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Dec 31, 2019
Enova Q4 2019 Earnings Report
Delivered strong growth with revenue topping guidance, driven by high new customer growth at attractive unit economics.
Key Takeaways
Enova reported a strong fourth quarter, with revenue growth of 25%, adjusted EBITDA growth of 34%, and adjusted EPS growth of 67%. The company saw high new customer growth, representing 38% of total originations. Domestic lending businesses drove growth and profitability, with revenue up 27% year-over-year.
Delivered 25% revenue growth, 34% adjusted EBITDA growth, and 67% adjusted EPS growth compared to Q4 last year.
Loans to new customers represented 38% of total originations, up from 30% in Q4 of last year.
NetCredit loan balances increased 30% year-over-year to $610 million with originations increasing 64%.
Small business originations grew 138% year-over-year, now representing 14% of the book.
Enova
Enova
Forward Guidance
For Q1 2020, Enova expects total revenue of $328 million to $348 million, adjusted EBITDA of $85 million to $105 million, diluted EPS of $1.27 to $1.71, and adjusted EPS of $1.35 to $1.78. For full year 2020, Enova expects total revenue of $1.418 billion to $1.488 billion, adjusted EBITDA of $305 million to $365 million, diluted EPS of $4.21 to $5.50, and adjusted EPS of $4.53 to $5.82.
Positive Outlook
- Stable credit trends.
- Continued recent domestic receivables growth trends.
- Faster relative growth in consumer and small business installment, RPA and line of credit products.
- Accelerated growth in the mix of new customers in originations.
- Recent trends in operating leverage and funding cost to continue.
Challenges Ahead
- Assumes no significant impacts to businesses from new regulatory changes.
- Net revenue margin is influenced by ongoing portfolio credit performance and expectations.
- Net revenue margin is influenced by the mix of new versus returning customers in originations.
- Net revenue margin is influenced by the mix of loans and financing in originations.
- Net revenue margin is influenced by the level of customer prepayments and any changes to discount rates.