2022. We took more tightening actions with respect to our returning loans in December of 2022. And we have continued to make adjustments throughout 2023 to fine-tune our performance as the macro backdrop remains uncertain due to the return of higher gas prices and ongoing inflation that are impacting our hard-working members to varying degrees.

正如您在投影片 9 中看到的，經過 12 個月的表現，我們現在看到該年份的累積淨沖銷為 6.1%，比 2019 年同期高出約 60 個基點。您也可以在該頁面上看到，2022 年第四季和 2023 年的年份繼續與 2019 年一致或稍好一些。正如我在先前的財報電話會議中提到的，我們不僅僅是在2022 年7 月收緊政策。我們在2022 年12 月對返還貸款採取了更多收緊行動。而且我們在2023 年全年繼續進行調整，以進行微調由於汽油價格上漲和持續的通貨膨脹正在不同程度地影響我們辛勤工作的成員，我們在宏觀背景下的表現仍然不確定。

Given these trends and some softening in our late-stage roll rates starting at the end of September, which contributed to our delinquencies increasing by 10 basis points year-over-year, we are taking up our guidance for full year 2023 net charge-off rate by 50 basis points above the midpoint of our prior range to reflect updated guidance of 12.2%, plus or minus 10 basis points.

鑑於這些趨勢以及我們從 9 月底開始的後期展期利率有所軟化，導致我們的拖欠率同比增加 10 個基點，我們正在接受 2023 年全年淨沖銷的指導利率比我們先前區間中點高出50 個基點，以反映12.2% 的最新指引，上下浮動10 個基點。

The increase in expected losses drove a reduction in the fair value of our loans and, along with unfavorable impact from our asset-backed notes at fair value and other fair value adjustments, contributed to our recording an adjusted net loss of $18 million for the quarter or an adjusted loss per share of $0.46 per share.

預期損失的增加導致我們貸款的公允價值下降，加上我們以公允價值計算的資產支持票據和其他公允價值調整的不利影響，導致我們本季調整後淨虧損為 1,800 萬美元或每股調整後虧損0.46 美元。

Let me now shift to the actions we are taking to offset our increase in losses and enhance profitability. Today, we are announcing $80 million in further annualized operating expense reductions that will get us down to $105 million in quarterly run rate expenses by the end of 2024. These operating expense reductions will be affected by an approximately 18% reduction in our corporate staff as well as other non-compensation expense savings. I recognize how difficult this is for those employees affected, and I want to thank them for all their contributions to Oportun.

現在讓我談談我們為抵銷虧損增加和提高獲利能力所採取的行動。今天，我們宣布進一步削減 8,000 萬美元的年化營運費用，到 2024 年底，我們的季度運行費用將降至 1.05 億美元。這些營運費用的削減將受到我們公司員工約 18% 削減的影響，因為以及其他非補償性費用節省。我認識到這對那些受影響的員工來說是多麼困難，我要感謝他們為 Oportun 所做的所有貢獻。

Before handing off to Jonathan, I also want to spend a few minutes reiterating our strategic priorities and how we are adapting them to the current environment. Oportun holistically addresses 2 of the most fundamental challenges to financial health and resilience, access to responsible and affordable credit and adequate savings. Accordingly, we have been allocating our spending to the 2 most proven and profitable parts of the business, unsecured personal loans and our savings product.

在交給喬納森之前，我還想花幾分鐘重申我們的策略重點以及我們如何將它們適應當前環境。 Oportun 全面解決了財務健康和復原力、獲得負責任和負擔得起的信貸以及充足儲蓄的兩個最基本的挑戰。因此，我們一直將支出分配到業務中最成熟和最有利可圖的兩個部分：無擔保個人貸款和我們的儲蓄產品。

Our primary focus remains the largest component of our business, our unsecured personal loan product. We will continue to grow at prudent levels and enhance this product's profitability. Our savings product continues to be profitable on a cash flow basis and was the primary driver of our 39% year-over-year growth in noninterest income this quarter.

我們的主要關注點仍然是我們業務的最大組成部分，即我們的無擔保個人貸款產品。我們將繼續保持穩健成長，提高該產品的獲利能力。我們的儲蓄產品繼續以現金流為基礎獲利，是本季非利息收入年增 39% 的主要動力。

So to enhance our focus in this challenging economic environment, we're taking the following actions. First, we're increasing our focus as a management team and reducing expenses by sunsetting our embedded finance partnership with Sezzle and discontinuing our investing and retirement products. The elimination of these products and initiatives will contribute to the operating expense reduction I mentioned earlier, and we'll simplify our business. Second, we are reviewing strategic options for our credit card portfolio, and we'll update the market when we have concluded that process.

因此，為了在這個充滿挑戰的經濟環境中加強我們的關注，我們正在採取以下行動。首先，我們作為管理團隊將更加關注，並透過終止與 Sezzle 的嵌入式金融合作夥伴關係並停止我們的投資和退休產品來減少開支。消除這些產品和措施將有助於降低我之前提到的營運費用，並且我們將簡化我們的業務。其次，我們正在檢視信用卡投資組合的策略選擇，當我們完成流程後，我們將向市場通報最新情況。

Finally, we're significantly expanding our secured personal loan product to approximately 40 states through our partnership with Pathward. Our secured personal loan product is highly synergistic with our unsecured personal loan product, responsibly expanding secured lending, collateralized by members' autos, will allow us to better serve those who need larger loans while reducing credit exposure for Oportun. Annualized net charge-offs for secured personal loans are currently over 300 basis points lower than for unsecured personal loans on a year-to-date basis. We expect to complete the expansion of our secured personal loans footprint by the end of 2025.

最後，我們透過與 Pathward 的合作，將我們的擔保個人貸款產品大幅擴展到約 40 個州。我們的有擔保個人貸款產品與無擔保個人貸款產品具有高度協同性，負責任地擴大以會員汽車為抵押的擔保貸款，將使我們能夠更好地為那些需要更大貸款的人提供服務，同時減少Oportun 的信用風險。年初至今，有擔保個人貸款的年化淨沖銷目前比無擔保個人貸款低 300 個基點以上。我們預計在 2025 年底完成擔保個人貸款業務的擴張。

With that, I will turn it over to Jonathan for additional details on our third quarter financial performance and our updated 2023 guidance.

接下來，我將把它交給 Jonathan，以了解有關我們第三季度財務業績和更新的 2023 年指導的更多詳細資訊。

Thanks, Raul, and good afternoon, everyone. As Raul mentioned, we made progress on a number of fronts in the third quarter, yet we have more to do to consistently drive strong results. I remain highly confident that our continued credit tightening actions, further cost initiatives and streamlining of our product offerings will enable us to enhance profitability in 2024 and beyond.

謝謝勞爾，大家下午好。正如勞爾所提到的，我們在第三季在許多方面取得了進展，但我們還有更多工作要做，才能持續推動強勁的業績。我仍然非常有信心，我們持續的信貸緊縮行動、進一步的成本措施和精簡產品供應將使我們能夠在 2024 年及以後提高獲利能力。

As shown on Slide 6, Oportun delivered record total revenue of $268 million, although the impact of that change in fair value drove an adjusted net loss of $18 million. We continue to be focused on quality rather than quantity with originations of $483 million, which were down 24% year-over-year. Sequentially, we were virtually flat from the second quarter as we further tightened our credit posture.

如投影片 6 所示，Oportun 的總收入達到創紀錄的 2.68 億美元，儘管公允價值變動的影響導致調整後淨虧損為 1,800 萬美元。我們繼續關注品質而非數量，資金來源為 4.83 億美元，年減 24%。隨後，隨著我們進一步收緊信貸狀況，我們的業績與第二季基本持平。

Total revenue of $268 million, representing year-over-year growth of 7%, outperformed our guidance range due to slightly higher portfolio yield resulting from our pricing increases. Our 32.5% portfolio yield increased by 30 basis points from Q2 to Q3. We remain on track for our year-end portfolio yield to be approximately 200 basis points higher than the level at the end of 2022. We have increased yield while remaining committed to our 36% APR cap.

總收入為 2.68 億美元，年增 7%，超出了我們的指導範圍，因為我們的定價上漲導致投資組合收益率略有上升。我們 32.5% 的投資組合收益率從第二季到第三季增加了 30 個基點。我們的年終投資組合收益率仍有望比 2022 年底的水平高出約 200 個基點。我們在提高收益率的同時仍致力於實現 36% 的年利率上限。

Net revenue was $85 million, down 42% year-over-year due to an unfavorable net change in fair value and higher interest expense compared to 2022. Current period charge-offs of $88 million were the primary driver of our total net decrease in fair value of $136 million.

淨收入為 8,500 萬美元，年減 42%，原因是公允價值淨變動不利，且利息支出較 2022 年更高。當期沖銷 8,800 萬美元是公允價值淨減少總額的主要原因價值1.36億美元。

As Raul mentioned, we have seen an increase in our 30-plus day delinquencies as well as some softening in late-stage roll rates. As a result, the fair value price of our loans decreased to 100.4% as of September 30 and resulted in a $9 million mark-to-market decrease. This was driven by our increasing of our remaining cumulative net charge-off assumption by 58 basis points to 11.9%.

正如 Raul 所提到的，我們發現 30 多天的拖欠率有所增加，而且後期滾動率有所下降。結果，截至 9 月 30 日，我們貸款的公允價值價格下降至 100.4%，導致以市值計價減少 900 萬美元。這是由於我們將剩餘累積淨沖銷假設增加了 58 個基點至 11.9%。

Also contributing negatively towards our earnings was a $15 million mark-to-market increase in our asset-backed notes, resulting from a 22 basis point increase in weighted average price to 94.3% and continued regular amortization of several of our ABSs. Interest expense of $47 million was up $20 million year-over-year, primarily driven by increased debt outstanding and the increase in our cost of debt to 6.8% versus 3.9% in the year ago period.

同樣對我們的收益產生負面影響的是我們的資產支持票據按市值計算增加了 1500 萬美元，這是由於加權平均價格增加了 22 個基點至 94.3%，並且我們的一些 ABS 繼續定期攤銷。利息支出為 4,700 萬美元，年增 2,000 萬美元，主要是由於未償債務增加以及債務成本從去年同期的 3.9% 上升至 6.8%。

Turning now to operating expenses and efficiency. We are continuing to see the benefits of our previously announced cost structure optimization initiatives. Our $123 million in total operating expenses during Q3 was the lowest quarterly figure we've reported since the same quarter in 2021. And in comparison, our Q3 total revenue was 69% higher. As Raul described, we are enacting further cost reduction measures aimed at lowering our GAAP operating expenses to a quarterly run rate of $105 million by the fourth quarter of 2024, resulting in $80 million in annualized savings.

現在轉向營運費用和效率。我們將繼續看到先前宣布的成本結構優化措施的好處。我們第三季的總營運費用為 1.23 億美元，是自 2021 年同季以來我們報告的最低季數字。相較之下，我們第三季的總收入高出 69%。正如 Raul 所描述的，我們正在製定進一步的成本削減措施，旨在在 2024 年第四季將我們的 GAAP 營運費用降低至 1.05 億美元的季度運行費用，從而實現年化節省 8000 萬美元。

We expect the head count reductions announced today to result in a onetime charge in the fourth quarter of approximately $7 million. Excluding this charge, we still expect operating expenses to be at or below $125 million in the fourth quarter of 2023.

我們預計今天宣布的裁員將在第四季度產生約 700 萬美元的一次性費用。排除此項費用，我們仍預期 2023 年第四季的營運支出將在 1.25 億美元或以下。

I'd like to highlight for you on Slide 7 how our expense reductions indicate that Oportun is now significantly more efficient. Our OpEx ratio or annualized operating expenses to average managed principal balance was 15% as of 3Q '23, 539 basis points better than the quarter in which we went public 4 years ago. Our adjusted OpEx ratio, which excludes stock-based compensation expense and certain nonrecurring charges, was even lower at 13.4% for 3Q '23 as we reduced adjusted operating expenses by 19%, while we grew total revenue by 7%.

我想在幻燈片 7 上向您強調我們的費用削減如何表明 Oportun 現在的效率顯著提高。截至 23 年第三季度，我們的營運支出比率或年化營運費用與平均管理本金餘額的比率為 15%，比我們 4 年前上市時的季度高出 539 個基點。我們調整後的營運支出比率（不包括基於股票的補償費用和某些非經常性費用）在2023 年第三季甚至更低，為13.4%，因為我們將調整後的營運支出減少了19%，同時總收入成長了7%。

In the third quarter, our sales and marketing expenses were just under $19 million, down 2% sequentially and down 13% year-over-year as part of our expense discipline and continued credit tightening. For the quarter, we recorded adjusted net loss of $18 million compared to an $8 million net profit in the prior year quarter and an adjusted net loss per share of $0.46 versus prior year net earnings per share of $0.25.

第三季度，我們的銷售和行銷費用略低於 1,900 萬美元，環比下降 2%，年減 13%，這是我們費用紀律和持續信貸緊縮的一部分。本季度，我們的調整後淨虧損為 1,800 萬美元，而去年同期淨利為 800 萬美元，調整後每股淨虧損為 0.46 美元，而去年同期每股淨收益為 0.25 美元。

Adjusted EBITDA was $16 million in the quarter, a sequential improvement of $11 million compared to last quarter's $4 million. On a year-over-year basis, it reflected a $22 million increase compared to the negative $6 million in adjusted EBITDA we reported in the prior year quarter. Nevertheless, our adjusted EBITDA fell short of our $35 million to $40 million guidance. As Raul mentioned, this was principally due to fair value adjustment of our adjusted EBITDA calculation and interest expense.

本季調整後 EBITDA 為 1,600 萬美元，與上季的 400 萬美元相比，季增了 1,100 萬美元。與去年同期相比，調整後 EBITDA 增加了 2,200 萬美元，而我們去年同期報告的調整後 EBITDA 為負 600 萬美元。儘管如此，我們調整後的 EBITDA 仍低於 3,500 萬至 4,000 萬美元的指引。正如勞爾所提到的，這主要是由於我們調整後的 EBITDA 計算和利息費用的公允價值調整。

Now on Slide 8, let me discuss Q3 credit performance. Our annualized net charge-off rate of 11.8% was within our guidance range. This compared to 9.8% in the prior year period and 12.5% in the second quarter. We were pleased that our risk-adjusted yield, which deducts charge-offs from portfolio yield, increased by 107 basis points sequentially to 20.8%.

現在在投影片 8 上，讓我討論第三季的信貸表現。我們 11.8% 的年化淨沖銷率在我們的指導範圍內。相比之下，去年同期為 9.8%，第二季為 12.5%。我們很高興我們的風險調整收益率（從投資組合收益率中扣除沖銷）連續增長了 107 個基點，達到 20.8%。

Due to our 30-plus day delinquency rate increasing by 25 basis points sequentially to 5.5% and higher late-stage roll rates, we do anticipate our fourth quarter annualized net charge-off rate to increase by 50 basis points in the midpoint of our guidance, which I'll detail for you shortly, as compared to our Q3 charge-off rate. Although inflation has generally abated, prices have not come down on an absolute basis, and gas prices were about 10% higher on average during the third quarter from the first quarter trough, causing further economic stress on our member base.

由於我們的 30 多天拖欠率連續增加 25 個基點至 5.5%，並且後期展期率更高，我們預計第四季度年化淨沖銷率將在我們指導的中點增加 50 個基點，我將很快為您詳細介紹與我們第三季的沖銷率進行比較。儘管通貨膨脹普遍減弱，但價格並未絕對下降，第三季天然氣價格比第一季低點平均上漲約 10%，給我們的會員帶來進一步的經濟壓力。

In prior earnings calls, we discussed the fact that the credit performance of our portfolio has 2 distinct drivers: first, the post July 2022 origination vintages made over the last 15 months after our significant credit tightening, which we refer to as our front book; and second, the originations made prior, which we refer to as our back book. The back book continues to represent the bulk of our delinquencies and charge-offs but also continues to shrink. The back book declined by $0.4 billion in the third quarter to $0.9 billion and is anticipated to further decline to $0.6 billion as of year-end.

在先前的財報電話會議中，我們討論了這樣一個事實，即我們投資組合的信貸表現有兩個不同的驅動因素：首先，在我們大幅信貸緊縮之後的過去15 個月內，2022 年7 月之後的原始年份，我們稱之為我們的前書；第二，之前的起源，我們稱之為我們的背書。過帳帳仍占我們拖欠和沖銷的大部分，但也持續減少。第三季帳面餘額減少了 4 億美元，至 9 億美元，預計到年底將進一步下降至 6 億美元。

While it continues to be true that our elevated losses are being driven by back book vintages, as Raul explained earlier, we saw some deterioration in the vintages from the third quarter of 2022. Slide 9 shows the loss rate for recent loan vintages compared to their respective pre-pandemic vintages. To be clear, this Q3 '22 front book vintage is still performing much better than the back book. We believe the reason recent vintages are performing in line with 2019 performance is that we took further actions in December 2022 that are benefiting 2023 vintages.

正如勞爾之前解釋的那樣，雖然我們的虧損確實是由欠賬年份造成的，但我們看到從2022 年第三季度開始，賬齡出現了一些惡化。幻燈片9 顯示了近期貸款年份的損失率與它們的損失率相比。各自的大流行前年份。需要明確的是，這款 22 年第 3 季封面書的表現仍然比背面書好得多。我們認為，最近年份的表現與 2019 年表現一致的原因是我們在 2022 年 12 月採取了進一步的行動，這有利於 2023 年的年份。

As we discussed with you last quarter, we've continued to improve the credit quality of our originations. The percentage of underwritten loans with Vantage scores of 660 or greater was 33% for 2Q '22 prior to our significant credit tightening and increased to 49% during 3Q '23. Higher Vantage scores of recent originations also helped explain why we continue to see 2019 level performance from the 2023 vintages.

正如我們上個季度與您討論的那樣，我們繼續提高我們的起源的信用品質。在我們大幅收緊信貸之前，Vantage 分數為 660 或以上的核保貸款比例在 22 年第二季為 33%，在 23 年第三季增加至 49%。近期年份的 Vantage 得分較高也有助於解釋為什麼我們繼續看到 2023 年份葡萄酒的 2019 年水準表現。

Regarding our capital and liquidity, net cash flow from operations in the third quarter set a new record of $107 million, up 58% year-over-year, which supported net debt repayment of $24 million along with loan originations. We've repaid debt on a net basis during each quarter this year for a total reduction of $99 million. This debt repayment also includes $7 million of principal amortization on our residual facility, which bears interest at SOFR plus 11%. So we're beginning to reduce the balance of our expensive corporate debt. As of September 30, total cash was $200 million, of which $82 million was unrestricted and $18 million was restricted.

在資本和流動性方面，第三季營運淨現金流量創下新紀錄，達 1.07 億美元，年增 58%，支持淨債務償還和貸款發放 2,400 萬美元。今年每季我們都以淨額償還了債務，總共減少了 9,900 萬美元。這筆債務償還還包括我們剩餘貸款的 700 萬美元本金攤銷，該利息按 SOFR 加 11% 計算。因此，我們開始減少昂貴的企業債務餘額。截至9月30日，現金總額為2億美元，其中8,200萬美元為非限制性現金，1,800萬美元為限制性現金。

Turning now to funding. As Raul mentioned, we recently entered into 2 new personal loan financing agreements totaling $267 million in addition to the June and August transactions we discussed on our last earnings call totaling $700 million. The recent $197 million private structured financing with Castlelake, its affiliates and other investors will fund existing and newly originated loans for a 2-year revolving period at a fixed rate of interest and marks our second funding transaction of the year with Castlelake. The new debt financing will be accounted for on an amortized cost basis.

現在轉向資金。正如勞爾所提到的，除了我們在上次財報電話會議上討論的總計7 億美元的6 月和8 月交易之外，我們最近簽訂了2 項新的個人貸款融資協議，總金額為2.67 億美元。最近與Castlelake、其附屬公司和其他投資者進行的1.97 億美元私人結構性融資將以固定利率為現有和新發放的貸款提供為期2 年循環期的資金，這是我們今年與Castlelake 進行的第二筆融資交易。新的債務融資將以攤餘成本計算。

The $70 million whole loan flow sale agreement with long-time partner, Ellington, will fund loans to new members. These whole loan sales will be accounted for as off balance sheet with servicing fee income being recorded on our income statement. This will be a reinitiation of our Access Loan program to support borrowers that we currently aren't lending to. When we offered the Access Loan program in the past, it was successful in increasing the number of returning members that Oportun could serve, and we expect to start seeing this benefit again in the latter half of 2024.

與長期合作夥伴 Ellington 簽訂的價值 7000 萬美元的全部貸款流量銷售協議將為新成員提供貸款。這些全部貸款銷售將計入資產負債表外，服務費收入將記錄在我們的損益表中。這將重新啟動我們的准入貸款計劃，以支持我們目前沒有貸款的借款人。當我們過去提供 Access Loan 計劃時，它成功地增加了 Oportun 可以服務的回歸會員數量，我們預計在 2024 年下半年將再次開始看到這種好處。

Turning now to our guidance, as shown on Slide 12. Our outlook for the fourth quarter is total revenue of $260 million to $265 million, annualized net charge-off rate of 12.3% plus or minus 15 basis points, adjusted EBITDA of $5 million to $10 million. I'll note that this fourth quarter adjusted EBITDA guidance range is well below that implied by our prior guidance. This reduction of our adjusted EBITDA outlook is due to the same issues that drove our miss for the third quarter.

現在轉向我們的指導，如幻燈片12 所示。我們對第四季度的展望是總收入為2.6 億至2.65 億美元，年化淨沖銷率為12.3% 正負15 個基點，調整後EBITDA 為500萬美元至1000萬美元。我要指出的是，第四季度調整後的 EBITDA 指引範圍遠低於我們先前的指引所暗示的範圍。我們下調調整後 EBITDA 前景的原因與導致我們第三季業績不佳的問題相同。

Our fourth quarter adjusted EBITDA expectations are also impacted by higher charge-offs due to the trends we've been speaking with you about today and higher than previously forecast interest expense. We expect fourth quarter interest expense to be in the $51 million to $53 million vicinity. Our guidance for the full year is total revenue of $1.054 billion to $1.059 billion, annualized net charge-off rate of 12.2% plus or minus 10 basis points, adjusted EBITDA of $0.5 million to $5.5 million.

由於我們今天與您討論的趨勢以及高於先前預測的利息支出，我們第四季度調整後的 EBITDA 預期也受到沖銷增加的影響。我們預計第四季利息支出將在 5,100 萬至 5,300 萬美元附近。我們對全年的指引是總營收為 10.54 億美元至 10.59 億美元，年化淨沖銷率為 12.2% 加減 10 個基點，調整後 EBITDA 為 50 萬美元至 550 萬美元。

I want to be frank by acknowledging that this is not how we anticipated or wanted to close 2023. Nevertheless, my conviction remains fortified by the decisive actions we announced today that -- our increasingly tight underwriting posture that we are on track to markedly improve our profitability into 2024 and beyond.

坦白說，我承認這不是我們預期或希望結束 2023 年的方式。儘管如此，我們今天宣布的果斷行動仍然增強了我的信念——我們日益緊張的承保態勢，我們有望顯著改善我們的2024年及以後的獲利能力。

Raul, back over to you.

勞爾，回到你身邊。

Thanks, Jonathan. Before my final remarks, I want to inform you that as disclosed in our filing today, Carl Pascarella decided to retire from his position on Oportun's Board of Directors to pursue other opportunities. With Carl's departure, the Board has selected Neil Williams to assume the role of Lead Independent Director. On behalf of the rest of the Board and the company, I would like to sincerely thank Carl for almost 14 years of service as a director and for his significant contributions to Oportun. I look forward to working closely with Neil in his new capacity as Lead Independent Director.

謝謝，喬納森。在我發表最後講話之前，我想通知您，正如我們今天提交的文件中所披露的那樣，Carl Pascarella 決定從 Oportun 董事會職位上退休，以尋求其他機會。隨著卡爾的離職，董事會選擇尼爾威廉斯擔任首席獨立董事。我謹代表董事會和公司的其他成員，衷心感謝 Carl 近 14 年的董事服務以及他對 Oportun 的重大貢獻。我期待在尼爾擔任首席獨立董事的新職位上與他密切合作。

In closing, I want to first emphasize the progress that we have made to position Oportun for profitable, sustainable growth. We remain highly focused on improving the profitability of our business by reducing costs further, enhancing our unit economics and streamlining our product suite. Our capital partners have demonstrated their confidence in the underlying strength of our business model with the $967 million in new funding agreements we've executed since June.

最後，我想先強調我們在 Oportun 實現盈利、可持續成長方面所取得的進展。我們仍然高度關注透過進一步降低成本、提高單位經濟效益和簡化產品套件來提高業務盈利能力。自 6 月以來，我們執行了 9.67 億美元的新融資協議，我們的資本合作夥伴證明了他們對我們業務模式的潛在優勢的信心。

In summary, I am highly confident that the initiatives we spoke about today will result in the emergence of a leaner, more profitable Oportun. We look forward to updating you on the progress of this evolution when we report on our fourth quarter results and provide our 2024 guidance early next year.

總之，我非常有信心我們今天討論的舉措將導致一個更精簡、更有利可圖的 Oportun 的出現。我們期待在明年初報告第四季度業績並提供 2024 年指導時向您通報這一演變的最新進展。

With that, operator, let's open up the line for questions.

那麼，接線員，讓我們打開提問線路。

(Operator Instructions) Our first question is coming from Rick Shane from JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Rick Shane。

A couple of questions. If we can take a look at Slide 9 from this quarter and compare it to Slide 11 from last quarter, I think it's pretty instructive of what's gone on. And I know that everybody is going to be scrambling to try to match this up. But the 2019 vintage seasoned between 9 and 12 months up 130 basis points. The '22 vintage seasoned up 220 basis points in that 3-month period. It seems fairly dramatic. The '22 vintage was outperforming the 2019 vintage 3 months ago, and now it's underperforming it by 60 basis points. Can you really help us understand what's going on there?

有幾個問題。如果我們可以看一下本季的投影片 9，並將其與上季的投影片 11 進行比較，我認為這對於了解所發生的情況非常有啟發性。我知道每個人都會爭先恐後地嘗試匹配這一點。但 2019 年份的酒在 9 至 12 個月的時間裡上漲了 130 個基點。 22 年年份的 3 個月內上漲了 220 個基點。這看起來相當戲劇化。 3 個月前，22 年年份的表現優於 2019 年年份，現在則落後 60 個基點。你真的能幫助我們了解那裡發生了什麼事嗎？

Sure. So Rick, this is Raul. I think as we mentioned during the script comments, we are seeing borrowers that are just feeling stress in the current macro environment, right? Although inflation is slowing down, prices continue to be elevated. More and more surveys indicate that consumers are concerned about just kind of their own financial situation. And I think we're starting to see that now in that Q3 vintage.

當然。瑞克，這是勞爾。我認為正如我們在腳本評論中提到的，我們看到借款人在當前的宏觀環境中感到壓力，對嗎？儘管通貨膨脹正在放緩，但物價仍在上漲。越來越多的調查表明，消費者只關心自己的財務狀況。我認為我們現在開始在第三季度看到這一點。

The reason why we think Q4 and Q1 could look different is Q3 only benefited from the July 2022 tightening. The Q4 vintage included not just that tightening but a significant tightening in December of 2022, including returning customers. And then Q1, that whole vintage, right, has the benefits of that December tightening.

我們認為第四季和第一季可能有所不同的原因是第三季僅受益於 2022 年 7 月的緊縮政策。第四季不僅包括這種緊縮，還包括 2022 年 12 月的大幅緊縮，包括回頭客。然後第一季度，整個年份，對吧，都受益於 12 月的緊縮政策。

So we continue to really be focused on servicing, collections and underwriting, but we recognize that this is a different environment than that 2019 pre-pandemic environment in which there was an inflation, volatile fuel prices, obviously, no geopolitical issues. So we're pleased with where Q4 and ['23] are, but we continue to watch them closely and continue to focus on tightening to make sure that we get the outcomes that we want.

因此，我們繼續真正專注於服務、催收和承保，但我們認識到，現在的環境與 2019 年大流行前的環境不同，當時存在通貨膨脹、燃油價格波動，顯然沒有地緣政治問題。因此，我們對第四季度和 ['23] 的情況感到滿意，但我們將繼續密切關注它們，並繼續專注於緊縮政策，以確保我們獲得我們想要的結果。

Got it. Okay. Second question, comparing those slides. The way I read this, it actually looks like the Q4 vintage, for example, the '22, 3 months ago, we're showing a 3.5% loss rate. It's now 3.1%. Why is the Q4 vintage showing down when you compare the slides versus last quarter? I just don't understand that.

知道了。好的。第二個問題，比較這些幻燈片。從我的角度來看，它實際上看起來像第四季度的年份，例如，22、3 個月前，我們顯示了 3.5% 的損失率。現在是3.1%。當您將投影片與上一季進行比較時，為什麼第四季的年份會出現下滑？我就是不懂。

Yes. It's a good question, Rick. So on that page, in the prior deck, we were looking at net charge-off rates and 30-day delinquency rates. We decided in this presentation to only show net charge-off rates because we would also get questions about how this particular slide compared to static pool information, and to include the delinquency rates didn't make it a good comparison to the static pool information. So that's why you see it. It's kind of net charge-off rates in this deck, and that's what it will be going forward.

是的。這是一個很好的問題，瑞克。因此，在上一頁的該頁上，我們查看了淨沖銷率和 30 天拖欠率。我們決定在本簡報中僅顯示淨沖銷率，因為我們也會收到有關此特定投影片與靜態池資訊相比如何的問題，並且包含拖欠率並不能使其與靜態池資訊進行良好的比較。所以這就是你看到它的原因。這是這套牌中的淨沖銷率，這就是未來的情況。

Got it. And I see the language difference. I appreciate that. Okay. Last question, and this is a bigger question. But one of the challenges that you face is that fair value accounting at this point is really exacerbating the volatility in quarterly earnings and people's ability to understand them. And I realize that there are some pretty significant optical challenges associated with establishing CECL reserves for loans that have lives as short as yours do. But the trade-off is that it will create a much more linear story around earnings and probably a little bit more predictability. Is it worth reassessing that at this point? And what are the accounting requirements to change from fair value to reserve accounting at this point?

知道了。我看到了語言的差異。我很感激。好的。最後一個問題，這是一個更大的問題。但您面臨的挑戰之一是，目前的公允價值會計確實加劇了季度收益和人們理解它們的能力的波動。我意識到，為壽命與您一樣短的貸款建立 CECL 儲備金會帶來一些相當重大的視覺挑戰。但代價是，它將圍繞收益創建一個更線性的故事，並且可能更具可預測性。此時是否值得重新評估？此時從公允價值轉為儲備會計的會計要求為何？

Sure. Rick, thank you for your comment, and we do recognize the volatility that the fair value has created in this environment. To answer the second question first, it's an election that any company can make. So we could choose to make that election in the future. However, we still believe that fair value accounting for our loans continues to highlight their value. You may recall from our prior -- from our prior earnings call that we indicated that we were going to stop accounting for new financings as fair value, and we would account for them as amortized costs.

當然。里克，謝謝您的評論，我們確實認識到公允價值在這種環境下造成的波動。先回答第二個問題，這是任何公司都可以做出的選擇。所以我們可以選擇在未來進行選舉。然而，我們仍然相信我們貸款的公允價值會計繼續凸顯其價值。您可能還記得我們先前的財報電話會議，我們表示我們將停止將新融資記為公允價值，並將其記為攤餘成本。

So for example, the Castlelake securitization that we just closed, that's going to be on an amortized cost basis. So the bonds that we previously had fair valued, we can't switch them back, but that will run off. And so I do think by removing the liability side of the equation, over time, we will simplify things.

例如，我們剛完成的 Castlelake 證券化將基於攤餘成本。因此，我們之前公允價值的債券，我們無法將其轉換回來，但這將會消失。因此，我確實認為，隨著時間的推移，透過消除等式中的責任方面，我們將簡化事情。

Our next question is coming from John Hecht from Jefferies.

我們的下一個問題來自 Jefferies 的 John Hecht。

First one, just on the -- Raul, I think you kind of expressed this, but I just want to make sure. The cost saves, they're kind of across the board? Or are they more focused on kind of pushing out maybe some of the new initiatives? Or how do we think about kind of the layering of cost saves across the business?

第一個，勞爾，我想你已經表達了這一點，但我只是想確定一下。成本節省了，他們是全面的嗎？或者他們更專注於推出一些新措施？或者我們如何考慮整個企業的成本節省分層？

They're pretty much across the board. They touched every department in the organization. So it's a combination of both compensation savings through head count reduction and the noncomp savings and certainly narrowing our focus by eliminating the embedded [finance] partnership, eliminating the investing and retirement product. Those contribute to the savings as well, John.

他們幾乎是全面的。他們觸及組織中的每個部門。因此，這是透過減少員工數量節省薪酬和非薪酬節省的結合，並且透過消除嵌入式[金融]合作夥伴關係、消除投資和退休產品，當然縮小了我們的關注範圍。這些也有助於節省開支，約翰。

Okay. Then -- and I know you guys have talked about pushing some price increases out to enhance the risk-adjusted margin. Do you still have more room there? Is it -- out of the 40 states that you're moving into, is there just a subset of those that you have more room? Maybe can you give us a sense for where yields might go?

好的。然後——我知道你們已經討論過推遲一些價格上漲以提高風險調整後的利潤。你那裡還有更多空間嗎？在您要搬入的 40 個州中，是否只有其中一小部分您有更多空間？也許您能讓我們了解一下收益率可能會走向何方？

Yes. I think we have a bit more room. We did share that our 32.5% portfolio yield was up 30 basis points quarter-over-quarter. So we think we've done a good job, John, throughout the year, increasing pricing. And at the end of the year, we've shared that we'll end up with our year-end portfolio yield being 200 basis points higher than it was at the end of 2022. So we think we've taken a lot of the improvement already. From here on out, it's going to be smaller improvement.

是的。我想我們還有更多的空間。我們確實表示，我們 32.5% 的投資組合收益率環比上升了 30 個基點。約翰，我們認為我們全年在提高定價方面做得很好。在年底，我們表示，我們的年終投資組合收益率將比 2022 年底高出 200 個基點。因此，我們認為我們已經採取了許多措施已經改善了。從現在開始，進步將會越來越小。

Okay. And then any -- so I think the share count jumped this quarter. Was that tied to some of the, I guess, the warrants for the prior debt deal? Anything we should think about with the share count in the next couple of quarters?

好的。然後是任何 - 所以我認為本季的股票數量有所增加。我猜這是否與先前債務交易的一些認股權證有關？關於接下來幾季的股票數量，我們該考慮什麼？

No, I think the share count should be relatively stable going forward.

不，我認為未來股票數量應該相對穩定。

And then the last one is the flow arrangement, not the Castlelake deal but the other one, I think you mentioned you're going to be getting servicing income in this -- or do you expect to make any gain -- will you be taking a gain on those asset sales as well?

最後一個是流量安排，不是卡斯萊克交易，而是另一項，我想你提到你將在這方面獲得服務收入 - 或者你期望獲得任何收益 - 你會接受嗎這些資產出售也能帶來收益嗎？

Great question, John. We expect that on a gain basis, it will be breakeven for us. So we just economically wouldn't expect to have a gain that we will have with servicing fee income. But the real win in this relationship is the Access Loan borrowers who are successful with the loan. They will become candidates for returning loans in -- starting in the latter half of 2024. You may recall, we've had this program in the past, and it worked out really well for us. So we're looking forward to restarting it with Ellington.

好問題，約翰。我們預計，在收益基礎上，我們將實現損益平衡。因此，從經濟角度來看，我們不會期望透過服務費收入來獲得收益。但這種關係中真正的勝利是成功獲得貸款的 Access Loan 借款人。從 2024 年下半年開始，他們將成為返還貸款的候選人。您可能還記得，我們​​過去曾有過這個計劃，而且效果非常好。因此，我們期待著與艾靈頓一起重新啟動它。

Yes. So almost like more of a customer acquisition type opportunity?

是的。那麼更像是個客戶獲取類型的機會？

Absolutely. No, that's right. We'll be able to serve more new customers without taking credit risk exposure and get the benefit of the customer life cycle.

絕對地。不，沒錯。我們將能夠在不承擔信用風險的情況下為更多新客戶提供服務，並獲得客戶生命週期的好處。

(Operator Instructions) Our next question is coming from Lance Jessurun from BTIG.

（操作員說明）我們的下一個問題來自 BTIG 的 Lance Jessurun。

In terms of interest expense, obviously, that contributed a little bit to the miss. But assuming we're in a bit of a higher for longer scenario and rates are relatively stable, how are you thinking about the cadence of your interest expense over time? I know -- without giving guidance into '24, but looking at where rates are versus where you expect your funding mix to be over '24 and '25, how should we kind of think about that cadence going forward?

就利息支出而言，顯然，這對失誤造成了一些影響。但假設我們處於長期較高的情況且利率相對穩定，您如何考慮隨著時間的推移利息支出的節奏？我知道，在不提供 24 年指導的情況下，但看看利率與您預計 24 年和 25 年以上的資金組合的情況相比，我們應該如何考慮未來的節奏？

That's a great question, Lance. So what I can point you to is interest expense for the third quarter was $47 million, and I said in my remarks that we expected interest expense for the fourth quarter to be $51 million to $53 million. So that gives you a quarter-over-quarter type cadence. We would expect that there's going to be some continued upward pressure into 2024 just because the existing financings that we have that are at a lower cost of interest are going to start either going into amortization or coming up for renewal over the course of the year next year.

這是一個很好的問題，蘭斯。因此，我可以向您指出的是，第三季的利息支出為 4700 萬美元，我在演講中表示，我們預計第四季度的利息支出為 5,100 萬至 5,300 萬美元。這樣你就可以得到季度與季度之間的節奏。我們預計到 2024 年將會出現持續的上行壓力，因為我們現有的利息成本較低的融資將在明年開始攤還或續約年。

And Lance, certainly, that view is part of what drove our thinking on the cost reductions and taking $80 million of expense out of the business on an annualized basis as we go into 2024, is just this -- certainly this view of hire for longer with longer -- apparently getting longer and longer over time.

蘭斯，當然，這種觀點是推動我們考慮降低成本以及在進入 2024 年時每年從業務中削減 8000 萬美元費用的部分原因，就是這樣——當然是這種僱傭更長時間的觀點隨著時間的推移，顯然越來越長。

Got it. I appreciate that. And then in terms of the fair value, I know we talked a little bit about what drove it this quarter. Obviously, it gets really lumpy, and a lot of it -- you kind of attributed to lingering inflation plus gas prices. But if you could give us any color just on what you're seeing from your customer base. I know, obviously, they're always kind of in the state of a permanent recession, but we're in a new scenario where basically everything costs a little more. Anything that you can give us in terms of color on how you see the broader market evolving over the next year or 2 that kind of gives us a little insight into how we should think about modeling the fair value marks, especially as we're a little distance from that side of the borrower group?

知道了。我很感激。然後就公允價值而言，我知道我們討論了本季推動其成長的因素。顯然，它變得非常不穩定，而且很多——你可以將其歸因於揮之不去的通貨膨脹加上汽油價格。但是，您是否可以根據您從客戶群中看到的情況向我們提供任何顏色。我知道，顯然，他們總是處於永久性衰退的狀態，但我們正處於一個新的場景，基本上所有東西的成本都更高一些。您可以向我們提供的關於您對未來一兩年更廣泛市場如何發展的看法的任何信息，都可以讓我們對如何考慮對公允價值標記進行建模有一些了解，特別是當我們是一個離借款人群體的那一邊距離近嗎？

Sure. So I'm certainly reluctant to try to give you a view over the next year or 2, but I can certainly give you a sense of what we're hearing from our members when we speak to them from a collections perspective. So the top reason that people give for why they're having trouble making their payments is just some sort of an income delay, right? So their employers having trouble giving them the income that they've earned in that particular time. So that's the #1 reason.

當然。因此，我當然不願意向您提供對未來一兩年的看法，但我當然可以讓您了解當我們從收藏的角度與會員交談時，我們從他們那裡聽到了什麼。因此，人們給出的付款困難的首要原因只是某種收入延遲，對嗎？因此，他們的雇主很難向他們提供他們在特定時期賺取的收入。這就是第一個原因。

Number 2 is someone that's lost their job or they're unemployed for a period of time. We've stated in the past that our borrowers, right, when they lose their job, they quickly try to pivot to find another job. But that's certainly the #2 reason why people are unable to make their payments.

第二類是失業或失業一段時間的人。我們過去曾說過，我們的借款人，當他們失業時，他們會迅速嘗試轉向尋找另一份工作。但這肯定是人們無法付款的第二個原因。

Number 3 is something that's medical related. So some sort of a disability or an illness.

第三點是與醫學相關的事。所以某種殘疾或疾病。

And then the last one, I'll just focus on the top 4 is, again, kind of work related. So they've had a pay cut or they've had reduced work hours. So again, we're just seeing this kind of softening environment is impacting them.

最後一個，我將只關注前 4 個，同樣，與工作相關。所以他們要嘛減薪，要嘛減少工作時間。再說一次，我們只是看到這種軟化環境正在影響他們。

And sorry, the last one is relevant also in terms of the comments we provided, other bills and expenses, right? Just again, struggling with just the expenses in other areas. So it tends to be something related to work, something related to other expenses, whether that is an illness or something that is nonmedical related, Lance.

抱歉，最後一項也與我們提供的評論、其他帳單和費用相關，對嗎？再次，只是在其他領域的開支上苦苦掙扎。所以它往往是與工作有關的事情，與其他費用有關的事情，無論是疾病還是與非醫療相關的事情，蘭斯。

(Operator Instructions) Our next question is coming from Sanjay Sakhrani from KBW.

（操作員說明）我們的下一個問題來自 KBW 的 Sanjay Sakhrani。

Maybe you could just talk about the expense reductions. Could you just talk about what it does to sort of the muscles on revenue growth and maybe even on collections as you're cutting costs? I'm just trying to think through the implications it might have to the fundamentals.

也許你可以只談談費用削減。您能否談談它對收入成長甚至在削減成本時對收款的影響有何作用？我只是想思考它可能對基本面產生的影響。

Sure. So on the collection side, there was very, very little done that would touch servicing and collections. In this environment, we thought it was critical to your point, Sanjay, to continue to have the muscle mass that we built up in those areas. On originations, we've been cutting the marketing budget. You've heard us say that throughout the year. So there were cuts to the marketing team because we do expect approval rates to continue to be lower than they have been historically. And as a consequence, we're not going to be spending as much in outbound marketing. So therefore, we felt we could cut some of the marketing team. So there really were, I would say, deep muscle cuts relative to what we need in originations or in servicing.

當然。因此，在收集方面，幾乎沒有做任何涉及服務和收集的工作。在這種環境下，我們認為桑傑，繼續保持我們在這些區域建立的肌肉質量對你的觀點至關重要。在原創方面，我們一直在削減行銷預算。這一年你都聽到我們這麼說。因此，我們對行銷團隊進行了裁員，因為我們確實預期支援率將繼續低於歷史水平。因此，我們不會在對外行銷上花費那麼多。因此，我們覺得我們可以裁減一些行銷團隊。因此，我想說，相對於我們在起源或服務方面的需求，確實存在深度肌肉削減。

And maybe just a follow-up on all these credit-related questions. I'm just trying to think through what gives you the confidence that you've made the proper adjustments on the underwriting scorecards to continue to grow. I understand you're not growing on a net basis, but just you're still originating. I'm just curious sort of -- I understand the vintages are definitely performing. But like what kind of adjustments have been made? And what makes this backdrop so much difficult than prior cycles? I'm just trying to think through all of that.

也許只是所有這些與信用相關的問題的後續行動。我只是想弄清楚是什麼讓您有信心對承保記分卡進行適當的調整以繼續增長。我知道你並沒有實現淨成長，但你仍然在創造。我只是有點好奇——我知道這些年份的表現肯定不錯。但具體做了哪些調整呢？是什麼讓這個背景比之前的週期困難得多？我只是想把這一切都想清楚。

Yes. I mean I would say just having read the comments of some of the other businesses in our sector, right, there seems to be an indication of stress across borrowers across all of the companies whose transcripts I read. I think it is a very challenging environment because we have had these higher prices for longer. We've had the volatility in fuel. The job market is starting to soften a little bit. So I think those are things that we're all dealing with from an industry perspective.

是的。我的意思是，我想說的是，剛剛閱讀了我們行業中其他一些企業的評論，對吧，我讀過成績單的所有公司的借款人似乎都面臨著壓力。我認為這是一個非常具有挑戰性的環境，因為我們已經長期保持較高的價格。我們經歷了燃料的波動。就業市場開始略有疲軟。所以我認為從產業角度來看，這些都是我們正在處理的事情。

In terms of what we look at, Sanjay, to try to ascertain the right level of originations, it's exactly what you said. We look at the vintages. So we look at first payment defaults. We look at what do the roll rates look like, what do early delinquency trends look like in each of the vintages. And that's how we go ahead and continue to make adjustments.

就我們而言，桑傑，試圖確定正確的起源水平，這正是你所說的。我們來看看年份。因此，我們會關注首次付款違約情況。我們研究了每個年份的滾動率以及早期拖欠趨勢。這就是我們繼續進行調整的方式。

To be clear, we've been tightening throughout 2023. And to be more specific because I know you're asking for specificity, it's not just looking at approval rates. It's looking at what is the average loan size, what is the average term, what is the distribution in terms of who we're lending to. We shared in comments that Vantage scores over 660 now are 49% of our originations. In Q2 of 2022, that was 1/3. So we are looking for higher cash flows, higher credit scores, and we're reducing our exposure from an average loan size and average term with some of the segments of our borrowers, Sanjay.

需要明確的是，我們在 2023 年一直在收緊政策。更具體地說，因為我知道您要求的是具體性，而不僅僅是關注支持率。它著眼於平均貸款規模是多少，平均期限是多少，貸款對象的分佈是怎樣的。我們在評論中表示，Vantage 分數現在超過 660 分是我們原創的 49%。 2022 年第二季度，這一數字為 1/3。因此，我們正在尋求更高的現金流、更高的信用評分，我們正在減少我們與借款人 Sanjay 的一些細分市場的平均貸款規模和平均期限的風險敞口。

Next question is a follow-up from Rick Shane from JPMorgan.

下一個問題是摩根大通的 Rick Shane 的後續問題。

One thing, you guys have talked about some of the things that you're seeing in the labor markets. I'm curious when you delve into it, if you're seeing anything either on a geographic basis or on an industry basis that's noteworthy. Are you seeing weakness in particular regions or particular job sectors?

一件事，你們談論了在勞動市場上看到的一些事情。我很好奇當你深入研究它時，你是否看到任何在地理基礎上或在行業基礎上值得注意的東西。您是否發現特定地區或特定就業領域有弱點？

We're not seeing differences today in terms of the regions that we would call kind of dramatic or noteworthy. From an industry perspective, I know there have been some areas where we have been tightening a little bit relative to other industries, Rick. So we have seen some differences from an industry perspective.

今天我們沒有看到我們所說的戲劇性或值得注意的地區差異。從行業角度來看，我知道在某些領域我們相對於其他行業有所收緊，瑞克。所以我們從行業角度看到了一些差異。

You want to be -- to steal Sanjay's word, could we get a little more specificity on that? Or do you want to be -- do you want to maintain discretion on that?

你想——盜用 Sanjay 的話，我們能更具體一點嗎？或者你想——你想在這方面保持謹慎嗎？

Yes. Let me just follow up on the most recent numbers that we have on that, Rick, is -- so just give me -- we weren't prepared to share that at this moment. So just give me a few minutes, and we'll try to make sure that we provide an update on that.

是的。讓我跟進一下我們掌握的最新數據，瑞克，請告訴我，我們目前不准備分享這一點。請給我幾分鐘時間，我們將盡力確保提供最新情況。

Terrific. It didn't strike me as a question you would normally not -- it struck me as a question you would normally answer. I was about to phrase that question like a quadruple negative. So I was just a little surprised. Happy to wait and hear the answer after you take another caller.

了不起。在我看來，這並不是一個你通常不會回答的問題——而是一個你通常會回答的問題。我正打算用四重否定的方式來表達這個問題。所以我只是有點驚訝。在接聽另一個來電後，很高興等待並聽到答案。

We reached the end of our question-and-answer session. I'd like to turn the floor back over to management for any further or closing comments.

我們的問答環節結束了。我想將發言權交還給管理階層，以徵求進一步的意見或結束意見。

Well, I want to say thank you once again for joining us on today's call, and we look forward to speaking with you again at the next quarter. Thank you very much.

好吧，我想再次感謝您參加今天的電話會議，我們期待在下個季度再次與您交談。非常感謝。

Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議網路廣播到此結束。此時您可以斷開線路，度過美好的一天。我們感謝您今天的參與。