OppFi Q1 Net Income Falls, But Revenue Beats View; Backs Outlook

(RTTNews) - OppFi Inc. (OPFI), a financial technology platform that that enables banks to offer lending products, on Thursday reported financial results for the first quarter ended March 31, 2022 with earnings dropping mainly on a reverse recapitalization. Revenues, however, exceeded the Street estimates.

Net income for the period was $1.1 million as compared to $24.4 million in the previous period. Earnings per share was $0.08 per share in the current period.

Adjusted net income for the period was $648 thousand as compared to $19.3 million in the previous period. Adjusted earnings per share stood at $0.01 per share in the current period.

Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.

4 analysts polled by Thomson Reuters were expecting the company to report earnings of $0 per share. Analysts typically exclude one-time items.

Total revenue for the quarter increased by 19.5 percent to $100.7 million, from $84.3 million in the previous period.

4 analysts polled by Thomson Reuters were expecting the company to report revenues of $90.27 million.

The company re-affirmed its previously issued full-year 2022 guidance.

Accordingly, total revenue and ending receivables growth is still seen at 20% to 25% year over year.

Net revenue margin (defined as gross revenues less change in fair value divided by total revenue) is expected between 60% and 65%.

Adjusted operating expenses (defined as total expenses excluding interest expenses, add backs and one-time items), as percentage of total revenue is seen between 43% and 47%.

Adjusted EBITDA margin is expected between 20% to 25%, whereas adjusted net income margin is seen between 8% and 12%.

Shares of OppFi are currently trading in pre-market at $3.37, up $0.20 or 6.31 percent from the previous close.