OppFi Inc.

Greetings and welcome to OP5 Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during a 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, Jason Rosenthal, Vice President of Finance. Thank you. You may begin.

Thank you, Operator. On today's call are Jared Kaplan, OPFI's Chief Executive Officer, and Sheven Shah, Chief Financial Officer. The company's third quarter 2021 earnings press release and supplemental presentation can be found at investors.opfi.com. During the call, the company will be discussing certain forward-looking information. These forward-looking statements are based on assumptions and assessments made by OPFI's management, in light of their experience in assessment of historical trends, current conditions, expected future development, and other factors they believe to be appropriate. Any forward-looking statements made during this call are made as of today, and OPFI undertakes no duty to update or revise any such statement, whether as a result of new information, future events, or otherwise. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in the company's filings with the SEC, including the sections entitled Risk Factors. In today's Remarks by Management, the company will be discussing non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in this afternoon's earnings press release. This call is being webcast live and will be available for replay for one month on our website. I would now like to turn the call over to Jared.

Thank you and good afternoon, everyone. While Shivan will discuss our financial results in more detail, I wanted to start by hitting a few key highlights for what was a strong third quarter. Originations totaled a record $165 million, up 25% compared to the prior year quarter. and up 14% on a sequential quarter basis as demand for short-term credit continued to rebound. As a result, receivables ended the quarter at $293 million, up 22% year-over-year and 13% compared to the end of the second quarter, voting well for ongoing revenue growth. In fact, we have now served over 700,000 unique customers to date and expect to facilitate our 2 millionth loan this month, reinforcing the strength and durability of our platform and robustness of our data set. Turning to the income statement, adjusted revenue for the quarter of 92 million grew 25% compared to the third quarter of 2020, and 17% on a sequential basis. Profitability remained strong for the third quarter with 32 million of adjusted EBITDA, representing a 35% margin and 17 million of adjusted net income. Through the first three quarters of 2021, we have generated adjusted EBITDA of 96 million and adjusted net income of 54 million. Adjusted diluted earnings per share was 21 cents for the third quarter, of 2021 and 64 cents for the first nine months of 2021. We continue to invest heavily in our platform, particularly in talent, product, and technology, including our artificial intelligence and machine learning tools. Automation creates less friction for our customers. In this quarter, we continue to make strides in automating the credit approval process on behalf of our bank partners. The percentage of applications automatically approved increased from just above 50% for June to almost 60% for September. 80% of credit decisions, whether approvals or denials, are now automated. Speaking of investment, we continue to develop our recently launched new products, SalaryTap and the Outbuy credit card, and we secured significant capital under our credit facilities to fund future growth of these products. Starting with SalaryTap, our recently introduced sub-36% APR payroll deductible installment loan product. We believe we have built the foundation for SalaryTap to grow into an innovative and market-leading product. We are seeing very high customer net promoter scores as well as strong customer metrics. This gives us confidence in our ability to scale the product over time, having identified a strong product market fit. We are currently mostly focused on our direct-to-customer offering, which has become quite viable considering advances in payroll verification technology without having to directly link through employers. That being said, we still anticipate partnering with additional companies to offer salary tap to their employees down the road. And from a funding perspective, We recently expanded our existing bank credit facility by 20 million in favorable terms to support the growth and expansion of SalaryTap. Similar to SalaryTap, we are still in the early stages with OptiCard and are testing a wide range of product designs, price points, and underwriting criteria to develop innovative card products. We have built a strong team and recently amended a $75 million credit line to fund card receivables growth. It appears most customers prefer the OptiCard as a credit line for everyday purchases. whereas our installment loan products provide financing for more emergent needs. We believe that our salary tap and opt-by card products, together with further scaling and innovating our op loans businesses, are the beginning of a strong product suite that will take market share away from legacy players, allowing us to increase our active users in customer lifetime value while reducing our customer acquisition costs. Finally, we recently published the inaugural social impact report as part of our company's ongoing efforts to measure the financial impact of products and services on the opt-by platform. Highlights from the report include OPFI reported over 400,000 consumers' payment histories to all three major credit bureaus. According to an internal study, OPFI found that consumers who paid off their loans with OPFI experienced a 32-point average Vantage Score increase. Through the OPFI Turnup Program, if a consumer qualifies for a sub-36% APR product, OPFI's platform will help ensure they have access to that product. However, our data indicate that less than 2% of consumers who opt into the OPFI Turnup Program receive a loan. with one of these lenders. OpView, OpFi's online financial education hub and blog had more than 1 million user visits in 2020. Furthermore, through our mission aligned relationships, OpFi provided consumers with more than 100,000 referrals to free financial health resources in 2020. OpFi's success is reflected in the effectiveness of our social impact initiatives and measurable outcomes for consumers. We plan to continue to measure how our business model enables us to facilitate financial inclusion to the millions of everyday consumers who need access to credit. Now I'd like to talk a bit more about the overall demand environment and how it compares to pre-pandemic times. While originations accelerated to record levels in the third quarter, the demand rebound was less steep than we had anticipated. We believe there are several factors still holding back borrowing. Our target consumer still has higher than usual cash on hand. These savings are likely the combination of pandemic-influenced reduction in spending, increased income from wage inflation, and the impact of various government stimulus programs, some of which are still ongoing. Of those consumers that have returned to the credit market, we are seeing a higher percentage from our lower proprietary scoring respondents. This phenomenon typically occurs after tax season where less credit-worthy borrowers come back to the market first. We now expect a more gradual return to normalized demand as consumers work through their savings collect. As we look to the future, we are ramping investment in our AI credit models, talent, and brand while working with our bank partners to refine product designs to better align with needs of today's consumers. We believe a more personalized pricing approach may better position us for accelerating growth going forward, particularly as borrowing behaviors and trends normalize. Looking ahead, we believe Q4 revenue will be supported by our ongoing growth and originations and the higher level of receivables entering the quarter, while earnings will be impacted by credit normalization, the scaling up of our marketing and branding efforts, and investment in our future growth. We are very early in evolving our platform to be the premier digital financial services destination for the everyday consumer. We plan to achieve this by offering our customers a comprehensive product suite to serve their financial needs while lowering their overall financial service costs and providing exceptional customer experience. What's becoming clear is that even though 100% of our customers are employed, they remain income constrained and asset light. We believe due to the high frictional costs among many different types of products used to smooth cash flow. Our current products are starting to address this pain. And we believe there is a substantial opportunity to further expand our product suite moving forward so we can quantify and reduce these frictional costs, which should help smooth cash flow and enable savings for customers. We began a thoughtful shift to optimize for active customer growth and average revenue for customer growth at attractive unit economics moving forward. As a private company, we optimize for net income, including on-balance sheet financing to differentiate ourselves from other fintech platforms who are largely relying on large outside equity funding to grow. We see great opportunities to rapidly grow our customer base with thoughtful investment to support an array of products with attractive markets. And we have started to explore more off-balance sheet funding opportunities to optimize financial flexibility and accelerate growth. This is all part of our goal to create a platform and a brand as the premier financial destination for the everyday consumer. We look forward to revealing more about our evolving long-term strategy in the near future. With that, I would now like to turn the call over to Shivan to review our financials.