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Mar 31, 2021
Oportun Q1 2021 Earnings Report
Reported strong operating results and profitability, maintained a solid credit profile, and advanced all of its 2021 strategic objectives.
Key Takeaways
Oportun Financial Corporation reported strong first quarter 2021 financial results with GAAP diluted EPS of $0.10 and Adjusted EPS of $0.41. The company's credit performance demonstrated the efficacy of its A.I.-driven models and reflected the favorable economic environment and stimulus impact.
Delivered strong operating results and profitability.
Maintained a solid credit profile.
Advanced all of 2021 strategic objectives.
Credit performance demonstrated the efficacy of A.I.-driven models.
Oportun
Oportun
Forward Guidance
Oportun is providing the following guidance for 2Q 2021 and full year 2021 as follows:
Positive Outlook
- Aggregate Originations $425 M (2Q 2021), $2.1 B (Full Year 2021)
- Total Revenue $135 M (2Q 2021), $600 - $605 M (Full Year 2021)
- Adjusted EBITDA $(2) - $(1) M (2Q 2021), $0 - $5 M (Full Year 2021)
- Adjusted Net Income (1) $1 - $2 M (2Q 2021), $50 - $54 M (Full Year 2021)
- Adjusted EPS $0.03 - $0.07 (2Q 2021), $1.69 - $1.82 (Full Year 2021)
Challenges Ahead
- Annualized Net Charge-Off Rate 6.8% +/- 10 bps (2Q 2021)
- Annualized Net Charge-Off Rate 7.6% +/- 15 bps (Full Year 2021)
- Management's guidance assumes the following for 2Q 2021 and FY 2021, respectively
- With respect to 2Q 2021, for loans which are projected to have a weighted average life of 0.78 years, the Company is assuming a June 30, 2021 interpolated LIBOR/Swap rate of 0.22%, based on the forward rates from May 3, 2021.
- For notes, which have original terms of 2 or 3 years, the Company interpolates between the forward swap rates. The Company is assuming a June 30, 2021 interpolated LIBOR/Swap rate of 0.25%, based on the forward rates from May 3, 2021.