Enova Reports Third Quarter 2024 Results

Strong top-line growth with total company revenue increasing 25% and originations increasing 28% from the third quarter of 2023

Diluted earnings per share of $1.57 increased 22% and adjusted earnings per share of $2.45 increased 63% compared to the third quarter of 2023

Credit performance remained strong compared to a year ago with lower consolidated net charge-off and delinquency ratios, a stable net revenue margin and a higher fair value premium on the total company portfolio

Liquidity, including cash and marketable securities and available capacity on facilities, totaled $1.2 billion at September 30

CHICAGO, Oct. 22, 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 third quarter ended September 30, 2024. 

"For the second quarter in a row, we generated annual growth above 25% in originations, revenue and adjusted EPS as we continue to leverage our world-class machine learning risk management algorithms and sophisticated unit economic framework to swiftly adapt to the operating environment," said David Fisher, Enova's CEO. "Both our consumer and small business customers are performing well, resulting in solid credit performance across our portfolio.  Looking forward, our diversified product offerings and strong competitive position coupled with a constructive, macroeconomic environment position us well for continued financial success."

Third Quarter 2024 Summary

Total revenue of $690 million in the third quarter of 2024 increased 25% from $551 million in the third quarter of 2023.

Net revenue margin of 58% in the third quarter of 2024, consistent with the third quarter of 2023, reflecting continued solid credit performance.

Net income of $43 million, or $1.57 per diluted share, in the third quarter of 2024 increased 22% from $41 million, or $1.29 per diluted share, in the third quarter of 2023.

Third quarter 2024 adjusted EBITDA, a non-GAAP measure, of $172 million increased 42% from $121 million in the third quarter of 2023.

Adjusted earnings of $68 million, or $2.45 per diluted share, both non-GAAP measures, in the third quarter of 2024 increased from $48 million, or $1.50 per diluted share, in the third quarter of 2023.

Total company combined loans and finance receivables increased 23% from the end of third quarter of 2023 to a record $3.8 billion with total company originations of $1.6 billion in the quarter.

Repurchased $23 million of common stock under the company's share repurchase program.

"Our ability to deliver strong top and bottom-line results that are in line or better than our expectations reflects the solid footing of our consumer and small business customers and the powerful combination of our diversified product offerings, scalable operating model and world-class risk management capabilities," said Steve Cunningham, CFO of Enova. "Our solid balance sheet should provide tailwinds to our future profitability in a falling interest rate environment while enabling our ability to both efficiently fund growth and 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 third quarter 2024 results at 4 p.m. Central Time / 5 p.m. Eastern Time today, October 22nd. 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 October 29, 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 6898465.

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 11.1 million customers with over $58 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 ReceivablesThe 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 MeasuresIn 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 MeasuresIn 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 and certain transaction-related costs 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)

September 30,

December 31,

2024

2023

2023

Assets

Cash and cash equivalents

$

67,500

$

62,908

$

54,357

Restricted cash

186,880

133,413

323,082

Loans and finance receivables at fair value

4,134,440

3,321,062

3,629,167

Income taxes receivable

66,290

65,664

44,129

Other receivables and prepaid expenses

68,926

58,624

71,982

Property and equipment, net

117,970

103,911

108,705

Operating lease right-of-use assets

12,705

15,984

14,251

Goodwill

279,275

279,275

279,275

Intangible assets, net

12,964

21,019

19,005

Other assets

28,746

41,193

41,583

Total assets

$

4,975,696

$

4,103,053

$

4,585,536

Liabilities and Stockholders' Equity

Accounts payable and accrued expenses

$

259,535

$

275,160

$

261,156

Operating lease liabilities

26,346

27,136

27,042

Deferred tax liabilities, net

217,387

96,942

113,350

Long-term debt

3,293,735

2,442,784

2,943,805

Total liabilities

3,797,003

2,842,022

3,345,353

Commitments and contingencies

Stockholders' equity:

Common stock, $0.00001 par value, 250,000,000 shares authorized,46,453,571, 45,140,504 and 45,339,814 shares issued and 26,266,846,30,244,289 and 29,089,258 outstanding as of September 30, 2024 and2023 and December 31, 2023, respectively

—

—

—

Preferred stock, $0.00001 par value, 25,000,000 shares authorized, noshares issued and outstanding

—

—

—

Additional paid in capital

318,223

274,053

284,256

Retained earnings

1,634,059

1,453,538

1,488,306

Accumulated other comprehensive loss

(9,422)

(7,203)

(6,264)

Treasury stock, at cost (20,186,725, 14,896,215 and 16,250,556shares as of September 30, 2024 and 2023 and December 31, 2023,respectively)

(764,167)

(459,357)

(526,115)

Total stockholders' equity

1,178,693

1,261,031

1,240,183

Total liabilities and stockholders' equity

$

4,975,696

$

4,103,053

$

4,585,536

 

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Revenue

$

689,924

$

551,360

$

1,928,249

$

1,534,047

Change in Fair Value

(289,568)