Oportun Financial Corporation (NASDAQ:OPRT) Q4 2022 Earnings Call Transcript

Rick Shane: Oh, I was going to say, and I understand in some ways that’s why focusing on adjusted EBITDA and providing that guidance this year is helpful because I know that the warrant expense will be added back. I assume it’s treated the same way as stock-based comp for employees.

Jonathan Coblentz: That’s right. The warrants will receive equity treatment for accounting purposes.

Raul Vazquez: Rick, the thing I was going to add, you were talking about that expense relative to the reduction in force, but there was several actions that the team has taken, right? It’s not just that one action on the OpEx side to improve the profitability of the business. There are other things we’re doing from a contact center perspective to become more efficient, deploying technology to try to automate the business more. And we didn’t spend as much time talking about this. It was in our comments to kick off the call. But when we compare December of 2022 to December of 2023, we expect yield to be 200 basis points higher, right, so on a book of about, $3 billion that is also we think a meaningful improvement in the business that we would seek to carry forward into 2024 and 2025 as well. So there are multiple actions that the team has taken to try to improve the profitability of our business that we think will pay dividends in Q2 through Q4 and in subsequent years.

Rick Shane: Got it. Okay. Raul, thank you very much. Thanks Jonathan.

Jonathan Coblentz: Thank you, Rick.

Operator: Thank you. We’ve reached end of our question-and-answer session. I’d like to turn the floor back over to Raul for any further or closing comments.

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

Jonathan Coblentz: Thank you.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.