Katapult Holdings, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Catapult Q3 2022 Earnings Call. I would now like to turn the call over to Bill Wright, Head of Investor Relations. Please go ahead.

Thank you and good morning. Welcome to the Catapult Q3 2022 Earnings Results Conference Call. With me today are Alanda Zayas, Chief Executive Officer, Carissa Cupido, Chief Financial Officer, and Derek Medlin, Chief Operating Officer. We issued our earnings release and corresponding investor presentation this morning, and we will be referencing these during the call. Both can be found on the investor relations section of our website. We will all be available for Q&A following today's prepared remarks. Before we begin, I would like to remind everyone this call will contain forward-looking statements regarding future events and our financial performance, including statements regarding our market opportunity, the impact of our growth initiatives on future financial performance, the timing and growth origination, and scale-up potential of our exclusive partnership with Sears, adoption and success of our mobile application and virtual credit card solution, catapult pay, and anticipated occurrence, timing, and impact of impairment levels and prime lending tightening. These should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC reports, including our Form 10-Q for the quarter ended June 30, 2022, and the subsequent periodic and current reports we filed with the SEC. These statements reflect management's current beliefs, assumptions, and expectations and are subject to a number of factors that may cause actual results to differ materially from those statements. Except as required by law, we undertake no obligation to publicly update or revise any of these statements, whether as a result of any new information, future events, or otherwise. During today's discussion of our financial performance, we will provide certain financial information that constitutes non-GAAP financial measures under SEC rules. These include measures such as adjusted gross profit, adjusted EBITDA, and adjusted debt loss. These non-GAAP financial measures should not be considered replacements for and should be read together with our GAAP results. Reconciliations to GAAP measures and certain additional information are also included in today's earnings release, which is available on the investor relations section of our website. This call is being recorded and a webcast will be available for replay on the investor relations section of our website. I will now turn the call over to Orlando.

thanks bill good morning everyone and thank you for joining us on today's call we'll review the results of the third quarter of 2022 and provide an update on significant progress we are making on our strategic growth initiatives turning to slide four you can see that our team continues to work diligently to create value and to capture additional share in the large virtual leads to own addressable market we have only scratched the surface of the total e-commerce durable goods market opportunity for underserved customers, which we estimate to be about $40 to $50 billion. While we are not immune to the ongoing macroeconomic pressures, we are confident in our ability to weather these challenges over the longer term and remain focused on progressing our strategic plan in order to create value for our shareholders. During the quarter, we executed several aspects of our strategic growth plan. We successfully launched our mobile app and Catapult Pay, our virtual credit card solution. We also completed our planned strategic hires for the third quarter of 2022, and our new team members are quickly getting up to speed and making contributions, including the optimization of our sales process. This is already bearing fruit, as I am pleased to announce our exclusive partnership with Transform SR Holdings Management LLC, which operates multiple stores and online formats, including Sears Hometown, Sears Home Appliance Showrooms, Sears Home and Life and Sears full-line stores, as well as Sears.com. Being selected as Sears' exclusive lease purchase solution from a competitive bid process is very exciting and allows us to expand in both e-commerce and omnichannel space with a national retailer. We look forward to integrating with Sears' online e-commerce site and their 140 storefronts in the coming months, and we believe we will see meaningful gross originations from the partnership starting in 2023 and beyond. Additionally, we are pleased that our net promoter score continues to be high and that 46% of gross originations during the quarter were from repeat customers. We are proud to continue providing underserved consumers with a way to access goods that they need in their daily lives, especially during these challenging times. Turning to slide five, you will see we continue to execute our strategic growth plan that we first detailed on our fourth quarter 2021 earnings call. We have, in fact, achieved almost all of the goals that we set for ourselves at the beginning of the year, including filling key leadership positions, optimizing our sales process, introducing new marketing and brand initiatives, and launching new products. We expect these initiatives to pay dividends going forward. Our work to add new merchants is always ongoing. We believe we are gaining momentum as retailers come to understand the value of partnering with Catapult. Slide six provides additional details about our new product, Catapult Pay, which is powered by our newly launched mobile app. We envision that our mobile app will become the main way that our customers interact with our brand going forward. The beta version of this app launched during the third quarter, and since then, we achieved 30% customer adoption, largely through email campaigns and word of mouth. The mobile app allows customers to get pre-approved, self-service their lease, make lease payments, and most importantly, utilize our proprietary Catapult Pay product. Catapult Pay is our one-time use virtual card technology that makes lease purchasing simpler than ever for our customers. Through our mobile app, customers can complete lease transactions with select existing merchants and affiliate merchants and check out with a virtual credit card that can be entered like a regular credit card at checkout. We currently have 20 merchants enabled with Catapult Pay, including Best Buy, Mattress Firm, Traeger Grills, and HP. To date, since our soft launch beginning in September, we have already originated over 2,000 leases and over $2 million in gross originations with Catapult Pay. The success of this soft launch is very encouraging, and we plan to continue to grow this new origination channel in Q4. and into 2023 as we add more Catapult Pay merchants each quarter, as well as leverage strong analytic capabilities to improve our app engagement and conversion, plus begin to build out our affiliate revenue network. Moving to slide seven, we continue to steadily add to the number of retail partners each quarter. Most notably, we launched two enterprise clients, One Stop Bedroom and Simple Tire, both of which are competitive wins during the quarter. We also entered into agreement with iBuyPower, a leading e-commerce merchant for high performance custom gaming PCs. As our exclusive new partnership with Sears, we are currently working to complete both an online integration and support their e-commerce business, as well as full custom integration in the existing in-store point of sale system for rollout to their 140 plus stores across the U.S. Additionally, under the partnership, shoppers who apply but do not qualify for credit through the Sears Prime Financing Provider, both in-store and online, will automatically be considered for eligibility to receive a catapult lease purchase pre-approval offer. We are very excited to partner with Sears and give non-prime consumers access to leading retailer and a pioneer of customer-focused brands like Craftsman, Kenmore, and Diehard. Together, we intend to seamlessly connect the digital and physical shopping experiences to serve more customers and Shop Your Way members. Catapult's ability to understand the needs of Sears and its affiliates while being nimble enough to customize and support fast integration played an important role in the decision of both sides to partner together. We believe that Sears has the potential to become one of our top merchant partners in 2023. I would now like to turn it over to Carissa, our CFO, who will provide more details on our financial performance. Carissa?