Pagaya Technologies Ltd.

and welcome to Pagaya Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Jensi John, Head of Industrial Relations. Thank you, Ms. John. You may begin.

Thank you and welcome to Pagaya's second quarter 2024 earnings conference call. Joining me today to talk about our business and results are Gal Kruvener, Chief Executive Officer of Pagaya, Sanjeev Das, President, and Evangelos Peros, Chief Financial Officer. You can find the materials that accompany our prepared remarks and a replay of today's webcast on the investor relations section of our website at investor.pagaya.com. Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve certain risks and uncertainties. These statements include, but are not limited to, our competitive advantages and strategy, macroeconomic conditions and outlook, future products and services, and future business and financial performance, including our financial outlook for the third quarter and full year of 2024. Our actual results may differ from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and filings in our Form 10-K filed on April 25, 2024, with the U.S. Securities and Exchange Commission, as well as our subsequent filings made with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. Additionally, non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, fee revenue less production costs, or FRLPC, FRLPC percentage, and core operating expenses will be discussed on the call. Reconciliations to the most directly comparable GAAP financial measures are available to the extent available without unreasonable efforts in our earnings release and other materials, which are posted on our investor relations website. We encourage you to review the shareholder letter, which was furnished with SEC on Form 8K today, for detailed commentary on our business and performance in conjunction with accompanying earnings supplement and press release. With that, let me turn the call over to Gal.

Thank you, Jensi, and good morning, everyone. I hope you had the chance to read our shareholder letter. We delivered another very strong quarter. We beat our guidance on revenue and adjusted EBITDA with another record quarter on both metrics. And we're in line with our guidance on network volume. We're now at an annual run rate of approximately $1 billion in revenues, $400 million of FRLPC, and $200 million of adjusted EBITDA. With the momentum we have delivered in the first half, we are raising our target range for FRPC percentage and our 2024 full year outlook for revenues and EBITDA. Ipi will speak more to that in a moment. I want to spend a minute now on another critical financial milestone we have achieved in the third quarter. With the progress we are making on increasing profitability and getting efficient with our balance sheet, Incremental volume growth is now making a positive contribution to the total cash flow. With this very important step achieved, I'm now more confident than ever that very shortly we can self-fund future growth. Let me turn now to our strategic priorities and how we execute on them. In short, everything we said we were going to deliver, we did. We have managing the business to deliver on our long term ambition to be the extended credit platform for the US consumer lending industry. While being laser focused on getting to cash flow and gap net income profitable in the near term. We have three key priorities. Number one, expanding the network to more top lenders. Number two, Adding additional funding capacity that limits the use of our balance sheet. And number three, improving unit economics. Let me start with how we are growing our network with more of the largest lenders in the country. We met our target of adding two to four partners a year, five months ahead of schedule. We are building an enterprise relationship with one main financial, the second largest personal loan originator in the country. The partnership is on track to go live in Q3. In addition, we have a top five bank in the onboarding process in Point of Sale. This will be the second top five bank partnering with Pagaya on Point of Sale. From my point of view, demand to join for gaia network is accelerating compared to six months ago on point number two improving capital efficiency i'm very excited to share that we have signed our first forward flow agreement with catholic for one billion dollar in personal loans we are pleased to partner with one of the country's leading credit investors and expect this partnership to be a long-term and mutually beneficial one. We also got our first ever AAA rating on our personal loan ABS program. Both of these initiatives are reducing cost of capital and lowering the use of our capital to fund volume. In addition to that, Last week, we announced our upcoming acquisition of Theorem Capital, which will give Theorem investors access to new investment opportunities via the Pagaya network and diversify our funding sources. Finally, on the third point, higher unit economics, our fee revenue left production costs reached another record level with the increasing value we have delivered to our partners. and we took action to reduce operational expenses and streamline the business. In summary, all of these actions are putting us on track to fulfill our long-term growth plan and get us to cash flow positive and gap net income profitability by next year. I'm pleased with our performance and proud of our team execution. With that, let me pass it to Sanjeev where we speak on the long-term trajectory of our business, our operational priorities, and our product process.