Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on how loan volume is allocated across different funding sources and the economics involved? A: Evangelos Perros, CFO: We have optimized our ABS structures, expecting a 4% to 5% range, combined with diversified funding sources like forward flow and pass-through structures. Currently, ABS accounts for 60% to 70% of our volume, with alternative sources covering the remaining 30% to 40%.
Q: How do you see the growth potential of point-of-sale (POS) compared to personal loans? A: Sanjiv Das, President: POS is a new growth area, and we believe it will be as large as personal loans. Our partnerships, like with Klarna, are set to grow substantially, and we expect POS to be equally profitable.
Q: How are you balancing expense control with investments in the platform, and what are the implications for margins? A: Gal Krubiner, CEO: Our infrastructure allows us to manage multiple partners with minimal additional costs. We expect our expenses to remain flat while revenues grow. Evangelos Perros, CFO, added that our operating leverage allows us to grow without significant incremental investments.
Q: What led to the credit impairment this quarter, and can you provide more details on the 2023 vintage? A: Evangelos Perros, CFO: The impairments were related to the 2023 vintages, driven by challenging funding conditions. Our credit performance has improved, and we expect most remaining impairments to be recognized in Q4 2024.
Q: How should we think about the long-term FRLPC margin as the asset class mix evolves? A: Gal Krubiner, CEO: As our asset classes scale, we expect them to converge to similar financial performance. Sanjiv Das, President, added that personal loans still have significant growth potential, and all asset classes will grow, maintaining strong FRLPCs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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