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Enova Reports First Quarter 2023 Results
  • Total revenue increased 25% from the first quarter of 2022 to $483 million
  • Strong profitability with diluted earnings per share of $1.56 and adjusted earnings per share of $1.79
  • Total company combined loans and finance receivables increased 28% from the end of first quarter of 2022 to $2.8 billion and total company originations increased 2% from the first quarter of 2022 to $1.1 billion
  • Continued solid credit performance and outlook with a first quarter net revenue margin of 59%, a sequential decline in the quarterly total consolidated portfolio net charge-offs as a percentage of average combined loan and finance receivables to 8.2% and a sequential increase in the fair value of the consolidated portfolio as a percentage of principal to 111% at March 31
  • At March 31, total liquidity, including cash and marketable securities and available capacity on facilities, totaled $905 million
  • Repurchased $17 million of common stock under our share repurchase program and purchased and retired $44 million of senior notes during the quarter

CHICAGO, April 25, 2023 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial technology company powered by machine learning and artificial intelligence, today announced financial results for the first quarter ended March 31, 2023. 

"We delivered another quarter of solid top- and bottom-line results, with our balanced approach to growth enabling us to successfully navigate the current macroeconomic backdrop," said David Fisher, Enova's CEO. "The powerful combination of our flexible online-only business model, talented team, diversified product offerings and machine learning-powered credit risk management capabilities have enabled us to deliver consistent and differentiated results. We continue to produce industry-leading performance and based on what we are seeing in the current market environment, we continue to expect growth on both our top and bottom line in 2023 compared to 2022."

First Quarter 2023 Summary

  • Total revenue of $483 million in the first quarter of 2023 increased 25% from $386 million in the first quarter of 2022.
  • Net revenue margin of 59% in the first quarter of 2023 compared to 70% in the first quarter of 2022.
  • Net income of $51 million, or $1.56 per diluted share, in the first quarter of 2023 compared to $52 million, or $1.50 per diluted share, in the first quarter of 2022.
  • First quarter 2023 adjusted EBITDA, a non-GAAP measure, of $126 million compared to $106 million in the first quarter of 2022.
  • Adjusted earnings of $59 million, or $1.79 per diluted share, both non-GAAP measures, in the first quarter of 2023 compared to adjusted earnings of $58 million, or $1.67 per diluted share, in the first quarter of 2022.

"Our financial results this quarter demonstrate that our balanced approach to growth is working with strong year-over-year revenue growth, solid credit, efficient marketing and thoughtful expense management driving strong profitability," said Steve Cunningham, CFO of Enova. "Our solid balance sheet and ample liquidity provide us the flexibility to successfully navigate a range of operating environments while allowing us to deliver on our commitment to driving long-term shareholder value through continued investments in our business as well as share repurchases and open market purchases and retirement of our senior notes."

For information regarding the non-GAAP financial measures discussed in this release, please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

Conference Call

Enova will host a conference call to discuss its first quarter 2023 results at 4 p.m. Central Time / 5 p.m. Eastern Time today, April 25th. The live webcast of the call can be accessed at the Enova Investor Relations website at http://ir.enova.com, along with the company's earnings press release and supplemental financial information. The U.S. dial-in for the call is 1-855-560-2575 (1-412-542-4161 for non-U.S. callers). Please ask to join the Enova International call. A replay of the conference call will be available until May 2, 2023, at 10:59 p.m. Central Time / 11:59 p.m. Eastern Time, while an archived version of the webcast will be available on the Enova International Investor Relations website for 90 days. The U.S. dial-in for the conference call replay is 1-877-344-7529 (1-412-317-0088). The replay access code is 7326429.

About Enova 

Enova International (NYSE: ENVA) is a leading financial services company with powerful online lending that serves small businesses and consumers who are underserved by traditional banks. Through its world-class analytics and machine learning algorithms, Enova has provided more than 8 million customers with over $49 billion in loans and financing. You can learn more about the company and its portfolio of businesses at www.enova.com

Cautionary Statement Concerning Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the business, financial condition and prospects of Enova. These forward-looking statements give current expectations or forecasts of future events and reflect the views and assumptions of Enova's senior management with respect to the business, financial condition and prospects of Enova as of the date of this release and are not guarantees of future performance. The actual results of Enova could differ materially from those indicated by such forward-looking statements because of various risks and uncertainties applicable to Enova's business, including, without limitation, those risks and uncertainties indicated in Enova's filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K, quarterly reports on Forms 10-Q and current reports on Forms 8-K. These risks and uncertainties are beyond the ability of Enova to control, and, in many cases, Enova cannot predict all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, the words "believes," "estimates," "plans," "expects," "anticipates" and similar expressions or variations as they relate to Enova or its management are intended to identify forward-looking statements. Enova cautions you not to put undue reliance on these statements. Enova disclaims any intention or obligation to update or revise any forward-looking statements after the date of this release.

Non-GAAP Financial Measures

In addition to the financial information prepared in conformity with generally accepted accounting principles, or GAAP, Enova provides historical non-GAAP financial information. Management believes that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of Enova's operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of Enova's business that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

Management provides non-GAAP financial information for informational purposes and to enhance understanding of Enova's GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, Enova's financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Combined Loans and Finance Receivables
The combined loans and finance receivables measures are non-GAAP measures that include loans and finance receivables that Enova owns or has purchased and loans that Enova guarantees. Management believes these non-GAAP measures provide investors with important information needed to evaluate the magnitude of potential receivable losses and the opportunity for revenue performance of the loans and finance receivable portfolio on an aggregate basis. Management also believes that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on Enova's consolidated balance sheet since revenue is impacted by the aggregate amount of receivables owned by Enova and those guaranteed by Enova as reflected in its consolidated financial statements.

Adjusted Earnings Measures
In addition to reporting financial results in accordance with GAAP, Enova has provided adjusted earnings and adjusted earnings per share, or, collectively, the Adjusted Earnings Measures, which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which provides a more complete understanding of Enova's financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as the Adjusted Earnings Measures, to assess operating performance and that such measures may highlight trends in Enova's business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, management believes that the adjustments shown below are useful to investors in order to allow them to compare Enova's financial results during the periods shown without the effect of each of these expense items.

Adjusted EBITDA Measures
In addition to reporting financial results in accordance with GAAP, Enova has provided Adjusted EBITDA and Adjusted EBITDA margin, or, collectively, the Adjusted EBITDA measures, which are non-GAAP measures. Adjusted EBITDA is a non-GAAP measure that Enova defines as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes and stock-based compensation. In addition, management believes that the adjustments for other nonoperating expenses and equity method investment income shown below are useful to investors in order to allow them to compare our financial results during the periods shown without the effect of the expense items. Adjusted EBITDA margin is a non-GAAP measure that Enova defines as Adjusted EBITDA as a percentage of total revenue. Management believes Adjusted EBITDA Measures are used by investors to analyze operating performance and evaluate Enova's ability to incur and service debt and Enova's capacity for making capital expenditures. Adjusted EBITDA Measures are also useful to investors to help assess Enova's estimated enterprise value.

 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)

(Unaudited)






March 31,



December 31,




2023



2022



2022


Assets













Cash and cash equivalents


$

97,680



$

131,692



$

100,165


Restricted cash



190,713




96,150




78,235


Loans and finance receivables at fair value



3,003,366




2,231,884




3,018,528


Income taxes receivable



37,884




56,572




43,741


Other receivables and prepaid expenses



55,478




60,151




66,267


Property and equipment, net



95,413




81,031




93,228


Operating lease right-of-use assets



12,398




22,507




19,347


Goodwill



279,275




279,275




279,275


Intangible assets, net



25,046




33,431




27,390


Other assets



49,739




54,451




54,713


Total assets


$

3,846,992



$

3,047,144



$

3,780,889


Liabilities and Stockholders' Equity













Accounts payable and accrued expenses


$

177,869



$

136,944



$

198,320


Operating lease liabilities



25,695




39,085




33,595


Deferred tax liabilities, net



108,294




96,414




104,169


Long-term debt



2,314,381




1,696,751




2,258,660


Total liabilities



2,626,239




1,969,194




2,594,744


Commitments and contingencies













Stockholders' equity:













Common stock, $0.00001 par value, 250,000,000 shares authorized,
44,917,916, 44,057,935 and 44,326,999 shares issued and
31,334,875, 32,830,838 and 31,220,928 outstanding as of March 31, 2023
and 2022 and December 31, 2022, respectively










Preferred stock, $0.00001 par value, 25,000,000 shares authorized,
no shares issued and outstanding










Additional paid in capital



258,806




233,437




251,878


Retained earnings



1,364,108




1,158,204




1,313,185


Accumulated other comprehensive loss



(7,337)




(5,074)




(5,990)


Treasury stock, at cost (13,583,041, 11,227,097 and 13,106,071
shares as of March 31, 2023 and 2022 and December 31, 2022, respectively)



(394,824)




(308,617)




(372,928)


Total stockholders' equity



1,220,753




1,077,950




1,186,145


Total liabilities and stockholders' equity


$

3,846,992



$

3,047,144



$

3,780,889


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(Unaudited)






Three Months Ended




March 31,




2023



2022


Revenue


$

483,256



$

385,731


Change in Fair Value



(197,366)




(117,042)


Net Revenue



285,890




268,689


Operating Expenses









Marketing



79,755




93,171


Operations and technology



49,169




40,730


General and administrative



37,158




34,528


Depreciation and amortization



10,540




9,514


Total Operating Expenses



176,622




177,943


Income from Operations



109,268




90,746


Interest expense, net



(43,321)




(22,483)


Foreign currency transaction loss



(171)




(314)


Equity method investment (loss) income



(6)




328


Other nonoperating expenses



(133)





Income before Income Taxes



65,637




68,277


Provision for income taxes



14,714




15,834


Net income


$

50,923



$

52,443


Earnings Per Share:









Earnings per common share:









Basic


$

1.62



$

1.57


Diluted


$

1.56



$

1.50


Weighted average common shares outstanding:









Basic



31,341




33,374


Diluted



32,711




34,882


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(dollars in thousands)

(Unaudited)






Three Months Ended March 31,




2023



2022


Total cash flows provided by operating activities


$

282,016



$

153,539


Cash flows from investing activities









Loans and finance receivables



(195,051)




(376,377)


Capitalization of software development costs and purchases of fixed assets



(10,378)




(10,118)


Total cash flows used in investing activities



(205,429)




(386,495)


Cash flows provided by financing activities



33,555




234,529


Effect of exchange rates on cash, cash equivalents and restricted cash



(149)




386


Net increase in cash, cash equivalents and restricted cash



109,993




1,959


Cash, cash equivalents and restricted cash at beginning of year



178,400




225,883


Cash, cash equivalents and restricted cash at end of period


$

288,393



$

227,842


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

LOANS AND FINANCE RECEIVABLES FINANCIAL AND OPERATING DATA

(dollars in thousands)

 


The following table includes financial information for loans and finance receivables, which is based on loan and finance receivable balances for the three months ended
March 31, 2023 and 2022.






Three Months Ended March 31,


2023



2022



Change


Ending combined loan and finance receivable principal balance:













Company owned


$

2,700,060



$

2,099,046



$

601,014


Guaranteed by the Company(a)



10,549




10,027




522


Total combined loan and finance receivable principal balance(b)


$

2,710,609



$

2,109,073



$

601,536


Ending combined loan and finance receivable fair value balance:













Company owned


$

3,003,366



$

2,231,884



$

771,482


Guaranteed by the Company(a)



13,901




14,433




(532)


Ending combined loan and finance receivable fair value balance(b)


$

3,017,267



$

2,246,317



$

770,950


Fair value as a % of principal(c)



111.3

%



106.5

%



4.8

%

Ending combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:













Company owned


$

2,785,235



$

2,169,140



$

616,095


Guaranteed by the Company(a)



12,841




11,858




983


Ending combined loan and finance receivable balance(b)


$

2,798,076



$

2,180,998



$

617,078


Average combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:













Company owned(d)


$

2,825,649



$

2,075,717



$

749,932


Guaranteed by the Company(a)(d)



14,206




12,960




1,246


Average combined loan and finance receivable balance(a)(d)


$

2,839,855



$

2,088,677



$

751,178















Revenue


$

475,467



$

381,141



$

94,326


Change in fair value



(195,055)




(115,629)




(79,426)


Net revenue



280,412




265,512




14,900


Net revenue margin



59.0

%



69.7

%



(10.7)

%














Delinquencies:













>30 days delinquent


$

198,011



$

113,798



$

84,213


>30 days delinquent as a % of loan and finance receivable balance(c)



7.1

%



5.2

%



1.9

%














Charge-offs:













Charge-offs (net of recoveries)


$

232,487



$

158,084



$

74,403


Charge-offs (net of recoveries) as a % of average loan and finance receivable balance(d)



8.2

%



7.6

%



0.6

%



(a)

Represents loans originated by a third-party lender through the CSO program, which are not included in our consolidated balance sheets.

(b)

Non-GAAP measure.

(c)

Determined using period-end balances.

(d)

The average combined loan and finance receivable balance is the average of the month-end balances during the period.

 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)




Adjusted Earnings Measures






Three Months Ended




March 31,




2023



2022


Net income


$

50,923



$

52,443


Adjustments:









Lease termination and cease-use costs(a)



1,698





Equity method investment loss



6





Other nonoperating expenses(b)



133





Intangible asset amortization



2,344




2,013


Stock-based compensation expense



5,969




5,367


Foreign currency transaction loss



171




314


Cumulative tax effect of adjustments



(2,571)




(1,927)











Adjusted earnings


$

58,673



$

58,210











Diluted earnings per share


$

1.56



$

1.50











Adjusted earnings per share


$

1.79



$

1.67






Adjusted EBITDA




Three Months Ended




March 31,




2023



2022


Net income


$

50,923



$

52,443


Depreciation and amortization expenses



10,540




9,514


Interest expense, net



43,321




22,483


Foreign currency transaction loss



171




314


Provision for income taxes



14,714




15,834


Stock-based compensation expense



5,969




5,367


Adjustments:









Equity method investment loss (income)



6




(328)


Other nonoperating expenses(b)



133














Adjusted EBITDA


$

125,777



$

105,627











Adjusted EBITDA margin calculated as follows:









Total Revenue


$

483,256



$

385,731


Adjusted EBITDA



125,777




105,627


Adjusted EBITDA as a percentage of total revenue



26.0

%



27.4

%



(a)

In the first quarter of 2023, the Company recorded a loss of $1.7 million ($1.3 million net of tax) related to the exit of leased office space.

(b)

In the first quarter of 2023, the Company recorded other nonoperating expense of $133 thousand ($100 thousand net of tax)  related to the repurchase of senior notes.

 

SOURCE Enova International, Inc.

For further information: Public Relations Contact: Erin Yeager, Email: media@enova.com, or Investor Relations Contact: Lindsay Savarese, Office: (212) 331-8417, Email: IR@enova.com, or Cassidy Fuller, Office: (415) 217-4168, Email: IR@enova.com