Pagaya Reports Fourth Quarter and Full Year 2023 Results
- Record network volume of $2.4 billion in 4Q’23 and $8.3 billion in FY’23, exceeding expectations.
- Record total revenue and other income of $218 million in 4Q’23 and $812 million in FY’23, driven by fee revenue growth.
- Record adjusted EBITDA of $34 million in 4Q’23 and $82 million in FY’23, showing significant improvement.
- Expansion of lending network with four leading U.S. lenders and $6.6 billion raised in ABS in 2023.
- Positive adjusted net income of $12 million in 4Q’23 and $17 million in FY’23, reflecting operational improvement.
- Providing financial outlook for 1Q’24 and FY’24 with expected growth in network volume, revenue, and adjusted EBITDA.
- None.
Insights
Pagaya Technologies Ltd.'s announcement of record financial metrics in both the fourth quarter and full fiscal year of 2023 suggests a robust performance, particularly noting the substantial growth in network volume and adjusted EBITDA. The 33% year-over-year growth in network volume, primarily driven by new partnerships in auto and real estate verticals, indicates a successful expansion strategy and the ability to capitalize on the demand in these sectors. The fact that Pagaya was the top personal loan ABS issuer in the US by issuance size reflects a strong market position and credibility among institutional investors.
The increase in revenue from fees less production costs (FRLPC) by 42% year-over-year, coupled with a slight improvement in FRLPC margin, demonstrates effective cost management and an enhanced ability to monetize lending products. The transition from a negative adjusted EBITDA in FY'22 to a positive $82 million in FY'23 is a testament to the company's improved operational efficiency and scalability. These financial outcomes provide a promising outlook for stakeholders and could potentially influence investor sentiment positively.
The consistent performance and growth reported by Pagaya Technologies in a competitive financial technology landscape highlight the company's innovative edge, particularly in AI infrastructure for financial services. The strategic partnerships with leading U.S. lenders and the expansion into lucrative verticals such as auto and real estate serve as catalysts for the company's growth. The forward-looking statements for the first quarter and full year of 2024, with expectations of continued growth in network volume and adjusted EBITDA, suggest confidence in the company's business model and its ability to sustain momentum.
However, it is crucial to monitor how market conditions, such as interest rate changes and economic cycles, could impact the demand for credit products and securitization activities. The projected growth rates and future financial outlook could be subject to revisions based on these external factors and stakeholders should consider these potential risks when evaluating the company's future performance.
From a legal and regulatory perspective, Pagaya Technologies' leading position in the personal loan ABS market and its substantial securitization activities warrant attention to compliance with financial regulations and disclosure requirements. The successful issuance of $6.6 billion across 15 ABS transactions in 2023 reflects not only financial strength but also the necessity for rigorous adherence to securities laws and regulations governing such financial instruments.
Given the company's reliance on AI infrastructure, it's also critical to consider the evolving landscape of data protection and privacy laws, which could impact the company's operations and product offerings. The legal framework surrounding fintech and AI is an area of growing scrutiny and maintaining compliance while innovating will be an ongoing challenge for Pagaya and similar companies in the sector.
-
Record Network Volume of
$2.4 billion $8.3 billion -
Record Total Revenue and Other Income of
$218 million $812 million -
Record Adjusted EBITDA of
$34 million $82 million - Company provides first quarter and full year 2024 financial outlook
For additional information, view Pagaya's fourth quarter 2023 letter to shareholders here.
“We delivered record fourth quarter results, ending the year with network volume, total revenue and adjusted EBITDA far exceeding our outlook from the start of the year,” said Gal Krubiner, co-founder and CEO of Pagaya Technologies. “We grew our network with transformational new lending partnerships and enhanced network monetization, reflecting the value our product can provide. We expect to build on this momentum in 2024 to expand our product ecosystem and reach a new level of scale and profitability.”
Fourth Quarter and Full Year 2023 Highlights
All comparisons are made versus the same period in 2022 and on a year-over-year basis unless otherwise stated.
-
Record network volume of
$2.4 billion ~ to$2.1 billion $2.3 billion 33% year-over-year, driven primarily by the continued ramp-up of new partnerships in our auto and real estate verticals. Network volume increased by14% in FY’23 to$8.3 billion -
The Company expanded its lending network with four leading
U.S. lenders in 2023, includingU.S. Bank in its personal loan vertical, and Westlake Financial, Exeter Finance and a top 5 auto captive in its auto vertical, demonstrating the strength of its enterprise-grade flagship credit product. -
The Company raised
$6.6 billion -
Record total revenue and other income of
$218 million ~ to$206 million $231 million 13% year-over-year, driven primarily by an18% growth in revenue from fees. Total revenue and other income increased by8% in FY’23 to$812 million -
Record revenue from fees less production costs (“FRLPC”) of
$76 million 42% year-over-year, reflecting deeper monetization of the Company’s lending product. FRLPC as a percentage of network volume (“FRLPC margin”) improved 20 basis points to3.2% in the fourth quarter. FRLPC increased by13% in FY’23 to$264 million 3.2% . -
Record adjusted EBITDA of
$34 million ~ to$17 million $27 million $43 million $11 million $82 million $5 million -
Adjusted net income of
$12 million $17 million -
Net loss attributable to Pagaya shareholders of
$14 million $20 million $128 million
First Quarter 2024 Outlook
|
1Q24 |
||
Network Volume |
Expected to be between |
||
Total Revenue and Other Income |
Expected to be between |
||
Adjusted EBITDA |
Expected to be between |
Full Year 2024 Outlook
|
FY24 |
||
Network Volume |
Expected to be between |
||
Total Revenue and Other Income |
Expected to be between |
||
Adjusted EBITDA |
Expected to be between |
Webcast
The Company will hold a webcast and conference call today, February 21, 2024 at 8:30 a.m. Eastern Time. A live webcast of the call will be available via the Investor Relations section of the Company’s website at investor.pagaya.com. To listen to the live webcast, please go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly before the call, the accompanying materials will be made available on the Company’s website. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.
The conference call can also be accessed by dialing 1-877-407-9208 or 1-201-493-6784. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13743371. The telephone replay will be available starting shortly after the call until Wednesday, March 6, 2024. A replay will also be available on the Investor Relations website following the call.
About Pagaya Technologies
Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide. By using machine learning, a vast data network and a sophisticated AI-driven approach, Pagaya provides comprehensive consumer credit and residential real estate solutions for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. Pagaya has offices in
Cautionary Note About Forward-Looking Statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “continue,” “can,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “future,” “strategy,” “might,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. All statements other than statements of historical fact are forward-looking statements, including statements regarding: The Company’s strategy and future operations, including the Company’s ability to continue to deliver consistent results for its lending partners and investors; the Company’s ability to continue to drive sustainable gains in profitability; the Company’s ability to achieve continued momentum in its business; the Company’s ability to achieve positive net cash flow by 2025; and the Company’s financial outlook for Network Volume, Total Revenue and Other Income and Adjusted EBITDA for the full year 2024. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and assumptions include factors relating to: the Company's ability to attract new partners and to retain and grow its relationships with existing partners to support the underlying investment needs for its securitizations and funds products; the need to maintain a consistently high level of trust in its brand; the concentration of a large percentage of its investment revenue with a small number of partners and platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to improve, operate and implement its technology, its existing funding arrangements for the Company and its affiliates that may not be renewed or replaced or its existing funding sources that may be unwilling or unable to provide funding to it on terms acceptable to it, or at all; the performance of loans facilitated through its model; changes in market interest rates; its securitizations, warehouse credit facility agreements; the impact on its business of general economic conditions, including, but not limited to rising interest rates, inflation, supply chain disruptions, exchange rate fluctuations and labor shortages; the effect of and uncertainties related to public health crises such as the COVID-19 pandemic (including any government responses thereto); geopolitical conflicts such as the war in
Financial Information; Non-GAAP Financial Measures
Some of the unaudited financial information and data contained in this press release and Form 6-K, such as Fee Revenue Less Production Costs (“FRLPC”), FRLPC Margin, Adjusted EBITDA and Adjusted Net Income (Loss), have not been prepared in accordance with
Non-GAAP financial measures include the following items:
Fee Revenue Less Production Costs (“FRLPC”) is defined as revenue from fees less production costs. FRLPC Margin is defined as FRLPC divided by Network Volume.
Adjusted Net Income (Loss) is defined as net income (loss) attributable to Pagaya Technologies Ltd.’s shareholders excluding share-based compensation expense, change in fair value of warrant liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, and non-recurring expenses associated with mergers and acquisitions.
Adjusted EBITDA is defined as net income (loss) attributable to Pagaya Technologies Ltd.’s shareholders excluding share-based compensation expense, change in fair value of warrant liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, non-recurring expenses associated with mergers and acquisitions, interest expense, depreciation expense, and income tax expense (benefit).
These items are excluded from our Adjusted Net Income (Loss) and Adjusted EBITDA measures because they are noncash in nature, or because the amount and timing of these items is unpredictable, is not driven by core results of operations and renders comparisons with prior periods and competitors less meaningful.
We believe FRLPC, FRLPC Margin, Adjusted Net Income (Loss) and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, we have included FRLPC, FRLPC Margin, Adjusted Net Income (Loss) and Adjusted EBITDA because these are key measurements used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. However, this non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for or superior to financial information presented in accordance with
In addition, Pagaya provides outlook for the fiscal year 2024 on a non-GAAP basis. The Company cannot reconcile its expected Adjusted EBITDA to expected Net Loss Attributable to Pagaya under “Full-Year 2024 Outlook” without unreasonable effort because certain items that impact net income (loss) and other reconciling items are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s
PAGAYA TECHNOLOGIES LTD. |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
(In thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Revenue from fees |
$ |
210,428 |
|
|
$ |
178,173 |
|
|
$ |
772,814 |
|
|
$ |
685,414 |
|
Other Income |
|
|
|
|
|
|
|
||||||||
Interest income |
|
7,783 |
|
|
|
14,631 |
|
|
|
38,748 |
|
|
|
57,758 |
|
Investment income (loss) |
|
(167 |
) |
|
|
86 |
|
|
|
489 |
|
|
|
5,756 |
|
Total Revenue and Other Income |
|
218,044 |
|
|
|
192,890 |
|
|
|
812,051 |
|
|
|
748,928 |
|
Production costs |
|
134,482 |
|
|
|
124,709 |
|
|
|
508,944 |
|
|
|
451,084 |
|
Technology, data and product development (1) |
|
17,550 |
|
|
|
23,554 |
|
|
|
74,383 |
|
|
|
150,933 |
|
Sales and marketing (1) |
|
9,576 |
|
|
|
13,974 |
|
|
|
49,773 |
|
|
|
104,203 |
|
General and administrative (1) |
|
45,784 |
|
|
|
57,350 |
|
|
|
203,351 |
|
|
|
294,213 |
|
Total Costs and Operating Expenses |
|
207,392 |
|
|
|
219,587 |
|
|
|
836,451 |
|
|
|
1,000,433 |
|
Operating Income (Loss) |
|
10,652 |
|
|
|
(26,697 |
) |
|
|
(24,400 |
) |
|
|
(251,505 |
) |
Other income (expense), net |
|
(25,633 |
) |
|
|
(34,715 |
) |
|
|
(156,768 |
) |
|
|
(24,869 |
) |
Income (Loss) Before Income Taxes |
|
(14,981 |
) |
|
|
(61,412 |
) |
|
|
(181,168 |
) |
|
|
(276,374 |
) |
Income tax expense (benefit) |
|
5,056 |
|
|
|
(9,204 |
) |
|
|
15,571 |
|
|
|
16,400 |
|
Net Income (Loss) Including Noncontrolling Interests |
|
(20,037 |
) |
|
|
(52,208 |
) |
|
|
(196,739 |
) |
|
|
(292,774 |
) |
Less: Net income (loss) attributable to noncontrolling interests |
|
(5,619 |
) |
|
|
(18,210 |
) |
|
|
(68,301 |
) |
|
|
9,547 |
|
Net Income (Loss) Attributable to Pagaya Technologies Ltd. |
$ |
(14,418 |
) |
|
$ |
(33,998 |
) |
|
$ |
(128,438 |
) |
|
$ |
(302,321 |
) |
Per share data: |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Pagaya Technologies Ltd. shareholders |
$ |
(14,418 |
) |
|
$ |
(33,998 |
) |
|
$ |
(128,438 |
) |
|
$ |
(302,321 |
) |
Less: Undistributed earnings allocated to participated securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,205 |
) |
Net income (loss) attributable to Pagaya Technologies Ltd. ordinary shareholders |
$ |
(14,418 |
) |
|
$ |
(33,998 |
) |
|
$ |
(128,438 |
) |
|
$ |
(314,526 |
) |
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic and Diluted |
$ |
(0.02 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.69 |
) |
Net loss per share (pro-forma post Reverse Stock Split) (3): |
|
|
|
|
|
|
|
||||||||
Basic and Diluted |
$ |
(0.24 |
) |
|
$ |
(0.59 |
) |
|
$ |
(2.14 |
) |
|
$ |
(8.22 |
) |
Non-GAAP adjusted net income (loss) (2) |
$ |
12,389 |
|
|
$ |
(3,683 |
) |
|
$ |
16,556 |
|
|
$ |
(32,664 |
) |
Non-GAAP adjusted net income (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.07 |
) |
Diluted |
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.07 |
) |
Non-GAAP adjusted net income (loss) per share (pro-forma post Reverse Stock Split) (3): |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.20 |
|
|
$ |
(0.06 |
) |
|
$ |
0.28 |
|
|
$ |
(0.85 |
) |
Diluted |
$ |
0.20 |
|
|
$ |
(0.06 |
) |
|
$ |
0.27 |
|
|
$ |
(0.85 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
735,509,992 |
|
|
|
688,165,887 |
|
|
|
720,466,726 |
|
|
|
459,044,846 |
|
Diluted |
|
757,607,624 |
|
|
|
697,441,165 |
|
|
|
740,322,318 |
|
|
|
699,631,838 |
|
Weighted average shares outstanding (pro-forma post Reverse Stock Split) (3): |
|
|
|
|
|
|
|
||||||||
Basic |
|
61,292,498 |
|
|
|
57,347,157 |
|
|
|
60,038,893 |
|
|
|
38,253,737 |
|
Diluted |
|
63,133,967 |
|
|
|
58,120,097 |
|
|
|
61,693,526 |
|
|
|
58,302,653 |
|
(1) The following table sets forth share-based compensation for the periods indicated below: |
|||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Technology, data and product development |
$ |
3,460 |
|
$ |
4,886 |
|
$ |
12,375 |
|
$ |
81,337 |
Selling and marketing |
|
2,237 |
|
|
3,843 |
|
|
13,216 |
|
|
58,377 |
General and administrative |
|
8,046 |
|
|
9,953 |
|
|
45,464 |
|
|
101,975 |
Total |
$ |
13,743 |
|
$ |
18,682 |
|
$ |
71,055 |
|
$ |
241,689 |
(2) See “Reconciliation of Non-GAAP Financial Measures.” |
|||||||||||
(3) Weighted average shares outstanding used in the computation of basic and diluted earnings (loss) per share have been adjusted to give effect to the 1‐for‐12 Reverse Stock Split that was approved by shareholders on February 15, 2024. |
|||||||||||
PAGAYA TECHNOLOGIES LTD. |
|||||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|||||||
(In thousands) |
|||||||
|
December 31, |
||||||
|
2023 |
|
2022 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
186,478 |
|
|
$ |
309,793 |
|
Restricted cash |
|
16,874 |
|
|
|
22,539 |
|
Fees and other receivables |
|
79,526 |
|
|
|
59,219 |
|
Investments in loans and securities |
|
2,490 |
|
|
|
1,007 |
|
Prepaid expenses and other current assets |
|
16,261 |
|
|
|
27,258 |
|
Income tax receivable |
|
1,773 |
|
|
|
— |
|
Total current assets |
|
303,402 |
|
|
|
419,816 |
|
Restricted cash |
|
19,189 |
|
|
|
4,744 |
|
Fees and other receivables |
|
34,181 |
|
|
|
38,774 |
|
Investments in loans and securities |
|
714,303 |
|
|
|
462,969 |
|
Equity method and other investments |
|
26,383 |
|
|
|
25,894 |
|
Right-of-use assets |
|
55,729 |
|
|
|
61,077 |
|
Property and equipment, net |
|
41,557 |
|
|
|
31,663 |
|
Goodwill |
|
10,945 |
|
|
|
— |
|
Intangible assets |
|
2,550 |
|
|
|
— |
|
Prepaid expenses and other assets |
|
137 |
|
|
|
142 |
|
Total non-current assets |
|
904,974 |
|
|
|
625,263 |
|
Total Assets |
$ |
1,208,376 |
|
|
$ |
1,045,079 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,286 |
|
|
$ |
1,739 |
|
Accrued expenses and other liabilities |
|
28,562 |
|
|
|
49,496 |
|
Operating lease liability - current |
|
6,931 |
|
|
|
8,530 |
|
Secured borrowing - current |
|
37,685 |
|
|
|
61,829 |
|
Income taxes payable - current |
|
461 |
|
|
|
6,424 |
|
Total current liabilities |
|
74,925 |
|
|
|
128,018 |
|
Non-current liabilities: |
|
|
|
||||
Warrant liability |
|
3,242 |
|
|
|
1,400 |
|
Revolving credit facility |
|
90,000 |
|
|
|
15,000 |
|
Secured borrowing - non-current |
|
234,028 |
|
|
|
77,802 |
|
Operating lease liability - non-current |
|
43,940 |
|
|
|
49,097 |
|
Income taxes payable - non-current |
|
22,135 |
|
|
|
7,771 |
|
Deferred tax liabilities, net - non-current |
|
107 |
|
|
|
568 |
|
Total non-current liabilities |
|
393,452 |
|
|
|
151,638 |
|
Total Liabilities |
|
468,377 |
|
|
|
279,656 |
|
Redeemable convertible preferred shares |
|
74,250 |
|
|
|
— |
|
Shareholders’ equity: |
|
|
|
||||
Additional paid-in capital |
|
1,101,914 |
|
|
|
968,432 |
|
Accumulated other comprehensive income (loss) |
|
444 |
|
|
|
(713 |
) |
Accumulated deficit |
|
(542,637 |
) |
|
|
(414,199 |
) |
Total Pagaya Technologies Ltd. shareholders’ equity |
|
559,721 |
|
|
|
553,520 |
|
Noncontrolling interests |
|
106,028 |
|
|
|
211,903 |
|
Total shareholders’ equity |
|
665,749 |
|
|
|
765,423 |
|
Total Liabilities, Redeemable Convertible Preferred Shares, and Shareholders’ Equity |
$ |
1,208,376 |
|
|
$ |
1,045,079 |
|
PAGAYA TECHNOLOGIES LTD. |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In thousands) |
|||||||
|
Year Ended December 31, |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities |
|
|
|
||||
Net loss including noncontrolling interests |
$ |
(196,739 |
) |
|
$ |
(292,774 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
||||
Equity method income (loss) |
|
(488 |
) |
|
|
(5,756 |
) |
Depreciation and amortization |
|
19,127 |
|
|
|
6,294 |
|
Share-based compensation |
|
71,055 |
|
|
|
241,689 |
|
Fair value adjustment to warrant liability |
|
1,842 |
|
|
|
(11,088 |
) |
Issuance of ordinary shares related to commitment shares |
|
— |
|
|
|
1,000 |
|
Impairment loss on available-for-sale debt securities |
|
134,510 |
|
|
|
15,007 |
|
Loss on loans held-for-investment |
|
— |
|
|
|
10,651 |
|
Other than temporary impairment of investments in loans and securities |
|
— |
|
|
|
33,704 |
|
Write-off of capitalized software |
|
2,475 |
|
|
|
3,209 |
|
Tax benefit related to release of valuation allowance |
|
(1,162 |
) |
|
|
— |
|
Gain on foreign exchange |
|
(1,320 |
) |
|
|
— |
|
Change in operating assets and liabilities: |
|
|
|
||||
Fees and other receivables |
|
(20,740 |
) |
|
|
(46,453 |
) |
Deferred tax assets, net |
|
— |
|
|
|
5,681 |
|
Deferred tax liabilities, net |
|
(461 |
) |
|
|
568 |
|
Prepaid expenses and other assets |
|
12,912 |
|
|
|
(23,227 |
) |
Right-of-use assets |
|
3,854 |
|
|
|
7,742 |
|
Accounts payable |
|
(448 |
) |
|
|
(9,841 |
) |
Accrued expenses and other liabilities |
|
(17,770 |
) |
|
|
32,403 |
|
Operating lease liability |
|
(3,712 |
) |
|
|
(11,192 |
) |
Income tax receivable / payable |
|
6,642 |
|
|
|
2,383 |
|
Net cash provided by (used in) operating activities |
|
9,577 |
|
|
|
(40,000 |
) |
Cash flows from investing activities |
|
|
|
||||
Proceeds from the sale/maturity/prepayment of: |
|
|
|
||||
Investments in loans and securities |
|
172,061 |
|
|
|
112,897 |
|
Short-term deposits |
|
— |
|
|
|
5,020 |
|
Equity method and other investments |
|
— |
|
|
|
453 |
|
Cash and restricted cash acquired from Darwin Homes, Inc. |
|
1,608 |
|
|
|
— |
|
Payments for the purchase of: |
|
|
|
||||
Investments in loans and securities |
|
(566,173 |
) |
|
|
(355,633 |
) |
Property and equipment |
|
(20,189 |
) |
|
|
(22,406 |
) |
Equity method and other investments |
|
— |
|
|
|
(5,750 |
) |
Net cash used in investing activities |
|
(412,693 |
) |
|
|
(265,419 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from sale of ordinary shares in connection with the Business Combination and PIPE Investment, net of issuance costs |
|
— |
|
|
|
291,872 |
|
Proceeds from issuance of redeemable convertible preferred shares, net |
|
74,250 |
|
|
|
— |
|
Proceeds from secured borrowing |
|
338,472 |
|
|
|
139,413 |
|
Proceeds received from noncontrolling interests |
|
19,955 |
|
|
|
105,469 |
|
Proceeds from revolving credit facility |
|
130,000 |
|
|
|
42,100 |
|
Proceeds from exercise of stock options |
|
4,334 |
|
|
|
1,617 |
|
Proceeds from issuance of ordinary shares from the Equity Financing Purchase Agreement |
|
27,892 |
|
|
|
— |
|
Distributions made to noncontrolling interests |
|
(43,767 |
) |
|
|
(77,764 |
) |
Payments made to revolving credit facility |
|
(55,000 |
) |
|
|
(27,100 |
) |
Payments made to secured borrowing |
|
(206,390 |
) |
|
|
(37,687 |
) |
Settlement of share-based compensation in satisfaction of tax withholding requirements |
|
(650 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
289,096 |
|
|
|
437,920 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(515 |
) |
|
|
— |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(114,535 |
) |
|
|
132,501 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
337,076 |
|
|
|
204,575 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
222,541 |
|
|
$ |
337,076 |
|
PAGAYA TECHNOLOGIES LTD. |
|||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
|||||||||||||||
($ in thousands, unless otherwise noted) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net Loss Attributable to Pagaya Technologies Ltd. |
$ |
(14,418 |
) |
|
$ |
(33,998 |
) |
|
$ |
(128,438 |
) |
|
$ |
(302,321 |
) |
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Share-based compensation |
|
13,743 |
|
|
|
18,682 |
|
|
|
71,055 |
|
|
|
241,689 |
|
Fair value adjustment to warrant liability |
|
(1,921 |
) |
|
|
(1,680 |
) |
|
|
1,842 |
|
|
|
(11,088 |
) |
Impairment loss on certain investments |
|
12,603 |
|
|
|
8,836 |
|
|
|
52,381 |
|
|
|
8,836 |
|
Write-off of capitalized software |
|
3 |
|
|
|
3,209 |
|
|
|
1,938 |
|
|
|
3,209 |
|
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
5,450 |
|
|
|
— |
|
Transaction-related expenses |
|
1,656 |
|
|
|
— |
|
|
|
6,153 |
|
|
|
— |
|
Non-recurring expenses |
|
723 |
|
|
|
1,268 |
|
|
|
6,175 |
|
|
|
27,011 |
|
Adjusted Net Income (Loss) |
$ |
12,389 |
|
|
$ |
(3,683 |
) |
|
$ |
16,556 |
|
|
$ |
(32,664 |
) |
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Interest expenses |
|
10,808 |
|
|
|
1,716 |
|
|
|
30,740 |
|
|
|
5,136 |
|
Income tax expense (benefit) |
|
5,056 |
|
|
|
(9,204 |
) |
|
|
15,571 |
|
|
|
16,400 |
|
Depreciation and amortization |
|
5,966 |
|
|
|
2,217 |
|
|
|
19,155 |
|
|
|
6,294 |
|
Adjusted EBITDA |
$ |
34,219 |
|
|
$ |
(8,954 |
) |
|
$ |
82,022 |
|
|
$ |
(4,834 |
) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Fee Revenue Less Production Costs (FRLPC): |
|
|
|
|
|
|
|
||||||||
Revenue from fees |
$ |
210,428 |
|
|
$ |
178,173 |
|
|
$ |
772,814 |
|
|
$ |
685,414 |
|
Production costs |
|
134,482 |
|
|
|
124,709 |
|
|
|
508,944 |
|
|
|
451,084 |
|
Fee Revenue Less Production Costs (FRLPC) |
$ |
75,946 |
|
|
$ |
53,464 |
|
|
$ |
263,870 |
|
|
$ |
234,330 |
|
|
|
|
|
|
|
|
|
||||||||
Fee Revenue Less Production Costs Margin (FRLPC Margin): |
|
|
|
|
|
|
|
||||||||
Fee Revenue Less Production Costs (FRLPC) |
$ |
75,946 |
|
|
$ |
53,464 |
|
|
$ |
263,870 |
|
|
$ |
234,330 |
|
Network Volume (in millions) |
|
2,380 |
|
|
|
1,786 |
|
|
|
8,299 |
|
|
|
7,307 |
|
Fee Revenue Less Production Costs Margin (FRLPC Margin) |
|
3.2 |
% |
|
|
3.0 |
% |
|
|
3.2 |
% |
|
|
3.2 |
% |
________________________
1 The results reported herein and attached financial statements are unaudited.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220228844/en/
Investors & Analysts
Jency John
Head of Investor Relations
IR@pagaya.com
Media & Press
Emily Passer
Head of PR & External Communications
Press@pagaya.com
Source: Pagaya Technologies Ltd.
FAQ
What was the record network volume reported by Pagaya Technologies in 4Q’23?
What was the total revenue and other income recorded by Pagaya Technologies in FY’23?
What was the adjusted EBITDA reported by Pagaya Technologies in FY’23?
How much did Pagaya Technologies raise in asset-backed securitizations in 2023?
What was the adjusted net income of Pagaya Technologies in 4Q’23?
What financial outlook did Pagaya Technologies provide for 1Q’24?
