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Revenue: $690 million, up 25% year over year and 10% sequentially.
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Originations: $1.6 billion, increased 28% year over year and 15% sequentially.
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Small Business Loan Originations: Over $1 billion, up 33% year over year and 14% sequentially.
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Consumer Originations: $569 million, up 19% year over year and 16% sequentially.
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Loan and Finance Receivables: $3.8 billion, increased 23% year over year.
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Adjusted EBITDA: Increased 42% year over year.
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Adjusted EPS: Increased 63% year over year to $2.45 per diluted share.
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Net Charge-Off Rate: Decreased to 8.4% from 9.4% in the third quarter of last year.
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Marketing Expense: $141 million, 20% of total revenue.
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Liquidity: $1.2 billion, including $262 million in cash and marketable securities.
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Cost of Funds: 9.6%, with expectations for reductions due to Federal Reserve rate cuts.
Release Date: October 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Enova International Inc (NYSE:ENVA) reported record originations and revenue, with a 28% year-over-year increase in originations to $1.6 billion.
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The company achieved over $1 billion in small business loan originations for the first time, marking a 33% year-over-year increase.
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Revenue grew by 25% year over year to $690 million, with adjusted EBITDA increasing by 42% and adjusted EPS by 63%.
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Credit quality remains strong, with net charge-offs as a percentage of average combined loan and finance receivables decreasing to 8.4% from 9.4% a year ago.
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Enova International Inc (NYSE:ENVA) has a solid balance sheet with $1.2 billion in liquidity, supporting a new $300 million share repurchase program.
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Despite strong financial performance, Enova International Inc (NYSE:ENVA) perceives a disconnect between its valuation and its results, with a PE ratio of only 8.2 times on 2025 estimates.
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The company faces a competitive environment, although it currently holds a strong market position.
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Consumer delinquencies have increased sequentially, reflecting a mix shift in the portfolio.
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The cost of funds increased to 9.6% in the third quarter, although future reductions in market rates are expected to benefit profitability.
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A one-time non-cash impairment charge of $17 million was recorded related to the write-off of interest in a company associated with OnDeck’s legacy platform.
Q: Can you discuss the factors that might impact the strong environment for originations into 2025? A: Steven Cunningham, CFO, mentioned that while they didn’t specifically address 2025, they expect the current momentum to continue barring any significant changes in the operating environment. They are being thoughtful about growth, which provides flexibility to navigate changes in the macro or competitive environment. They feel confident about their competitive position due to their diversified product set and strong balance sheet.