OppFi Inc Reports Record Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
OppFi Inc. Reports Record Second Quarter 2024 Financial Results
OppFi Inc. (NYSE:OPFI), a tech-enabled, mission-driven specialty finance platform, reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metrics | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates | Beat / Miss |
|---|---|---|---|---|---|
| Total Revenue | $126.3M | $122.5M | +3.1% | $122.69M | Beat |
| Net Income | $27.7M | $18.1M | +53.1% | - | - |
| Basic & Diluted EPS | $0.16 | N/A | N/A | $0.15 | Beat |
| Adjusted Net Income | $24.8M | $15.9M | +56.2% | - | - |
| Adjusted EPS | $0.29 | $0.18 | +53.5% | - | - |
Interpretation
OppFi exhibited strong financial performance in the second quarter of 2024, surpassing consensus estimates for both revenue and EPS. The company's total revenue increased by 3.1% year over year to $126.3 million, setting a new company record for the second quarter. Net income and adjusted net income surged by 53.1% and 56.2% year over year, respectively, significant milestones for OppFi. The increase in profitability was primarily attributed to operational efficiencies and enhanced credit performance.
Revenue Performance by Segment
| Segment | Q2 2024 | YoY Change | Comment |
|---|---|---|---|
| Total Revenue | $126.3 million | +3.1% | Record high |
| Adjusted Net Income | $24.8 million | +56.2% | Record high |
Interpretation
The financial results for different segments indicate that OppFi has consistently surpassed its targets and historical performance, particularly in total revenue and adjusted net income. The operational strategies seem to have effectively contributed to this success, with reliable revenue streams across segments.
Operational Data
| Metrics | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Net Charge-off Rate | 32.5% | Not provided | -370bps |
| Total Revenue Yield | 134.8% | Not provided | +600bps |
Comments from Company Officers
Todd Schwartz, CEO and Executive Chairman of OppFi, commented, "Our second quarter 2024 results substantially exceeded our expectations and enabled us to raise full-year earnings guidance by more than 20%." He attributes the strong profitability to operational and credit initiatives that improved key metrics and net profit margin.
Dividends and Share Repurchase Program
The company issued a special dividend of $0.12 per share and repurchased $2.5 million worth of Class A common stock during the second quarter, indicating ongoing efforts to return value to shareholders and bolster the balance sheet.
Forward Guidance
OppFi raised its full-year 2024 adjusted EPS guidance to a range of $0.73 to $0.75, up from the previous range of $0.58 to $0.62. Additionally, the company introduced third-quarter adjusted EPS guidance of $0.20 to $0.22.
Stock Price Movement
Following the release of the earnings report, OppFi's stock saw an impressive surge of 20.35%.
In summary, OppFi's second-quarter financial performance showcases robust revenue growth, improved profitability, and operational success across segments. The raised full-year guidance further highlights the company's optimistic outlook for sustained growth and shareholder value creation.
