2023-04-26 14:42:43 ET
Enova International ( NYSE: ENVA ) fell ~13% during Wednesday afternoon trading after the online financial services company said it expects sequentially flat revenue in Q2, while EPS is expected to be flat to slightly higher from last year.
"We continue to focus on an origination strategy that balances growth and risk against the current macro environment. This should lead to stable credit, resulting in a total company net revenue margin of around 60%," CEO David Fisher said during the company's Q1 earnings call.
"We expect marketing expenses to be near 20% of revenue, operations and technology costs between 9% and 10% of revenue, and general and administrative costs of around 8% of revenue. These expectations should lead to an adjusted EBITDA margin in the mid-20%," Fisher said.
ENVA reported mixed Q1 results. Non-GAAP EPS was $1.79, beats by $0.20, and revenue stood at $483M (+25.2% Y/Y), misses by $3.9M.
Combined loans and finance receivables increased by 28% on a yearly basis to $2.8B.
Originations rose by 2% to $1.1B.
Q1 net revenue margin was 59%.
At March 31, total liquidity, including cash and marketable securities and available capacity on facilities, totaled $905M.
"We continue to expect growth on both our top and bottom line in 2023 compared to 2022," Fisher said.
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Enova International falls on flattish growth expectations for Q2