Oportun Financial Corp (OPRT) 2023 Q4 法說會逐字稿

Welcome to opportune Financial Corporation's Fourth Quarter 2023 earnings conference call. (Operator Instructions) Today's call is being recorded. For opening remarks and introductions, I'd like to turn the call over to Dorian hare, Vice President of Investor Relations. Sir, you may begin.

歡迎參加適時金融公司 2023 年第四季財報電話會議。（操作員說明）今天的通話正在錄音。對於開場白和介紹，我想將電話轉給投資者關係副總裁 Dorian hare。先生，您可以開始了。

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

謝謝，大家好。與我討論機會。2023 年第四季業績由執行長 Raul Vazquez 公佈；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, statements regarding our senior secured term loan and plans and objectives of management for our future operations. Actual results may differ materially from those contemplated or implied by those 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、有關的聲明有關的前瞻性陳述我們的高級擔保定期貸款以及我們未來營運的管理計劃和目標。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-K for the year ended December 31, 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，請參閱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，包括我們即將發布的本年度10 -K 表格截至 2023 年 12 月 31 日。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目前的假設，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 for 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 on 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 and a reconciliation of all non-GAAP to GAAP financial measures is included in our earnings press release, our fourth quarter 2023 financial supplement and the appendix section of the fourth quarter of 2023 earnings presentation. All of which are available at the Investor Relations section of our website at investor dot opportune.com.

非 GAAP 財務指標是根據 GAAP 計算的財務指標的補充，而不是替代，所有非 GAAP 與 GAAP 財務指標的調節表均包含在我們的收益新聞稿、2023 年第四季度財務補充和2023年第四季度收益報告的附錄部分。所有這些都可以在我們網站的投資者關係部分找到，網址為investor dot opportune.com。

In addition, call along with a copy of our prepared remarks with that, I will now turn the call over to Rahul.

此外，請附上我們準備好的發言稿的副本，我現在將把電話轉給拉胡爾。

Thanks, Dorian, and good afternoon, everyone. Thank you for joining us today. I'll discuss our fourth quarter performance and update you on our progress in key areas of the business.

謝謝，多里安，大家午安。感謝您今天加入我們。我將討論我們第四季度的業績並向您介紹我們在業務關鍵領域的最新進展。

Let me begin with four highlights of our Q4 performance. First, we generated revenue of $263 million to close full year 2023 with a record $1.1 billion, up 11%. Second, our Q4 annualized net charge-off rate was 12.3%, 50 basis points better than last year in addition for the first time since 2022, our quarterly net charge-offs measured in dollars were lower than the prior year.

讓我先介紹我們第四季業績的四個亮點。首先，截至 2023 年全年，我們的營收達到 2.63 億美元，達到創紀錄的 11 億美元，成長 11%。其次，我們第四季的年化淨沖銷率為12.3%，比去年好50個基點，此外，以美元計算的季度淨沖銷率自2022年以來首次低於上年。

Third, our GAAP operating expenses were $129 million, down 15% year-over-year . We met our stated GAAP OpEx goal for the quarter of $125 million, with $7 million of nonrecurring severance relating to cost actions announced on our Q3 earnings call are backed out.

第三，我們的 GAAP 營運費用為 1.29 億美元，年減 15%。我們實現了本季 1.25 億美元的公認會計原則營運支出目標，其中與第三季財報電話會議上宣布的成本行動相關的 700 萬美元的非經常性遣散費被撤銷。

Finally, adjusted EBITDA was $6 million and represented a $40 million year-over-year increase. Overall, our team executed well in the quarter, and Jonathan will provide more details on our Q4 performance shortly.

最後，調整後的 EBITDA 為 600 萬美元，年增 4,000 萬美元。總體而言，我們的團隊在本季度表現良好，喬納森很快就會提供有關我們第四季度表現的更多詳細資訊。

Turning the page to 2024, I'm pleased that we're seeing early signs of a business recovery, taking shape, driven by the strategic decisions and operational changes we made in 2023.

翻到 2024 年，我很高興看到在 2023 年策略決策和營運變革的推動下，業務復甦的早期跡象正在形成。

I'll now share of the three areas of improvement that I find most promising I'll start with credit in four positive dynamics we are seeing related to our credit performance first, and you can see on Slide 6 of our earnings presentation, loss rates are approximately 400 basis points lower for our front book of loans in comparison to our back book flow.

我現在將分享我認為最有希望的三個改進領域，我將從信用開始，我們首先看到與我們的信用表現相關的四個積極動態，您可以在我們的收益演示的幻燈片6 中看到損失率與我們的後台貸款流量相比，我們的前台貸款大約低 400 個基點。

As a reminder, the back book of loans or loans originated prior to the first material tightening in July of 2022, the front book of loans represents originations since then. You can also see on Slide 7 that the back book shrink to 21% of our own principal balance at the end of the fourth quarter, but disproportionately accounted for 53% of our gross charge-offs.

提醒一下，後面的貸款或貸款是在 2022 年 7 月第一次實質緊縮之前發放的，前面的貸款代表的是自那時以來的發放。您也可以在投影片 7 中看到，第四季末，帳面餘額縮減至我們本金餘額的 21%，但不成比例地占我們總沖銷的 53%。

The good news is that the impact of the back book will continue to diminish throughout 2024 as we currently forecast our back book to shrink to 3% of our own principal balance at the end of this year. Second, our one to 29 days delinquencies are below 2023 levels. This bodes well for future 30 plus day delinquency performance and more importantly, shore costs in the second half of the year.

好消息是，滯納金的影響將在 2024 年繼續減弱，因為我們目前預測，到今年年底，滯納金將縮減至我們本金餘額的 3%。其次，我們的 1 至 29 天拖欠率低於 2023 年的水準。這預示著未來 30 多天的拖欠表現，更重要的是下半年的岸上成本。

Last time, the early stage buckets were running below the prior year was three years ago when 2021 was below 2020 third, secured personal loans finished 2023 with annualized net charge-off levels that were approximately 350 basis points better than our unsecured personal loan products. We plan on growing our secured personal loan portfolio this year as part of our strategic priority to identify sources of high quality originations.

上一次，早期階段的運作水準低於三年前的前一年，當時2021 年低於2020 年第三季度，2023 年完成的有擔保個人貸款的年化淨沖銷水準比我們的無擔保個人貸款產品高出約350 個基點。我們計劃今年擴大我們的擔保個人貸款組合，作為我們確定高品質來源的策略重點的一部分。

Finally, just over a year ago, we launched our integrated opportune mobile app by leveraging the digital savings app platform. We now know that borrowing members could use our app have exhibited approximately 45% lower 30 plus day delinquencies, three months post disbursement than those who have not yet signed up to use the app, we plan to increase the visibility and promotion and adoption of our mobile app in 2024, improving credit outcomes is a key priority. So we will continue our conservative underwriting stance and focus on enhancements to underwriting models, servicing efforts and our mobile app.

最後，就在一年多前，我們利用數位儲蓄應用程式平台推出了整合的合適行動應用程式。我們現在知道，與尚未註冊使用應用程式的借款會員相比，可以使用我們的應用程式的借款會員在付款後三個月內的30 多天拖欠率降低了約45%，我們計劃提高我們的應用程式的知名度、推廣和採用率到 2024 年，行動應用程式的出現，改善信貸結果是關鍵優先事項。因此，我們將繼續保守的核保立場，並專注於增強核保模式、服務工作和我們的行動應用程式。

The second promising area is expense management. As I mentioned earlier, we met our Q4 OpEx goal. And as you can see on slide 8 of our earnings presentation, we are significantly more efficient today than we were when we became a public company four years ago, adjusted OpEx as a percentage of average managed principal balance was appreciably down to 12.5% in Q4 2023 versus 18.1% in Q4 2019.

第二個有前景的領域是費用管理。正如我之前提到的，我們實現了第四季的營運支出目標。正如您在我們的收益簡報的幻燈片8 中看到的那樣，我們今天的效率比四年前成為上市公司時的效率要高得多，調整後的營運支出佔平均管理本金餘額的百分比在第四季大幅下降至12.5% 2023 年為 18.1%，2019 年第四季為 18.1%。

Fortifying our core business and unit economics are our priorities for 2024, and I will share additional decisions we made in these areas in a few minutes.

加強我們的核心業務和單位經濟效益是我們 2024 年的首要任務，我將在幾分鐘內分享我們在這些領域做出的其他決定。

The third and final promising area of improvement that I want to highlight is funding our most recent $200 million securitization, which closed in February was 10 times oversubscribed at an 8.4% weighted average interest rate. It's cost is 160 basis points less than the securitization we executed in October 2023. In minute this signifies the confidence investors have in the credit quality of our originations as well as the improvement and strength of our business model.

我想強調的第三個也是最後一個有希望的改進領域是為我們最近的 2 億美元證券化提供資金，該證券化於 2 月完成，超額認購 10 倍，加權平均利率為 8.4%。其成本比我們 2023 年 10 月執行的證券化低 160 個基點。簡而言之，這表明投資者對我們起源的信用品質以及我們商業模式的改進和實力充滿信心。

Again, I'm encouraged by all these signs of improvement, but there's still work ahead to fully realize our business recovery. To that end, we're announcing that we will continue to reduce our operating expenses this year by an additional $30 million on an annualized basis, bringing our total annualized cost reductions since Q2 '22 when we first started our expense management efforts to a substantial $240 million for 2024 full year guidance to Jonathan will share with you incorporates these actions with lower OpEx levels generating significantly enhanced profitability.

我再次對所有這些改善的跡象感到鼓舞，但要完全實現我們的業務復甦，仍有許多工作要做。為此，我們宣布，今年我們將繼續每年額外減少 3000 萬美元的營運費用，從而使自 22 年第二季度我們首次開始費用管理工作以來的年化成本削減總額達到可觀的水平喬納森將與您分享2.4 億美元的2024 年全年指導，將這些行動與較低的營運支出水準結合起來，從而顯著提高獲利能力。

Finally, in order to execute our plans for 2024 and beyond. If we recently completed two amendments, one to our residual facility and the other two are senior secured term loan. The amendment to our residual facility provides us with a three month principal payment holiday and extends the term to January 2025. We will make principal payments on the senior secured term loan in the amount equal to the payments that would have been made on the residual facility.

最後，為了執行我們 2024 年及以後的計畫。如果我們最近完成了兩項修訂，一項是我們的剩餘貸款，另外兩項是優先擔保定期貸款。剩餘貸款額度的修訂為我們提供了三個月的本金還款假期，並將期限延長至 2025 年 1 月。我們將支付優先擔保定期貸款的本金，其金額等於剩餘貸款的支付金額。

The senior secured term loan amendment reduces the minimum asset coverage ratio, which is the ratio of our unrestricted cash and equity in some of our financing facilities to the outstanding debt. We needed to lower the escalating levels of this covenant for 2024, which were set before 2020 three's higher than expected losses and lower originations caused by credit tightening. Given the scheduled increases in the asset coverage ratio covenant levels for the remainder of 2024 and into 2025. We are currently evaluating refinancing options.

優先擔保定期貸款修訂降低了最低資產覆蓋率，即我們部分融資設施中不受限制的現金和股本與未償債務的比率。我們需要降低 2024 年該契約不斷升級的水平，該水平是在 2020 年之前設定的，其損失比預期高出 3 倍，並且信貸緊縮導致的起源較低。鑑於計劃在 2024 年剩餘時間和 2025 年提高資產覆蓋率契約水準。我們目前正在評估再融資方案。

In summary, after a very challenging 2023, I am confident that we are on the right path to achieving a stronger position for the Company, driven by the strategic decisions and operational changes we've announced today and have made over the last 12 months.

總之，在經歷了充滿挑戰的2023 年之後，我相信，在我們今天宣布的以及過去12 個月中做出的戰略決策和運營變革的推動下，我們正走在為公司實現更強大地位的正確道路上。

With that, I will turn it over to Jonathan for additional details on our fourth quarter 2023 financial performance as well as our first quarter and full year 2024 guidance.

接下來，我將把它交給 Jonathan，以了解有關我們 2023 年第四季度財務業績以及 2024 年第一季和全年指導的更多詳細資訊。

Thanks, Raul, and good afternoon, everyone. As Raul mentioned, we executed solidly in the fourth quarter. We are on track to substantially enhance our profitability in 2024 and beyond by being laser focused on our three differentiated core products alongside our ongoing cost reduction initiatives and our tight credit posture.

謝謝勞爾，大家下午好。正如勞爾所提到的，我們在第四季表現出色。透過專注於我們的三種差異化核心產品以及持續的成本削減計劃和嚴格的信貸態勢，我們預計在 2024 年及以後大幅提高我們的盈利能力。

As shown on Slide 10, opportune delivered total revenue of $263 million. The impact of net change in fair value and higher interest expense drove an adjusted net loss of $21 million or an adjusted loss per share of $0.54. We continue to be focused on credit quality rather than quantity, with originations of $437 million, which were down 28% year-over-year sequentially. Originations were down 9% from the third quarter with further tightening of our credit posture dominating traditional seasonal patterns for originations growth.

如投影片 10 所示，opportune 的總收入為 2.63 億美元。公允價值淨變動和較高利息支出的影響導致調整後淨虧損 2,100 萬美元或調整後每股虧損 0.54 美元。我們繼續關注信貸品質而非數量，信貸發放金額為 4.37 億美元，年減 28%。由於我們的信貸狀況進一步收緊，主導了傳統的發起成長季節性模式，發起數量較第三季下降了 9%。

Despite lower originations, total revenue was virtually flat year-over-year due to 100 basis points higher portfolio yield resulting from our pricing increases, along with higher noninterest income. Our credit tightening actions led to lower originations than previously anticipated causing us to fall short of our 200 basis points year-over-year increase target.

儘管起始量較低，但由於我們的定價上漲導致投資組合收益率提高了 100 個基點，以及非利息收入增加，總收入幾乎與去​​年同期持平。我們的信貸緊縮行動導致貸款發放量低於先前的預期，導致我們未能實現 200 個基點的年成長目標。

However, I am pleased that our Q4 risk-adjusted portfolio yield, which includes charge-offs, increased year-over-year by a strong 155 basis points. We will continue to enhance yield while remaining committed to our 36% APR cap. Net revenue was $72 million, down 50% year-over-year due to unfavorable fair value mark-to-market adjustments and higher interest expense.

然而，令我感到高興的是，我們第四季度的風險調整後投資組合收益率（包括沖銷在內）同比強勁增長了 155 個基點。我們將繼續提高收益率，同時保持 36% 的年利率上限。由於不利的公允價值按市價調整和較高的利息支出，淨收入為 7,200 萬美元，年減 50%。

Our total net decrease in fair value of $139 million was primarily driven by current period charge-offs of $91 million marks on loans sold of $31 million and a mark-to-market adjustment on our asset-backed notes of $24 million, partially offsetting these unfavorable fair value drivers. The mark-to-market adjustments on our loan portfolio increased by $14 million due to a 60 basis points sequential increase in our loan portfolio's fair value to 1.2% on a decline in discount rate.

我們的公允價值淨減少總額為1.39 億美元，主要是由於當期沖銷了3,100 萬美元的已售貸款9,100 萬美元，以及對我們的資產支持票據進行了2,400 萬美元的按市價調整，部分抵消了這些損失。不利的公允價值驅動因素。由於折現率下降，我們貸款組合的公允價值連續增加 60 個基點至 1.2%，因此我們貸款組合的按市價調整增加了 1,400 萬美元。

Before continuing, I want to point out a change we've made in the presentation of our loans receivable at fair value on the balance sheet. We previously recorded accrued interest and fees separately on the balance sheet. And now these are included in loans receivable at fair value. We made this change, so our financial presentation would be more consistent with other companies that fair-value their loans.

在繼續之前，我想指出我們在資產負債表上以公允價值列報應收貸款方面所做的更改。我們先前在資產負債表上分別記錄了應計利息和費用。現在這些都已包含在以公允價值計算的應收貸款中。我們做出了這項改變，因此我們的財務報表將與其他公允價值貸款的公司更加一致。

We have updated our historical balance sheet to reflect this change to be clear, none of our aggregate numbers have changed. We've only combined two balance sheet line items. So this is a reclass and not a restatement. Given this change the fair value prices for our loans now include the accrued interest and fees and thus reflect higher figures in the prices, excluding accrued interest and fees that we have quoted in the past.

我們更新了歷史資產負債表以反映這一變化，明確地說，我們的總數據沒有發生變化。我們只合併了兩個資產負債表行項目。因此，這是一次重新分類，而不是重述。鑑於此變化，我們貸款的公允價值價格現在包括應計利息和費用，因此反映了價格中較高的數字，不包括我們過去引用的應計利息和費用。

Interest expense of $52 million was up $16 million year-over-year. This was primarily driven by increased debt outstanding and the increase in our cost of debt to 7.1% versus 4.8% in the year ago period, reflecting the higher rate environment.

利息支出為 5,200 萬美元，年增 1,600 萬美元。這主要是由於未償債務增加以及債務成本從去年同期的 4.8% 上升至 7.1%，反映了較高的利率環境。

Turning now to operating expenses and efficiency, we continue to see the benefits of our previously announced cost structure optimization initiatives. Our $129 million in total operating expenses in Q4 reflected a 15% reduction from the prior year period and included a $7 million nonrecurring charge for severance related to our previously announced headcount reductions.

現在轉向營運費用和效率，我們繼續看到先前宣布的成本結構優化措施的好處。第四季我們的總營運費用為 1.29 億美元，比去年同期減少了 15%，其中包括與我們先前宣布的裁員相關的 700 萬美元的一次性遣散費。

We made significant strides through 2023 and improving our quarterly operating expense run rate, and we will continue to drive our cost structure lower in 2024 with the $30 million of additional annualized operating expense reductions that real announced partially enabled by our streamlined product suite. We are now targeting $97.5 million in Q4 Gaap operating expenses.

我們在 2023 年取得了重大進展，並提高了季度營運費用運行率，並且我們將在 2024 年繼續降低我們的成本結構，並透過我們精簡的產品套件實現額外 3000 萬美元的額外年度營運費用削減。我們目前的目標是第 4 季 Gaap 營運支出為 9,750 萬美元。

In the fourth quarter, our sales and marketing expenses were just over $18 million, down 15% year-over-year. For the quarter, we recorded adjusted net loss of $21 million compared to a $5 million net profit in the prior year quarter and adjusted net loss per share of $0.54 versus prior year net earnings per share of $0.14. The decline in adjusted profitability was primarily driven by noncash fair value marks and higher interest expense.

第四季度，我們的銷售和行銷費用略高於 1800 萬美元，年減 15%。本季度，我們的調整後淨虧損為 2,100 萬美元，而去年同期淨利為 500 萬美元，調整後每股淨虧損為 0.54 美元，而去年同期每股淨利為 0.14 美元。調整後獲利能力的下降主要是由非現金公允價值標記和較高的利息費用所造成的。

Adjusted EBITDA, which excludes the impact of fair value mark-to-market adjustments on our loan portfolio and our notes was $6 million in the fourth quarter. This reflected a strong year-over-year increase of $40 million, driven by our sharply reduced cost structure.

第四季調整後 EBITDA 為 600 萬美元，其中不包括公允價值以市價調整對我們的貸款組合和票據的影響。這反映了我們大幅降低的成本結構推動了 4000 萬美元的同比強勁增長。

Now on Slide 11, let me discuss Q4 credit performance. Our annualized net charge-off rate of 12.3% was at the midpoint of our guidance range compared to 12.8% in the prior year period. Our 30 plus day delinquency rate increased year-over-year by 30 basis points to 5.9%.

現在在投影片 11 上，讓我討論第四季的信貸表現。我們的年化淨沖銷率為 12.3%，處於指導範圍的中點，而上年同期為 12.8%。我們的 30 多天拖欠率比去年同期增加了 30 個基點，達到 5.9%。

In addition to what Raul mentioned earlier on one to 29 day delinquencies improving, we've recently seen our 30 plus delinquency rates begin to decline and we expect this trend to continue based upon data through last week, we expect the first quarter 30 plus day delinquency rate to be between 5.1% and 5.3%.

除了勞爾之前提到的1 至29 天拖欠率有所改善之外，我們最近還看到我們的30 天以上拖欠率開始下降，並且根據上週的數據，我們預計這一趨勢將持續下去，我們預計第一季30 天以上拖欠率將持續下降拖欠率介於5.1%至5.3%之間。

These improved delinquency trends are not surprising given the percentage of underwritten loans with Vantage scores of 660 or greater increase to 51% during Q4 '23, up from 33% for Q2 '22 prior to the start of our tightening actions regarding our capital and liquidity. Net cash flow from operations for the fourth quarter remain near record levels at $106 million, up 20% year-over-year.

鑑於 Vantage 評分為 660 或更高的承保貸款百分比在 23 年第四季度從 22 年第二季度的 33% 上升至 22 年第二季度的 33%，這些拖欠趨勢的改善並不令人意外。 。第四季營運淨現金流量仍接近歷史最高水平，達到 1.06 億美元，年增 20%。

Furthermore, I'm pleased that our resilient top line performance and sharply reduced cost structure allowed for this operating cash flow to fully finance. Our $97 million in cash used in investing activities, principally loan disbursements, net of repayments and net debt repayment of $3 million as of December 31, total cash was $206 million, of which $91 million was unrestricted and $115 million was restricted.

此外，我很高興我們富有彈性的營收業績和大幅降低的成本結構使營運現金流能夠充分融資。截至12 月31 日，我們用於投資活動的現金為9,700 萬美元，主要是貸款支付，扣除還款和淨債務償還300 萬美元後，現金總額為2.06 億美元，其中9,100 萬美元為非限制性現金，1.15 億美元為限制性現金。

Further bolstering our liquidity was $409 million in available funding capacity under our warehouse lines and remaining whole-loan sale agreement capacity of $317 million and continuing to ensure that opportunity is funded to grow in a responsible and sustainable fashion. Since quarter end, we closed a $200 million asset-backed securitization. This financing brings our total executed funding agreement since June to almost $1.2 billion.

我們的倉庫線下的可用融資能力為4.09 億美元，剩餘的整個貸款銷售協議能力為3.17 億美元，進一步增強了我們的流動性，並繼續確保為機會提供資金，以負責任和可持續的方式增長。自季度末以來，我們完成了 2 億美元的資產支持證券化。此次融資使我們自 6 月以來執行的融資協議總額達到近 12 億美元。

Before I leave our discussion of capital and liquidity, I want to inform you that we're making good progress evaluating strategic options for our credit card product and expect to have an update for you soon before providing you with our initial guidance relating to 2024.

在結束對資本和流動性的討論之前，我想通知您，我們在評估信用卡產品的戰略選擇方面取得了良好進展，並希望在向您提供有關 2024 年的初步指導之前盡快向您提供最新信息。

I wanted to update you on two changes. We are making this year to the adjusted performance metrics we provide to the investment community as shown on Slide 13. First, going forward, we will be excluding the impact of fair value mark-to-market adjustments on our asset-backed notes at fair value from adjusted net income and adjusted EPS. Second, we are adjusting our calculation of adjusted EBITDA to be more in line with those of other companies in our space.

我想向您通報兩項變更的最新情況。今年我們將調整向投資界提供的績效指標，如投影片 13 所示。首先，展望未來，我們將把公允價值以市價調整對以公允價值計算的資產支持票據的影響從調整後淨利和調整後每股盈餘中排除。其次，我們正在調整調整後 EBITDA 的計算，以使其與我們領域其他公司的計算更加一致。

Now let me share more detail with you regarding the rationale for each decision. Our decision to update our adjusted net income calculation is driven by our election last year to stop fair valuing our new debt financings by the end of 2025, nearly all our existing asset-backed notes at fair value will have been paid off. So there will be no mark-to-market adjustments for our debt after that time between that.

現在讓我與您分享有關每個決定的理由的更多詳細資訊。我們決定更新調整後淨利潤計算的原因是我們去年的選舉決定到 2025 年底停止對我們的新債務融資進行公允估值，幾乎所有現有的以公允價值計算的資產支持票據都將得到償付。因此，在此之後，我們的債務將不會按市值進行調整。

And now we expect to recognize on a GAAP basis $94 million of negative mark-to-market adjustments as our asset backed debt currently valued at 95% converges to par at maturity. This $94 million reduction in pretax earnings is a reflection of the higher interest rate environment rather than an indicator of the health of our business. So going forward, we'll be backing it out from our adjusted net income and adjusted EPS metrics.

現在，隨著我們目前價值 95% 的資產支持債務在到期時趨於平價，我們預計將在 GAAP 基礎上確認 9,400 萬美元的按市值計價的負調整。稅前收益減少 9,400 萬美元反映了較高的利率環境，而不是我們業務健康狀況的指標。因此，展望未來，我們將從調整後的淨利潤和調整後的每股盈餘指標中支持這一點。

Additionally, for adjusted net income beginning in Q1 '24, we will no longer be adding back acquisition and integration related expense since our acquisition of digit close over two years ago.

此外，對於從 2024 年第一季開始的調整後淨利潤，自兩年多前收購 digital 以來，我們將不再增加收購和整合相關費用。

With respect to adjusted EBITDA. We are simplifying our calculation to be more consistent with the calculations of other companies in our space. Going forward, we will no longer adjust for origination fees net since this is not an adjustment. We see other companies making in their calculation of adjusted EBITDA.

關於調整後的 EBITDA。我們正在簡化我們的計算，以便與我們領域其他公司的計算更加一致。展望未來，我們將不再調整發起費用淨額，因為這不是調整。我們看到其他公司也在計算調整後的 EBITDA。

Originations on our loans are fully earned at the time of disbursement and are nonrefundable, and we no longer feel that we need to adjust our EBITDA to reflect the timing difference in the receipt of that cash had we applied these changes for 2023 reporting full year, adjusted net income would have been $53 million higher at an adjusted net loss of $71 million. However, had we applied these changes for 2022 to reporting full year, adjusted net income would have been $152 million lower at an adjusted net loss of $83 million.

我們的貸款來源在支付時已全額賺取且不可退還，如果我們在 2023 年報告全年應用這些變化，我們不再認為需要調整 EBITDA 以反映收到現金的時間差異，如果調整後淨虧損為7,100 萬美元，則調整後淨收入將增加5,300 萬美元。然而，如果我們將 2022 年的這些變化應用於全年報告，調整後的淨利潤將減少 1.52 億美元，調整後的淨虧損為 8,300 萬美元。

Full year adjusted EBITDA for 2023 would have been $17 million higher at $19 million, while full year adjusted EBITDA for 2022 would have been $27 million higher at $17 million.

2023 年全年調整後 EBITDA 將增加 1,700 萬美元，達到 1,900 萬美元，而 2022 年全年調整後 EBITDA 將增加 2,700 萬美元，達到 1,700 萬美元。

Turning now to our guidance. As shown on slide 14, our outlook for the first quarter is total revenue of $233 million to $238 million annualized net charge-off rate of 12.1% plus or minus 15 basis points, adjusted EBITDA of negative $14 million to negative $12 million.

現在轉向我們的指導。如投影片14 所示，我們對第一季的預期是總營收為2.33 億美元至2.38 億美元，年化淨沖銷率為12.1% 上下浮動15 個基點，調整後EBITDA 為負1,400 萬美元至負1200 萬美元。

Our guidance for the full year is total revenue of $975 million to $1 billion annualized net charge-off rate of 11.9% plus or minus 50 basis points. Adjusted EBITDA of $60 million to $70 million with respect to our adjusted EBITDA guidance, which is on our new calculation basis, this guidance would have been negative $20 million to negative $18 million for the first quarter of 2024 and $27 million to $37 million for full year 2024 had we not changed our calculation.

我們對全年的指引是總收入為 9.75 億美元至 10 億美元，年化淨沖銷率為 11.9% 正負 50 個基點。相對於我們調整後的EBITDA 指導，調整後的EBITDA 為6000 萬至7000 萬美元，根據我們新的計算基礎，該指導在2024 年第一季將為負2000 萬美元至負1800 萬美元，在整個季度為2700 萬美元至3700 萬美元。如果我們不改變我們的計算的話，到 2024 年。

Before handing the call back to Raul to close, I'd like to share with you what we believe long-term investor returns for opportune could look like. The unit economics of our personal loan business are quite strong at over 32% APR, even while we deliver value well in excess of what the alternatives are for our borrowing members add to that non-interest income predominantly from our savings product, and we see a 36% total revenue yield as a percentage of principal balance to be sustainable conservatively, assuming an 8% cost of funds and 9% to 11% annualized net charge-off rate, a 17% to 19%. Risk-adjusted yield remains. And assuming operating expenses over the long term of 12.5% of own principal balance, we see a 3% to 4% return on assets is attainable.

在將電話交還給勞爾結束之前，我想與您分享我們認為長期投資者的適當回報可能會是什麼樣子。我們個人貸款業務的單位經濟效益相當強勁，年利率超過 32%，儘管我們為借款會員提供的價值遠遠超過其他選擇，但非利息收入主要來自我們的儲蓄產品，我們看到保守地說，總收入收益率佔本金餘額的百分比為36%是可持續的，假設資金成本為8%，年化淨沖銷率為9%至11%，即17%至19%。風險調整後的收益率依然存在。假設長期營運費用佔自身本金餘額的 12.5%，我們認為可以達到 3% 至 4% 的資產報酬率。

Lastly, with a six to one debt to equity ratio enabled by our robust risk-adjusted yield and diversified funding sources, we see the potential for a very strong 20% to 28% ROE over the long term. Given the significant changes and improvements we have made to strengthen our business and tighten our product focus, we see ourselves making progress towards this goal over the next several years. Raul back already.

最後，由於我們強勁的風險調整收益率和多元化的資金來源使債務股本比率達到 6 比 1，我們看到長期 ROE 具有 20% 至 28% 的強勁潛力。鑑於我們為加強業務和加強產品重點而做出的重大改變和改進，我們預計未來幾年我們將在實現這一目標方面取得進展。勞爾已經回來了。

Thanks, Jonathan. Before I wrap up, I want to publicly welcome our two newest independent board members, Carlos Minetti and Mohit. The Sweeney joined opportunity Board of Directors in February. Cardless mini has more than 35 years of experience in consumer lending and credit risk, including most recently as President Consumer Banking at Discover Financial Services, a position he held from 2010 to 2023 flow hits us. One is the Chief Financial Officer of thought spot, Inc. and a high-powered analytics company his prior experiences include executive roles at Square and PayPal, as well as time in the Investment Banking and Private Equity industries.

謝謝，喬納森。在結束之前，我想公開歡迎我們兩位最新的獨立董事會成員卡洛斯·米內蒂和莫希特。Sweeney 於二月加入機會董事會。Cardless mini 在消費貸款和信用風險領域擁有超過 35 年的經驗，包括最近擔任 Discover Financial Services 的消費者銀行業務總裁，他在 2010 年至 2023 年擔任的職位讓我們印象深刻。其中一位是 Thought Spot, Inc. 和高效能分析公司的財務官，他之前的經驗包括在 Square 和 PayPal 擔任高階主管職務，以及在投資銀行和私募股權行業工作。

We are pleased to have them on the board and are already leveraging the backgrounds in consumer finance, along with our extensive executive and public company experience. While we still have work to do to establish the type of long-term profitability that Jonathan just talked about, we've laid the foundation for recovery in 2023, and we expect 2024 to be a defining step in our journey towards sustainable profitable growth from a strategy perspective, we are guided by our focus on holistically addressing two of the most fundamental challenges to financial health and resilience, access to responsible and affordable credit and adequate saving.

我們很高興他們加入董事會，並且已經利用了消費金融領域的背景以及我們豐富的高階主管和上市公司經驗。雖然我們仍有工作要做，以建立喬納森剛才談到的長期盈利能力，但我們已經為 2023 年的復甦奠定了基礎，我們預計 2024 年將是我們邁向可持續盈利增長之旅的決定性一步。從策略角度來看，我們的指導方針是全面解決金融健康和復原力方面的兩個最根本的挑戰，即獲得負責任和負擔得起的信貸以及充足的儲蓄。

We will do so with our streamlined product assortment of personal loans, secured personal loans and savings, and by executing on our top3 strategic priorities, improving credit outcomes, fortifying our business economics and identifying high-quality originations. We are optimistic about 2024 due to our disciplined expense management, February $200 million securitization and more importantly, the promising Q1 credit trend with that, operator, let's open up the line for questions.

我們將透過精簡的個人貸款、擔保個人貸款和儲蓄產品種類，並透過執行我們的三大策略重點、改善信貸結果、加強我們的商業經濟和確定高品質的來源來實現這一目標。我們對 2024 年持樂觀態度，因為我們嚴格的費用管理、2 月份的 2 億美元證券化，更重要的是，有希望的第一季信貸趨勢，運營商，讓我們開放提問。

Thank you, we will now be conducting a question and answer session.(Operator Instructions) Thank you, our first question comes from the line of Sanjay Sakhrani with KBW. Please proceed with your question.

謝謝，我們現在將進行問答環節。（操作員說明）謝謝，我們的第一個問題來自 KBW 的 Sanjay Sakhrani。請繼續你的問題。

It is actually Steven Kwok filling in for Sanjay. Thanks for taking my questions. First on around the credit quality congrats on seeing the 30 plus the delinquency improved in the first quarter or just was wondering as we look at the rate for this year, it seems like it still remains pretty elevated within your guidance. Can you just talk about what's driving that, the economic environment that you're assuming?

實際上是史蒂芬·郭（Steven Kwok）取代了桑傑（Sanjay）。感謝您回答我的問題。首先，在信用品質方面，恭喜您看到第一季30+ 的拖欠率有所改善，或者只是想知道，當我們查看今年的利率時，它似乎仍然在您的指導範圍內保持相當高的水平。您能談談是什麼推動了這一趨勢，即您所假設的經濟環境嗎？

Sure, Steven, this is real nice, nice to hear from you. So when we think about Q1, right? We're saying that we expect 5.1% to 5.3% DQ. 30 plus delinquencies for Q1. That compares to last year's rate of 5.5%. So we're actually really optimistic about what we're seeing right now in terms of the full year guidance, I think what you're seeing from us is just appropriately and what we think is an appropriate level of conservatism.

當然，史蒂文，這真的很好，很高興收到你的來信。那麼當我們考慮 Q1 時，對嗎？我們預計 DQ 為 5.1% 至 5.3%。第一季的拖欠款超過 30。相比之下，去年的成長率為 5.5%。因此，我們實際上對我們現在所看到的全年指導感到非常樂觀，我認為您從我們身上看到的情況是適當的，我們認為保守主義的程度是適當的。

It's still early in the year. We're only 10 weeks into the year. So we would hope that what we're seeing in terms of the early delinquencies, right? I mentioned that one to 29 day delinquencies are below the prior year, which hasn't happened in three years. We would expect that if it continues to hold to translate into better loss performance in the second half of the year, Stephen. But right now, what you're seeing is just what we think is appropriately conservative guidance guided.

現在還早。距離今年只有 10 週了。所以我們希望我們所看到的早期拖欠情況是這樣的，對嗎？我提到 1 至 29 天的拖欠率低於前一年，這是三年來從未發生過的。我們預計，如果它繼續持有，下半年將轉化為更好的虧損表現，史蒂芬。但現在，您所看到的正是我們認為適當保守的指導方針。

And then I noticed some guys further tightening credits in within the fourth quarter. Can you just talk about that and then help us think through the 2023 vintage if we would to you and plotted against the 2022 and 2021, how would that look, how would that look like today?

然後我注意到有些人在第四季進一步收緊信貸。您能否談談這個問題，然後幫助我們思考 2023 年的年份，如果我們願意的話，並針對 2022 年和 2021 年進行規劃，那會是什麼樣子，今天會是什麼樣子？

So in terms of just the tightening actions that we that we took in the last quarter. One of the things that we continue to do is just take a look at. Could we go ahead and reduce loan sizes and terms, in particular, some of the larger loans, say, learn loans over $6,000. We think that in this environment it still makes sense to tried to give shorter loans with smaller loan amounts. So that's some of the tightening that we did. And so far, we are pleased with the results.

因此，就我們上個季度採取的緊縮行動而言。我們繼續做的事情之一就是看看。我們能否繼續減少貸款規模和條款，特別是一些較大的貸款，例如超過 6,000 美元的學習貸款。我們認為，在這種環境下，嘗試提供較短的貸款和較小的貸款金額仍然是有意義的。這就是我們所做的一些緊縮措施。到目前為止，我們對結果感到滿意。

I think if you saw on page 6 of our earnings deck where we plotted what the vintages look like on the front book. We like the fact that Q1, Q2 and Q3 '23 are all below the lines of Q4 in Q3 of 22. So we like the way that those vintages look on page 6, Stephen, if you're asking me, what would I expect the 2023 static pool loss rates to look like?

我想如果您在我們的收益報告的第 6 頁上看到過，我們在封面上繪製了年份的樣子。我們喜歡這樣一個事實：23 年的 Q1、Q2 和 Q3 都低於 22 年 Q3 中的 Q4 線。所以我們喜歡第 6 頁上這些年份的樣子，史蒂芬，如果你問我，我預計 2023 年的靜態池損失率會是什麼樣子？

I think it's a little early to project that. But as you know, we give an update every quarter on what the static pools look like. So we'll all get a look at that over time.

我認為現在預測這個還為時過早。但如您所知，我們每季都會更新靜態池的外觀。所以隨著時間的推移，我們都會看到這一點。

And thanks for taking my questions.

感謝您回答我的問題。

Thank you, Stephen.

謝謝你，史蒂芬。

Our next question comes from the line of John Hecht with Jefferies with your question.

我們的下一個問題來自約翰·赫克特 (John Hecht) 和傑弗里斯 (Jefferies) 提出的問題。

Yes, just some I apologize. I'm just trying to kind of get my hand head around the. the EBITDA reconciliation for the fiscal year '24 guidance. I mean, you're you give us like a round of $50 million or a law. It does that it looks like that does not include mark to mark, you don't have any the fair value marks, including is that include the $94 million of the fair value mark on the debt that you mentioned, Jonathan, I guess, John, can you just talk tell us what's in that $50 million net loss you're projecting?

是的，只是一些我道歉。我只是想把我的手放在一邊。 '24 財年 EBITDA 調節表指引。我的意思是，你給我們一輪 5000 萬美元或一項法律。看起來確實不包括逐個標記，你沒有任何公允價值標記，包括你提到的債務的 9400 萬美元公允價值標記，喬納森，我猜，約翰，您能告訴我們您預計的5,000 萬美元淨損失中有哪些內容嗎？

Sorry, John, this role before I have Jonathan, going to dive into the questions, just to be clear, are you talking about adjusted EBITDA or adjusted net income because we guided to adjusted EBITDA. But I'm not sure if your question is about the changes on adjusted net income.

抱歉，約翰，在我請喬納森擔任這個角色之前，我將深入探討這些問題，為了明確起見，您是在談論調整後的 EBITDA 還是調整後的淨收入，因為我們以調整後的 EBITDA 為指導。但我不確定你的問題是否是關於調整後淨利的變化。

Nephrology in the on slide 33, you a net loss as the as the starting point to get to the adjusted EBITDA. And I'm just wondering and it says no fair value mark, and I know that a fair value mark to market adjustments will be in that net income for that net loss. So I'm wondering, can you kind of bridge to us what's in that and what's not in there?

在投影片 33 的腎臟科中，您以淨虧損為起點來計算調整後的 EBITDA。我只是想知道，它說沒有公允價值標記，而且我知道市場調整的公允價值標記將包含在該淨虧損的淨收入中。所以我想知道，你可以向我們介紹裡面有什麼、沒什麼嗎？

Sure. I'm happy to do that, John, and this is the presentation we've been using since last year for this reconciliation table on since we haven't been guiding to adjusted net income because some of the volatility in the marks this view of net losses is excluding and this is what the Star and asterisk footnote says is excluding our forecast of the marks, right? So if the net marks were positive, this would be a higher number if in that March turned out to be negative. It would be a lower number, right?

當然。我很高興這樣做，約翰，這是我們自去年以來一直在這個調節表中使用的演示文稿，因為我們沒有指導調整後的淨收入，因為一些波動性標誌著這種觀點淨虧損不包括在內，這就是星號和星號腳註所說的不包括我們對分數的預測，對吧？因此，如果淨分數為正，那麼如果該三月的淨分數為負，那麼這個數字將會更高。這會是一個更低的數字，對嗎？

But adjusted EBITDA continues to fully back out all the marks like it has before, right? It was it. So here we're saying that we're expecting to have on the new calculation basis, $60 million to $70 million of adjusted EBITDA for 2024.

但調整後的 EBITDA 繼續像以前一樣完全抵消所有標記，對嗎？就是這樣。因此，我們在這裡表示，根據新的運算基礎，我們預計 2024 年調整後 EBITDA 將達到 6,000 萬至 7,000 萬美元。

Is that helpful.

有幫助嗎？

I probably need some time to get my hands on it. But did you mention something like a $94 million fair value adjustment on the debt between now and the end of the year?

我可能需要一些時間來掌握它。但您是否曾提到從現在到年底對債務進行 9,400 萬美元的公允價值調整？

You know, let me let me clarify, that's over two years, right? So we made changes both to our calculation going forward to adjusted EBITDA and to adjusted net income adjusted for adjusted EBITDA. It has always added back the full fair value mark-to-market that hasn't that part of adjusted EBITDA hasn't changed what we're changing for adjusted net income.

你知道，讓我澄清一下，已經兩年多了，對吧？因此，我們對未來調整後 EBITDA 的計算以及根據調整後 EBITDA 調整的調整後淨利潤進行了更改。它總是加回市值計價的全部公允價值，但這部分調整後的 EBITDA 並沒有改變我們調整後的淨利潤的變化。

Is that going where previously we had not made any mark-to-market changes. Now we're going to be backing out the impact of the mark on the fair value of asset-backed notes, right? So just recall that starting last year, we stopped electing fair value for any new financings we did. And so of those fair value notes that are still on our balance sheet, they are going to run off right.

這是我們之前沒有進行任何以市值計價的改變嗎？現在我們要取消標記對資產支持票據公允價值的影響，對吧？因此，請記住，從去年開始，我們停止為我們所做的任何新融資選擇公允價值。因此，對於仍在我們資產負債表上的那些公允價值票據，它們將很快消失。

And currently they are marked at a $95 price, right? And so there is $94 million of discount relative to par, right? As bonds go to maturity, right? They go to par and so over the next two years, not one year over the next two years, we would expect in our GAAP net income to realize that full impact, right. So some were going to be on that.

目前它們的標價是 95 美元，對嗎？那麼相對於面額有 9400 萬美元的折扣，對吧？當債券到期時，對嗎？它們會達到標準，因此在未來兩年，而不是未來兩年的一年，我們預計我們的 GAAP 淨利潤將實現全部影響，對吧。所以有些人會參與其中。

But I mean, just so I'm clear, but that's not in the net loss that you put for fiscal year 24?

但我的意思是，我想澄清一下，但這不包括在您為第 24 財年計算的淨虧損中嗎？

That's right. I agree. That's right. So let's let's just use simple math to do an example together, right? Let's say it's half and half, let's say that $94 million that we would have recognized half of that in '24 and the other half in '25, right? So half of that is $48 million, right? So, when we report adjusted when we report adjusted net income for the year one, it will have a benefit of whatever happens on the fair value side for the loans.

這是正確的。我同意。這是正確的。那麼就讓我們一起用簡單的數學來做一個例子吧？假設是一半對一半，假設 9,400 萬美元我們會在 24 年承認一半，在 25 年承認另一半，對吧？那麼其中一半就是 4800 萬美元，對嗎？因此，當我們報告第一年調整後淨利時，無論貸款公允價值方面發生什麼情況，都會受益。

But to if there is a over the course of the year, a negative $48 million impact on the notes. We'll back that out basically of which only what you mean the number will be high. The adjusted number will be higher. You may have noticed elsewhere in our materials and in our remarks that we expect to have profitability on this adjusted net income basis for 2024.

但如果在一年內出現這種情況，將對票據產生 4,800 萬美元的負面影響。我們基本上會支持這一點，其中只有您所說的數字才會很高。調整後的數字會更高。您可能已經在我們的資料和評論中註意到，我們預計在 2024 年調整後的淨利潤基礎上實現盈利。

Okay. And then remind me these are the what are the how do I think about fair value mark on loans sold in the coming year?

好的。然後提醒我，我如何看待來年出售的貸款的公允價值標記？

Yes, that's included within our estimate of adjusted EBITDA we'll treat that in the same way, right? So we feel we've got a forecast that sits behind our guidance, and that forecast includes an assumption for have a fair value loan sold.

是的，這包含在我們對調整後 EBITDA 的估計中，我們會以相同的方式對待它，對嗎？因此，我們認為我們的指導背後有一個預測，該預測包括出售公允價值貸款的假設。

Okay. I might have to take this offline to understand the changes.

好的。我可能需要離線才能了解這些變化。

That you would to they get on with it pretty happy to do that. I think the only thing I would add is those markets have created noise right over the years because you've certainly followed the Company for years. And one of the things that I'm really optimistic about and that we were trying to communicate in our comments here, Jonathan mentioned in his comments, the fact that we expect to substantially enhance our profitability in 2024.

你會很高興他們能繼續這樣做。我想我唯一要補充的是，這些市場多年來一直在製造噪音，因為你肯定已經關注該公司多年了。喬納森在評論中提到，我真正樂觀的事情之一以及我們試圖在評論中傳達的事情之一是，我們預計 2024 年的盈利能力將大幅提高。

You can see that in adjusted EBITDA, Jonathan mentioned we expect that in adjusted net income as well. And again, I think there was there has been noise in GAAP net income. We do expect a significant improvement in GAAP net income year over year as well because the three profitability measures by and large tend to track each other by again, though there can be a bit of noise. So that is one of the things that makes us feel really good about turning the corner, we look at the trajectory in losses.

您可以看到，在調整後的 EBITDA 中，喬納森提到我們預計調整後的淨利潤中也是如此。再說一遍，我認為公認會計準則淨利潤中存在著噪音。我們確實預計 GAAP 淨利潤也將同比顯著改善，因為儘管可能存在一些噪音，但三項盈利能力指標總體上往往會再次相互追蹤。因此，這是讓我們對扭轉局面感覺非常好的事情之一，我們會專注於損失的軌跡。

We look at the positive indications and funding. And we do see now the benefits of also the significant OpEx reductions. So I'm happy to spend more time right off-line. Like you said, it takes a little bit to wrap one's head around it, but we do expect significant improvement in all the profitability measures this year.

我們專注於積極的跡象和資金。我們現在確實看到了營運支出大幅削減的好處。所以我很樂意花更多的時間離線。正如您所說，這需要一點時間來理解，但我們確實預計今年所有獲利指標都會顯著改善。

And add in an entire this, but bear the fair value adjustment on the loans, you can have mark to market adjustments, but then there's also you net out charge-offs in that, correct?

加上整個這一點，但承擔貸款的公允價值調整，你可以進行按市價調整，但你也可以從中扣除沖銷，對嗎？

Yes. Well, I know Chuck, right. Charge-offs are not added back to any of these metrics, right charge-offs, reduce all of our earnings metrics.

是的。嗯，我認識查克，對吧。沖銷不會加回任何這些指標，正確的沖銷會減少我們所有的收益指標。

So did the I apologize and I'll get back in the queue. The net loss have anticipated charge-offs and as stated there.

我也道歉了，然後我會回到隊列。淨虧損已預期沖銷並如其中所述。

Yes.

是的。

Okay. So it's charge-offs oriented it, but not fair value marks. and that's from mark to market.

好的。所以它是沖銷導向的，而不是公允價值標記。這是從市場到市場的過程。

Yes, that's right. That's always been true of which that's always been true of adjusted EBITDA, and that continues to be true.

恩，那就對了。這一直是正確的，調整後的 EBITDA 也是如此，而且仍然如此。

But losses on page 33, losses are absolutely included in those numbers. Okay. So a Okay. I think I got it out of schedule a follow-up call with you guys because you are kitchen. Thanks, guys.

但第33頁的損失，損失絕對包含在這些數字中。好的。那麼好吧。我想我沒有按計劃與你們進行後續通話，因為你們是廚房。多謝你們。

Thanks, John.

謝謝，約翰。

Thank you. Our next question comes from the line of Hal Goetsch with B. Riley Securities. Please plead with your question, guys.

謝謝。我們的下一個問題來自 Hal Goetsch 和 B. Riley Securities 的對話。夥計們，請回答你們的問題。

I've got two questions. One is on the unit economics bridge. You have a 12.5% operating expense ratio. Is that a is that a number that's targeted for a certain level of the size of the portfolio? How big and can you refresh our memory? What's up with the increased cost cuts what do you think your quarterly expenses are going to and that's kind of the goal for run for a level. Thank you.

我有兩個問題。一是在單位經濟橋樑上。您的營運費用率為 12.5%。這是一個針對一定程度的投資組合規模的目標數字嗎？有多大，能刷新我們的記憶嗎？增加的成本削減是怎麼回事，你認為你的季度開支會是多少，這就是運作水準的目標。謝謝。

Yes, no, great question now so just to remind you, we actually said I said in earnings that we are targeting now with these additional cost cutting actions that fourth quarter of this year 2024 for GAAP OpEx will be around $97.5 million.

是的，不，現在是一個很好的問題，所以只是提醒您，我們實際上說過我在收益中說過，我們現在的目標是通過這些額外的成本削減行動，到2024 年第四季度GAAP營運支出將達到9,750 萬美元左右。

Okay. Thank you.

好的。謝謝。

Yes. And so then getting back to your question about the operating expenses, we also said that we expect the portfolio to be generally flat year end. So let's say that that's true that that comes to pass as anticipated. And so if you took that $97.5 million of GAAP OpEx and you divide it by the owned receivables and, you know, in the fourth quarter and annualized, you would come up with a number in the mid thirteens right. So you can get to 12.5 in the future with just some incremental growth.

是的。回到你關於營運費用的問題，我們也表示，我們預計投資組合年底將基本持平。因此，我們可以說，這確實是如預期的那樣發生。因此，如果你將 9,750 萬美元的 GAAP 營運支出除以自有應收帳款，你知道，在第四季度進行年化計算，你會得到一個 13 左右的數字。因此，未來只需進行一些增量成長即可達到 12.5。

Okay. And could you add a little color on the demand side? I mean, clearly, investors at 10 times oversubscribed suggest there's a lot of investor demand for this for this high yielding paper. Could you comment on that?

好的。您能否在需求方面添加一些色彩？我的意思是，很明顯，10 倍超額認購的投資者表明，投資者對這種高收益債券有很多需求。你能否對此發表評論？

And then two, on the demand by consumers and you mentioned another tightening, but can you just give us a feel for like what's coming in the top of funnel? Is demand quite high on the consumer side to just give us a feel for both sides of the platform things?

然後是兩個，關於消費者的需求，您提到了另一項緊縮政策，但您能否讓我們了解一下漏斗頂部會發生什麼？消費者方面的需求是否很高，只是為了讓我們感受到平台雙方的狀況？

Sure. So starting with the funding side that our ABS deal that we did in February was 10 times oversubscribed. It certainly is a strong market and we benefited from that. But it's also particularly indicative of the strong following opportunities. A securitization platform has in the asset-backed market since we've been doing deals for over 10 years now. And I'm yes, certainly, it represents confidence in our future loss performance as well as the on the business model. So that's terrific, right. We priced at 8.4%, 160 basis points better than where we were in October. And the market continues to be strong, and we would expect that would come to market again this year.

當然。因此，從資金方面開始，我們在 2 月進行的 ABS 交易獲得了 10 倍的超額認購。這無疑是一個強大的市場，我們從中受益。但這也特別顯示了強大的追隨機會。自從我們進行交易以來已經有十多年了，資產支援市場上已經有了一個證券化平台。我是的，當然，它代表了對我們未來的虧損表現以及商業模式的信心。所以這太棒了，對吧。我們的定價為 8.4%，比 10 月高出 160 個基點。市場持續強勁，我們預計今年將再次上市。

Certainly one of the things investors looked at and we actually included in our deck was the slide that you saw on page 6, which shows how well the recent vintages are performing right? And this deal of the basically only included those. The more recent vintages are primarily and certainly investors were happy to take exposure to that loss performance given our strong risk-adjusted yield? Raul , you want to take the consumer question?

當然，投資者關注的內容之一（我們實際上將其納入我們的套牌中）就是您在第 6 頁上看到的幻燈片，它顯示了最近年份的表現如何，對嗎？而這筆交易基本上只包括那些。鑑於我們強勁的風險調整收益率，最近的年份主要且當然投資者很樂意承受這種損失表現？勞爾，你想回答消費者問題嗎？

Yes. On the consumer side, as I mentioned earlier, right, we certainly how continue to have a conservative underwriting stance, marketing we shared in our earnings. If you look at the earnings deck that we spent $18 million in marketing in Q4, that was down {50%} year-over-year. So I think from a demand perspective, we actually feel good about the demand that we see right now at the top of the funnel, given the lower marketing expenditures we did share that the credit quality is something also that we're pleased with in terms of who's coming through the door and who we're attracting with our marketing efforts.

是的。在消費者方面，正如我之前提到的，我們當然會繼續保持保守的核保立場，我們在收益中分享的行銷。如果你看我們第四季行銷支出 1800 萬美元的損益表，就會發現年減了 {50%}。因此，我認為從需求的角度來看，我們實際上對現在在漏斗頂部看到的需求感到滿意，因為我們確實分享了較低的營銷支出，而且信貸質量也讓我們感到滿意誰進門以及我們的行銷努力吸引了誰。

And so we think as the economy continues to normalize. And if we continue to see this good credit performance that we're really optimistic about how we could see ourselves potentially starting to open up in the second half of the year and trying to drive more demand.

因此，隨著經濟繼續正常化，我們認為。如果我們繼續看到這種良好的信貸表現，我們對如何在今年下半年開始開放並試圖推動更多需求感到非常樂觀。

And then last follow-up is, I think in the third quarter call, you mentioned a little bit of potential weakness in pharma vintages that were after the first tightening. Is it safe to say that either those those fears over that initial performance cleared itself or improved at a rebound it might be my takeaway from the commentary today. Let's make sure I heard that right. Is that the message today, it's that's a great memory. How so if you look at that same page that Jonathan was talking about, that is first tightening would be the same kind of the very, very tail end of Q2 or the beginning of Q3. So Q2 you could see is right on top of Q1, right?

最後的後續行動是，我認為在第三季的電話會議中，您提到了第一次緊縮之後製藥年份的一些潛在疲軟。可以肯定地說，那些對最初表現的擔憂要么自行消失，要么在反彈時有所改善，這可能是我今天評論中的收穫。讓我們確保我沒聽錯。這就是今天的訊息嗎，這是一個美好的回憶。如果你看看喬納森正在談論的同一頁，那就是第一次緊縮將與第二季的尾聲或第三季的開頭相同。所以你可以看到 Q2 就在 Q1 的上面，對嗎？

That gray line. We didn't start to separation Q3 There is some separation, but we like the fact that the more recent vintages are even below that purple acute the reline. And so this is what we were hoping for as we continued to tighten in '22 and '23, we're just continuing to see the lines be below the prior quarter. And like we shared in our comments.

那條灰線。我們沒有開始分離第三季度有一些分離，但我們喜歡這樣一個事實，即最近的年份甚至低於紫色銳線。因此，這就是我們在 22 年和 23 年繼續收緊政策時所希望的，我們只是繼續看到這條線低於上一季。就像我們在評論中分享的那樣。

And as Jonathan mentioned, this is one of the things that led to that really successful securitization. When we look at early kind of that one to 29 delinquencies running below prior year in our view that Q1 delinquencies could be below what we reported last year in Q1 '2023. But those are the things that are giving us confidence that if these things hold right, we've really started to turn the corner from a credit perspective, you combine that then with the positive indications on funding, right, the improved profitability from the OpEx reduction, including our desire to run even leaner, right, with these new $30 million and we think we're setting ourselves up for a good 24 and certainly a good 25.

正如喬納森所提到的，這是導致證券化真正成功的因素之一。當我們查看早期的 1 到 29 項拖欠率低於去年同期時，我們認為第一季的拖欠率可能低於我們去年在 2023 年第一季報告的水平。但這些讓我們有信心，如果這些事情正確的話，我們真的已經開始從信貸角度扭轉局面，然後將其與資金方面的積極跡象結合起來，對吧，運營支出提高的盈利能力減少開支，包括我們希望透過新的3000 萬美元來實現更精簡，對吧，我們認為我們正在為24 歲，當然還有25 歲做好準備。

Thank you.

謝謝。

Thank you, Hal.

謝謝你，哈爾。

Thank you. Our next question comes from the line of Rich Shane with JPMorgan. Please proceed with your question.

謝謝。我們的下一個問題來自 Rich Shane 與摩根大通的對話。請繼續你的問題。

Hey, guys, it's Melissa on for Rick today and I wanted to ask. Hi, I wanted to dig in a little bit on sort of the trajectory or the cadence of NCO expectations during the year? I mean, given the extra tightening actions that you've taken sort of over the last 18 months, or so, but also with the shift towards the front book that you expect to continue over the rest of this year, should we be thinking about anything separately on NPR trajectory or should we expect some normal seasonality?

嘿，夥計們，今天是梅麗莎為里克做節目，我想問一下。你好，我想深入了解今年 NCO 預期的軌跡或節奏？我的意思是，考慮到你們在過去 18 個月左右採取的額外緊縮行動，而且你們預計在今年剩餘時間裡將繼續轉向頭版，我們是否應該考慮NPR 軌跡上有什麼單獨的變化，還是我們應該期待一些正常的季節性？

Yes, Melissa, it's Jonathan. I would expect normal seasonality. I think most of the elements of our business this year will return to normal seasonality and so I think that's probably the best assumption to use for modeling.

是的，梅麗莎，我是喬納森。我預計正常的季節性。我認為今年我們業務的大部分要素將恢復正常的季節性，因此我認為這可能是用於建模的最佳假設。

Okay. Thanks. And then to the comment in the slide deck about incorporating the new risk model to account for some of the learnings from an inflationary period. I'm curious what that has done to sort of the contours of origination that that means skewing more towards secured. Does it change some geographic dynamics. What are you seeing in that?

好的。謝謝。然後是幻燈片中關於納入新風險模型以解釋通貨膨脹時期的一些經驗教訓的評論。我很好奇這對起源的輪廓有何影響，這意味著更多地偏向安全。它會改變一些地理動態嗎？你從中看到了什麼？

I think that there are a couple of elements that we're seeing on number one. We think we've made some adjustments that are going to allow us to look for individuals that aren't necessarily taking on as much debt after taking out the opportune loan. Think it's given us a chance in some way solicited go back to the thinner file some individuals that historically have been a strong niche for us, but at the same time, also finding the individuals with the high Vantage scores that we mentioned. And then certainly the ability to go ahead and find some people that we think are willing to accept the lower losses and shorter terms that I mentioned all of those are things that we think we've been able to execute with the improvements in the models, one of which we talked about today.

我認為我們在第一方面看到了幾個要素。我們認為我們已經做出了一些調整，這將使我們能夠尋找在獲得適當貸款後不一定承擔那麼多債務的個人。我認為這給了我們一個機會，以某種方式邀請我們回到更薄的文件中，一些歷史上對我們來說是一個強大的利基的人，但同時，也找到了我們提到的具有高Vantage 分數的人。當然，我們也有能力繼續尋找一些我們認為願意接受更低損失和更短條款的人，我提到所有這些都是我們認為透過模型的改進我們已經能夠執行的事情，我們今天談到了其中之一。

Your comment, unsecured personal loan also is going to be something that we think is going to be able to drive good credit performance in the remainder of the year. We shared that losses in 2023 for secured personal loans were about 350 basis points lower than for the unsecured loans. And one of our objectives this year is to be able to grow that book of secured personal loans.

您的評論是，我們認為無擔保個人貸款也將能夠在今年剩餘時間內推動良好的信用表現。我們表示，2023 年有擔保個人貸款的損失比無擔保貸款低約 350 個基點。我們今年的目標之一是能夠增加擔保個人貸款的規模。

Okay. Thank you.

好的。謝謝。

Thank you. There are no further questions at this time. I'd like to pass. I call back over to Val. Well, Bhaskar for closing remarks.

謝謝。目前沒有其他問題。我想通過。我又打電話給瓦爾。巴斯卡致閉幕詞。

We want to thank everyone once again for joining us on today's call, and we look forward to speaking with you again soon. Thank you.

我們要再次感謝大家參加今天的電話會議，我們期待很快能再次與您交談。謝謝。

Yes, thank you.

是的，謝謝。

This concludes today's teleconference. You may disconnect your lines at this time. Thanks for your participation.

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。