CURO Group Holdings Corp.

Thank you for standing by and welcome to the Catapult Holdings fourth quarter and full year 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. I'd now like to turn the call over to Jennifer Kull, Vice President and Head of Investor Relations. You may begin.

Welcome to Catapult's fourth quarter 2024 conference call. On the call with me today are Orlando Zayas, Chief Executive Officer, Nancy Walsh, Chief Financial Officer, and Derek Medlin, President and Chief Growth Officer. For your reference, we have posted materials related to today's call on the investor relations section of the Catapult website, which can be found at ir.catapultholdings.com. Please keep in mind that our remarks today include forward-looking statements related to our financial guidance, our business, and our operating results as noted in the earnings release and slide deck posted to our website for your reference. Our actual results may differ materially. Forward-looking statements involve risks and uncertainties, some of which are described in today's earnings release and our most recent Form 10-K, and which will be updated in future periodic reports that we file with the SEC. Any forward-looking statements that we make on this call are based on our beliefs and assumptions today, and we disclaim any obligation to update them. Also during the call, we'll present both GAAP and non-GAAP financial measures, Non-GAAP financial measures should be considered supplemental to and not replacements for or superior to our GAAP results. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included with today's earnings release and is available on the investor relations section of the company's website. Any comparisons to 2023 financial results are referencing our restated financials included in our Form 10-K for the year ended December 31st, 2023, filed with the SEC on April 24th, 2024. Finally, all comparisons are year-over-year unless stated otherwise. With that, I will turn the call over to Orlando.

Thank you, Jennifer, and thanks to everyone joining us today. We're excited to give you an update on our Q4 results and our plans for 2025. If we had to land on one headline this quarter, it would be, we finished the year strong. Q4 gross originations grew more than 11% year over year, and fourth quarter revenue was up more than 9%. With this strong performance, We have now grown our gross originations consistently for more than two years, and we expect our revenue growth track record to hit this two-year milestone after we report Q1 in May. These results showcase the enhancements we've made across the board. From our go-to market strategy to operations, we believe we have executed well and transformed our business model, setting Catapult up for continued success. I could not be more proud of our team here. Their dedication and hard work are the main ingredients in our success, and I'd like to give a big thank you to everyone here at Catapult. Before we dive further into our results, I want to take a quick step back to summarize and review the progress we've made over the past few years. We have transformed our business from a single input-driven business to a multidimensional growth engine in a very short period of time. We believe this is important context as you evaluate where we are today and where we believe we can go over the next year and beyond. If you recall, just two short years ago, we launched our Catapult app, which included a groundbreaking feature we call Catapult Pay or K-Pay. Up until this launch, nearly 100% of our focus had been on our merchant engagement opportunities. Before our app existed, our business model relied completely on merchants to refer consumer traffic to us. either through direct integration, which offered a catapult lease as a checkout option, or through a waterfall finance platform, which would offer our LTO if we were the best option for its consumers. We developed a great reputation for converting this traffic into transactions, which were incremental sales for our merchants. This strategy allowed us to build relationships with merchants that partnered with us. Our partnerships were supported by data and insights that show the incremental sales that the Catapult LTO option brings when added to merchant payment ecosystems. And today, we are confident that we have a superior LTO product that gives non-prime consumers the choice, transparency, and pricing terms they need. This is a driver of our consistently high repeat rates and our strong NPS and Trustpilot scores. We are proud of the product we built and the way we serve our community of consumers. When we launched our app, our goal was to create a destination where consumers could go for all their durable goods shopping needs. Simply put, we wanted to create an ecosystem that allowed Catapult to connect consumers to merchant partners, enabling commerce whenever and however the consumer wanted to shop. We believe we could turn our app into a marketplace where consumers would choose to start their shopping journey because they trusted Catapult. To do this, we needed to create vibrancy in our marketplace. So in addition to the hundreds of direct and waterfall merchant websites that consumers could link to and shop from within our app, we began to methodically add merchants with whom we didn't have a direct or waterfall relationship in our app marketplace. We also added Kpay functionality that allows consumers to seamlessly check out using our proprietary virtual credit card technology. allowing them to check out with these merchants in our marketplace. Our technology lets customers start and finish their shopping journey in our app. Practically speaking, we give consumers more choice. They could shop our app and check out on a merchant website or check out in our app with PayPay. And as our customers enjoy a better experience, Catapult can gather behavioral insights that allow us to create a more personalized customer journey that encourages repeat shopping. With the launch of our app, we also took control of our destiny because it allows us, for the first time, to include merchants with whom we didn't have a direct or waterfall relationship in our marketplace. This meant that we could service consumer demand at our own discretion, and we could be the source of traffic to our merchants. This dynamic creates an even more compelling reason for merchants to want to partner with Catapult. Since our app launched, we have added more than 30 KPAY-enabled merchants to our marketplace, which again are in addition to the hundreds of other direct and waterfall merchant customers can reach through our marketplace. The impact of our marketplace has been phenomenal. For 2024, approximately $127 million of gross originations actually began in our app, and our market-leading KPAY feature enabled nearly 77 million of those gross originations last year alone. This is a significant change from our original go-to-market strategy. Before we launched our app, we were 100% reliant on merchants to send us this traffic. In just two years, 54% of our 2024 originations are now being driven by our own efforts, starting in our ecosystem. We have created a two-sided marketplace that benefits consumers and merchants alike. It's self-generative and highly complementary to our merchant and waterfall-driven traffic. Our two-sided marketplace is growing because we offer benefits to all market participants. We send merchants incremental sales with great economics, and our customers have a reliable shopping destination that offers straightforward and fair pricing for durable goods. We are a destination where they know they'll be treated with dignity, and they will be able to acquire the items they need and want whenever and however they want to shop. This virtuous ecosystem means that customer success leads to merchant success and vice versa. And when this happens, Catapult is also successful. We've gone from simply being a payment method to being a growth partner to our merchants and a destination for consumers. And this 2.0 transformation has happened in less than two years. We believe merchants are beginning to understand the power of our marketplace and the strength of our LTO offering because they are now reaching out to Catapult with requests to be featured in our ecosystem. We know how to convert traffic into transactions, and we believe this will encourage our merchant and waterfall partners to send us even more traffic in the future. To unlock more of our marketplace potential, we need to drive additional top of the funnel activity. In short, we need more applications that we can convert into customers, and it will come back to Catapult for their durable goods and needs again and again. To do this, we have focused our top initiatives in four core areas. One, consumer engagement. Two, merchant engagement. Three, referral partnerships. And four, improving our unit economics and capital structure over time so that we can improve profitability and sustainably generate cash. We are incredibly excited about the future of our marketplace. I'd now like to turn the call over to Derek, who will provide you with an overview of our Q4 successes, which we intend to build upon to drive growth in 2025. After this, Nancy will give you a recap of our Q4 and 2024 financial results, as well as some expectations for our first quarter and full year 2025. We'll then open up for your questions.