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.

(PRNewsfoto/Enova International, Inc.)

"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 23^rd. 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.