Oportun Financial Corporation (NASDAQ:OPRT) Q1 2023 Earnings Call Transcript

Jonathan Coblentz: No, I think from a macro perspective, we haven’t changed our assumptions in terms of just continuing to see a strong employment market for our members. I think as we’ve talked about in the past there are layoffs certainly that are taking place throughout the industry, but our sense is that for our member, right, you’re typical kind of blue collar worker the employment market continues to be quite strong. So, we haven’t changed our assumption regarding a robust employment market for our member.

Steven Kwok: Got it. And the final question I have is just around the raised EBITDA by about $15 million, $20 million. How much of that was attributed to this quarter, perhaps outperforming versus, I guess, back the remainder of the year being better? Thanks.

Jonathan Coblentz: I think it incorporates all of that, right? We expect over $40 million of the expense saves that we announced – the incremental expense saves to hit in 2023. And that’s potentially offset by potentially higher charge-offs and potentially higher interest expense. We always look at a range of assumptions in setting guidance and consider multiple different scenarios and coming up with a total guide.

Raul Vazquez: But Steven, I think underlying that is a really high degree of confidence that we have, that our business is improving its profitability every single quarter, starting in this quarter, as you could tell, with the guidance for adjusted EBITDA being positive. And then to your point, there are significant improvements expected in Q3 and Q4, which again, right, are indicated by the full year guidance were adjusted EBITDA and the fact that we did raise that guidance.

Jonathan Coblentz: That’s right. If you looked at what our guidance implies, it suggests over $80 million of adjusted EBITDA on the second half.

Steven Kwok: Got it. Great. Thanks for taking my questions.

Raul Vazquez: Thank you, Steven.

Jonathan Coblentz: Thanks.

Operator: Thank you. There are no further questions at this time. I’ll hand the floor back to Raul Vazquez for closing remarks.

Raul Vazquez: I want to thank everyone once again for joining us on today’s call, and we look forward to speaking with you again soon.

Operator: Thank you. And that concludes today’s conference. All parties may disconnect. Have a great day.