SAN CARLOS, Calif. - Oportun Financial (NASDAQ:OPRT) Corporation (NASDAQ: OPRT) announced its fourth-quarter financial results, reporting an adjusted loss per share of $0.54, which fell short of the analyst consensus estimate by $0.17.
The reported loss per share was a decrease from the adjusted earnings per share of $0.14 in the same quarter of the previous year. However, the company's revenue for the quarter reached $263 million, aligning with the consensus estimate of $262.31 million and remaining steady compared to the $262 million reported in the fourth quarter of the prior year.
For the full year 2023, Oportun reported total revenue of $1.1 billion, reflecting an 11% increase YoY. The company also achieved a reduction in quarterly operating expenses by 15% YoY and announced plans for an additional $30 million in operating expense reductions by the fourth quarter of 2024.
CEO Raul Vazquez commented on the company's performance, highlighting the resilience of the top-line and the focus on quality over quantity in originations under a tightened credit posture.
Looking ahead, Oportun provided guidance for the first quarter of 2024, expecting revenue to be between $233 million and $238 million, which is below the analyst consensus of $258.7 million. This guidance suggests a cautious outlook for the start of the new fiscal year.
The company's adjusted net loss for the fourth quarter was $21 million, a decline from the adjusted net income of $4.6 million reported in the same quarter last year. This decrease was attributed to an unfavorable net change in fair value and increased interest expense.
Despite the challenges, Oportun's adjusted EBITDA for the quarter showed improvement, rising to $6.1 million, a $40 million increase from the previous year's quarter.
Oportun's CEO expressed confidence in the company's business model and underwriting quality, as evidenced by the oversubscription of their $200 million asset-backed securitization completed in February. The company remains committed to enhancing profitability and serving its members efficiently with a focus on three core products: unsecured personal loans, secured personal loans, and savings.
Investors are advised to review the full financial results and listen to the management discussion for a comprehensive understanding of the company's performance and outlook.
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