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Enova Reports Second Quarter 2024 Results
  • Total revenue increased 26% from the second quarter of 2023 to $628 million
  • Diluted earnings per share and adjusted earnings per share increased 29% and 28% from the second quarter of 2023 to $1.93 and $2.21, respectively
  • Total company combined loans and finance receivables increased 25% from the end of second quarter of 2023 to a record $3.6 billion as total company originations were $1.4 billion for the quarter
  • Continued solid credit performance and outlook with a second quarter net revenue margin of 59%
  • Liquidity, including cash and marketable securities and available capacity on facilities, totaled $891 million at June 30
  • Repurchased approximately $62 million of common stock under the company's share repurchase program

CHICAGO, July 23, 2024 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial services company powered by machine learning and world-class analytics, today announced financial results for the second quarter ended June 30, 2024. 

"We delivered another quarter of strong results driven by the strength of our talented team, world-class machine learning analytics, flexible online-only business model, diversified product offerings and solid balance sheet," said David Fisher, Enova's CEO. "We believe we are in a strong position heading into the back half of 2024 with considerable momentum, a constructive macroeconomic environment, and stable credit across our entire product range."

Second Quarter 2024 Summary

  • Total revenue of $628 million in the second quarter of 2024 increased 26% from $499 million in the second quarter of 2023.
  • Net revenue margin of 59% in the second quarter of 2024 compared to 60% in the second quarter of 2023.
  • Net income of $54 million, or $1.93 per diluted share, in the second quarter of 2024 compared to $48 million, or $1.50 per diluted share, in the second quarter of 2023.
  • Second quarter 2024 adjusted EBITDA, a non-GAAP measure, of $163 million compared to $126 million in the second quarter of 2023.
  • Adjusted earnings of $62 million, or $2.21 per diluted share, both non-GAAP measures, in the second quarter of 2024 compared to adjusted earnings of $55 million, or $1.72 per diluted share, in the second quarter of 2023.

"We are pleased to report another solid quarter with results that were in-line with or better than our expectations," said Steve Cunningham, CFO of Enova. "A constructive operating environment has resulted in solid demand, stable credit and cost-effective access to capital while our diversified product offerings, scalable operating model, world-class risk management capabilities and solid balance sheet continue to enable our consistent and differentiated financial performance. Going forward, we remain confident in our ability to generate meaningful financial results this year and beyond and our ability to return significant capital to shareholders through share repurchases." 

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 second quarter 2024 results at 4 p.m. Central Time / 5 p.m. Eastern Time today, July 23rd. 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 July 30, 2024, 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 4681239.

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 10.5 million customers with over $56 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, equity method investment income or loss, certain transaction-related costs and a discrete regulatory settlement 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)






June 30,



December 31,




2024



2023



2023


Assets













Cash and cash equivalents


$

60,138



$

100,042



$

54,357


Restricted cash



211,167




161,619




323,082


Loans and finance receivables at fair value



3,939,159




3,092,445




3,629,167


Income taxes receivable



68,732




32,653




44,129


Other receivables and prepaid expenses



71,172




57,758




71,982


Property and equipment, net



115,061




99,073




108,705


Operating lease right-of-use assets



13,180




16,488




14,251


Goodwill



279,275




279,275




279,275


Intangible assets, net



14,978




23,032




19,005


Other assets



44,229




45,522




41,583


Total assets


$

4,817,091



$

3,907,907



$

4,585,536


Liabilities and Stockholders' Equity













Accounts payable and accrued expenses


$

333,972



$

229,315



$

261,156


Operating lease liabilities



26,511




28,384




27,042


Deferred tax liabilities, net



114,959




103,852




113,350


Long-term debt



3,194,121




2,297,026




2,943,805


Total liabilities



3,669,563




2,658,577




3,345,353


Commitments and contingencies













Stockholders' equity:













Common stock, $0.00001 par value, 250,000,000 shares authorized,
46,373,689, 45,070,929 and 45,339,814 shares issued and
26,498,011, 30,869,886 and 29,089,258 outstanding as of
June 30, 2024 and 2023 and December 31, 2023, respectively










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










Additional paid in capital



308,481




266,058




284,256


Retained earnings



1,590,645




1,412,253




1,488,306


Accumulated other comprehensive loss



(10,749)




(5,988)




(6,264)


Treasury stock, at cost (19,875,678, 14,201,043 and 16,250,556
shares as of June 30, 2024 and 2023 and December 31, 2023, respectively)



(740,849)




(422,993)




(526,115)


Total stockholders' equity



1,147,528




1,249,330




1,240,183


Total liabilities and stockholders' equity


$

4,817,091



$

3,907,907



$

4,585,536


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(Unaudited)






Three Months Ended



Six Months Ended




June 30,



June 30,




2024



2023



2024



2023


Revenue


$

628,436



$

499,431



$

1,238,325



$

982,687


Change in Fair Value



(258,245)




(200,046)




(522,268)




(397,412)


Net Revenue



370,191




299,385




716,057




585,275


Operating Expenses

















Marketing



120,765




95,971




231,332




175,726


Operations and technology



54,953




46,961




109,332




96,130


General and administrative



39,708




36,228




79,573




73,386


Depreciation and amortization



9,709




8,629




19,972




19,169


Total Operating Expenses



225,135




187,789




440,209




364,411


Income from Operations



145,056




111,596




275,848




220,864


Interest expense, net



(70,954)




(45,584)




(136,551)




(88,905)


Foreign currency transaction loss



(19)







(67)




(171)


Equity method investment loss






(1,119)







(1,125)


Other nonoperating expenses



(521)




(121)




(1,013)




(254)


Income before Income Taxes



73,562




64,772




138,217




130,409


Provision for income taxes



19,651




16,627




35,878




31,341


Net income


$

53,911



$

48,145



$

102,339



$

99,068


Earnings Per Share

















Earnings per common share:

















Basic


$

2.00



$

1.55



$

3.71



$

3.17


Diluted


$

1.93



$

1.50



$

3.56



$

3.05


Weighted average common shares outstanding:

















Basic



26,938




31,084




27,567




31,212


Diluted



27,941




32,203




28,722




32,456


 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(dollars in thousands)

(Unaudited)






Six Months Ended June 30,




2024



2023


Total cash flows provided by operating activities


$

709,505



$

581,339


Cash flows from investing activities









Loans and finance receivables



(827,638)




(462,829)


Capitalization of software development costs and purchases of fixed assets



(22,312)




(20,648)


Total cash flows used in investing activities



(849,950)




(483,477)


Cash flows provided by (used in) financing activities



35,159




(15,069)


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



(848)




468


Net (decrease) increase in cash, cash equivalents and restricted cash



(106,134)




83,261


Cash, cash equivalents and restricted cash at beginning of year



377,439




178,400


Cash, cash equivalents and restricted cash at end of period


$

271,305



$

261,661


 

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 June 30, 2024 and 2023.






Three Months Ended June 30,


2024



2023



Change


Ending combined loan and finance receivable principal balance:













Company owned


$

3,423,652



$

2,756,942



$

666,710


Guaranteed by the Company(a)



12,487




14,199




(1,712)


Total combined loan and finance receivable principal balance(b)


$

3,436,139



$

2,771,141



$

664,998


Ending combined loan and finance receivable fair value balance:













Company owned


$

3,939,159



$

3,092,445



$

846,714


Guaranteed by the Company(a)



17,284




19,115




(1,831)


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


$

3,956,443



$

3,111,560



$

844,883


Fair value as a % of principal(c)



115.1

%



112.3

%



2.8

%

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













Company owned


$

3,569,726



$

2,857,557



$

712,169


Guaranteed by the Company(a)



14,941




16,972




(2,031)


Ending combined loan and finance receivable balance(b)


$

3,584,667



$

2,874,529



$

710,138


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













Company owned(d)


$

3,485,739



$

2,817,761



$

667,978


Guaranteed by the Company(a)(d)



13,730




14,627




(897)


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


$

3,499,469



$

2,832,388



$

667,081


Installment loans as percentage of average combined loan and finance receivable balance



47.7

%



57.1

%



(9.4)

%

Line of credit accounts as percentage of average combined loan and finance receivable balance



52.3

%



42.9

%



9.4

%














Revenue


$

619,340



$

492,723



$

126,617


Change in fair value



(255,980)




(198,126)




(57,854)


Net revenue



363,360




294,597




68,763


Net revenue margin



58.7

%



59.8

%



(1.1)

%














Combined loan and finance receivable originations and purchases


$

1,408,654



$

1,113,127



$

295,527















Delinquencies:













>30 days delinquent


$

268,053



$

221,540



$

46,513


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



7.5

%



7.7

%



(0.2)

%














Charge-offs:













Charge-offs (net of recoveries)


$

268,386



$

214,970



$

53,416


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



7.7

%



7.6

%



0.1

%







(a)

Represents loans originated by third-party lenders through the CSO programs, 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



Six Months Ended




June 30,



June 30,




2024



2023



2024



2023


Net income


$

53,911



$

48,145



$

102,339



$

99,068


Adjustments:

















Transaction-related costs(a)









327





Lease termination and cease-use costs(b)












1,698


Equity method investment loss






1,119







1,125


Other nonoperating expenses(c)



521




121




1,013




254


Intangible asset amortization



2,013




2,013




4,027




4,357


Stock-based compensation expense



7,764




6,236




15,403




12,205


Foreign currency transaction loss



19







67




171


Cumulative tax effect of adjustments



(2,590)




(2,364)




(5,232)




(4,935)



















Adjusted earnings


$

61,638



$

55,270



$

117,944



$

113,943



















Diluted earnings per share


$

1.93



$

1.50



$

3.56



$

3.05



















Adjusted earnings per share


$

2.21



$

1.72



$

4.11



$

3.51


 

Adjusted EBITDA






Three Months Ended



Six Months Ended




June 30,



June 30,




2024



2023



2024



2023


Net income


$

53,911



$

48,145



$

102,339



$

99,068


Depreciation and amortization expenses



9,709




8,629




19,972




19,169


Interest expense, net



70,954




45,584




136,551




88,905


Foreign currency transaction loss



19







67




171


Provision for income taxes



19,651




16,627




35,878




31,341


Stock-based compensation expense



7,764




6,236




15,403




12,205


Adjustments:

















Transaction-related costs(a)









327





Equity method investment loss






1,119







1,125


Other nonoperating expenses(c)



521




121




1,013




254



















Adjusted EBITDA


$

162,529



$

126,461



$

311,550



$

252,238



















Adjusted EBITDA margin calculated as follows:

















Total Revenue


$

628,436



$

499,431



$

1,238,325



$

982,687


Adjusted EBITDA



162,529




126,461




311,550




252,238


Adjusted EBITDA as a percentage of total revenue



25.9

%



25.3

%



25.2

%



25.7

%







(a)

In the first quarter of 2024, the Company recorded $0.3 million ($0.2 million net of tax) of costs related to a consent solicitation for the Senior Notes due 2025.

(b)

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.

(c)

In the second quarter of 2024, the Company recorded other nonoperating expense of $0.5 million ($0.4 million net of tax) related to the early extinguishment of debt. In the first quarter of 2024 and the first and second quarters of 2023, the Company recorded other nonoperating expense of $0.5 million ($0.4 million net of tax), $0.1 million ($0.1 million net of tax) and $0.1 million ($0.1 million net of tax), respectively, 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, Cassidy Fuller, Office: (415) 217-4168, Email: IR@enova.com