Open Lending Reports First Quarter 2024 Financial Results

May 7, 2024

AUSTIN, Texas, May 07, 2024 (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 2024.

“I am pleased to report that in the first quarter of 2024, we exceeded the high end of our guidance for both certified loans and revenue and exceeded the mid-point for Adjusted EBITDA,” said Chuck Jehl, Chief Financial Officer and Interim Chief Executive Officer. “We are encouraged that market conditions appear to be improving. We remain focused on optimizing our core credit union and captive finance company businesses, while expanding our penetration into bank and finance companies.”

Three Months Ended March 31, 2024 Highlights

  • The Company facilitated 28,189 certified loans during the first quarter of 2024, compared to 32,408 certified loans in the first quarter of 2023.
  • Total revenue was $30.7 million during the first quarter of 2024, compared to $38.4 million in the first quarter of 2023. The first quarter of 2024 was negatively impacted by a $1.1 million reduction in estimated future profit share revenues related to business in historic vintages as compared to a $0.7 million increase in the first quarter of 2023.
  • Gross profit was $25.0 million during the first quarter of 2024, compared to $32.9 million in the first quarter of 2023.
  • Net income was $5.1 million during the first quarter of 2024, compared to $12.5 million in the first quarter of 2023.
  • Adjusted EBITDA was $12.5 million during the first quarter of 2024, compared to $21.2 million in the first quarter of 2023.

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 2024 Outlook

Based on trends into 2024, the Company is issuing its second quarter 2024 guidance ranges as follows:

Total Certified Loans 27,000 - 30,000
Total Revenue $29 - $33 million
Adjusted EBITDA $10 - $14 million

The guidance provided above includes forward-looking statements within the meaning of U.S. securities laws. See “Forward-Looking Statements” below.

Conference Call
Open Lending will host a conference call to discuss the first quarter 2024 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) 825-9789, or for international callers (412) 317-5180; the conference ID is 10187879. 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, consumer behavior and demand for automotive loans, as well as future financial performance under the heading “Second Quarter 2024 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; 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 may become a party; and 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, 2023. 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 it currently believes 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 its 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 taxes, 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

Consolidated Balance Sheets
(Unaudited, in thousands, except share data)
  March 31, 2024   December 31, 2023
Current assets      
Cash and cash equivalents $ 246,972     $ 240,206  
Restricted cash   8,103       6,463  
Accounts receivable, net   5,751       4,616  
Current contract assets, net   21,346       28,704  
Income tax receivable   5,631       7,035  
Other current assets   2,665       2,852  
Total current assets   290,468       289,876  
Fixed assets, net   4,131       3,913  
Operating lease right-of-use asset, net   3,828       3,990  
Contract assets   10,582       610  
Deferred tax asset, net   67,959       70,113  
Other assets   3,630       5,535  
Total assets $ 380,598     $ 374,037  
Liabilities and stockholders’ equity      
Current liabilities      
Accounts payable $ 440     $ 375  
Accrued expenses   7,895       8,131  
Current portion of debt   4,688       4,688  
Third-party claims administration liability   8,126       6,464  
Other current liabilities   956       932  
Total current liabilities   22,105       20,590  
Long-term debt, net of deferred financing costs   138,510       139,357  
Operating lease liabilities   3,279       3,450  
Other liabilities   5,166       5,060  
Total liabilities   169,060       168,457  
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 119,151,161 shares outstanding as of March 31, 2024 and 128,198,185 shares issued and 118,819,795 shares outstanding as of December 31, 2023   1,282       1,282  
Additional paid-in capital   498,617       502,032  
Accumulated deficit   (188,662 )     (193,749 )
Treasury stock at cost, 9,047,024 shares at March 31, 2024 and 9,378,390 at December 31, 2023   (99,699 )     (103,985 )
Total stockholders’ equity   211,538       205,580  
Total liabilities and stockholders’ equity $ 380,598     $ 374,037  

Consolidated Statements of Operations
(Unaudited, in thousands, except share data)
  Three Months Ended March 31,
Program fees $ 14,309     $ 17,301  
Profit share   13,882       18,602  
Claims administration and other service fees   2,554       2,458  
Total revenue   30,745       38,361  
Cost of services   5,750       5,431  
Gross profit   24,995       32,930  
Operating expenses      
General and administrative   11,979       10,195  
Selling and marketing   4,214       4,409  
Research and development   1,479       1,230  
Total operating expenses   17,672       15,834  
Operating income   7,323       17,096  
Interest expense   (2,770 )     (2,387 )
Interest income   2,971       2,064  
Income before income taxes   7,524       16,773  
Income tax expense   2,437       4,235  
Net income $ 5,087     $ 12,538  
Net income per common share      
Basic $ 0.04     $ 0.10  
Diluted $ 0.04     $ 0.10  
Weighted average common shares outstanding      
Basic   118,926,170       123,122,014  
Diluted   119,416,384       123,424,322  

Consolidated Statements of Cash Flows
(Unaudited, in thousands)
  Three Months Ended March 31,
  2024   2023
Cash flows from operating activities      
Net income $ 5,087     $ 12,538  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Share-based compensation   1,854       1,844  
Depreciation and amortization of fixed assets   372       244  
Amortization of debt issuance costs   107       101  
Non-cash operating lease cost   162       151  
Deferred income taxes   2,154       1,221  
Other   41        
Changes in assets & liabilities:      
Accounts receivable, net   (1,135 )     (899 )
Contract assets, net   (2,614 )     9,488  
Other current and non-current assets   188       515  
Accounts payable   66       454  
Accrued expenses   (189 )     (19 )
Income tax receivable, net   3,358       2,817  
Operating lease liabilities   (152 )     (135 )
Third-party claims administration liability   1,662       658  
Other current and non-current liabilities   45       530  
Net cash provided by operating activities   11,006       29,508  
Cash flows from investing activities      
Purchase of property and equipment         (36 )
Capitalized software development costs   (642 )     (299 )
Net cash used in investing activities   (642 )     (335 )
Cash flows from financing activities      
Payments on term loans   (938 )     (938 )
Shares repurchased         (21,323 )
Shares withheld for taxes related to restricted stock units   (1,021 )     (129 )
Net cash (used in) provided by financing activities   (1,959 )     (22,390 )
Net change in cash and cash equivalents and restricted cash   8,405       6,783  
Cash and cash equivalents and restricted cash at the beginning of the period   246,669       208,519  
Cash and cash equivalents and restricted cash at the end of the period $ 255,074     $ 215,302  
Supplemental disclosure of cash flow information:      
Interest paid $ 3,541     $ 2,537  
Income tax paid (refunded), net $ (3,075 )   $ 197  
Non-cash investing and financing:      
Share-based compensation for capitalized software development $ 38     $ 11  
Capitalized software development costs accrued but not paid $ 66     $ 20  

Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited, in thousands)
  Three Months Ended March 31,
  2024   2023
Net income $ 5,087     $ 12,538  
Non-GAAP adjustments:      
Interest expense   2,770       2,387  
Income tax expense   2,437       4,235  
Depreciation and amortization of fixed assets   372       244  
Share-based compensation expense   1,854       1,844  
Total adjustments   7,433       8,710  
Adjusted EBITDA $ 12,520     $ 21,248  
Total revenue $ 30,745     $ 38,361  
Adjusted EBITDA margin   41 %     55 %
Adjusted operating cash flows(1)      
Adjusted EBITDA $ 12,520     $ 21,248  
CAPEX   (642 )     (335 )
Decrease (increase) in contract assets, net   (2,614 )     9,488  
Adjusted operating cash flows $ 9,264     $ 30,401  

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

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Source: Open Lending Corporation

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