Sezzle Inc (SEZL) 2024 Q3 法說會逐字稿

Good day and welcome to Sezzle Inc third quarter.

美好的一天，歡迎來到 Sezzle Inc 第三季。

Financial results call, all participants will be in listen-only mode.

財務結果電話會議，所有參與者將處於只聽模式。

If you need assistance, please signal conference specialist by pressing this R key followed by Z after today's presentation with an opportunity to ask questions.

如果您需要協助，請在今天的演示結束後按 R 鍵，然後按 Z 向會議專家發出信號，並有機會提問。

Please note that this event is being recorded.

請注意，該事件正在被記錄。

I don't like the cold.

我不喜歡冷。

Don't like to turn the conference over to Mr. Charlie Youakim.

不想把會議交給 Charlie Youakim 先生。

You know, CEO and executive Chairman.

你知道，執行長兼執行主席。

Please go ahead, sir.

請繼續，先生。

Thank you.

謝謝。

Good afternoon, everyone and welcome to Sezzle's 2024 3rd quarter earnings call.

大家下午好，歡迎參加 Sezzle 的 2024 年第三季財報電話會議。

My name is Charlie Youakim.

我叫查理尤金。

I'm the CEO and executive Chairman of Sezzle.

我是 Sezzle 的執行長兼執行主席。

I'm joined today by our Chief Financial Officer, Karen Hartje, our President, Paul Paradis and our head of Corp DEV and I are lee rating in conjunction with this conference call.

今天，我們的財務長 Karen Hartje、我們的總裁 Paul Paradis 和我們的 Corp DEV 主管也加入了我的行列，我在本次電話會議中獲得了 lee 評級。

We filed our earnings announcement with the SEC and posted it along with our earnings presentation on our investor website at Sezzle dotcom.

我們向 SEC 提交了盈利公告，並將其與盈利演示一起發佈在我們的投資者網站 Sezzle dotcom 上。

If you have not done so already, please go to the investor relations section of our website there.

如果您還沒有這樣做，請造訪我們網站的投資者關係部分。

You will find the press release and earnings presentation under quarterly earnings within the financial section with that done.

完成後，您將在財務部分的季度收益下找到新聞稿和收益演示。

Let's get started.

讓我們開始吧。

I'm very excited to share our latest quarterly performance.

我很高興分享我們最新的季度業績。

Our strong growth momentum continues to show in our financial results as we set new highs in several areas, the combination of stronger than anticipated results plus the launch of a banking program with web bank has led us to raise our 2024 guidance.

我們強勁的成長動能繼續體現在我們的財務業績中，我們在多個領域創下了新高，強於預期的業績加上網路銀行銀行計劃的推出，使我們提高了 2024 年的指導。

Many of these items are captured in our summary provided on slide 3.

其中許多內容都包含在投影片 3 中提供的摘要中。

If you want to flip ahead, the first item to pop out on that slide is that our quarterly revenue rose 71.3% year over year like Q2.

如果你想往前看，投影片上跳出的第一個項目是我們的季度營收與第二季一樣年增 71.3%。

Our strong performance was driven by the rise in consumer purchase frequency and the growing number of subscribers.

我們的強勁業績是由消費者購買頻率的上升和訂閱者數量的成長所推動的。

Our subscriber count reached 529,000 at the end of the third quarter, which represents an increase of 67,000 subscribers when compared to last quarter.

截至第三季末，我們的訂閱人數達到 529,000 人，較上季增加了 67,000 人。

Clearly, we are outpaced in the buy.

顯然，我們在購買方面落後了。

Now pay later industry as reported by third party research companies such as Adobe Analytics net income for the quarter came in at $15.4 million representing a net income margin of 22.1%.

根據 Adob​​e Analytics 等第三方研究公司的報告，現在支付產業該季度的淨利潤為 1,540 萬美元，淨利潤率為 22.1%。

Like Q2.

就像Q2一樣。

We have some one time discrete tax items to adjust to that number, which is why we provide an adjusted net income.

我們有一些一次性的離散稅收項目需要調整到該數字，這就是我們提供調整後淨收入的原因。

Our adjusted net income of $17.3 million reached a new quarterly high in an adjusted net income margin of 24.7%.

我們的調整後淨利潤達到 1,730 萬美元，創下季度新高，調整後淨利率為 24.7%。

Marking the second quarter.

標誌著第二季。

In a row in which our adjusted net income margin has exceeded 20% on past calls.

在過去的買權中，我們的調整後淨利率連續超過 20%。

We've talked about the rule of 40 our own rule of 100 where we want to strive for 20% revenue growth on 50% gross margins and exceed a 20% net income margin.

我們已經討論了 40 規則和我們自己的 100 規則，即我們希望在 50% 的毛利率下實現 20% 的收入增長，並超過 20% 的淨利潤率。

This quarter, we had 71% revenue growth, a 55% gross margin and a 25% adjusted net income margin.

本季度，我們的營收成長了 71%，毛利率為 55%，調整後淨利率為 25%。

We tally the score of 151 on our own.

我們自己算了151分。

Hard to reach rule of 100.

很難達到100的規則。

However, you want to slice it.

但是，您想將其切片。

We are proudly exceeding the fina financial performance of the vast majority of listed companies.

我們自豪地超越了絕大多數上市公司的國際金融管理局財務表現。

Slide 3 also provides a sneak peek into our guidance which Karen will provide greater detail on at the end of the presentation.

幻燈片 3 還提供了我們的指南的預覽，凱倫將在演示結束時提供更多詳細資訊。

Nonetheless, I will make a couple of comments here.

儘管如此，我還是要在這裡發表一些評論。

Our new guidance now includes the estimated impact of our partnership with Web Bank as discussed in prior calls.

我們的新指南現在包括我們與網路銀行合作夥伴關係的估計影響，如先前的電話會議中所討論的。

Our previous guidance did not reflect our partnership with Web Bank.

我們先前的指導並未反映我們與網路銀行的合作關係。

Therefore, the combination of our new banking program and the strong performance in Q3 has caused us to update and I'm happy to say raise our guidance.

因此，我們的新銀行計劃和第三季的強勁表現相結合，促使我們進行了更新，我很高興地說提高了我們的指導。

The 20% growth in our 2025 adjusted eps guidance over 2024 is post tax.

我們的 2025 年調整後每股盈餘指引較 2024 年成長 20% 為稅後成長。

I want to call that out because we're looking into a roughly 20% tax headwind in 2025 and still expecting to grow eps by over 20%.

我想指出這一點是因為我們正在考慮 2025 年約 20% 的稅收阻力，但仍預期每股盈餘將成長超過 20%。

Lastly, please take note of our accolades from third parties, our strong ratings from consumers and the frequency amongst our TOP10% of users.

最後，請注意我們來自第三方的讚譽、消費者對我們的強烈評價以及我們進入 TOP10% 用戶的頻率。

All the indicators are saying that we are making the right moves for all of our stakeholders.

所有指標都表明我們正在為所有利害關係人採取正確的行動。

Speaking of stakeholders, our guiding principles shown on slide 4 provide us with a path to ensure that we are headed in the right direction.

說到利害關係人，投影片 4 中顯示的指導原則為我們提供了一條確保我們朝著正確方向前進的道路。

Believe me, when I say we question and scrutinize every move we make.

相信我，當我說我們質疑並審查我們所做的每一個舉動。

And these key principles are at the core of those decisions.

這些關鍵原則就是這些決策的核心。

The proof is in our results.

證據就在我們的結果中。

We are visibly outperforming our peers when it comes to profitability and that would not have happened if we had not been increasing consumer lifetime values or acquiring new users.

在獲利能力方面，我們的表現明顯優於同行，如果我們沒有提高消費者終身價值或獲得新用戶，這種情況就不會發生。

Our latest product offering on demand checks all of the boxes of our guiding principles.

我們按需提供的最新產品符合我們指導原則的所有要求。

It shares many of the same attributes of our subscription products, particularly to the goal of enhancing the consumer experience while also helping us increase the lifetime values of our consumers.

它與我們的訂閱產品有許多相同的屬性，特別是在增強消費者體驗的目標上，同時也幫助我們提高消費者的終身價值。

We will discuss on demand in greater detail later in the presentation.

我們將在稍後的演示中根據需要進行更詳細的討論。

But I believe it will be one of the next significant growth vectors in Sezzle's journey.

但我相信它將成為 Sezzle 旅程中下一個重要的成長載體之一。

And last but not least the all encompassing stakeholder satisfaction.

最後但並非最不重要的一點是利害關係人的滿意度。

Guiding principle, we are after all a public benefit corporation, many think the public benefit status conflicts with being profitable.

指導原則是，我們畢竟是公益企業，許多人認為公益地位與獲利是衝突的。

We disagree and we believe being a good steward doesn't mean you can't be profitable.

我們不同意，但我們相信成為一個好的管家並不代表你不能獲利。

We track a variety of metrics to make sure we are aligning ourselves with stakeholders such as consumer satisfaction, merchant sentiment, employee happiness, and stockholder returns to name a few.

我們追蹤各種指標，以確保我們與利害關係人保持一致，例如消費者滿意度、商家情緒、員工幸福感和股東回報等等。

Our guiding principles led us down the path of one of our most significant operational activities that we have conducted in the history of Vezel.

我們的指導原則引導我們走上了 Vezel 歷史上最重要的營運活動之一的道路。

Launching our partnership with Web Bank.

與網路銀行建立合作關係。

As reflected on fly five, as mentioned earlier, I'm excited to share the news of our web bank partnership with you.

正如前面提到的第五次飛行所反映的那樣，我很高興與您分享我們網路銀行合作夥伴關係的消息。

We feel lucky, lucky to have found such a partner that is very much aligned with us.

我們感到很幸運，很幸運能找到這樣一個與我們非常契合的合作夥伴。

We were told by many that they are the gold standard for bank partners and we believe that we are on the right path with them.

許多人告訴我們，它們是銀行合作夥伴的黃金標準，我們相信我們與他們一起走在正確的道路上。

Prior to today, the banking program was not a part of our guidance on a go forward basis, but today, it will be, let me give you a little more color on how the program will benefit us.

在今天之前，銀行計劃並不是我們未來指導的一部分，但今天，它將會是，讓我為您提供更多關於該計劃將如何使我們受益的信息。

Before this partnership, we had to manage everything on a state by state level which makes running our business a lot more complicated, particularly when it comes to compliance.

在建立合作夥伴關係之前，我們必須逐州管理所有事務，這使得我們的業務運作變得更加複雜，特別是在合規性方面。

The banking program unifies our product contract across the United States under the bank's national charter, which allows us to standardize our regulatory procedures on a national level rather than a state by state approach.

銀行計劃根據銀行的國家章程統一了我們在美國各地的產品合同，這使我們能夠在國家層面而不是逐個州的方式標準化我們的監管程序。

Thus aiding in our profitability.

從而有助於我們的獲利能力。

More importantly, the banking program enables us to introduce new products that will be a key to future user acquisition and consumer lifetime value expansion.

更重要的是，銀行計劃使我們能夠推出新產品，這將是未來用戶獲取和消費者終身價值擴張的關鍵。

As suggested on slide 6.

正如幻燈片 6 中所建議的。

As we evolve, we continue to focus on the needs of the consumer.

隨著我們的發展，我們繼續關註消費者的需求。

At each stage of our journey, we have successfully enhanced the user experience while increasing their lifetime values.

在旅程的每個階段，我們都成功地增強了使用者體驗，同時增加了他們的終身價值。

Without having the consumer in mind, you can't have a success, a successful product.

如果不考慮消費者，你就不可能獲得成功，不可能獲得成功的產品。

We are presently focusing on two areas for our users, financial tools and shopping tools.

我們目前為用戶重點關注兩個領域：金融工具和購物工具。

I believe that we are just at the beginning stages of our relationship with the consumer as there are so many more things they need.

我相信我們與消費者的關係正處於開始階段，因為他們需要的東西還有很多。

In addition to on demand in our product marketplace, we have listed several other areas we are considering for future products and future launches.

除了產品市場上的需求之外，我們還列出了我們正在考慮用於未來產品和未來發布的其他幾個領域。

Not all of these are for certain, but we wanted to give you an idea of the variety of opportunities that exist in our future path.

並非所有這些都是確定的，但我們想讓您了解我們未來道路上存在的各種機會。

But let's talk about one product that is for certain on demand as shown on slide 7, we couldn't have launched this paying for product without the web bank partnership.

但是，讓我們來談談幻燈片 7 中所示的一種肯定是按需的產品，如果沒有網路銀行合作夥伴關係，我們就不可能推出這種付費產品。

Its biggest deliverable is that it will allow consumers to use pay for everywhere.

其最大的成果是讓消費者可以在任何地方使用付費服務。

Even if they don't have a federal premium or anywhere subscription, we get it many first time users don't want to immediately sign up for a subscription.

即使他們沒有聯邦保費或任何地方訂閱，我們發現許多首次用戶不想立即註冊訂閱。

We believe that on demand creates a bridge for those users to potentially become subscribers down the road.

我們相信，點播為這些用戶搭建了一座橋樑，讓他們有可能成為未來的訂閱者。

We are unable to get much detail at this time.

目前我們無法獲得更多細節。

As it is a very new offering.

因為它是一個非常新的產品。

But we expect ondemand to help us in two areas.

但我們希望 ondemand 能夠在兩個方面為我們提供幫助。

First, it should allow us to be even more competitive for enterprise merchants as it will give us another means of monetization.

首先，它應該讓我們對企業商家更具競爭力，因為它將為我們提供另一種貨幣化手段。

Second, we expect greater consumer activation within the purchase funnel as new non subscribers can choose to incur a one time service fee at the point of purchase to shop anywhere visa is accepted rather than the only previously available option of signing up for a subscription.

其次，我們預期購買管道中的消費者會更加活躍，因為新的非訂閱者可以選擇在購買時支付一次性服務費，以便在接受簽證的任何地方購物，而不是以前唯一可用的註冊訂閱選項。

Early data suggests user activation into our monetized programs.

早期數據顯示用戶啟動了我們的貨幣化計劃。

Ie our subscription and on demand programs is happening at a 30% higher rate.

也就是說，我們的訂閱和隨選節目的發生率提高了 30%。

Now there will be some learning curve when it comes to the balance between on demand and subscription.

現在，在點播和訂閱之間的平衡方面，會有一些學習曲線。

We believe both will be very important to the future success of sezzle with on demand serving as a bridge to premium at anywhere subscription.

我們相信，兩者對於 Sezzle 未來的成功都非常重要，點播服務將成為通往隨時隨地付費訂閱的橋樑。

As you can see on Friday, we had another quarter of solid growth as we finished the quarter with 529,000 subscribers.

正如您在周五看到的那樣，我們又一個季度實現了穩健成長，本季訂閱者數量達到 529,000 名。

The growth in the quarter was driven by our efforts to attract first time users through advertising and expanding the pool of current users that were able to join with the launch of on demand.

本季度的成長是由於我們透過廣告吸引首次用戶以及透過推出點播服務擴大現有用戶群而做出的努力。

We expect to see a trade off with subscription as new consumers to says we will have more choices as they look to shop everywhere with us.

我們預計會看到訂閱的權衡，因為新消費者表示我們將有更多選擇，因為他們希望與我們一起購物。

The activity and feedback on our subscription products has been phenomenal and we expect premium and anywhere to be core products for the long term.

我們的訂閱產品的活動和回饋非常出色，我們預計優質產品和任何地方都將成為長期的核心產品。

Nonetheless, we think the flexibility on demand offers will greatly increase consumer activations in the purchase in the purchase funnel.

儘管如此，我們認為按需提供的靈活性將大大增加消費者在購買管道中的購買活躍度。

And we already see that early sign as I pointed out earlier in the presentation here, we also expect our monthly active on demand users to be as important a metric to the company going forward as subscriber comp.

正如我在之前的演示中指出的那樣，我們已經看到了這個早期跡象，我們也預計每月活躍的點播用戶數將成為公司未來發展的重要指標，就像訂戶比較一樣。

And you might be wondering why.

您可能想知道為什麼。

And the reason is once we've shown a customer the ability to download our app and use us in more places, we believe that we've successfully converted that customer into a strong LTV customer for the company.

原因是，一旦我們向客戶展示了下載我們的應用程式並在更多地方使用我們的能力，我們相信我們已經成功將該客戶轉變為公司強大的 LTV 客戶。

And we believe that on demand will follow that same path of creating strong LTV customers.

我們相信，按需服務也將遵循相同的道路，創造強大的 LTV 客戶。

It's likely that in the near to intermediate term, the interplay between ondemand and our subscription products will create some WSS in the subscriber counts with them.

從近期到中期來看，點播產品和我們的訂閱產品之間的相互作用可能會在訂閱者數量上產生一些 WSS。

Even potentially going down as ondemand pickup accelerates bottom line.

隨著按需提貨加速獲利，甚至可能會下降。

We believe the net net of subscription and ondemand will be positive for our financial performance as well as our customer experience.

我們相信訂閱和點播的淨收入將對我們的財務表現和客戶體驗產生正面影響。

As I say this, I also want our investors to know that we did take such volatility into consideration as part of our 2024 and 2025 guidance.

正如我所說，我也希望我們的投資者知道，我們確實在 2024 年和 2025 年指導中考慮了這種波動性。

And that segues us over to slide 9 because now that we've got a handful of strong LTD products, the new goal is getting more consumers into the funnel.

這讓我們轉向投影片 9，因為現在我們已經有了一些強大的 LTD 產品，新的目標是讓更多的消費者進入通路。

One way to do that is by increasing awareness and making more noise.

實現這一目標的方法之一是提高認識並發出更多聲音。

As shown on slide 9, we have several ways.

如投影片 9 所示，我們有幾種方法。

We are trying to increase product awareness with consumers as well as general awareness of the brand name Sezzle.

我們正在努力提高消費者對產品的認知度以及 Sezzle 品牌的普遍認知度。

As you will see from our 10-Q that will be filed in the morning before the market opens.

正如您從我們的 10-Q 中看到的那樣，該報告將在早上開市前提交。

We did increase our marketing spend during the quarter compared to the first half of the year but admittedly not as aggressively as we anticipated as much of the airways were clogged up with political ads as the airwaves clogged up.

與上半年相比，我們確實在本季度增加了行銷支出，但不可否認的是，沒有我們預期的那麼積極，因為隨著廣播的堵塞，許多航空公司都被政治廣告堵塞。

The cost of having one's voice heard during the political season also increased, making the ad spend not worth it.

在政治季節表達自己的聲音的成本也增加了，使得廣告支出變得不值得。

In many instances, we expect to be able to have a greater opportunities now that the political season has passed.

在許多情況下，政治季節已經過去，我們期望能夠擁有更多的機會。

Nonetheless, we have successfully gotten out there with selective engagement strategies and we might be a little bit biased.

儘管如此，我們已經成功地採用了選擇性參與策略，但我們可能有點偏見。

But we believe the Jersey patch sponsorship of our hometown NBA team.

但我們相信我們家鄉NBA球隊的球衣補丁贊助。

The Minnesota Timberwolves has been a great awareness strategy for us.

明尼蘇達灰狼隊對我們來說是一個很好的意識策略。

The Timberwolves are approaching 30 nationally televised games this season, not including a likely playoff run.

灰狼隊本賽季將有 30 場全國電視轉播的比賽，其中不包括可能進入的季後賽。

The Wolves also have Anthony Edwards who looks like a reincarnation of Michael Jordan.

狼隊還有安東尼愛德華茲，他看起來就像是麥可喬丹的轉世。

To me, I have my fingers crossed that they can lead the wolt to an NBA title with our logo on his chest, whether they make it to the championship or don't make it we believe we're set up to increase our brand awareness dramatically through this partnership.

對我來說，我祈禱他們能夠帶領球隊奪得胸前印有我們標誌的 NBA 冠軍，無論他們能否獲得冠軍，我們相信我們已經做好了提高品牌知名度的準備通過這種夥伴關係戲劇性地。

Now, please turn to slide 10 where I'm happy to say that everything on the screen is green as discussed in prior periods, the one laggard was active consumers and that too is now positive and trending in the right direction.

現在，請翻到幻燈片10，我很高興地說，正如之前討論的那樣，屏幕上的所有內容都是綠色的，一個落後者是活躍的消費者，而現在這也是積極的，並且正在朝著正確的方向發展。

We want to become top of wallet for consumers and the numbers suggest that we are becoming more a more important part of consumers' life.

我們希望成為消費者最重視的錢包，而數字則表明我們正在成為消費者生活中更重要的一部分。

While slide 10 shows the year over year progression slide 11 reflects the sequential performance quarter over quarter, which also supports our strong momentum.

雖然幻燈片 10 顯示了逐年進展，但幻燈片 11 反映了逐季度的連續業績，這也支持了我們的強勁勢頭。

With that.

就這樣。

I'm happy to turn the call over to our CFO Karen Hartje.

我很高興將電話轉給我們的財務長 Karen Hartje。

We'll go over our quarterly financial results in greater detail, Karen.

凱倫，我們將更詳細地討論我們的季度財務表現。

Thank you Charlie and hello to all on the slide 12.

謝謝查理，並向幻燈片 12 上的所有人問好。

I'm happy to go into greater detail on our quarterly results.

我很高興更詳細地介紹我們的季度業績。

It's always fun when the results are this strong total revenue increased. 71.3% year over year due to a 41% increase in U M&A 167% rise in subscription revenue.

當總收入成長如此強勁時，總是很有趣。年比成長 71.3%，原因是 U 併購成長 41%，訂閱收入成長 167%。

We have provided adjusted numbers to remove the noise mostly related to the discrete nature of our deferred tax valuation allowance which is nonrecurring.

我們提供了調整後的數字，以消除主要與我們的非經常性遞延所得稅估值津貼的離散性質相關的噪音。

We believe this provides a more reflective run rate of the company's results adjusted net income was $17.3 million for Q3 compared to $1.2 million in the prior year.

我們認為，這更能反映該公司第三季業績調整後淨利為 1,730 萬美元，而前一年為 120 萬美元。

The significant gains to the bottom line were driven by all facets from revenue growth which was up 71.3% year over year to unit economic gains as total revenue, less transaction related costs rose to 55% of total revenue compared to 49.2% in the prior year.

淨利潤的顯著增長是由收入增長的各個方面推動的，單位經濟收益同比增長 71.3%，總收入（扣除交易相關成本）佔總收入的比例從上一年的 49.2% 上升至 55% 。

And to leveraging our nontransaction operating expenses which fell to 30% of total revenue compared to 46.2% a year ago.

並利用我們的非交易營運費用，該費用佔總收入的比例從一年前的 46.2% 降至 30%。

These results are fur further captured in our ebida margin which rose to 32.2% compared to 18.18 0.5% a year ago.

我們的 ebida 利潤率進一步反映了這些結果，該利潤率從一年前的 18.18% 上升至 32.2%，下降了 0.5%。

On slide 13, you can see the third quarter revenue growth of 71% year over year is outpacing our U MS growth of 40.6%.

在投影片 13 上，您可以看到第三季營收年增 71%，超過了密西根大學 40.6% 的成長。

Most of the additional revenue growth beyond U MS is attributable to subscription particularly sezzle anywhere at the end of third quarter of 2024 we had 529,000 subscribers compared to only 210,000 in the previous year.

U MS 以外的額外收入成長大部分歸因於訂閱，尤其是在 2024 年第三季末，我們擁有 529,000 名訂閱者，而上一年僅為 210,000 名。

We didn't launch anywhere until June of 2023.

直到 2023 年 6 月，我們才在任何地方推出。

Thus, a lot of U MS and subscriber growth occurred subsequently, we have our bundled transaction related costs onto slide 14 transaction expense which is primarily payment processing costs declined to 1.9% of U MS.

因此，隨後發生了大量 U MS 和用戶成長，我們將捆綁交易相關成本計入投影片 14 的交易費用（主要是支付處理成本）降至 U MS 的 1.9%。

We believe we can maintain a level of around 2% net interest expense continues to hover around 0.5% of U MS as we are reaping the benefits of going to a lower cost facility in April of this year.

我們相信，我們可以將淨利息支出維持在 2% 左右的水平，繼續徘徊在 U MS 的 0.5% 左右，因為我們正在從今年 4 月採用成本較低的設施中獲益。

Meanwhile, our provision for credit losses rose in line with our expectations.

同時，我們的信用損失準備金上升符合我們的預期。

As noted on our Q2 earnings call, we guided that the provision would increase in the second half of the year toward the mid twos as a percentage of U MS due to seasonality and our decision to open the funnel to more consumers.

正如我們在第二季財報電話會議上指出的那樣，由於季節性以及我們決定向更多消費者開放管道，我們預計該撥備將在下半年到中期增加，佔 U MS 的百分比。

Given the confidence we have in our underwriting models.

鑑於我們對核保模式充滿信心。

We believe the previous guidance of being in the mid twos in terms of our provision for the second half of the year remains reasonable.

我們認為，先前關於下半年撥備的指導意見仍然合理。

Given the decision to optimize our top line growth with a controlled expansion of our consumer funnel.

鑑於我們決定透過控制消費者管道的擴張來優化我們的營收成長。

We thought it would be helpful to provide a little more insight into our underwriting.

我們認為對我們的承保提供更多了解會有所幫助。

As shown on slide 15, our proprietary underwriting ecosystem centers around what we call our profit models.

如投影片 15 所示，我們專有的承保生態系統以我們所謂的獲利模式為中心。

Yes, we believe our system is both a soothsayer and a driver of bottom line profitability.

是的，我們相信我們的系統既是預言家，也是底線獲利能力的推動者。

Our profit models are proprietary machine learning models first launched in fiscal 2022.

我們的獲利模式是於 2022 財年首次推出的專有機器學習模式。

We have the baby profit model for new co consumer sign ups and we are on the fourth generation of our profit model for existing customers.

我們為新的共同消費者註冊提供了嬰兒獲利模式，並且我們正處於針對現有客戶的第四代獲利模式。

The last part of our profit model series is the false profit for fraud comparing the performance of the baby profit to FICO as shown on the chart on the left, we have found that our baby profit model is a better predictor than FICO for consumer delinquencies.

我們的獲利模型系列的最後一部分是詐欺的虛假利潤，將寶貝利潤與 FICO 的表現進行比較（如左圖所示），我們發現我們的寶貝利潤模型比 FICO 更能預測消費者拖欠行為。

What gives us further confidence in our underwriting is the chart on the right where we have overlaid chargeoff performance based on consumer death files.

右邊的圖表讓我們對核保更有信心，其中我們根據消費者死亡檔案疊加了沖銷表現。

From the riskiest to the least risky.

從風險最高到風險最小。

You can see that the chargeoffs by groups are appropriately sloped from the riskiest consumers in def file one to the least in def file 10.

您可以看到按組進行的沖銷從 def 文件 1 中風險最高的消費者到 def 文件 10 中風險最小的消費者適當傾斜。

If there was lumpiness in the chargeoff from DEF file to death file, we would see that something is off in the inputs we use in our models.

如果從 DEF 檔案到死亡檔案的沖銷有波動，我們會發現模型中使用的輸入有問題。

This system also allows us to set spending power appropriately for consumers.

該系統還允許我們為消費者適當設定消費能力。

Lastly, I would like to point your attention to the bottom chart which shows a proxy for delinquencies over time for our most loyal consumers.

最後，我想請您注意下面的圖表，該圖表顯示了我們最忠實的消費者隨著時間的推移拖欠款項的代理情況。

Those that have made more than 10 orders with us.

那些已經向我們下了超過 10 個訂單的人。

This group represents most of our sales activity and we have not seen any degradation in their credit performance.

這個群體代表了我們的大部分銷售活動，我們沒有看到他們的信用表現有任何下降。

In fact, for each one of these cohorts, the results are either flat with the prior year or slightly better.

事實上，對於這些隊列中的每一個，結果要么與前一年持平，要么稍微好一些。

The proof of our effectiveness in underwriting credit risk can be seen in slide 16.

我們在核保信用風險方面的有效性的證明可以在投影片 16 中看到。

We were able to grow the top line by over 70% year over year and increase our unit economic ma margin to 55% from 49.2% in the prior year that 55% is consistent with the guidance we provided in Q2.

我們的營收年增了 70% 以上，單位經濟平均利潤率從上一年的 49.2% 提高到 55%，55% 與我們在第二季度提供的指導一致。

Now let's turn to Charlie's favorite charts on slide 17.

現在讓我們看看幻燈片 17 上查理最喜歡的圖表。

Here you can see the outcome of growing our top line improving unit economics and leveraging our cost structure.

在這裡，您可以看到增加我們的收入、改善單位經濟效益和利用我們的成本結構所取得的成果。

Our goal is to separate the lines on the chart on the right as much as possible.

我們的目標是盡可能地將右側圖表上的線條分開。

Yes, it sounds simple, but we believe we have the right team in place to continue to find opportunities to grow while leveraging our costs.

是的，這聽起來很簡單，但我們相信我們擁有合適的團隊，可以在利用成本的同時繼續尋找成長機會。

We expect our results will continue to translate into strong bottom line performance.

我們預計我們的業績將繼續轉化為強勁的利潤表現。

As shown on slide 18, we had some minor adjustments this quarter mostly related to our deferred tax asset valuation allowance.

如投影片 18 所示，本季我們進行了一些小調整，主要與我們的遞延稅資產估值準備金有關。

Either way you look at it net income or adjusted net income margin has exceeded 20% for two quarters in a row.

無論從哪個角度來看，淨利潤或調整後淨利潤率已連續兩季超過 20%。

We have also achieved an ebita margin in excess of 30% for three quarters in a row is shown on slide. 19, profitability helps liquidity and allows us to consider various options for shareholders such as the $15 million stock buyback plan, we completed during Q3.

投影片上顯示，我們的息稅前利潤率還連續三個季度超過 30%。 19.獲利能力有助於流動性，並使我們能夠考慮股東的各種選擇，例如我們在第三季完成的 1500 萬美元股票回購計畫。

During the quarter, the remaining $7.1 million of the plan was fully executed.

本季度，該計劃剩餘的 710 萬美元已全部執行。

As shown on slide 20.

如投影片 20 所示。

We have over $80 million in unrestricted cash with an additional $17.9 million available on our line of credit.

我們擁有超過 8,000 萬美元的非限制性現金，另外還有 1,790 萬美元的可用信用額度。

We are always evaluating ways to manage and strengthen the balance sheet.

我們一直在評估管理和加強資產負債表的方法。

So we will be filing a universal universal shelf registration with the SEC in the near future.

因此，我們將在不久的將來向 SEC 提交通用貨架註冊申請。

I am mentioning it here because I don't want anyone to jump to any conclusions.

我在這裡提到這一點是因為我不想讓任何人得出任何結論。

We do not have any immediate plans to raise capital but we believe it is good housekeeping to have one in place.

我們沒有任何立即籌集資金的計劃，但我們相信制定一個計劃是很好的內務管理。

The shelf will have a three year life after being declared effective by the SEC.

自 SEC 宣布生效後，該擱置有效期為三年。

Lastly on slide 21 I do want to touch on our guidance before turning the call over for Q&A our updated guidance now includes the impact from the launch of our banking program with Webank which was not part of our previously provided guidance.

最後，在投影片21 上，我確實想在轉交問答電話之前談談我們的指導意見，我們更新的指導意見現在包括與微眾銀行啟動銀行計劃的影響，這不是我們之前提供的指導意見的一部分。

Further, this coupled with our outperformance in Q3 is leading us to boost our 2024 guidance in several areas.

此外，加上我們在第三季的出色表現，我們在多個領域提高了 2024 年的指導。

We are also providing guidance for 2025 for the first time given the launch of the banking program and that we are becoming a full taxpayer in 2025.

鑑於銀行計劃的啟動以及我們將在 2025 年成為完全納稅人，我們還首次提供 2025 年的指導。

We thought it would be beneficial for investors to get some direction for 2025 albeit only at the adjusted EP line.

我們認為，儘管僅限於調整後的 EP 線，但獲得 2025 年的一些方向對投資者來說是有利的。

We anticipate providing greater detail to our 2025 forecast in 2025.

我們預計將在 2025 年提供 2025 年預測的更多細節。

We believe our guidance provides some insight into how positive we are about the direction and future of sezzle.

我們相信我們的指導可以讓我們了解我們對 Sezzle 的方向和未來有多積極。

With that.

就這樣。

I would like to turn the call over to the operator as we are happy to take your questions, operator.

我想將電話轉給接線員，因為我們很樂意回答您的問題，接線員。

Will you please open the lines for Q&A.

請打開問答線好嗎？

Thank you and I'll begin the question-and-answer session.

謝謝大家，我將開始問答環節。

Ask a question.

問一個問題。

When you press star one on your touchtone phone.

當您按下按鍵式電話上的一號星。

If you're using a speaker phone, please pick up your handset before pressing the keys.

如果您使用免持電話，請在按鍵之前拿起聽筒。

Draw your question, please press star and two this time will momentarily pause to assemble the roster.

畫出你的問題，請按星號，兩位這次將暫停以集合名單。

First question will be from Mike Grondahl of Northland Securities.

第一個問題將由北國證券公司的麥克·格隆達爾提出。

Please go ahead.

請繼續。

Hey, thanks guys.

嘿，謝謝大家。

Could you talk a little bit about what you've learned so far with the bank partner and how the new ondemand product is going?

您能否談談到目前為止您與銀行合作夥伴所了解的情況以及新的按需產品進度如何？

Sure, you know, I think the first thing with the launch of the partnership, I think a lot of what we expected to happen, it is happening.

當然，你知道，我認為合作夥伴關係啟動後的第一件事，我認為我們期望發生的很多事情都正在發生。

Okay.

好的。

But you know, back to web bank, you know, I think what, what's happening is what we really expected.

但你知道，回到網路銀行，你知道，我認為正在發生的事情是我們真正期望的。

It's, it's really simplified the business and helped us to focus on the unified product construct and, and that is helping profitability, you know, it's helping profitability because it simplifies the business.

它確實簡化了業務，幫助我們專注於統一的產品結構，這有助於提高盈利能力，你知道，它有助於提高盈利能力，因為它簡化了業務。

But also in a number of states in the state by state approach, we are quite limited.

而且在一些州逐州的做法中，我們也相當有限。

And now with a national approach, we are seeing some, some pickup in our, in our revenue and our profitability in in some states across the US.

現在，透過全國性的舉措，我們看到美國一些州的收入和獲利能力有所回升。

And that's, you know, might just, you know, that that's provided or that kind of like impact is provided in the guidance.

你知道，這可能只是指南中提供的或類似的影響。

It's, it's, it's in there, I guess.

我想，它，它，它就在那裡。

And then as far as on demand, you know, we mentioned 30% increase in activations.

然後就按需而言，我們提到激活量增加了 30%。

So, we're presenting on demand along with subscription to consumers as they enter our, our app, et cetera.

因此，當消費者進入我們的應用程式等時，我們會按需呈現並訂閱。

And we are seeing increased pickup, which is what we expected.

我們看到接客量增加，這正是我們所期望的。

You know, I think when you, when a customer comes into the app, we kind of understood that for some customers, it might be a bridge too far.

你知道，我認為當客戶進入應用程式時，我們有點明白，對於某些客戶來說，這可能是一座太遠的橋樑。

You know, you, you use this once in a, like a freemium model with a merchant checkout and then you come to the app.

你知道，你偶爾使用一次，就像帶有商家結帳功能的免費增值模式，然後你就來到了應用程式。

I'd love to check it, check out and use them and use us in more places.

我很樂意檢查、檢查並使用它們，並在更多地方使用我們。

And then we're asking you for 1,295 or 1,795 per month and a commitment of some kind.

然後我們要求您每月支付 1,295 或 1,795 美元以及某種承諾。

And I think that creates some restrictions and some people's thoughts with on demand, it basically reduces the, the friction to the entry.

我認為這會產生一些限制和一些人的按需想法，它基本上減少了進入的摩擦。

And so that, that's helping with the activations.

因此，這有助於激活。

And then part two, what was it?

然後第二部分，是什麼？

The mic?

麥克風？

Part two?

第二部分？

Oh, it was on the ondemand stuff and maybe just one follow up Charlie, you know, any update on the bank products you want to offer, you know, is that mid 2025?

哦，這是關於按需內容的，也許只是一個後續查理，你知道，你想提供的銀行產品的任何更新，你知道，是 2025 年中期嗎？

What's the current thinking there?

目前那裡的想法是什麼？

Well, you know, I think we're, we have these two pillars basically in the company of what we want to keep on focusing on because we think that consumers kind of view it this way.

嗯，你知道，我認為我們基本上有這兩個支柱，我們希望繼續關注這一點，因為我們認為消費者是這樣看待它的。

We, we have a financial benefit or financial tooling benefit to consumers.

我們，我們為消費者帶來經濟利益或金融工具利益。

But we also have a shopping benefit to consumers.

但我們也為消費者提供購物優惠。

And, you know, I always kind of think of analogies and I think of the company as like the we're an athlete trying to be as agile as possible.

而且，你知道，我總是會想到類比，我認為公司就像我們是個試圖盡可能敏捷的運動員。

And we just kind of like leaned into our left foot with financial services, you know, getting OnDemand launch in the Web Bank partnership.

你知道，我們在金融服務方面有點像左腳傾斜，在網路銀行合作夥伴關係中推出了 OnDemand。

I think we're probably going to push back over to the right foot to the shopping side and really try to create some incredible shopping features in the app because we know that those shopping features can attract new, consumers, can make the product stickier, can just, you know, overall enhance the value creation to the consumer.

我認為我們可能會重新回到購物方面，並真正嘗試在應用程式中創建一些令人難以置信的購物功能，因為我們知道這些購物功能可以吸引新的消費者，可以使產品更具黏性，你知道，只能全面提高為消費者創造的價值。

So I think in the near, in the near term, we'll be really focusing on those shopping features.

所以我認為在不久的將來，我們將真正關注這些購物功能。

I think that being said, we're not going to totally ignore the other side.

我認為話雖如此，我們不會完全忽視另一方。

We're not going to ignore financial services additions or financial products.

我們不會忽視金融服務的補充或金融產品。

But I would say probably no commitment on the timeline.

但我想說的是，可能不會對時間表做出任何承諾。

I'm sure you will have one or two products potentially on the financial services side that we launched in 2025.

我確信您會擁有我們在 2025 年推出的一兩種潛在的金融服務產品。

But the the near term is really the focus more on the shopping side.

但近期的焦點實際上更集中在購物方面。

Fair.

公平的。

And you guys said that 90 days ago too.

你們90天前也這麼說過。

So that makes a ton of sense.

所以這很有意義。

And hey, congrats again on the on the robust quarter and guidance.

嘿，再次祝賀強勁的季度和指導。

Thank you, Mike.

謝謝你，麥克。

Thank you.

謝謝。

Next question will be from Nicole from RPC.

下一個問題將來自 RPC 的 Nicole。

Please go ahead, sir.

請繼續，先生。

Hey, everyone.

嘿，大家。

Congrats on a good quarter.

恭喜季度表現良好。

Can you hear me?

你聽得到我嗎？

Yeah, thanks.

是的，謝謝。

We appreciate it.

我們很感激。

Really?

真的嗎？

Can you just clarify?

你能澄清一下嗎？

So the full year 2024 guide, is this a GAAP number?

那麼 2024 年全年指南，這是 GAAP 數字嗎？

1,205 and your adjusted number is 980.

1,205，調整後的數字是 980。

Is, is that adjustment from the cost around launching the banking program?

這是針對啟動銀行計畫的成本進行的調整嗎？

No, the adjustment is around the discrete tax items.

不是，調整是圍繞離散稅項進行的。

I don't care if you, Karen.

我不在乎你，凱倫。

Do you want to provide any more details on that?

你想提供更多細節嗎？

We had a valuation allowance against our deferred tax asset which we released, given where we're going with profitability and that created a in second quarter, a huge discrete tax item that we're still, you know, we still have on our books and so we backed that out and other, some other smaller onetime items to come up with an adjusted number that is more meaningful to investors.

考慮到我們的盈利能力，我們對我們發布的遞延稅資產進行了估值準備，這在第二季度創造了一個巨大的離散稅項，你知道，我們的賬簿上仍然有這個項目因此，我們支持了這一點以及其他一些較小的一次性項目，以得出對投資者更有意義的調整後的數字。

And then it's $12 in adjusted earnings guidance for the upcoming fiscal year.

然後是下一財年調整後的獲利指引 12 美元。

Exactly.

確切地。

Exactly.

確切地。

And that would be more, you know, apples to apples.

你知道，這將是更多的，蘋果對蘋果。

That's more in comparison to $9 you know, $9 plus number than 2024.

這比 9 美元要多，9 美元加上數字比 2024 年還要多。

Got.

得到。

It.

它。

Okay.

好的。

I mean, you're, you're growing at such an incredible clip.

我的意思是，你正在以令人難以置信的速度成長。

I'm just curious, you know, from what you guys are seeing, where do we go from here?

我只是很好奇，你知道，從你們所看到的來看，我們接下來要走向何方？

I know you like the basketball analogy, but maybe you know, what, what inning do you think we're in?

我知道你喜歡籃球的比喻，但也許你知道，你認為我們現在處於第幾局？

What's, what's the outlook from here?

這裡的前景如何？

I mean, we're looking at what, 20% net income margin, 30% ebita margins and now 55% revenue growth, you know, what, what do you think is, is the goal from a growth standpoint?

我的意思是，我們正在研究 20% 的淨利潤率、30% 的息稅前利潤率以及現在 55% 的收入成長，你知道，從成長的角度來看，你認為目標是什麼？

And what's, what's the opportunity ahead look like?

未來的機會是什麼樣的？

I think we, we really think about it more in terms of, you know, we've got this great sector we're in buy now pay later.

我認為我們確實更多地考慮了這一點，你知道，我們擁有現在購買後付款的這個偉大領域。

You know, I think the estimates out there is that buy now pay later itself is going to grow 20% year on year as a as a whole.

你知道，我認為據估計，「先買後付」整體將比去年同期成長 20%。

And our view is that we're outperforming the entire sector.

我們的觀點是，我們的表現優於整個產業。

You know, we had 71% revenue growth year on year and in the third quarter.

你知道，我們第三季的營收年增了 71%。

And so the way I can always view it or in our team's viewing it is the sector is going to grow.

因此，我總是可以這樣看待它，或者在我們團隊看來，這個產業將會成長。

A lot of our competitors are going to do really well.

我們的許多競爭對手都會做得非常好。

But as we're doing that, our strategies and our approach, we believe that we're going to be able to kind of push our shoulders out and, and, and gain market share in the sector that's also growing.

但當我們這樣做時，我們的策略和方法，我們相信我們將能夠竭盡全力，並在這個也在不斷增長的行業中獲得市場份額。

So that's basically what our approach has been.

這基本上就是我們的方法。

You know, we kind of always look to Australia as the Canary in the coal mine for the sector and they've had, you know, growth above and beyond what you've seen in the US so far because they launched it there a couple of years earlier.

你知道，我們總是把澳洲視為該行業煤礦中的金絲雀，他們的成長速度遠遠超出了你在美國看到的水平，因為他們在那裡推出了幾次幾年前的。

So we definitely believe that there's growth to be had in the sector.

因此，我們絕對相信該行業會有成長。

And then our goal is to just, you know, spread and increase our market share within, within the sector as we're doing that just through really strong strategies.

然後，我們的目標是，你知道，在該行業內傳播並增加我們的市場份額，因為我們正在透過真正強大的策略來做到這一點。

Is there anything you can attribute to like, is there some secret sauce in here or just more of what we've discussed around not chasing growth at any cost, but more of this quality growth approach?

您有什麼可以歸因的嗎？

Well, definitely, I think we definitely have the quality growth approach and not seeking growth at any cost.

嗯，當然，我認為我們絕對有高品質的成長方式，而不是不惜一切代價尋求成長。

You know, we're, we think long term, we think like in five year, he was so we're willing to make, you know, decisions that fit that.

你知道，我們從長遠來看，我們認為五年後，他就是這樣，我們願意做出適合的決定。

And I know that people, a lot of people out there doubt this kind of like competitive advantage.

我知道很多人都懷疑這種競爭優勢。

But I think our team is incredibly awesome.

但我認為我們的團隊非常棒。

I I think we have very high standards in hiring.

我認為我們在招募方面有非常高的標準。

We have very high standards in performance management and you know, great talent attracts more great talent.

我們在績效管理方面有非常高的標準，你知道，優秀的人才會吸引更多優秀的人才。

And I think that if you look at our history, we've come up with a lot of strategic or you know, product differentiations that have helped us.

我認為，如果你回顧我們的歷史，我們已經提出了很多對我們有幫助的策略或產品差異化。

But those types of product differentiation differentiations are created by an excellent team.

但這些類型的產品差異化是由優秀的團隊所創造的。

And so I, I think we've had incredible retention.

所以我認為我們的保留率令人難以置信。

We've got an incredible team.

我們有一支令人難以置信的團隊。

It's allowed us to become this amazing athlete, you know, and then in the analogy of view that just outperforms.

它讓我們成為了一位出色的運動員，你知道，然後在類比的觀點中，我們表現得更出色。

And I think that my view and our view is that we're going to keep on doing it because we have an incredible team that really understands, you know, how to cut the DS out of the game and go after real results, but also really hit it and win big for all the stakeholders along the way while we're doing it.

我認為我的觀點和我們的觀點是我們將繼續這樣做，因為我們擁有一支令人難以置信的團隊，他們真正了解如何將 DS 排除在遊戲之外並追求真正的結果，但也在我們這樣在做的過程中，真正做到這一點並為所有利益相關者贏得巨大利益。

Is there any tie to a weaker consumer that is maybe helping the business where it looks like people who are existing customers of yours are using it more frequently by, by quite a substantial rate above what you saw a year ago.

是否與較弱的消費者有任何联系，可能會幫助您的業務，看起來您的現有客戶使用它的頻率比您一年前看到的要高得多。

Any idea what you can attribute that to and maybe like do you have a reference point for what's what, what's common in the industry for how often people are using these?

你知道你可以將其歸因於什麼嗎？

And are you above below?

而你是在上面下面嗎？

You know what, what's kind of a sweet spot for frequency of use for each consumer?

您知道每個消費者的使用頻率的最佳點是什麼嗎？

I think it's less about like a weakness sign.

我認為這不像是一個弱點的跡象。

That's why we have the slide on slide 15 at the bottom controlled expansion, optimized, topline growth with no deterioration in several core customers.

這就是為什麼我們將幻燈片 15 放在底部的幻燈片中，控制擴張、優化、營收成長，而幾個核心客戶的情況沒有惡化。

We want to provide that kind of proxy for delinquencies because we're, we're not seeing any deterioration.

我們希望為拖欠行為提供這種代理，因為我們沒有看到任何惡化。

And if you saw customers spending too much like needing the product, you see deterioration.

如果你看到顧客像需要產品一樣花費太多，你就會看到情況惡化。

I think the reason we're seeing increased utilization from our existing customers or customers in our, in our business is because we're providing better products than our competitors.

我認為我們看到現有客戶或我們業務中的客戶利用率增加的原因是我們提供了比競爭對手更好的產品。

I think we're providing products that are stickier.

我認為我們正在提供更具黏性的產品。

The customers like it.

顧客喜歡它。

They like our product.

他們喜歡我們的產品。

They like using it.

他們喜歡使用它。

And so instead of using a competitive product out there, they're preferring to come back to ours.

因此，他們寧願回到我們的產品，而不是使用現有的競爭產品。

I think that's really the key because I think Nico, I think you'd see deterioration if they were, you know, weak, weakened financially and just coming to us because they needed it.

我認為這確實是關鍵，因為我認為尼科，如果他們軟弱，經濟實力減弱，只是因為需要而來到我們這裡，你會看到情況惡化。

I guess the point.

我猜到重點了。

Sure.

當然。

Okay.

好的。

LA last question is there, you know, from, from past years, is there any seasonality with your business where like going into a holiday season?

洛杉磯的最後一個問題是，你知道，從過去幾年來看，你的業務是否有季節性，例如進入假期？

You expect a good Q4 and then things kind of tail off in Q1.

你期望第四季度表現良好，但第一季情況會有所放緩。

Just, just any idea what, what the cadence of the next couple of quarters looks like?

只是，只是知道接下來幾季的節奏是什麼樣的嗎？

Yeah, there definitely is seasonality.

是的，確實有季節性。

I mean, we're, we're retail linked.

我的意思是，我們與零售業有連結。

So, but it's a little bit unusual.

所以，但這有點不尋常。

We talked about this in the past a bit but, you know, a lot of the time during the holiday season, we, we tend to play a lot of defense.

我們過去討論過這個問題，但是，你知道，在假期的很多時候，我們傾向於進行大量的防守。

We, we try to make sure the customers don't overspend.

我們，我們盡力確保客戶不會超支。

And I think this is something that, you know, new investors, maybe it's worth hearing for new investors as well as, you know, I think this is where we're very different than credit cards.

我認為這對新投資者來說也許值得一聽，而且我認為這就是我們與信用卡非常不同的地方。

And I think in many ways better for consumers than credit cards.

我認為在很多方面對消費者來說比信用卡更好。

Because in the holiday season, we try to restrict spending.

因為在假期期間，我們會盡量限制支出。

We, in some cases, we lower limits, where, where we see it fit with, with some customer base, some of the customer base because if a customer overspends too much, they fail and if they fail, they can't make another purchase.

在某些情況下，我們會降低限制，我們認為它適合某些客戶群，某些客戶群，因為如果客戶超支太多，他們就會失敗，如果他們失敗了，他們就無法再做另一個購買。

And then sometimes if they fail with too big of an outstanding balance, they walk away.

有時，如果他們因未結餘額太大而失敗，他們就會走開。

You know, it's common sense with credit card companies, I think on the flip side, they'll never tell you this.

你知道，這是信用卡公司的常識，我認為另一方面，他們永遠不會告訴你這一點。

But I think they love it when people overspend in the holidays because when they overspend in the holidays, they create a revolver and the revolver becomes a revolver for the next five years paying interest rates, et cetera.

但我認為他們喜歡人們在假期超支，因為當他們在假期超支時，他們會製造一把左輪手槍，而左輪手槍將成為未來五年支付利息的左輪手槍，等等。

So I think this is what and that kind of dynamic I think really shows why paying for is a way better credit product, especially for young consumers as they get into their first credit products because there's a way less of a chance that someone over, you know, goes over their skis with our products because we're busy hand in hand, same incentive structure as you know, the consumer to not overspent.

所以我認為這就是我認為這種動態真正說明了為什麼付費是一種更好的信貸產品，特別是對於年輕消費者來說，因為他們進入了他們的第一個信貸產品，因為有人超過的機會，你知道，用我們的產品檢查他們的滑雪板，因為我們攜手並進，同樣的激勵結構，如你所知，消費者不要過度消費。

We we don't want them to overspend because they overspend.

我們不希望他們超支，因為他們超支。

There's a greater chance that we lose them forever and we bring the lifetime value to zero.

我們更有可能永遠失去它們，並將其終身價值歸零。

So there's so there's going to be an increased spending in quarter four.

因此，第四季的支出將會增加。

We defend quite a bit while it's happening.

當事情發生時，我們會進行相當多的辯護。

But so you'll see that and in quarter one spending goes down.

但你會看到，第一季支出會下降。

But we're in the tax season and a lot of our customers because it's mid to low income, they get a lot of tax returns.

但我們正處於報稅季節，我們的許多客戶因為是中低收入，所以他們收到了大量的報稅表。

So we tend to have a lower principal loss rate as well.

因此，我們的本金損失率也往往較低。

Where in the fourth quarter, there tends to be a higher principal loss rate in general because of overspending in holidays as much as you try to restrict it, it does happen.

在第四季度，由於假期超支而導致本金損失率普遍較高，儘管你試圖限制它，但這種情況確實發生了。

So those are sort of the dynamics.

這些都是動態。

It's really Q4, Q1 are the big seasonalities and then Q2 and Q3 are more normalized.

這實際上是第四季度，第一季是主要的季節性因素，然後第二季和第三季更加標準化。

So.

所以。

So just for my understanding, a real life example of this would be like I have a $500 limit.

根據我的理解，現實生活中的一個例子就是我有 500 美元的限額。

You're able to track my what spending habits and, and proactively drop my limit going into the holidays.

您可以追蹤我的消費習慣，並在假期前主動降低我的消費限額。

How do you actually do.

你實際上是怎樣做的。

It?

它？

It'd be less about one by one.

那就少說一一吧。

But if you look back to that slide slide 15, you know, we have this score, death is by baby profit, you know, and we're looking at this and what we might do is we might say for new customers coming in at a certain score level, we'll start at lower levels in the holidays or existing customers will restrict growth and, and limits behind the scenes or not beyond people, people see their limits, we'll restrict growth or maybe if there's a, you know, some sort of a negative event in a model that we have, it might bring limits down faster in the holidays.

但如果你回顧幻燈片 15，你知道，我們有這個分數，死亡是由嬰兒利潤造成的，你知道，我們正在研究這個，我們可能會做的是，我們可能會說，對於進來的新客戶達到一定的分數水平，我們將在假期中從較低的水平開始，或者現有客戶將限製成長，並且在幕後或不超出人們的限制，人們看到他們的極限，我們將限製成長，或者也許如果有，你我們知道，我們的模型中存在某種負面事件，它可能會在假期更快地降低限制。

If something happens, like let's say a payment failure occurs, we might bring it down instead of a 20% drop in limit.

如果發生什麼事情，例如發生支付失敗，我們可能會降低限額，而不是降低 20%。

It might be a 35% drop in limit.

限制可能會下降 35%。

Just to kind of because we know and by the way, some of, you know, there are for instances these are not exact, but that kind of gets the gist of what we do.

只是因為我們知道，順便說一句，有些例子，這些並不準確，但這就是我們所做工作的要點。

Okay.

好的。

Understood.

明白了。

All right.

好的。

Thanks for your time.

感謝您抽出時間。

Congrats on the quarter.

恭喜本季。

Thanks.

謝謝。

Thank you again.

再次感謝您。

If you have a question, please press star.

如果您有疑問，請按星號。

Then one next question.

然後是下一個問題。

Are we from H goho Rally Securities?

我們是H goho Rally 證券公司的嗎？

Please go ahead.

請繼續。

Hey, thank you.

嘿，謝謝你。

Can, can you give us a perspective on how much of your U MS is from monthly subscribers and how much is from the occasional user or the other an active user?

您能否為我們介紹一下您的 U MS 有多少來自每月訂閱者，有多少來自偶爾用戶或其他活躍用戶？

But you only use it occasionally, not under a subscription.

但您只是偶爾使用它，而不是訂閱。

Karen.

凱倫。

Do you have any of that data like at, at your fingertips?

您是否擁有觸手可及的此類數據？

Yeah, we don't really disclose the sources of U MS externally, but you know, we have to break down all the revenue streams in our 10-Q.

是的，我們並沒有真正對外披露 U MS 的來源，但你知道，我們必須在 10-Q 中分解所有收入流。

And I think you can find it.

我想你能找到它。

How is I think on slide 8, I think we talked about frequency numbers versus our core customers.

我對幻燈片 8 的看法如何，我認為我們討論了頻率數字與我們的核心客戶。

So there's eight more orders from subscribers versus non subscribers.

因此，訂閱者的訂單比非訂閱者多了八個。

During the third quarter, on average.

第三季平均而言。

So, I think there's probably maybe like, you can kind of make it use that as like a proxy or will, I think?

所以，我認為可能會有這樣的情況，你可以讓它像代理一樣使用它，我想？

Okay.

好的。

And on the, on the, the marketing side, you said there was, you know, that the, that the election environment crowded you guys out.

在行銷方面，你說，你知道，選舉環境將你們排除在外。

So what, what might you have tried to have spent or kind of what's, what's kind of the goal to take spending to and on marketing to grow the subscription business?

那麼，您可能嘗試花費什麼，或將支出用於行銷以發展訂閱業務的目標是什麼？

Because there was a, you know, want to know if there's a slow down that, that advertising pullback or what you did want to do did cause the number of new subscribers to be, to be different than it wasn't too cut.

因為，你知道，想知道是否有放緩，廣告撤回或你確實想做的事情確實導致新訂閱者的數量與沒有減少太多的情況不同。

Yeah, the one thing we use, it's not like a goal and spend, it's more of a goal on ro I, so we have this like six month sort of mindset.

是的，我們使用的一件事，它不像目標和支出，它更像是 ro I 的目標，所以我們有六個月的心態。

We want to get our money back in six months and the, if you look at the lifetime value accumulated versus the, the expenditure and so our lifetime values, you know, kind of thing in the same place.

我們希望在六個月內收回我們的錢，如果你看看累積的終身價值與支出以及我們的終身價值，你知道，類似的事情在同一個地方。

So it's really about that tells us what our expenditure can be and then using that same expenditure number with ballooning costs across all the advertising channels out there.

因此，這實際上是告訴我們我們的支出是多少，然後使用相同的支出數字以及所有廣告管道不斷膨脹的成本。

I mean, I don't know if you were watching TV, during the, during the political season, but I, I was basically watching political ads nonstop.

我的意思是，我不知道你在政治季節是否在看電視，但我基本上是在不停地看政治廣告。

So, it basically just crowded out reasonable spend during the time period.

所以，它基本上只是擠出了這段時間內的合理支出。

And that basically, you know, kind of pushed us out on some of that spending and that, you know, right now it's not a, we're not totally dependent on that because we have two channels.

基本上，你知道，這有點迫使我們放棄了一些支出，而且，你知道，現在我們並不完全依賴於此，因為我們有兩個管道。

Basically, we have two parts of the, you know, two funnels that come into our subscriber or monetize user base.

基本上，我們有兩個部分進入我們的訂戶或兩個貨幣化用戶群的管道。

One of those is from direct to consumer advertising, which is newer for us.

其中之一是直接向消費者投放廣告，這對我們來說是較新的。

And then the other is our more traditional directly integrated merchant acquisition, which is still happening.

另一個是我們更傳統的直接整合商家收購，這種情況仍在發生。

And you know, so when we acquire a consumer or shared consumer with our merchant partners, we can, we can advertise our subscription products that's free.

你知道，所以當我們獲得消費者或與我們的商業合作夥伴共享消費者時，我們可以免費宣傳我們的訂閱產品。

So we still have that.

所以我們仍然有這個。

It was more of an impact on the newer channel, which is the direct to consumer advertising that we're, you know, more inclined to do now that we have lifetime values that support it.

它對新管道的影響更大，這是直接面向消費者的廣告，你知道，我們現在更傾向於這樣做，因為我們有支持它的終生價值觀。

All right.

好的。

Terrific.

了不起。

Thanks.

謝謝。

I'll get back in the queue.

我會回到隊列中。

Thank you.

謝謝。

That ends our question and answer session.

我們的問答環節到此結束。

I'd like to turn the call back over to Charlie for closing remarks.

我想將電話轉回給查理作結束語。

Thank you, operator in closing.

謝謝您，操作員結束。

I'd like to thank the Federal team again.

我要再次感謝聯邦團隊。

As I mentioned earlier, we continue to make tremendous strides in our business and I know it's because we have an incredibly talented team going in the right direction.

正如我之前提到的，我們的業務繼續取得巨大進步，我知道這是因為我們擁有一支非常有才華的團隊，正朝著正確的方向前進。

And before I go, I wanted to add a quote from one of my favorite investing heroes, Benjamin Graham, people who invest, make money for themselves.

在我離開之前，我想引用我最喜歡的投資英雄之一本傑明·格雷厄姆的話，投資的人是為自己賺錢。

People who speculate, make money for their brokers.

投機者為他們的經紀人賺錢。

A big thank you to the investors out there and an apology to our investment banking partners for this suggestion that people and firms should speculate less.

非常感謝那裡的投資者，並向我們的投資銀行合作夥伴道歉，因為我們建議人們和公司應該減少投機。

Thank you all and have a great rest of your day.

謝謝大家，祝您有個愉快的一天。

The conference is now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。