AUSTIN, Texas, Nov. 10, 2020 (GLOBE NEWSWIRE) -- Open Lending Corporation (NASDAQ: LPRO), a leading provider of lending enablement and risk analytics solutions to financial institutions, today reported financial results for its third quarter of 2020.
“We are very encouraged by our third quarter results, which include an 8% increase in certified loans, a 35% increase in revenue and a 29% increase in Adjusted EBITDA compared to the third quarter of 2019,” said John Flynn, Chairman and CEO Open Lending. “Our lending partners have proven resilient and continue to utilize our platform throughout the COVID-19 pandemic. We believe the low interest rate environment, the increased demand and value of used cars, and consumers moving out of cities and reluctant to use public modes of transportation are driving these positive trends. We are also thrilled that OEM#2 came back on to our platform in October as planned.”
Three Months Ended September 30, 2020 Highlights
- The Company facilitated 20,696 certified loans during the third quarter of 2020, compared to 19,087 certified loans in the third quarter of 2019
- Total revenue was $29.8 million, compared to $22.1 million in the third quarter of 2019
- Gross profit was $27.3 million, compared to $20.2 million in third quarter of 2019
- GAAP net loss of $(71.1) million, compared to GAAP net income of $14.7 million in third quarter 2019. The GAAP net loss was primarily attributable to $(83.1) million in change in estimated fair value of contingent consideration shares awarded as part of the business combination with Nebula Acquisition Corporation (“Nebula”) on June 10, 2020. Given the share price performance milestones for the contingent consideration have all been met as of August 2020, net income beginning in the fourth quarter of 2020 and beyond will not be burdened by any changes to the fair value of the contingent consideration shares.
- Adjusted EBITDA was $19.7 million, compared to $15.3 million in the third quarter of 2019
Adjusted EBITDA is a non-GAAP financial measure. Reconciliations of this non-GAAP financial measure to its most directly comparable GAAP financial measure are provided in the financial tables included at the end of this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”
2020 Outlook
Based on third quarter results and thoughts regarding the remainder of the year, the Company is reaffirming its previously issued guidance of the following:
| Full Year 2020 Outlook | |
| Total Certified Loans | 85,000 – 101,000 |
| Total Revenue | $89 - $108 million |
| Adjusted EBITDA | $54 - $70 million |
| Adjusted Operating Cash Flow (1) | $34 - $41 million |
| (1) | Adjusted Operating Cash Flow is defined as Adjusted EBITDA, minus CAPEX, plus or minus change in contract assets. |
The guidance provided above includes forward-looking statements within the meaning of U.S. securities laws. While the financial guidance takes into account the anticipated impact of the global COVID-19 pandemic, the impact of the pandemic is unprecedented and the future effect of the pandemic on the global economy and our financial results remains highly uncertain, and our actual results may differ materially. See “Forward-Looking Statements” below.ebcast will be available at the same location on the website shortly after the call has concluded.
About Open Lending
Open Lending, through its flagship product, Lenders Protection, offers loan analytics, risk-based pricing, risk modeling and default insurance, ensuring profitable auto loan portfolios for financial institutions throughout the United States. For more information, please visit www.OpenLending.com.
