Enova Reports Fourth Quarter and Full Year 2024 Results
Rhea-AI Summary
Enova International (ENVA) reported strong Q4 and full-year 2024 results, with record-breaking performance across key metrics. Q4 total revenue increased 25% to $730 million, while net income rose 83% to $64 million ($2.30 per diluted share). The company maintained a healthy net revenue margin of 57%.
Full-year 2024 highlights include: total revenue up 26% to $2.7 billion, net income growth of 20% to $209 million ($7.43 per diluted share), and adjusted earnings per share of $9.15, a 34% increase from 2023. The company's total combined loans and finance receivables reached a record $4.0 billion, with Q4 originations of $1.7 billion. During Q4, Enova repurchased $51 million of common stock.
Positive
- Q4 revenue increased 25% YoY to $730 million
- Q4 net income grew 83% YoY to $64 million
- Full-year revenue up 26% to $2.7 billion
- Loan originations rose 20% YoY
- Record $4.0 billion in total loans and finance receivables
- $51 million in share repurchases during Q4
Negative
- None.
Insights
Enova's Q4 and FY2024 results showcase a compelling growth story driven by operational excellence and market leadership in AI-powered financial services. The
The stable net revenue margin of
Several key factors signal sustainable momentum heading into 2025:
- The dual-growth engine of SMB and consumer lending provides diversification and multiple expansion opportunities
- The
$1.3 billion liquidity position offers substantial dry powder for continued growth and market share gains - Operational leverage is evident in the
34% growth in adjusted EBITDA, outpacing revenue growth - The company's technological infrastructure and analytics capabilities create significant barriers to entry
The record-breaking performance across originations, revenue and adjusted EPS validates Enova's competitive moat in automated underwriting and risk assessment. The company's ability to maintain strong credit metrics while rapidly scaling the portfolio demonstrates the robustness of its business model and positions it favorably for continued growth in 2025.
- Originations rose
20% and total company revenue increased25% from the fourth quarter of 2023 - Diluted earnings per share of
$2.30 104% and adjusted earnings per share1 of$2.61 43% compared to the fourth quarter of 2023 - Net revenue margin of
57% in the fourth quarter of 2024, compared to56% 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
"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
Fourth Quarter 2024 Summary
- Total revenue of
$730 million 25% from$584 million - Net revenue margin of
57% was consistent with56% in the fourth quarter of 2023, reflecting continued solid credit performance. - Net income of
$64 million $2.30 83% from$35 million $1.13 - Adjusted EBITDA1 of
$174 million increased34% from$130 million in the fourth quarter of 2023. - Adjusted earnings per share1 of
$2.61 increased43% from$1.83 - Total company combined loans and finance receivables1 increased
20% from the end of the fourth quarter of 2023 to a record$4.0 billion $1.7 billion - Repurchased
$51 million
Full Year 2024 Summary
- Total revenue of
$2.7 billion increased26% 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, increased20% from$175 million , or$5.49 per diluted share, in 2023. - Adjusted EBITDA1 of
$657 million increased31% from$503 million in 2023. - Adjusted earnings per share1 of
$9.15 increased34% from$6.85
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 4th. 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
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
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
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, issued and 25,808,096 and 29,089,258 outstanding as of December 31, 2024 and 2023, respectively | — | — | ||||||
Preferred stock, | — | — | ||||||
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 | ||||||
(b) | In the first quarter of 2023, the Company recorded a loss of | ||||||
(c) | In the third quarter of 2024, the Company recorded an equity method investment loss of | ||||||
(d) | In the twelve-month periods ended December 31, 2024 and 2023, the Company recorded other nonoperating expenses of | ||||||
(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 | ||||||
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SOURCE Enova International, Inc.
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