Open Lending Reports First Quarter 2023 Financial Results

May 9, 2023

AUSTIN, Texas, May 09, 2023 (GLOBE NEWSWIRE) -- Open Lending Corporation (Nasdaq: LPRO) (the “Company” or “Open Lending”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today reported financial results for its first quarter of 2023.

“First quarter results were ahead of our expectations and included the certification of 32,408 loans and total revenue of $38.4 million. We also reported net income of $12.5 million and Adjusted EBITDA of $21.2 million, ” said Keith Jezek, CEO of Open Lending. “In this challenging economic environment, we remain laser focused on further refining and optimizing our sales channels, enhancing our technology offering and attracting and retaining top talent. We feel that the challenges our industry faces will eventually subside and that we are well positioned to capture the pent-up demand when conditions improve.”

Three Months Ended March 31, 2023 Highlights

  • The Company facilitated 32,408 certified loans during the first quarter of 2023, compared to 43,944 certified loans in the first quarter of 2022
  • Total revenue was $38.4 million during the first quarter of 2023, compared to $50.1 million in the first quarter of 2022
  • Gross profit was $32.9 million during the first quarter of 2023, compared to $45.3 million in the first quarter of 2022
  • Net income was $12.5 million during the first quarter of 2023, compared to $23.2 million in the first quarter of 2022
  • Adjusted EBITDA was $21.2 million during the first quarter of 2023, compared to $33.8 million in the first quarter of 2022

Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure is provided in the financial table included at the end of this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”

Second Quarter 2023 Outlook
Based on trends into second quarter 2023, the Company is issuing guidance ranges as follows:

Total Certified Loans 29,000 - 33,000
Total Revenue $33 - $37 million
Adjusted EBITDA $16 - $20 million

The guidance provided above includes forward-looking statements within the meaning of U.S. securities laws. While the financial guidance takes into account the continuing impact of the global COVID-19 pandemic, the impact of the pandemic has been unprecedented and the future effect of the pandemic on the global economy and our financial results remains uncertain, and our actual results may differ materially. See “Forward-Looking Statements” below.

Conference Call
Open Lending will host a conference call to discuss the first quarter 2023 financial results today at 5:00 pm ET. The conference call will be webcast live from the Company's investor relations website at under the “Events” section. The conference call can also be accessed live over the phone by dialing (844) 512-2921, or for international callers (412) 317-6671; the conference ID is 22026749. An archive of the webcast will be available at the same location on the website shortly after the call has concluded.

About Open Lending 
Open Lending (Nasdaq: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For over 20 years, we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit

Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements related to market trends, the impact of the global COVID-19 pandemic on factors impacting the Company’s business, the Company’s new lender pipeline, consumer behavior and demand for automotive loans, as well as future financial performance under the heading “Second Quarter 2023 Outlook” above. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the Company’s control. These forward-looking statements are subject to a number of risks and uncertainties, including general economic, market, political and business conditions; the continuing effects of the COVID-19 pandemic on consumer behavior; applicable taxes, inflation, supply chain disruptions including global hostilities and responses thereto, interest rates and the regulatory environment; the outcome of judicial proceedings to which Open Lending is, or may become a party; failure to realize the anticipated benefits of the business combination with Nebula Acquisition Corporation; other risks discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that they currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause their assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Non-GAAP Financial Measures
The non-GAAP financial measures included in this press release are financial information that has not been prepared in accordance with GAAP. The Company uses Adjusted EBITDA, Adjusted EBITDA margin and Adjusted operating cash flows internally in analyzing our financial results and believes these measures are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. The Company believes that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.

The Company believes these measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. In addition, these measures provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain non-cash items and certain non-recurring variable charges. Adjusted EBITDA is defined as GAAP net income excluding interest expense, income tax expense, depreciation and amortization expense of property and equipment, and share-based compensation expense. Adjusted EBITDA margin is defined as Adjusted EBITDA expressed as a percentage of total revenue. Adjusted operating cash flows is defined as Adjusted EBITDA, minus CAPEX, +/- change in contract assets.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure provided in the financial statement tables included below in this press release.

ICR for Open Lending

Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share data)

    March 31, 2023   December 31, 2022
Current assets        
Cash and cash equivalents   $ 210,589     $ 204,450  
Restricted cash     4,713       4,069  
Accounts receivable, net     6,620       5,721  
Current contract assets, net     41,711       54,429  
Income tax receivable     6,530       9,714  
Other current assets     1,832       2,361  
Total current assets     271,995       280,744  
Property and equipment, net     2,664       2,573  
Operating lease right-of-use asset, net     4,459       4,610  
Contract assets, net     24,231       21,001  
Deferred tax asset, net     63,907       65,128  
Other assets     5,642       5,575  
Total assets   $ 372,898     $ 379,631  
Liabilities and stockholders’ equity        
Current liabilities        
Accounts payable     741       288  
Accrued expenses     6,369       6,388  
Current portion of debt     3,750       3,750  
Third-party claims administration liability     4,713       4,055  
Other current liabilities     1,173       626  
Total current liabilities     16,746       15,107  
Long-term debt, net of deferred financing costs     142,829       143,683  
Operating lease liabilities     3,930       4,082  
Other liabilities     3,844       3,935  
Total liabilities   $ 167,349     $ 166,807  
Commitments and contingencies        
Stockholders’ equity        
Preferred stock, $0.01 par value; 10,000,000 shares authorized and none issued and outstanding            
Common stock, $0.01 par value; 550,000,000 shares authorized, 128,198,185 shares issued and 120,591,873 shares outstanding as of March 31, 2023 and 128,198,185 shares issued and 123,646,059 shares outstanding as of December 31, 2022     1,282       1,282  
Additional paid-in capital     500,530       499,625  
Accumulated deficit     (203,281 )     (215,819 )
Treasury stock at cost, 7,606,312 shares at March 31, 2023 and 4,552,126 at December 31, 2022     (92,982 )     (72,264 )
Total stockholders’ equity     205,549       212,824  
Total liabilities and stockholders’ equity   $ 372,898     $ 379,631  

Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except share data)
  Three Months Ended March 31,
    2023       2022  
Profit share $ 18,602     $ 28,310  
Program fees   17,301       19,726  
Claims administration and other service fees   2,458       2,032  
Total revenue   38,361       50,068  
Cost of services   5,431       4,788  
Gross profit   32,930       45,280  
Operating expenses      
General and administrative   10,195       7,482  
Selling and marketing   4,409       3,733  
Research and development   1,230       1,823  
Total operating expenses   15,834       13,038  
Operating income   17,096       32,242  
Interest expense   (2,387 )     (803 )
Interest income   2,064       25  
Income before income taxes   16,773       31,464  
Income tax expense   4,235       8,310  
Net income $ 12,538     $ 23,154  
Net income per common share      
Basic $ 0.10     $ 0.18  
Diluted $ 0.10     $ 0.18  
Weighted average common shares outstanding      
Basic   123,122,014       126,215,698  
Diluted   123,424,322       126,216,197  

Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
    Three Months Ended March 31,
      2023       2022  
Cash flows from operating activities        
Net income   $ 12,538     $ 23,154  
Adjustments to reconcile net income to net cash provided by operating activities:        
Share-based compensation     1,844       1,281  
Depreciation and amortization of property and equipment     244       221  
Amortization of debt issuance costs     101       83  
Non-cash operating lease cost     151       141  
Deferred income taxes     1,221       554  
Changes in assets & liabilities:        
Accounts receivable, net     (899 )     (1,535 )
Contract assets, net     9,488       5,504  
Other current and non-current assets     515       3,066  
Accounts payable     454       (1,090 )
Accrued expenses     (19 )     1,526  
Income tax receivable, net     2,817       (745 )
Operating lease liabilities     (135 )     (119 )
Third-party claims administration liability     658       (21 )
Other current and non-current liabilities     530       (88 )
Net cash provided by operating activities     29,508       31,932  
Cash flows from investing activities        
Purchase of property and equipment     (36 )     (56 )
Capitalized software development costs     (299 )     (130 )
Net cash used in investing activities     (335 )     (186 )
Cash flows from financing activities        
Payments on term loans     (938 )     (781 )
Shares repurchased     (21,323 )      
Shares withheld for taxes related to restricted stock units     (129 )     (39 )
Net cash (used in) provided by financing activities     (22,390 )     (820 )
Net change in cash and cash equivalents and restricted cash     6,783       30,926  
Cash and cash equivalents and restricted cash at the beginning of the period     208,519       119,509  
Cash and cash equivalents and restricted cash at the end of the period   $ 215,302     $ 150,435  
Supplemental disclosure of cash flow information:        
Interest paid   $ 2,537     $ 721  
Income tax paid (refunded), net     197       8,501  
Non-cash investing and financing:        
Share-based compensation for capitalized software development   $ 11     $  
Capitalized software development costs accrued but not paid     20        

Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited, in thousands)
  Three Months Ended March 31,
    2023       2022  
Net income $ 12,538     $ 23,154  
Non-GAAP adjustments:      
Interest expense   2,387       803  
Income tax expense   4,235       8,310  
Depreciation and amortization of property and equipment   244       221  
Share-based compensation   1,844       1,281  
Total adjustments   8,710       10,615  
Adjusted EBITDA $ 21,248     $ 33,769  
Total revenue $ 38,361     $ 50,068  
Adjusted EBITDA margin   55 %     67 %
Adjusted operating cash flows(1)      
Adjusted EBITDA $ 21,248     $ 33,769  
CAPEX   (335 )     (186 )
Decrease (increase) in contract assets, net   9,488       5,504  
Adjusted operating cash flows $ 30,401     $ 39,087  

(1) Adjusted operating cash flows is defined as Adjusted EBITDA, minus CAPEX, +/- change in contract assets.


Primary Logo

Source: Open Lending Corporation

Print Page
Email Alerts
RSS Feeds
Contact IR