Pagaya Technologies Ltd (PGY) 2023 Q4 法說會逐字稿

Greetings, and welcome to the Pagaya Q4 2023 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Pagaya 2023 年第四季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Jency John. Thank you. You may begin.

現在我很高興向大家介紹你們的主持人珍西·約翰。謝謝。你可以開始了。

Thank you, and welcome to Pagaya's fourth-quarter and full-year 2023 earnings conference call.

謝謝，歡迎參加 Pagaya 第四季和 2023 年全年財報電話會議。

Joining me today to talk about our business and results are Gal Krubiner, Chief Executive Officer of Pagaya; Sanjiv Das, President; and Evangelos Perros, Chief Financial Officer. You can find the materials that accompany our prepared remarks and a replay of today's webcast on the Investor Relations section of our website at investor.pagaya.com.

今天與我一起談論我們的業務和業績的是 Pagaya 執行長 Gal Krubiner；桑吉夫·達斯，總裁；和財務長 Evangelos Perros。您可以在我們網站的投資者關係部分找到我們準備好的評論的材料以及今天網絡廣播的重播，網址為investor.pagaya.com。

Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve certain risks and uncertainties. These statements include, but are not limited to, our competitive advantages and strategies, macroeconomic conditions and outlook, future products and services, and future business and financial performance, including our financial outlook for the first quarter and full year 2024. Our actual results may differ from those contemplated by these forward-looking statements.

我們今天的言論將包括基於我們當前預期和預測的前瞻性陳述，並涉及某些風險和不確定性。這些陳述包括但不限於我們的競爭優勢和策略、宏觀經濟狀況和前景、未來產品和服務以及未來業務和財務業績，包括我們對 2024 年第一季和全年的財務展望。我們的實際結果可能與這些前瞻性陳述中預期的結果有所不同。

Factors that could cause these results to differ materially are described in today's press release and fillings and in our Form 20-F filed on April 20, 2023 with the US Securities and Exchange Commission, as well as our subsequent filings made with the SEC. 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.

今天的新聞稿和填充資料、我們於 2023 年 4 月 20 日向美國證券交易委員會提交的 20-F 表格以及我們隨後向 SEC 提交的文件中描述了可能導致這些結果出現重大差異的因素。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，我們不承擔因新資訊或未來事件而更新這些陳述的義務。

Additionally, non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, fee revenue less production costs, or FRLPC, FRLPC margin, and core operating expenses, will be discussed on the call. Reconciliations to the most directly comparable GAAP financial measures are available, to the extent available without unreasonable efforts, in our earnings release and other materials, which are posted on our investor relations website. We encourage you to review the shareholder letter, which was furnished with the SEC on Form 6-K today, for detailed commentary on our business and performance in conjunction with our company earnings supplement and press release.

此外，電話會議還將討論非公認會計準則財務指標，包括調整後 EBITDA、調整後 EBITDA 利潤率、調整後淨利潤、費用收入減去生產成本或 FRLPC、FRLPC 利潤率和核心營運費用。在我們的投資者關係網站上發布的收益報告和其他資料中，可以在不採取不合理努力的情況下，找到與最直接可比較的公認會計準則財務指標的對帳。我們鼓勵您閱讀今天向 SEC 提交的 6-K 表格中的股東信函，以結合我們公司的收益補充和新聞稿對我們的業務和業績進行詳細評論。

With that, let me turn the call over to Gal.

那麼，讓我把電話轉給蓋爾。

Thanks, Jency.

謝謝，珍西。

Before I begin, I'm pleased to note that joining me today on our call is Evangelos Perros, or EP, our newly announced permanent CFO; and Sanjiv Das, who joined us a few months ago as our President. These two leaders have decades of experience in financial services and consumer lending between them.

在開始之前，我很高興地註意到，今天加入我們電話會議的是我們新任命的常任財務長 Evangelos Perros（EP）；還有桑吉夫達斯 (Sanjiv Das)，他幾個月前加入我們，擔任我們的總裁。這兩位領導人在金融服務和消費貸款領域擁有數十年的經驗。

EP previously had senior roles in finance and investment banking at JPMorgan Chase and, most recently, was a Managing Director and Head of Business Planning & Analytics at Apollo. He started at Pagaya about two years ago and has been instrumental in taking our company to a new level of profitability and disciplined financial execution. Sanjiv brings with him deep experience in consumer lending and capital markets, having served as the CEO of Citi Mortgage Division and in senior roles at Morgan Stanley, American Express, and Bank of America, and most recently, the CEO of Caliber Home Loans.

EP 先前曾在摩根大通 (JPMorgan Chase) 的金融和投資銀行部門擔任高階職務，最近擔任 Apollo 的董事總經理兼業務規劃與分析主管。大約兩年前，他開始在 Pagaya 工作，在將我們公司的盈利能力和嚴格的財務執行力提升到新水平方面發揮了重要作用。Sanjiv 在消費貸款和資本市場方面擁有豐富的經驗，曾擔任花旗抵押貸款部門首席執行官，並在摩根士丹利、美國運通和美國銀行擔任高級職務，最近還擔任 Calibre Home Loans 的首席執行官。

They will share today their perspectives on the opportunities ahead of Pagaya, which will inform their respective priorities in 2024 and beyond. I'm proud of the talent we have brought into this organization, and I'm confident that these two leaders will take our company to the next level.

今天，他們將分享對 Pagaya 面臨的機會的看法，這將為他們各自 2024 年及以後的優先事項提供資訊。我為我們為這個組織帶來的人才感到自豪，我相信這兩位領導者將帶領我們的公司更上一層樓。

Moving on to discuss our results in 2023, 2023 was a record year in Pagaya's history. We far exceeded the target we set at the start of the year, with full-year network volume of $8.3 billion, total revenue of $812 million, and adjusted EBITDA of $82 million. We are delivering sustainable profitability with an improvement in adjusted EBITDA now for four quarters in a row, reaching an annualized run rate of over $135 million based on the fourth quarter.

接下來討論我們 2023 年的業績，2023 年是 Pagaya 歷史上創紀錄的一年。我們遠遠超出了年初設定的目標，全年網路規模達 83 億美元，總收入達 8.12 億美元，調整後 EBITDA 達 8,200 萬美元。我們正在實現可持續的盈利能力，調整後的 EBITDA 已連續四個季度有所改善，第四季度的年化運行率超過 1.35 億美元。

Network volume grew 33% in Q4, also growing from the past four consecutive quarters. We increased monetization of our lending network, with our personal loan vertical now generating an average FRLPC of 5.5% and some of our top partners generating FRLPC above 6%. We reported our second consecutive quarter of positive GAAP operating income and positive cash flow from operations.

第四季網路流量成長了 33%，也較過去連續四個季度成長。我們提高了貸款網絡的貨幣化程度，我們的個人貸款垂直領域現在產生的平均 FRLPC 為 5.5%，我們的一些頂級合作夥伴產生的 FRLPC 超過 6%。我們報告了連續第二個季度實現正 GAAP 營業收入和正營運現金流。

The integration of our 2023 cohort of lending partners is progressing well. Our product with U.S. Bank is already delivering a 2x activation rate, compared to our personal loan product average. In auto, expansion with three leading national auto lenders gives us access to thousands of new dealerships across the US. And in SFR, Darwin, our tech-enabled property management platform, is now catering to some of the country's largest institutional clients, and we are on track to managing 13,000 homes on the platform by the first half of 2024.

我們 2023 年貸款夥伴群的整合進展順利。與我們的個人貸款產品平均值相比，我們與美國銀行合作的產品已經提供了 2 倍的活化率。在汽車領域，與三大領先的全國汽車貸款機構的擴張使我們能夠接觸到美國各地數千家新的經銷商。在 SFR，我們的技術支援型物業管理平台 Darwin 目前正在為該國一些最大的機構客戶提供服務，我們預計將在 2024 年上半年在該平台上管理 13,000 套房屋。

Our pre-funded model enabled us to effectively optimize for growth throughout 2023. We solidified our leadership as the number one personal loan ABS issuer in the country, issuing $6.6 billion across 15 deals and growing our investor branch by 31 new firms. We continued the momentum with the addition of 11 new investors in just January this year, reflecting continued strong demand for our financial products. By achieving a step change in our network in 2023, we believe 2024 will be a year of momentum. We aim to accelerate our growth as a product and partner-centric company.

我們的預資助模式使我們能夠有效優化整個 2023 年的成長。我們鞏固了作為全國第一大個人貸款 ABS 發行人的領導地位，在 15 筆交易中發行了 66 億美元，並透過 31 家新公司擴大了我們的投資者部門。今年 1 月份，我們繼續保持這一勢頭，新增了 11 名投資者，反映出對我們金融產品的持續強勁需求。透過在 2023 年實現我們的網路的階梯變革，我們相信 2024 年將是充滿動力的一年。我們的目標是加速發展成為一家以產品和合作夥伴為中心的公司。

Since our inception in 2016, our vision was to use technology to enable the financial services industry to provide more American customers with access to credit. After scaling our flagship product, our second-stage re-evaluation program, we developed an enterprise-grade lending product that could meet the needs of the largest financial institutions in the country. This led to the onboarding of lenders like Ally Financial, Klarna, U.S. Bank, Westlake, a top five auto captive, and Exeter.

自 2016 年成立以來，我們的願景是利用科技使金融服務業為更多美國客戶提供信貸服務。在擴大我們的旗艦產品（第二階段重新評估計畫）後，我們開發了一種企業級貸款產品，可以滿足國內最大的金融機構的需求。這導致 Ally Financial、Klarna、U.S. Bank、排名前五的汽車自保公司 Westlake 和 Exeter 等貸方的加入。

Our integration with larger scale lenders is helping us understand how to be the true partner in achieving their growth objectives. The raise of integration with each of our partners can be utilized to cross-sell more products, expanding to new verticals and broadening the reach into new customer segments. This will form the basis of our 2024 product and partner strategy, paving the path for Pagaya to become the trusted lending technology partner for the country's largest financial institutions as we march towards becoming a $25 billion network volume company.

我們與大型貸方的整合幫助我們了解如何成為實現其成長目標的真正合作夥伴。與每個合作夥伴的整合程度的提高可用於交叉銷售更多產品，擴展到新的垂直領域並擴大新客戶群的覆蓋範圍。這將構成我們 2024 年產品和合作夥伴策略的基礎，為 Pagaya 成為全國最大的金融機構值得信賴的貸款技術合作夥伴鋪平道路，同時我們將邁向成為一家價值 250 億美元的網路容量公司。

Our 2024 strategy consists of three key elements: number one, expanding our product to new enterprise lenders; number two, deepening existing partnerships and enhancing network monetization; and number three, building out the roadmap to expand our product ecosystem.

我們的 2024 年策略由三個關鍵要素組成：第一，將我們的產品擴展到新的企業貸款機構；第二，深化現有合作關係並增強網路貨幣化；第三，制定路線圖以擴展我們的產品生態系統。

First, we plan to expand our product to new large-scale enterprise lenders across markets. Last week, in collaboration with U.S. Bank, we announced our exciting new partnership in our personal loan vertical. With a top five bank, we now have four enterprise-level lenders, including Ally Financial, SoFi, and a top five auto captive in our lending technology ecosystem. That means our flagship product not only meets the advanced technology needs of large lenders, but the rigid regulatory and compliance standouts of the US consumer banks.

首先，我們計劃將我們的產品擴展到各市場的新大型企業貸款機構。上週，我們與全美銀行合作，宣佈在個人貸款垂直領域建立令人興奮的新合作關係。有了排名前五的銀行，我們現在在貸款技術生態系統中擁有了四家企業級貸款機構，包括 Ally Financial、SoFi 和排名前五的汽車自保公司。這意味著我們的旗艦產品不僅滿足大型貸方的先進技術需求，而且滿足美國消費銀行嚴格的監管和合規要求。

Our recent conversations with other marquee lenders, both in and outside of our current pipeline, gives me confidence that our flagship product is in a high demand, and we will be able to add more banks, auto captive, and other large US lenders to our network in this near term. The addition of each enterprise lender means connecting to millions of new customers the opportunity to extend across multiple products and tens of millions of dollars to our bottom line once fully wrapped.

我們最近與目前通路內外的其他大型貸款機構進行的對話讓我相信，我們的旗艦產品需求量很大，我們將能夠將更多的銀行、汽車自保機構和其他大型美國貸款機構添加到我們的產品中。每個企業貸款機構的加入意味著與數百萬新客戶建立了跨多種產品的機會，一旦完全解決，我們的利潤將達到數千萬美元。

Second, we will aim to deepen existing partnerships and enhance network monetization. By accelerating volume growth with our newer partners, we believe we can bring economics more in line with our mature partners, who are currently earning FRLPC above 5%. EP will speak more to this in a moment.

其次，我們將致力於深化現有合作夥伴關係並增強網路貨幣化。透過加速與新合作夥伴的銷售成長，我們相信我們可以使經濟與我們成熟的合作夥伴更加一致，他們目前的 FRLPC 收入超過 5%。EP 稍後將詳細討論這一點。

Third, and what excites me the most about Pagaya's future, is that we will build more products for the lenders in our ecosystem. Banks are in a race to transform the customer experience, as well as their internal systems, with technology. Our experience partnering with the country's leading fintechs over the last few years means that we are uniquely positioned to help banks connect with their customers through online channels, bringing them one step closer to their customers.

第三，Pagaya 的未來最令我興奮的是，我們將為生態系統中的貸款人打造更多產品。銀行正在競相利用科技來改變客戶體驗及其內部系統。過去幾年我們與國內領先的金融科技公司合作的經驗意味著我們具有獨特的優勢，可以幫助銀行透過線上管道與客戶建立聯繫，使他們與客戶的距離更近一步。

Example of products that are in high demand for banks are point-of-sale solutions and online pre-qualification marketing products that are delivered in-app and rewards to partner existing customers with additional credit opportunities on a push basis. These examples are just scratching the surface of what our technology, product infrastructure, and funding capabilities can achieve.

銀行需求量大的產品範例包括銷售點解決方案和線上資格預審行銷產品，這些產品在應用程式內提供，並透過推送方式向合作夥伴現有客戶提供額外的信貸機會。這些例子只是我們的技術、產品基礎設施和融資能力所能實現的目標的冰山一角。

As we expand our product ecosystem, Pagaya is well positioned to become the country's go-to lending technology partner. The success of our 2024 growth plan will rely on the disciplined and balanced approach to volume growth, profitability, and capital allocation as we aim to move from delivering positive cash flow from operating activities to total net cash flow positive by early 2025. EP will discuss in more details in a few moments.

隨著我們擴大產品生態系統，Pagaya 已做好準備成為該國的首選貸款技術合作夥伴。我們2024 年成長計畫的成功將依賴於在銷售成長、獲利能力和資本配置方面採取嚴格且平衡的方法，因為我們的目標是到2025 年初從經營活動產生的正現金流轉變為總淨現金流為正。EP 稍後將進行更詳細的討論。

To close, I believe Pagaya is in a strong position to transform the consumer finance ecosystem at scale. Our differentiated product and efficient funding strategy has positioned us to lend transformational lending partners and deliver record financial performance. We expect to capitalize on this momentum as we execute in 2024.

最後，我相信 Pagaya 在大規模轉變消費金融生態系統方面處於有利地位。我們差異化的產品和高效的融資策略使我們能夠向轉型貸款合作夥伴提供貸款並實現創紀錄的財務表現。我們預計在 2024 年執行時將利用這一勢頭。

With that, let me pass it over to Sanjiv to discuss his views on the company's evolutions from here.

接下來，讓我將其轉交給 Sanjiv，討論他對公司發展的看法。

Thank you, Gal. I want to start by sharing why I chose to come to Pagaya.

謝謝你，加爾。我想先分享為什麼我選擇來到Pagaya。

I joined because of its unique value proposition in the network between consumer lenders and capital providers who seek exposure in this asset class. I believe the decisions Pagaya has made over the past two years to focus on banks as partners and in scaling and diversifying its funding base were absolutely the right ones. Banks need Pagaya's products more than ever.

我之所以加入，是因為它在消費者貸方和尋求此類資產類別投資的資本提供者之間的網絡中具有獨特的價值主張。我相信 Pagaya 在過去兩年中做出的決定，即專注於銀行作為合作夥伴以及擴大其融資基礎並使其多元化，這絕對是正確的。銀行比以往任何時候都更需要 Pagaya 的產品。

The current interest rate environment and regulatory conditions have resulted in a broader trend in the tightening of credit. While at the same time, there is significant amounts of private capital waiting to be deployed into quality consumer assets, specifically those underwritten by high-quality, data-driven AI models. These trends create a unique opportunity to capture the full value we can provide to lenders by partnering with them through products that are complementary and deeply integrated in their lending ecosystem.

當前的利率環境和監管條件導致了更廣泛的信貸收緊趨勢。同時，還有大量私人資本等待部署到優質消費資產，特別是那些由高品質、數據驅動的人工智慧模型所承保的資產。這些趨勢創造了一個獨特的機會，讓我們能夠透過與貸方合作，透過與其貸款生態系統互補且深度整合的產品來獲取我們可以為貸方提供的全部價值。

Building this institutionalized capability will be our focus in 2024. We are now developing a clear product roadmap, as we expect to expand our footprint to new lenders and deepen our current relationships while creating new monetization opportunities for Pagaya. We are exploring more capital-efficient products that can enhance our firepower as we ramp up network volume from recent partnerships. We will continue to optimize capital allocation in a very disciplined way as we strengthen our funding network while prioritizing financial flexibility and risk management.

建構這種制度化的能力將是我們 2024 年的重點。我們現在正在製定清晰的產品路線圖，因為我們希望將我們的足跡擴大到新的貸方並加深我們當前的關係，同時為 Pagaya 創造新的貨幣化機會。我們正在探索更具資本效率的產品，隨著我們透過最近的合作夥伴關係增加網路容量，這些產品可以增強我們的火力。我們將繼續以非常嚴格的方式優化資本配置，加強我們的融資網絡，同時優先考慮財務靈活性和風險管理。

Critical to our success in the long-term is an organization that is laser-focused on disciplined execution to achieve our mission. The organization that we initially built laid the foundation to deliver a single product to lenders. We are now evolving to become a multi-product enterprise. Our execution will be governed by a strong focus on enhancing margins and capital efficiency as we grow. We are only at the beginning of a continued evolution, and I'm excited for what the future holds.

我們的長期成功的關鍵是一個專注於嚴格執行以實現我們使命的組織。我們最初建立的組織為向貸方提供單一產品奠定了基礎。我們現在正在發展成為多產品企業。隨著我們的發展，我們的執行將重點放在提高利潤和資本效率。我們正處於持續發展的開始，我對未來感到興奮。

Thank you for your time today. I will now pass it to our CFO, EP, to discuss our financial results in more detail.

感謝您今天抽出時間。我現在將其轉交給我們的財務長 EP，以更詳細地討論我們的財務表現。

Thank you, Sanjiv. I'm honored to join all of you today on my first earnings call as CFO of Pagaya. I'm looking forward to working with our leadership team as we execute on our vision and building long-term partnerships with all of you in our investment community.

謝謝你，桑吉夫。今天，我很榮幸能與大家一起參加我作為 Pagaya 財務長的第一次財報電話會議。我期待與我們的領導團隊合作，實現我們的願景，並與投資界的所有人建立長期合作關係。

As Gal mentioned, we believe our business is well positioned to execute in 2024 in light of the macro backdrop. Over the past two years, we have made significant strides to become a profitable growth company. We grew prudently in a tough market environment, prioritizing unit economics, cost efficiency, and disciplined capital allocation and risk management.

正如 Gal 所提到的，我們相信，鑑於宏觀背景，我們的業務在 2024 年執行時處於有利位置。在過去的兩年裡，我們在成為一家盈利的成長型公司方面取得了重大進展。我們在嚴峻的市場環境中謹慎發展，優先考慮單位經濟效益、成本效率以及嚴格的資本配置和風險管理。

In 2023, we delivered record network volume, total revenue, and adjusted EBITDA, exiting the year with positive quarterly cash flow from operating activities, operating income, and adjusted net income. We expect to build on this momentum in 2024 with a focus on progressing the next two financial milestones of our company: one, positive total cash flow generation by early 2025; and two, paving the way to GAAP net income profitability.

2023 年，我們實現了創紀錄的網路容量、總收入和調整後 EBITDA，以來自經營活動、營業收入和調整後淨利潤的季度正現金流量結束這一年。我們預計將在 2024 年鞏固這一勢頭，專注於推進公司接下來的兩個財務里程碑：一是 2025 年初實現正總現金流量；第二，為實現 GAAP 淨利潤鋪路。

We are taking action to deepen the monetization of our network while scaling in an efficient way to drive operating leverage. We will continue to execute a disciplined capital allocation strategy, focused on balancing profitable growth and financial flexibility. With these actions, we expect to continue to successfully navigate the evolving macro environment to deliver our plan for 2024.

我們正在採取行動深化網路貨幣化，同時以有效的方式進行擴展以提高營運槓桿。我們將繼續執行嚴格的資本配置策略，重點是平衡獲利成長和財務靈活性。透過這些行動，我們預計將繼續成功應對不斷變化的宏觀環境，實現 2024 年的計畫。

Additionally, we are committed to increasing transparency with our shareholders and taking action to increase stock marketability and drive shareholder value creation. As we announced, we will be electing to file on US domestic issuer forms beginning with our Q1 results in May. Moreover, we expect to effect a reverse stock split within the first two weeks of March with a final ratio of 1-for-12. I encourage you to read our shareholder letter and earnings supplement materials which contain details on our financial performance.

此外，我們致力於提高股東的透明度，並採取行動提高股票的適銷性並推動股東價值創造。正如我們所宣布的，我們將從 5 月份的第一季業績開始選擇提交美國國內發行人表格。此外，我們預計將在 3 月的前兩週內實施反向股票分割，最終比例為 1:12。我鼓勵您閱讀我們的股東信和收益補充資料，其中包含有關我們財務表現的詳細資訊。

Turning to our fourth-quarter results, we achieved record network volume of $2.4 billion in the quarter, up 33% year over year, with growth primarily driven by the ramp-up of new partnerships in point-of-sale and single-family rental. Total application flow was $183 billion in the fourth quarter, up 7% year over year. Our average conversion ratio was 0.8% in the quarter as we continue to optimize for investor returns in the higher rate environment.

談到我們第四季的業績，我們本季的網路交易額達到創紀錄的 24 億美元，年增 33%，成長主要是由銷售點和單戶租賃領域新合作夥伴關係的增加所推動的。第四季總申請流量為 1830 億美元，年增 7%。本季我們的平均轉換率為 0.8%，因為我們繼續在較高利率環境下優化投資者回報。

Total revenue grew 13% to a record $218 million in 4Q '23, compared to the same quarter in 2022, driven by an 18% increase in fee revenue, which represented 97% of total revenue. Interest and investment income declined year over year due to the shift in timing of interest income accruals related to a change in our ABS structures.

與 2022 年同一季度相比，2023 年第四季的總營收成長了 13%，達到創紀錄的 2.18 億美元，其中費用收入成長了 18%，佔總營收的 97%。由於與我們的 ABS 結構變化相關的利息收入應計時間發生了變化，利息和投資收入比去年同期下降。

Fee revenues less production costs, or FRLPC, grew by 42% in Q4 to a record $76 million. Fees from our lending product amounted to 63% of total FRLPC, compared to 32% in the same quarter in 2022, more than offsetting the 19% decline in capital markets execution fees. This is a testament to the recurring and sustainable earnings power of our fee-generating business. FRLPC margin increased 20 basis points year over year to 3.2% in the fourth quarter, within our target range of 3% to 4%. We see meaningful opportunity for further improvement.

費用收入減去製作成本（FRLPC）在第四季度增長了 42%，達到創紀錄的 7,600 萬美元。我們的貸款產品費用佔 FRLPC 總額的 63%，而 2022 年同一季度為 32%，遠遠抵消了資本市場執行費用 19% 的下降。這證明了我們的收費業務具有經常性和可持續的盈利能力。第四季 FRLPC 利潤率年增 20 個基點至 3.2%，在我們 3% 至 4% 的目標範圍內。我們看到了進一步改進的有意義的機會。

Our personal loan business, our most mature vertical, generated an FRLPC margin of 5.5%, with some of our top partners delivering margins above 6%. Our auto vertical continues to be below the blended average with an FRLPC margin of 3%. Additionally, our SFR vertical, which remains immaterial to our overall financial results was dilutive to our FRLPC percent margin in the quarter due to the integration of a larger number of homes to our Darwin platform.

我們的個人貸款業務是我們最成熟的垂直業務，FRLPC 利潤率為 5.5%，我們的一些頂級合作夥伴的利潤率超過 6%。我們的汽車垂直行業繼續低於綜合平均水平，FRLPC 利潤率為 3%。此外，我們的 SFR 垂直市場對我們的整體財務業績仍然不重要，但由於將大量住宅整合到我們的達爾文平台，因此稀釋了本季度我們的 FRLPC 利潤率。

While our FRLPC market may continue to be impacted by the onboarding of new partners and growth of less mature verticals, we have a very clear playbook to elevate economics over time. Higher FRLPC is translating directly to our bottom line with the benefit of the operating leverage inherent in our business.

雖然我們的 FRLPC 市場可能會繼續受到新合作夥伴的加入和較不成熟的垂直產業成長的影響，但我們有一個非常明確的策略來隨著時間的推移提高經濟效益。更高的 FRLPC 直接轉化為我們的利潤，並受益於我們業務固有的營運槓桿。

In the fourth quarter, we delivered record adjusted EBITDA of $34 million, with an adjusted EBITDA margin of 16%. This is our second consecutive quarter of positive GAAP operating income, which was $11 million in the quarter.

第四季度，我們實現了創紀錄的調整後 EBITDA 3,400 萬美元，調整後 EBITDA 利潤率為 16%。這是我們連續第二季實現 GAAP 營業收入正值，本季營業收入為 1,100 萬美元。

Our core operating expenses, which excludes stock-based compensation, depreciation, and one-time expenses, declined by 19% year over year to $51 million. Share-based compensation expense of $14 million declined by $5 million, primarily driven by lower headcount and the timing of vesting of equity awards.

我們的核心營運費用（不包括股票薪酬、折舊和一次性費用）年減 19%，至 5,100 萬美元。股份制薪酬支出為 1,400 萬美元，減少了 500 萬美元，這主要是由於員工人數減少和股權獎勵的歸屬時間安排所致。

Net loss attributable to Pagaya was $14 million in the fourth quarter, an improvement of $20 million from the prior year, primarily due to our strong operating results. Other income amounted to negative $26 million, primarily impacted by a fair value adjustment on investments in loans and security. After accounting for non-controlling interest, the net fair value adjustment attributable to Pagaya was negative $13 million.

第四季 Pagaya 的淨虧損為 1,400 萬美元，比上年同期減少 2,000 萬美元，這主要是由於我們強勁的經營業績。其他收入為負 2,600 萬美元，主要受到貸款和證券投資公允價值調整的影響。考慮非控制權益後，歸屬於 Pagaya 的淨公允價值調整為負 1,300 萬美元。

Interest expense of $11 million in the fourth quarter was primarily related to our secured borrowings, which are used to finance our risk retention requirements, reflecting the higher rate environment and the change in composition of the underlying collateral. We reported our third consecutive quarter of positive adjusted net income of $12 million, which excludes share-based compensation and other non-cash items such as fair value adjustments, an improvement of $16 million compared to the prior year.

第四季 1,100 萬美元的利息支出主要與我們的擔保借款有關，這些借款用於為我們的風險自留要求提供資金，反映了較高的利率環境和基礎抵押品構成的變化。我們連續第三個季度公佈的正調整淨利潤為 1,200 萬美元，其中不包括基於股份的薪酬和公允價值調整等其他非現金項目，比上一年增加了 1,600 萬美元。

We reported our second consecutive quarter of positive cash flow from operating activities of $19 million, with full-year operating cash flow of $10 million. We believe this is an important milestone towards achieving total net cash flow generation as we scale.

我們連續第二季的營運活動現金流為 1,900 萬美元，全年營運現金流為 1,000 萬美元。我們相信，隨著我們規模的擴大，這是實現總淨現金流產生的一個重要里程碑。

Shifting now to discuss our approach to capital allocation and risk management, we operate our business to optimize growth, profitability, and liquidity. Our ability to deliver growth in this environment is supported by our unique funding model.

現在轉向討論我們的資本配置和風險管理方法，我們經營業務以優化成長、獲利能力和流動性。我們獨特的融資模式支持我們在這種環境下實現成長的能力。

By raising capital before assets are originated, compared to traditional funding models, we are able to avoid warehousing assets that require months of seasoning, allowing us to generate over $8 billion in network volume last year without significant use of our balance sheet. This flexibility means we have multiple levers at our disposal with the way we allocate capital to support the growth of the fee-generating side of our business.

與傳統的融資模式相比，透過在資產產生之前籌集資金，我們能夠避免需要數月的風乾的倉儲資產，從而使我們去年在不大量使用資產負債表的情況下產生了超過80 億美元的網絡交易量。這種靈活性意味著我們可以利用多種槓桿來分配資本，以支持我們業務的收費方面的成長。

We also view this as an effective strategy to attract new investors to our network and strengthen our long-term funding capabilities. This is demonstrated by the 31 new institutional investors we added to the network in 2023 and the $6.6 billion in new funding raised across 15 ABS transactions. And in 2024, we are beginning to see signs of improving demand and risk appetite from investors, which we anticipate will translate to lower corporate risk participation in our deals. The scale and reputation we have achieved, combined with stabilizing asset performance in 2023, have become a key differentiator in our ability to explore new capital-efficient structuring alternatives.

我們也認為這是吸引新投資者加入我們網絡並增強我們長期融資能力的有效策略。我們在 2023 年為網路增加了 31 家新機構投資者，以及透過 15 筆 ABS 交易籌集了 66 億美元的新資金，證明了這一點。到 2024 年，我們開始看到投資者需求和風險偏好改善的跡象，我們預計這將轉化為降低公司交易中的風險參與度。我們所取得的規模和聲譽，加上 2023 年資產表現的穩定，已成為我們探索新的資本效率結構替代方案的能力的關鍵差異化因素。

Our net holdings in investment in loans and securities, after accounting for non-controlling interest, amounted to $611 million as of December 31, reflecting risk retention holdings for deals completed between 2019 and 2023. To put this in context, this reflects a ratio of approximately 3% of over $20 billion in total funding raised over this time. Net of non-controlling interest, the total fair value impact to our net holdings was negative $16 million, of which $13 million impacted other income and $4 million impacted other comprehensive income and loss in shareholders' equity.

截至 12 月 31 日，我們在貸款和證券投資中的淨持有量（扣除非控制權益後）為 6.11 億美元，反映了 2019 年至 2023 年期間完成的交易的風險自留持有量。考慮到這一點，這反映了在此期間籌集的超過 200 億美元的總資金中約 3% 的比例。扣除非控制權益後，對我們淨持有量的公允價值影響總額為負 1,600 萬美元，其中 1,300 萬美元影響其他收入，400 萬美元影響其他綜合收入及股東權益損失。

I'm very pleased with the recent step change we achieved with the announcement of our $280 million credit facility in February, which was subsequently upsized to $290 million. The transaction was led by BlackRock and in partnership with UBS and a syndicate of our relationship banks, including JPMorgan Chase. We believe this transaction represents a strong vote of confidence from leading financial institution following months of extensive due diligence on the company's financial strength and future cash flow generating power.

我對我們最近的重大進展感到非常滿意，我們在 2 月宣布了 2.8 億美元的信貸額度，隨後又擴大到 2.9 億美元。該交易由貝萊德 (BlackRock) 牽頭，並與瑞銀 (UBS) 以及摩根大通 (JPMorgan Chase) 等關係銀行組成的財團合作。我們相信，在對公司的財務實力和未來現金流產生能力進行了數月的廣泛盡職調查後，此次交易代表了領先金融機構投下的強烈信任票。

After repaying outstanding borrowings under our existing credit facility, the incremental liquidity will help us invest in product development and network expansion. Moreover, from a risk management perspective, it eliminates refinancing risk by extending our corporate debt maturity from 2025 to 2029. With these achievements, we are well positioned to deliver our 2024 financial plan, which we believe will get us closer to our goal of achieving positive total net cash flow by early 2025 and pave the path to future GAAP net income profitability.

在償還我們現有信貸額度下的未償還借款後，增量流動性將有助於我們投資於產品開發和網路擴張。此外，從風險管理的角度來看，它透過將我們的企業債務期限從2025年延長至2029年來消除再融資風險。憑藉這些成就，我們有能力實現 2024 年財務計劃，我們相信這將使我們更接近到 2025 年初實現正總淨現金流量的目標，並為未來的 GAAP 淨利潤鋪平道路。

First, we are focused on deepening the monetization of our lending product to drive FRLPC growth. We have demonstrated our ability to increase monetization of our most mature lending channels. We are in discussions or have already executed improved fee sharing agreements with other lending partners, which we expect to have a positive impact on FRLPC later this year.

首先，我們致力於深化貸款產品的貨幣化，以推動 FRLPC 的成長。我們已經證明了我們有能力提高最成熟的貸款管道的貨幣化程度。我們正在與其他貸款合作夥伴討論或已經執行改進的費用共享協議，我們預計這將在今年稍後對 FRLPC 產生積極影響。

Second, we'll continue to focus on prudently managing our expenses to drive more flow-through of FRLPC growth to the bottom line. This year, we expect to realize a full-year benefit from cost savings initiatives implemented throughout 2023, and we expect to fund 2024 investments without meaningfully increasing our core operating expense base. Our goal is to reach total net cash flow positive by early 2025, assuming no material change in the macroeconomic conditions from what we see today.

其次，我們將繼續專注於審慎管理開支，以推動 FRLPC 成長更多地流入利潤。今年，我們預計將透過 2023 年實施的成本節約措施實現全年效益，並預計為 2024 年的投資提供資金，而不會顯著增加我們的核心營運費用基礎。我們的目標是到 2025 年初實現總淨現金流為正，假設宏觀經濟狀況與我們今天看到的情況相比沒有重大變化。

First, as we scale our network with deeper monetization and the benefit of operating leverage, we expect continued growth in cash flow from operating activities. We also expect to minimize the combined net cash outflow from investing and financing activities by shifting to more efficient funding and capital structures, supported by our recent strong funding execution and stabilizing asset performance.

首先，隨著我們透過更深層的貨幣化和營運槓桿的優勢來擴展我們的網絡，我們預計營運活動產生的現金流將持續成長。我們也預計，在我們最近強勁的融資執行和穩定的資產表現的支持下，透過轉向更有效率的融資和資本結構，最大限度地減少投資和融資活動的綜合淨現金流出。

Now, let me switch to our 2024 financial outlook. Our guidance reflects a few key assumptions. In terms of network volume, we expect to remain prudent with our conversion rate of application volume while optimizing network volume to our more mature and profitable lending channels. Network volume contributions from our 2023 partner cohorts are expected to more meaningfully materialize in the second half of 2024, and we expect minimal contribution from any new partnerships onboarded within the year.

現在，讓我談談 2024 年的財務展望。我們的指導反映了一些關鍵假設。在網路量方面，我們預期會對申請量的轉換率保持審慎，同時將網路量優化至更成熟、獲利能力更強的借貸管道。預計 2023 年合作夥伴群體的網路流量貢獻將在 2024 年下半年更有意義地實現，我們預計年內新加入的任何新合作夥伴的貢獻將降至最低。

Finally, we expect continued growth of our single-family rental vertical as a result of new partnerships with our Darwin platform. We expect growth in total revenue and other income and FRLPC as we continue to deepen monetization of our lending product, which we expect to continue to offset lower capital market execution fees.

最後，我們預計，由於與達爾文平台建立新的合作夥伴關係，我們的單戶租賃垂直市場將持續成長。隨著我們繼續深化貸款產品的貨幣化，我們預計總收入和其他收入以及 FRLPC 將會成長，我們預計這將繼續抵消資本市場執行費用的下降。

Combined with disciplined cost management to improve operating efficiency, we expect continued growth in adjusted EBITDA. In the first quarter of 2024, we expect network volume to range between $2.2 billion and $2.4 billion, total revenue and other income to range between $225 million and $240 million, and adjusted EBITDA to range between $32 million and $38 million. In full year 2024, we expect network volume to range between $9 billion and $10.5 billion, total revenue and other income to range between $925 million and $1.05 billion, and adjusted EBITDA to range between $150 million and $190 million.

結合嚴格的成本管理以提高營運效率，我們預計調整後的 EBITDA 將持續成長。2024 年第一季度，我們預期網路交易量將在22 億美元至24 億美元之間，總營收和其他營收將在2.25 億美元至2.4 億美元之間，調整後的EBITDA 將在3,200 萬美元至3800 萬美元之間。2024 年全年，我們預計網路交易量將在90 億美元至105 億美元之間，總收入和其他收入將在9.25 億美元至10.5 億美元之間，調整後的EBITDA 將在1.5 億美元至1.9億美元之間。

With that, let me reiterate how excited I am to be partnering with you on our journey. And let me turn it back to the operator for Q&A.

在此，讓我重申一下，能夠與您一起踏上我們的旅程，我感到多麼興奮。讓我把它轉回接線生進行問答。

(Operator Instructions) Joseph Vafi, Canaccord Genuity.

（操作員說明）Joseph Vafi，Canaccord Genuity。

Hey, everyone. Good morning. Nice results, and congrats on the new roles, both to Sanjiv and to EP.

嘿，大家。早安.取得了不錯的成績，恭喜 Sanjiv 和 EP 擔任新角色。

Just maybe a few on some of the operating metrics looking at 2024 on the investor side, on the execution fees and then also on conversion rate. I mean, obviously, Fed funds rate's probably one of the key things for us to be looking at there in terms of potentially higher conversion rate and execution fees. Is there anything else we should be looking at relative to providing upside on those metrics? And then I have a quick follow-up.

也許只是投資者方面展望 2024 年的一些營運指標、執行費用以及轉換率。我的意思是，顯然，聯邦基金利率可能是我們在潛在更高的轉換率和執行費用方面要考慮的關鍵因素之一。相對於提供這些指標的優勢，我們還應該關注其他什麼嗎？然後我會進行快速跟進。

Hi, Joe. It's Gal here. Thank you so much for your question. Great to see you.

嗨，喬。這裡是加爾。非常感謝你的提問。很高興見到你。

Let me start with the second piece. As we think about where we are standing today, obviously, the 2024 is a much more constructive year, as I will put it this way. When you think about capital markets and the very strong performance that we had in 2023, both on the assets and the ability to actually raise the capital, we have a strong momentum as we go to 2024 as one of the biggest personal loan issuers in ABS this year. So when we think about 2024, we are taking into our plan still the concept of being very prudent, and we are managing and guiding the Street to what we think is doable given everything stay the way it is.

讓我從第二部分開始。當我們思考我們今天所處的位置時，顯然，正如我所說，2024 年是更具建設性的一年。當你想到資本市場以及我們在 2023 年在資產和實際籌集資本的能力方面的強勁表現時，我們將在 2024 年作為 ABS 最大的個人貸款發行人之一擁有強勁的勢頭今年。因此，當我們考慮 2024 年時，我們的計劃仍然是非常謹慎的概念，我們正在管理和引導華爾街去做我們認為可行的事情，因為一切都保持現狀。

Now, to your point, the Fed might be in its peak of their cycle, and therefore, there is potential ways to be more constructive even and better outcomes as we think about the 2024. It just that by the way we think about it, we need to see that actually transforming into a real outcome over a few quarters and, therefore, reactive to that.

現在，就你的觀點而言，聯準會可能正處於其周期的頂峰，因此，在我們考慮 2024 年時，有潛在的方法可以取得更具建設性、甚至更好的結果。只是透過我們思考的方式，我們需要看到它在幾個季度內真正轉化為真正的結果，因此對此做出反應。

So to the bottom of your question, the 2024 plan is subject to, we believe, the environment going to stay as it is right now, which is better than 2023. And as we think about the future and how different macroeconomical trends will play, if to the positive, will definitely allow us to have some more room to play there.

因此，歸根結底，我們認為 2024 年的計劃取決於環境將保持現狀，這比 2023 年要好。當我們思考未來以及不同的宏觀經濟趨勢將如何發揮作用時，如果是積極的，肯定會讓我們有更多的空間。

Great. Thanks for that, Gal. And then, maybe just one for Sanjiv, again, congrats on the new role. Are there a few things that you think that you're going to be focusing on here in 2024 relative to -- I mean, you've seen a lot, I think, so far. Are there a couple things that really stand out for you as opportunities and things that you're going to focus on here this year? Thanks a lot, guys.

偉大的。謝謝你，加爾。然後，也許只是 Sanjiv 的一個，再次祝賀新角色。您認為 2024 年您將重點關注哪些事情——我的意思是，到目前為止，我認為您已經看到了很多事情。有沒有一些事情對您來說是真正突出的機會以及今年要重點關注的事情？非常感謝，夥計們。

Sure. Thank you for the question, Joe, and thank you for the wishes. I'm excited to be here.

當然。謝謝你的提問，喬，也謝謝你的祝福。我很高興來到這裡。

As you know, Joe, and I sort of mentioned this before, as a former CEO of Citi's largest business, Citi's Mortgage Business had very troubled times. And sort of turning that around, I have come to Pagaya with tons of consumer banking experience and sort of know this space extremely well.

正如你所知，喬和我之前曾提到過這一點，作為花旗最大業務的前首席執行官，花旗的抵押貸款業務經歷了非常困難的時期。扭轉這一局面的是，我來到帕加亞時擁有大量的消費者銀行業務經驗，並且對這個領域非常了解。

And so when I stepped into Pagaya and met our clients and partners, including several of the major banks, and when I talk to the CEOs of, let's say, U.S. Bank's consumer business or Citi's consumer business, many of whom are former trusted colleagues who have sort of seen how we have built things in a highly regulatory compliant way, I'm actually very pleased to see what we've seen in Pagaya's execution in terms of building a very regulatory robust product. And it actually meets the need for banks in a very strategic way.

因此，當我走進Pagaya 並會見我們的客戶和合作夥伴（包括幾家主要銀行）時，當我與合眾銀行消費者業務或花旗消費者業務的執行長交談時，其中許多人都是以前值得信賴的同事，我已經了解了我們如何以高度符合監管的方式構建產品，實際上我很高興看到我們在 Pagaya 的執行中看到了構建監管嚴格的強大產品的情況。它實際上以一種非常策略性的方式滿足了銀行的需求。

And the more I understand Pagaya's second-stage re-evaluation product, which is sort of what I inherited, I'm really pleased to see how well integrated it is into the bank's ecosystem and the consumer ecosystem. Frankly, if I were back to my previous job as CEO of Citi's Mortgage Business, I would sign up for Pagaya's solution instantaneously. I know we call those things non-QM and stuff like that, but those are done in such a seamless way that I'm really enthused about it.

我對 Pagaya 的第二階段重新評估產品（這也是我繼承的產品）了解得越多，我真的很高興看到它如何很好地融入銀行生態系統和消費者生態系統。坦白說，如果我回到之前擔任花旗抵押貸款業務執行長的職位，我會立即註冊 Pagaya 的解決方案。我知道我們稱這些東西為非品質管理之類的東西，但這些都是以如此無縫的方式完成的，我對此非常感興趣。

In summary, I feel like the foundation of what we've laid out so far is really good, and it allows us to now focus on multiple products and deepening into the ecosystem of the franchises that we're already deep into. So super excited about that.

總而言之，我覺得我們迄今為止所奠定的基礎非常好，它使我們現在能夠專注於多種產品，並深入到我們已經深入的特許經營生態系統中。對此非常興奮。

Michael Legg, The Benchmark Company.

邁克爾·萊格，基準公司。

Thanks. Congratulations on a great quarter, guys. Two questions. One, can you just talk about your viewpoint on the consumer debt burden as you see debt increase per consumer and how that impacts the longer-term model?

謝謝。夥計們，恭喜你們度過了一個出色的季度。兩個問題。第一，當您看到每個消費者的債務增加時，您能否談談您對消費者債務負擔的看法，以及這對長期模型有何影響？

And then second, you mentioned that 10 to 15 cost lending partners in the pipeline with the 12- to 15-month lead time on some of them. The U.S. Bank, when you sign them up, obviously, that was a longer lead time. Can we read anything into the size of these new partners based upon the lead time you mentioned? Thanks.

其次，您提到有 10 到 15 個成本貸款合作夥伴正在籌備中，其中一些合作夥伴的交付週期為 12 到 15 個月。美國銀行，當你與他們簽約時，顯然，交貨時間更長。我們能否根據您提到的交貨時間來了解這些新合作夥伴的規模？謝謝。

Hi, Mike. Definitely. Let me start with the first one.

嗨，麥克。確實。讓我從第一個開始。

I think from a consumer health perspective, if I will need to characterize 2023, I will call it the year of stability. I think to many ways, two major phenomena have happened. On the one hand side, different banks and lenders has become more scrutiny on the ability to provide credit, and therefore, credit availability went down. And on the other side, as we’re now looking back on 2023, it is obvious for us -- because of our unique network data advantage, it was obvious even in 2023.

我認為從消費者健康的角度來看，如果我需要描述 2023 年，我會稱之為穩定年。我認為從很多方面來說，已經發生了兩個主要現象。一方面，不同銀行和貸款人對提供信貸的能力越來越嚴格，因此信貸可用性下降。另一方面，當我們現在回顧 2023 年時，這對我們來說是顯而易見的——由於我們獨特的網路數據優勢，即使在 2023 年，這一點也很明顯。

But the consumer is in a steady place. The big rush of like the inflation that happened in '21 and '22 which drove underperforming vintages for the consumer credit in general is starting to stabilize, especially in the areas where we are focused on, which is the side prime, near prime, whatever you want to call it.

但消費者處於穩定狀態。21 和 22 年發生的通膨大潮導致消費信貸整體表現不佳，現在開始穩定下來，特別是在我們關注的領域，即側面優質、接近優質等。

As we think about the future, and given that there is now a trajectory of how we are going to balance in between the reduction of the interest rate while still having a strong economy, while we are prudent and cautious, we do see the consumer behaving more or less as we expect. So that to that level.

當我們思考未來時，考慮到我們現在將如何在降息和維持強勁經濟之間取得平衡，在我們謹慎謹慎的同時，我們確實看到消費者的行為或多或少符合我們的預期。所以達到那個水平。

And I think that if you think about it, from a future perspective, we expect 2024 to be a year where we are transforming the stability into momentum. Because usually what happens is when investors and capital markets is kind of like seeing the stability is coming through, it allows you to have better execution, better outcome, and quite frankly, cheaper cost of capital on the full capital stack. So that's how all of that is related to us as a business.

我認為如果你想一想，從未來的角度來看，我們預計2024年將是我們將穩定轉化為動力的一年。因為通常發生的情況是，當投資者和資本市場看到穩定正在實現時，它可以讓你有更好的執行力、更好的結果，坦白說，整個資本堆疊的資本成本更便宜。這就是所有這些與我們作為一個企業的關係。

Now, to your second question, which relates to how you think about the onboarding of the new partners, especially on the enterprise-grade level, so I want to give you my own personal perspective of that. As you know, I'm one of the founders of Pagaya and started here in 2016. And every one or two years, we have like a major jump that made Pagaya a different organization and different company.

現在，關於你的第二個問題，這涉及到你如何看待新合作夥伴的入職，特別是在企業級層面，所以我想向你提供我個人的看法。如您所知，我是 Pagaya 的創始人之一，並於 2016 年開始在這裡工作。每隔一兩年，我們就會發生一次重大飛躍，使 Pagaya 成為一個不同的組織和不同的公司。

The first one was the first flagship product that we had; after that was tapping into the capital markets in major deals. After that were the first auto lenders that we onboarded and kind of like having our product modified to the second piece. When I think about all of them, getting integrated to an enterprise-level banks, such as U.S. Bank that this quarter has become public, is potentially the biggest milestone change that we have did so far.

第一個是我們第一個旗艦產品；之後是透過重大交易進軍資本市場。之後，我們加入了第一家汽車貸款機構，有點像是將我們的產品修改為第二部分。當我想到所有這些時，整合到企業級銀行（例如本季已上市的美國銀行）可能是我們迄今為止所做的最大的里程碑式變更。

It opens up a variety of positive momentums for Pagaya, which I want to lay out here for you to appreciate these pieces. So the first one is when there is a top five bank that is, as you can imagine, very heavily regulated, putting their name out there and saying, this is helping our customers and we did all the checks and balances in order to make it as our product, it gives a lot of confidence for other banks to follow.

它為 Pagaya 帶來了各種積極的動力，我想在這裡列出來供您欣賞這些作品。因此，第一個是當有一家排名前五的銀行，正如你可以想像的那樣，受到非常嚴格的監管時，他們把自己的名字放在那裡並說，這正在幫助我們的客戶，我們做了所有的製衡，以便做到這一點作為我們的產品，它給了其他銀行效仿的信心。

So to your question about the deep 15 funnel, it's not something that we say that there are 15 active that are going to 18 months be translated into 15 clients. But it's 15 names that we know that, if played well and subject to our two to four players a year, going to be definitely the next wave of banks or enterprise level grade that are coming into our network.

因此，對於您關於深度 15 個管道的問題，我們並不是說有 15 個活躍客戶將在 18 個月內轉換為 15 個客戶。但我們知道，這 15 個名字如果發揮得好並且每年受到我們兩到四名玩家的影響，肯定會成為進入我們網絡的下一波銀行或企業級級別。

Now, why is that so important? Because now, it's starting to become as more rinse and repeat. We have cracked the code, we have perfected the product. And now, it's really about having the right conversation. And as you heard from Sanjiv, our leadership team is very well connected into this industry, and we'll be able to make it happen.

現在，為什麼這麼重要？因為現在，它開始變得更多的沖洗和重複。我們已經破解了密碼，我們已經完善了產品。現在，真正重要的是進行正確的對話。正如您從 Sanjiv 那裡聽到的那樣，我們的領導團隊與這個行業有著密切的聯繫，我們將能夠實現這一目標。

So we are not obsessed about time. It doesn't matter for us if it happens in 6, 12 or 18 months. What matters to us is it happened rightfully and in the right scale. And that's what we are driving towards.

所以我們並不迷戀時間。如果它發生在 6、12 或 18 個月內，對我們來說並不重要。對我們來說重要的是它以正確的規模正確發生。這就是我們正在努力實現的目標。

The last point I will add before we close that question is think about the opportunities and the unique value proposition and the additional product, again, as Sanjiv mentioned, that one could drive with big partners like U.S. Banks and others. We see that happening in action, and we are getting more requests of more technology pieces that they would like us to do with them.

在結束這個問題之前，我要補充的最後一點是，考慮一下機會、獨特的價值主張以及額外的產品，正如桑吉夫所提到的，人們可以與美國銀行等大型合作夥伴一起推動。我們看到這種情況正在發生，並且我們收到了更多他們希望我們使用的技術產品的請求。

So it's open up, not just deepening the current flagship product that we have, which is the re-evaluation second-stage product, but it's opening for us the ability to think about more products down the road for them -- marketing products such as pre-qualifications, in-app offers, and so many more ways to serve their customers to the standard that they would like to have.

因此，它是開放的，不僅深化了我們當前的旗艦產品，即重新評估的第二階段產品，而且使我們能夠考慮未來為他們提供更多產品 - 營銷產品，例如資格預審、應用內優惠以及更多方式來為客戶提供他們想要的標準服務。

So from that perspective, you can think about Pagaya as that we are trying to become the technology lending partner for the biggest institutional clients in the US. And I think that funnel is representing a lot of it.

因此，從這個角度來看，您可以將 Pagaya 視為我們正在努力成為美國最大機構客戶的技術貸款合作夥伴。我認為漏斗代表了很多。

David Scharf, Citizens JMP.

David Scharf，公民 JMP。

Hi. Good morning, and thanks for taking my questions. And welcome aboard as well to EP and Sanjiv.

你好。早上好，感謝您回答我的問題。也歡迎 EP 和 Sanjiv 加入。

Maybe two questions, maybe on each side of the marketplace; the first just focusing on the economic model on the demand side, specifically the product side. I don't want to get too far ahead. I know you just rolled out 2024 guide. But just given the relative size of some of the markets, specifically auto is so much larger than personal loan, still remains to be seen kind of how point-of-sale evolves. As you think about the product mix going out in a few years, does that change the target margin -- the FRLPC margin? I mean, clearly, the personal loans have the highest take rate of 5.5% right now. But just wondering how we should think about the product mix and whether that impacts the margin structure going forward.

也許有兩個問題，也許在市場的每一方；第一個只關注需求面的經濟模型，特別是產品面。我不想走太遠。我知道您剛剛推出了 2024 年指南。但鑑於某些市場的相對規模，特別是汽車市場比個人貸款大得多，銷售點如何發展仍有待觀察。當您考慮幾年後推出的產品組合時，這是否會改變目標利潤率——FRLPC 利潤率？我的意思是，顯然，個人貸款目前的最高利率為 5.5%。但只是想知道我們應該如何考慮產品組合以及這是否會影響未來的利潤結構。

Thank you, David. That's a great question. The way to think about it is, obviously, every vertical in our products is somewhat unique in terms of its unit economics. But the way to think about it is, within each vertical, we have mature partners and sort of less mature partners. And it takes about, call it, 6 to 12 months to ramp up some of the newer partners that are get added to the network.

謝謝你，大衛。這是一個很好的問題。顯然，我們產品中的每個垂直領域在單位經濟效益方面都是獨一無二的。但思考的方式是，在每個垂直領域，我們都有成熟的夥伴和不太成熟的夥伴。大約需要 6 到 12 個月的時間來培養一些添加到網路中的新合作夥伴。

And the more mature partners obviously enjoy a higher FRLPC margin. And we have a very clear playbook on how to take the newer partners and elevate them to the same economics as the more mature partners. As you think about the future in 2024 and beyond, there is always going to be a mix between that dynamic of mature partners, where we're earning higher FRLPC margin and the newer partners that are coming in and get elevated over time.

而越成熟的合作夥伴顯然享有較高的FRLPC利潤率。我們有一個非常清晰的劇本，關於如何吸引新的合作夥伴並將他們提升到與更成熟的合作夥伴相同的經濟水平。當你思考2024 年及以後的未來時，總會發現成熟夥伴的活力與新合作夥伴之間的混合關係，在成熟合作夥伴中，我們獲得了更高的FRLPC 利潤，而新合作夥伴則隨著時間的推移不斷加入並不斷提升。

Auto is obviously an area that is growing very fast. Today, they're at approximately 3% FRLPC margin. And as we continue to invest into that vertical, we expect obviously more volume coming in from the newer partners while we continue to elevate their economics over time; that's how to think about the mix. And ultimately, when you take that all to the bottom line, this is what drives our overall guidance of approximately 3% to 4% FRLPC margin at any point in time.

汽車顯然是一個成長非常快的領域。如今，FRLPC 利潤率約為 3%。隨著我們繼續投資於該垂直領域，我們預計新合作夥伴的銷量將顯著增加，同時我們將隨著時間的推移繼續提高他們的經濟效益；這就是考慮混合的方式。最終，當你將這一切歸結為底線時，這就是推動我們在任何時間點 FRLPC 利潤率約為 3% 至 4% 的整體指導的原因。

Got it. That's helpful. It sounds like as auto scales and matures, we'll see margin expansion just like we have over time with personal loan. Great. And maybe just a follow-up on the funding side, can you maybe provide some guideposts as we think about network volume growth and just the pace at which you're underwriting. Maybe what level of risk retention we should be thinking about for year-end '24, up from the 611, and maybe put that into context with kind of your credit facility and borrowing capacity?

知道了。這很有幫助。聽起來隨著汽車規模的擴大和成熟，我們會看到利潤率的擴大，就像個人貸款隨著時間的推移一樣。偉大的。也許只是資金方面的後續行動，當我們考慮網路數量增長以及承保速度時，您能否提供一些指導。也許我們應該考慮 24 年底的風險自留水平，高於 611，也許可以將其與您的信貸便利性和借貸能力結合？

Sure. And you may have seen in our shareholder letter -- I'll go back into one of our key milestones, which is to plan to get to a positive total cash flow by early 2025. We're in a very strong position today to support our plan for profitable growth. And that is very heavily supported by our access to alternative sources of capital and other funding alternatives, which is evident by the recent term loan and our very strong funding execution in 2023.

當然。您可能已經在我們的股東信中看到——我將回顧我們的一個關鍵里程碑，即計劃在 2025 年初實現正總現金流。今天，我們處於非常有利的地位，可以支持我們的獲利成長計劃。這得益於我們獲得替代資本來源和其他融資替代方案的大力支持，最近的定期貸款和我們在 2023 年非常強勁的融資執行證明了這一點。

And obviously, in 2023, we chose to lean in more in line of the current market environment. But when you take all of this into consideration, and given the signs of improvement that we see for 2024, even with sort of the risk participation requirements, we expect to get to cash flow positive by early 2025.

顯然，在 2023 年，我們選擇更符合當前的市場環境。但考慮到所有這些因素，並考慮到我們在 2024 年看到的改善跡象，即使有一定的風險參與要求，我們預計到 2025 年初現金流也將實現正值。

John Hecht, Jefferies.

約翰‧赫克特，傑弗里斯。

Good morning. Congratulations on a great quarter. Sanjiv and EP, look forward to working with you guys, and congratulations.

早安.恭喜您度過了一個美好的季度。Sanjiv 和 EP，期待與你們合作，恭喜你們。

I guess dovetailing a little bit on David's last question, you talked to -- you guys mentioned more optimal funding in '24. You also talked about the evolution of a lot more private credit interest in this type of asset class. I'm wondering, for '24, are there other options to think about in terms of capital markets executions outside of a standard ABS, maybe like a flow agreement or something? And is that something you guys would be considering at this point in time as you think about funding through '24?

我想這與大衛的最後一個問題有點吻合，你們談到了 24 年的更優化資金。您還談到了此類資產類別中更多私人信貸利息的演變。我想知道，對於 24 世紀，在標準 ABS 之外的資本市場執行方面是否還有其他選擇可以考慮，例如流量協議或其他什麼？你們在考慮 24 世紀的融資時會考慮這一點嗎？

John, it's Gal here. Thank you. Thank you for joining us. I think it's your first earnings call, so exciting.

約翰，我是加爾。謝謝。感謝您加入我們。我認為這是你的第一次財報電話會議，非常令人興奮。

So that's exactly right. When we are thinking about the 2024 and with the dry powder we have and the financial stability and the BlackRock credit facility or the term loan, and as we think about the production that we need to originate and fund as we think about the year, on the back of the very strong performance that we have in 2023, we do see more private credit coming in and taking the ability to have full stock risk off and other places where you can actually partner up and provide the ability to have diversification of different funding, which is not just like on the pure ABS as we know it today.

所以這是完全正確的。當我們考慮 2024 年時，我們擁有的乾粉、金融穩定性以及貝萊德信貸安排或定期貸款，當我們考慮我們需要發起和資助的生產時，當我們考慮這一年時，在我們2023 年表現在非常強勁的背景下，我們確實看到更多的私人信貸進入，並有能力完全規避股票風險，以及其他可以真正合作並提供不同融資多元化能力的地方，這與我們今天所知的純ABS 不同。

So when we think about that and the plan, we are in the belief that that's going to be a part that we are going to grow through 2024. And we are already in different discussions about these things, and we think it's going to materialize as we think about the year coming along.

因此，當我們考慮這一點和計劃時，我們相信這將成為我們到 2024 年成長的一部分。我們已經就這些事情進行了不同的討論，我們認為隨著我們對即將到來的一年的思考，這將會成為現實。

Okay, that's helpful. Thanks. And second question, I think the last several quarters you've had more optimal and more efficient OpEx. I think it's down on a dollar basis each quarter of last year. How do we think about that through this year? Are you at a point where you kind of optimize that and it should be more flattish going forward, or do you need to add to that given the growth anticipation? Just wondering from a modeling perspective.

好的，這很有幫助。謝謝。第二個問題，我認為過去幾季你們的營運支出更加優化、更有效率。我認為去年每季的美元匯率都在下降。今年我們要如何看待這個問題？您是否正處於優化這一點，並且未來應該更加平坦，或者考慮到成長預期，您是否需要增加這一點？只是從建模的角度想知道。

Sure. Thank you for the question. So you're right. If you look back in late 2022, we had more elevated operating expense base as a result of our continued investment back in the day to support our public company readiness and investment in other areas.

當然。謝謝你的提問。所以你是對的。如果你回顧 2022 年末，我們的營運費用基礎會更高，這是因為我們當時持續投資以支持我們的上市公司準備工作和在其他領域的投資。

We have taken action over the course of the last few quarters to bring the expense base to a more rationalized level. And we feel the current expense base is at the right level to support our 2024 plan and beyond. We can always obviously have places where we can put a little bit more improvement and investment into it. That can be supported by additional savings in which it reflects in our 2024 plan.

我們在過去幾季中採取了行動，使費用基礎達到更合理的水平。我們認為目前的支出基礎處於支持我們 2024 年及以後計劃的適當水平。顯然，我們總是可以在某些地方進行更多的改進和投資。這可以透過我們 2024 年計畫中反映的額外節省來支持。

Great. Thank you, guys, very much.

偉大的。非常感謝你們，夥伴們。

Hal Goetsch, B. Riley Securities.

Hal Goetsch，B. 萊利證券。

Good morning, everyone, and thanks for the call. My question is on the application flow and the conversion rate. In fourth quarter and most of 2023, the conversion rate tailed off to less than 1%. And it's been materially higher, maybe in 2021, but you might say that wasn't a normalized period.

大家早安，感謝您的來電。我的問題是關於申請流程和轉換率。在第四季和 2023 年的大部分時間裡，轉換率下降至不到 1%。也許在 2021 年，這個數字已經大幅提高，但你可能會說那不是一個正常化的時期。

Could you just discuss some of the swing factors in the current environment that are keeping it pinned at this level? What is the art of the possible for this to move from sub-1% to 1% or 1.1% or 1.2%, something modest that would have a material change in volume on a similar application flow? Can you discuss that for us, please? Thanks.

您能否討論一下當前環境中導致其保持在這一水平的一些波動因素？從低於 1% 到 1% 或 1.1% 或 1.2% 的可能性是什麼？您能為我們討論一下嗎？謝謝。

Sure. Thank you for the question. So what I would say, obviously, we try to optimize for growth, profitability, and liquidity. And as we keep on adding new partners to our network, application flow is expected to increase, and it has, year over year, by about 7%. Given the current environment, as we're optimizing, as I said, for liquidity and also investor returns, we are being prudent about our conversion ratio.

當然。謝謝你的提問。所以我想說的是，顯然，我們試圖優化成長、獲利能力和流動性。隨著我們不斷向網路中添加新的合作夥伴，應用程式流量預計會增加，並且年增約 7%。鑑於當前的環境，正如我所說，我們正在優化流動性和投資者回報，因此我們對轉換率持謹慎態度。

And as we look on our plan going forward, obviously, we see some improvement overall, but we are assuming we're going to continue to be prudent and maintain that conversion ratio at those levels. And as we think about cohort of new partners that were added in '23 and 2024, they will obviously continue to add to the application flow, but we don't expect meaningful contribution from a volume perspective into the plan.

當我們展望未來的計劃時，顯然，我們看到總體上有所改善，但我們假設我們將繼續謹慎並將轉換率維持在這些水平。當我們考慮 23 年和 2024 年添加的一批新合作夥伴時，他們顯然會繼續添加到申請流程中，但從數量角度來看，我們預計不會對該計劃做出有意義的貢獻。

I just want to double down on that and add a little bit more color. The way we should think about it is Pagaya has two types of businesses.

我只是想加倍努力並添加更多色彩。我們應該這樣想，Pagaya 有兩種類型的業務。

The one business, which is the main business, the fee-generating business that needs to grow as we add partners, and that's why we are giving so much clarity on the application. That has all the metrics of over-the-cycle growing type of a business. And you should expect, again, given a quarter here, a quarter there, that over the years, that should go higher and higher, both in the quality of applications; sometimes, it's less that easy to just demonstrate and in the total quantum of it.

一項業務是主要業務，隨著我們增加合作夥伴，收費業務需要成長，這就是為什麼我們對申請給予如此多的明確性。這具有超週期增長型企業的所有指標。你應該再次預料到，考慮到這裡四分之一，那裡四分之一，多年來，申請的品質都應該越來越高；有時，僅僅證明其全部內容並不那麼容易。

Now, to the other side, which is the so-called capital business that sometimes we need to do more or less, is really kind of like the thing you should think about the conversion rate that we're trying to be as prudent as possible to balancing between the needs of all of them to re-cooperate to our partners. So that is a little bit more cyclical, if you will, discussion. But the network, both fees and the application, is really what we're driving towards and where we believe there is a very different business model in Pagaya versus any other companies in this space there.

現在，另一方面，有時我們或多或少需要做的所謂資本業務，實際上有點像你應該考慮的轉換率，我們正在努力盡可能謹慎地平衡他們所有人的需求，以便與我們的合作夥伴重新合作。如果你願意的話，這是一個更具週期性的討論。但網絡，無論是費用還是應用程序，都是我們真正追求的目標，我們相信 Pagaya 的商業模式與該領域的任何其他公司都非常不同。

Okay. Well, thank you. I just want to ask one follow-up. Well, let's just say, I imagine, with U.S. Bank, you're making more conforming loans or under 36%. Is that right? Personal loans?

好的。嗯，謝謝。我只想問一個後續問題。好吧，我想，在美國銀行，你發放的合格貸款會更多，或者低於 36%。是這樣嗎？個人貸款？

All of our loans are below [30%].

我們所有的貸款如下[30%]。

Absolutely. So with maybe the risk-free rate and risk premiums being elevated in this current environment, if those were to back off, so many more loans can be made at 36%. So I'm just trying to figure out what are some of the macro forces, factors that have impacted the ability to even make loans in this environment? That's kind of my question. Is it easing the financial conditions actually makes more loans approvable? And that's kind of where I'm going at. I just want to have --

絕對地。因此，在當前環境下，無風險利率和風險溢價可能會上升，如果這些因素有所回落，那麼可以以 36% 的利率發放更多貸款。所以我只是想弄清楚有哪些宏觀力量和因素影響了在這種環境下發放貸款的能力？這就是我的問題。放鬆金融條件是否真的能讓更多貸款獲得批准？這就是我的目的。我只想擁有--

So you're on point. There is one person -- that one person every one or two months says what he thinks about the world and how he's going to taper in or taper out the interest rate. And that person is influencing how ability to approve different loans. The 36% is one of the reasons.

所以你說得對。有一個人——每隔一兩個月就有一個人說出他對世界的看法以及他將如何逐漸減少或減少利率。這個人正在影響批准不同貸款的能力。36%是原因之一。

There are a few others, which is meeting investor threshold, returns, et cetera. But yes, you are absolutely right that given we're going to go out of that super restrictive environment, there is definitely better ability to provide more loans to more people.

還有一些其他的，滿足投資者的門檻、回報等。但是，是的，你是絕對正確的，鑑於我們將擺脫那種超級限制性的環境，肯定有更好的能力為更多的人提供更多的貸款。

Yes, thank you.

是的，謝謝。

There are no further questions at this time. I would like to turn the floor back over to Gal Krubiner for closing remarks. Please go ahead.

目前沒有其他問題。我想請蓋爾·克魯賓納 (Gal Krubiner) 發表結束語。請繼續。

Thank you, Irene.

謝謝你，艾琳。

So Pagaya is in a very strong position, as all of you have heard, to continue and execute on our mission to deliver more financial opportunity to more people, more often. We have scaled our flagship credit product to almost 30 lenders, including transformational enterprise-level lenders, increased our funding base to over 100 institutional investment firms, and delivered a record financial performance. We will capitalize on this momentum as we execute in 2024 and enter the new phase of our journey to become a more product and partner-centric company with the leadership of Sanjiv and EP.

因此，正如大家所聽到的，Pagaya 處於非常有利的地位，可以繼續並執行我們的使命，更頻繁地為更多人提供更多金融機會。我們已將我們的旗艦信貸產品擴展到近 30 家貸款機構，包括轉型型企業級貸款機構，將我們的融資基礎擴大到超過 100 家機構投資公司，並實現了創紀錄的財務業績。我們將利用這一勢頭，在 2024 年執行任務，進入旅程的新階段，在 Sanjiv 和 EP 的領導下，成為一家更以產品和合作夥伴為中心的公司。

Thank you for your time today and your continued partnership and support in Pagaya. Have a great day.

感謝您今天抽出寶貴的時間以及您對 Pagaya 的持續合作和支持。祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference. Thank you for joining us. You may now disconnect your lines.

女士們、先生們，今天的會議到此結束。感謝您加入我們。現在您可以斷開線路。