Enova Reports Fourth Quarter and Full Year 2024 Results

Feb 04 2025 21:16 GMT

Originations rose 20% and total company revenue increased 25% from the fourth quarter of 2023
Diluted earnings per share of $2.30 increased 104% and adjusted earnings per share¹ of $2.61 rose 43% compared to the fourth quarter of 2023
Net revenue margin of 57% in the fourth quarter of 2024, compared to 56% in the fourth quarter of 2023, was in line with our expectations and reflects continued strong credit performance
Liquidity, including cash and marketable securities and available capacity on facilities, totaled $1.3 billion at December 31

CHICAGO , Feb. 4, 2025 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial services company powered by machine learning and world-class analytics, today announced financial results for the fourth quarter and full year ended December 31, 2024.

"We are pleased to report our strongest year yet with full year 2024 originations, revenue and adjusted EPS all reaching the highest levels in our company's history. This success was driven by our world class team, strong competitive position and dedication to unit economics" said David Fisher, Enova's CEO. "Our portfolio expanded to nearly $4 billion, as a result of continued strength in both our SMB and consumer businesses. Looking ahead, we believe we have significant momentum heading into 2025 and are confident in our ability to continue meeting our customer needs while creating value for our shareholders."

Fourth Quarter 2024 Summary

Total revenue of $730 million increased 25% from $584 million in the fourth quarter of 2023.
Net revenue margin of 57% was consistent with 56% in the fourth quarter of 2023, reflecting continued solid credit performance.
Net income of $64 million, or $2.30 per diluted share, increased 83% from $35 million, or $1.13 per diluted share, in the fourth quarter of 2023.
Adjusted EBITDA¹ of $174 million increased 34% from $130 million in the fourth quarter of 2023.
Adjusted earnings per share¹ of $2.61 increased 43% from $1.83 per diluted share in the fourth quarter of 2023.
Total company combined loans and finance receivables¹ increased 20% from the end of the fourth quarter of 2023 to a record $4.0 billion with total company originations of $1.7 billion in the quarter.
Repurchased $51 million of common stock under the company's share repurchase program.

Full Year 2024 Summary

Total revenue of $2.7 billion increased 26% from $2.1 billion in 2023.
Net revenue margin of 58% was flat compared to 2023.
Net income of $209 million, or $7.43 per diluted share, increased 20% from $175 million, or $5.49 per diluted share, in 2023.
Adjusted EBITDA¹ of $657 million increased 31% from $503 million in 2023.
Adjusted earnings per share¹ of $9.15 increased 34% from $6.85 in 2023.


¹ Non-GAAP measure. Refer to "Non-GAAP Financial Measures," "Loans and Finance Receivables Financial and Operating Data," and "Reconciliation of GAAP to Non-GAAP Financial Measures" below for additional information.

"We are proud to close out 2024 with record top- and bottom-line results," said Steve Cunningham, CFO of Enova. "Our strong financial results for the fourth quarter and full-year 2024 continue to showcase the powerful combination of our diversified product offerings, scalable operating model, world-class risk management capabilities and balance sheet flexibility that have driven our ability to deliver consistently strong financial results."

Conference Call

Enova will host a conference call to discuss its fourth quarter and full year 2024 results at 4 p.m. Central Time / 5 p.m. Eastern Time today, February 4^th. 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 February 11, 2025, 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 6182379.

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 11.8 million customers with over $59 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 in the United States, or GAAP, Enova provides historical non-GAAP financial information. Enova presents non-GAAP financial information because such measures are used by management 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 management and 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
Enova provides 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 can provide a more complete understanding of Enova's financial performance, competitive position and prospects for the future. Management utilizes, and also believes that investors utilize, the Adjusted Earnings Measures to assess operating performance, recognizing 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 Adjusted Earnings Measures are useful to management and investors in comparing Enova's financial results during the periods shown without the effect of certain items that are not indicative of Enova's core operating performance or results of operations.

Adjusted EBITDA Measures
Enova provides 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, stock-based compensation and certain other items, as appropriate, that are not indicative of our core operating performance. Adjusted EBITDA margin is a non-GAAP measure that Enova defines as Adjusted EBITDA as a percentage of total revenue. Management utilizes, and also believes that investors utilize, Adjusted EBITDA Measures to analyze operating performance and evaluate Enova's ability to incur and service debt and Enova's capacity for making capital expenditures. Enova believes that Adjusted EBITDA is useful to management and investors in comparing Enova's financial results during the periods shown without the effect of certain non-cash items and certain items that are not indicative of Enova's core operating performance or results of operations. 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)

	December 31,
	2024		2023
Assets
Cash and cash equivalents	$	73,910	$	54,357
Restricted cash		248,758		323,082
Loans and finance receivables at fair value		4,386,444		3,629,167
Income taxes receivable		40,690		44,129
Other receivables and prepaid expenses		63,752		71,982
Property and equipment, net		119,956		108,705
Operating lease right-of-use asset		18,201		14,251
Goodwill		279,275		279,275
Intangible assets, net		10,951		19,005
Other assets		24,194		41,583
Total assets	$	5,266,131	$	4,585,536
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses	$	249,970	$	261,156
Operating lease liability		32,165		27,042
Deferred tax liabilities, net		223,590		113,350
Long-term debt		3,563,482		2,943,805
Total liabilities		4,069,207		3,345,353
Commitments and contingencies
Stockholders' equity:
Common stock, $0.00001 par value, 250,000,000 shares authorized, 46,520,916 and 45,339,814 shares issued and 25,808,096 and 29,089,258 outstanding as of December 31, 2024 and 2023, respectively		—		—
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding		—		—
Additional paid in capital		328,268		284,256
Retained earnings		1,697,754		1,488,306
Accumulated other comprehensive loss		(13,691)		(6,264)
Treasury stock, at cost (20,712,820 and 16,250,556 shares as of December 31, 2024 and 2023, respectively)		(815,407)		(526,115)
Total stockholders' equity		1,196,924		1,240,183
Total liabilities and stockholders' equity	$	5,266,131	$	4,585,536

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
Revenue	$	729,551	$	583,592	$	2,657,800	$	2,117,639
Change in Fair Value		(316,515)		(258,556)		(1,128,351)		(887,717)
Net Revenue		413,036		325,036		1,529,449		1,229,922
Operating Expenses
Marketing		151,178		122,226		523,569		414,460
Operations and technology		58,431		47,089		224,391		194,905
General and administrative		38,035		49,148		156,524		160,265
Depreciation and amortization		10,196		9,034		40,207		38,157
Total Operating Expenses		257,840		227,497		944,691		807,787
Income from Operations		155,196		97,539		584,758		422,135
Interest expense, net		(76,989)		(57,208)		(290,442)		(194,779)
Foreign currency transaction (loss) gain, net		(902)		49		(1,064)		57
Equity method investment income (loss)		92		1,251		(16,460)		116
Other nonoperating expenses		—		(3)		(5,691)		(282)
Income before Income Taxes		77,397		41,628		271,101		227,247
Provision for income taxes		13,702		6,860		61,653		52,126
Net income	$	63,695	$	34,768	$	209,448	$	175,121
Earnings Per Share:
Earnings per common share:
Basic	$	2.44	$	1.17	$	7.78	$	5.71
Diluted	$	2.30	$	1.13	$	7.43	$	5.49
Weighted average common shares outstanding:
Basic		26,141		29,687		26,920		30,673
Diluted		27,666		30,887		28,202		31,921

ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (dollars in thousands) (Unaudited)

	Year Ended December 31,
	2024		2023
Cash flows provided by operating activities	$	1,538,576	$	1,166,869
Cash flows from investing activities
Loans and finance receivables		(1,867,773)		(1,449,417)
Property and equipment additions		(43,422)		(45,241)
Total cash flows used in investing activities		(1,911,195)		(1,494,658)
Cash flows provided by financing activities		318,882		526,541
Effect of exchange rates on cash		(1,034)		287
Net change in cash and cash equivalents and restricted cash		(54,771)		199,039
Cash, cash equivalents and restricted cash at beginning of year		377,439		178,400
Cash, cash equivalents and restricted cash at end of period	$	322,668	$	377,439

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 December 31, 2024 and 2023.

Three Months Ended December 31	2024			2023			Change
Ending combined loan and finance receivable principal balance:
Company owned	$	3,810,444		$	3,154,735		$	655,709
Guaranteed by the Company^(a)		19,859			13,537			6,322
Total combined loan and finance receivable principal balance^(b)	$	3,830,303		$	3,168,272		$	662,031
Ending combined loan and finance receivable fair value balance:
Company owned	$	4,386,444		$	3,629,167		$	757,277
Guaranteed by the Company^(a)		28,414			18,534			9,880
Ending combined loan and finance receivable fair value balance^(b)	$	4,414,858		$	3,647,701		$	767,157
Fair value as a % of principal^(c)		115.3	%		115.1	%		0.2	%
Ending combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:
Company owned	$	3,966,486		$	3,297,082		$	669,404
Guaranteed by the Company^(a)		23,826			16,351			7,475
Ending combined loan and finance receivable balance^(b)	$	3,990,312		$	3,313,433		$	676,879
Average combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:
Company owned^(d)	$	3,842,144		$	3,141,479		$	700,665
Guaranteed by the Company^(a)(d)		22,060			16,341			5,719
Average combined loan and finance receivable balance^(a)(d)	$	3,864,204		$	3,157,820		$	706,384
Installment loans as percentage of average combined loan and finance receivable balance		44.9	%		50.2	%		(5.3)	%
Line of credit accounts as percentage of average combined loan and finance receivable balance		55.1	%		49.8	%		5.3	%

Revenue	$	719,410		$	574,721		$	144,689
Change in fair value		(314,091)			(256,412)			(57,679)
Net revenue		405,319			318,309			87,010
Net revenue margin		56.3	%		55.4	%		0.9	%

Combined loan and finance receivable originations and purchases	$	1,714,919		$	1,425,785		$	289,134

Delinquencies:
>30 days delinquent	$	297,832		$	263,524		$	34,308
>30 days delinquent as a % of loan and finance receivable balance^(c)		7.5	%		8.0	%		(0.5)	%

Charge-offs:
Charge-offs (net of recoveries)	$	342,183		$	305,436		$	36,747
Charge-offs (net of recoveries) as a % of average loan and finance receivable balance^(d)		8.9	%		9.7	%		(0.8)	%


(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						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Net income	$	63,695		$	34,768		$	209,448		$	175,121
Adjustments:
Transaction-related costs^(a)		—			755			327			755
Lease termination and cease use costs^(b)		—			—			—			1,698
Equity method investment (income) loss^(c)		(92)			(1,251)			16,460			(116)
Other nonoperating expenses^(d)		—			3			5,691			282
Intangible asset amortization		2,014			2,014			8,055			8,385
Stock-based compensation expense		8,297			7,458			31,816			26,738
Foreign currency transaction loss (gain), net		902			(49)			1,064			(57)
Cumulative tax effect of adjustments		(2,608)			(2,293)			(14,789)			(9,456)
Regulatory settlement^(e)		—			15,201			—			15,201
Adjusted earnings	$	72,208		$	56,606		$	258,072		$	218,551

Diluted earnings per share	$	2.30		$	1.13		$	7.43		$	5.49

Adjusted earnings per share	$	2.61		$	1.83		$	9.15		$	6.85

Adjusted EBITDA
	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Net income	$	63,695		$	34,768		$	209,448		$	175,121
Depreciation and amortization expenses		10,196			9,034			40,207			38,157
Interest expense, net		76,989			57,208			290,442			194,779
Foreign currency transaction loss (gain), net		902			(49)			1,064			(57)
Provision for income taxes		13,702			6,860			61,653			52,126
Stock-based compensation expense		8,297			7,458			31,816			26,738
Adjustments:
Transaction-related costs^(a)		—			755			327			755
Equity method investment (income) loss^(c)		(92)			(1,251)			16,460			(116)
Regulatory settlement^(e)		—			15,201			—			15,201
Other nonoperating expenses^(d)		—			3			5,691			282
Adjusted EBITDA	$	173,689		$	129,987		$	657,108		$	502,986

Adjusted EBITDA margin calculated as follows:
Total Revenue	$	729,551		$	583,592		$	2,657,800		$	2,117,639
Adjusted EBITDA		173,689			129,987			657,108			502,986
Adjusted EBITDA as a percentage of total revenue		23.8	%		22.3	%		24.7	%		23.8	%


(a)	In the first quarter of 2024 and the fourth quarter of 2023, the Company recorded $0.3 million ($0.2 million net of tax) and $0.8 million ($0.6 million net of tax), respectively, 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 third quarter of 2024, the Company recorded an equity method investment loss of $16.6 million ($13.3 million net of tax) related to the write-down of its investment in Linear.
(d)	In the twelve-month periods ended December 31, 2024 and 2023, the Company recorded other nonoperating expenses of $5.7 million ($4.3 million net of tax) and $0.3 million ($0.2 million net of tax), respectively, related to early extinguishment of debt.
(e)	In the fourth quarter of 2023, the Company reached an agreement with the Consumer Financial Protection Bureau, or the CFPB, pursuant to which it agreed to pay a civil money penalty of $15.0 million, which is nondeductible for tax purposes.

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SOURCE Enova International, Inc.