Analyst Summary:
Oportun, a digital banking platform, has reported their financial results for the fourth quarter and full year ended December 31, 2022. Despite a difficult macroeconomic backdrop, the company reported a profitable quarter on an adjusted basis. Oportun's "Members", total customers, grew to 1.88 million up from 1.262 million in the prior-year quarter. Products grew to 2.01 million from 1.756 million. However, the charge-off rate in the fourth quarter was 12.6%, reflecting the pandemic's continued impact. Oportun's initial 2023 guidance reflects strong anticipated performance from the second quarter onward, benefiting from expense reductions, reductions in charge-offs, and prudent originations. The company continues to focus on driving down their first payment defaults and managing their portfolio of loans underwritten prior to July 2022. Oportun's CEO, Raul Vazquez, commented that "with the recent launch of the Oportun Mobile App, our platform is in place to build long-term, highly engaged relationships with our members.”
Forward-looking statements included in this press release highlighted the impact of Covid-19 on the Company's business, the competition with other companies, uncertainty in obtaining additional financing, and the potential need for strategic alternatives. Non-GAAP financial measures were introduced, and reconciliations to GAAP measures were provided. Oportun also announced various credit facilities and financial metrics such as its annualized charge-off rate 12.6% and its operating efficiency for the fourth quarter was 57.0.