Pagaya Reports Second Quarter and First Half 2024 Results
Pagaya Technologies (NASDAQ: PGY) reported record financial results for Q2 and H1 2024, exceeding expectations. Highlights include:
- Network volume of $2.3 billion, up 19% YoY
- Record total revenue of $250 million, up 28% YoY
- Record FRLPC of $97 million, up 49% YoY
- Record adjusted EBITDA of $50 million
- Positive GAAP operating income for 4th consecutive quarter
- Positive adjusted net income for 5th consecutive quarter
The company expanded partnerships, including a new top 5 bank and OneMain Financial. Pagaya also achieved a $1 billion forward flow agreement and its first AAA rating on personal loan ABS program. The company raised its full-year 2024 outlook, expecting total revenue between $975 million and $1,050 million.
Pagaya Technologies (NASDAQ: PGY) ha riportato risultati finanziari record per il secondo trimestre e il primo semestre 2024, superando le aspettative. I punti salienti includono:
- Volume di rete di 2,3 miliardi di dollari, in aumento del 19% rispetto all'anno precedente
- Fatturato totale record di 250 milioni di dollari, in aumento del 28% rispetto all'anno precedente
- Fatturato netto regolato (FRLPC) record di 97 milioni di dollari, in aumento del 49% rispetto all'anno precedente
- EBITDA rettificato record di 50 milioni di dollari
- Reddito operativo GAAP positivo per il quarto trimestre consecutivo
- Reddito netto rettificato positivo per il quinto trimestre consecutivo
L'azienda ha ampliato le partnership, inclusa una nuova banca tra le prime cinque e OneMain Financial. Pagaya ha anche ottenuto un accordo di flusso anticipato da 1 miliardo di dollari e la sua prima valutazione AAA sul programma ABS di prestiti personali. L'azienda ha alzato le previsioni per l'intero anno 2024, aspettandosi un fatturato totale compreso tra 975 milioni e 1.050 milioni di dollari.
Pagaya Technologies (NASDAQ: PGY) reportó resultados financieros récord para el segundo trimestre y el primer semestre de 2024, superando las expectativas. Los aspectos destacados incluyen:
- Volumen de red de 2.3 mil millones de dólares, un aumento del 19% interanual
- Ingresos totales récord de 250 millones de dólares, un aumento del 28% interanual
- Ingresos netos ajustados (FRLPC) récord de 97 millones de dólares, un aumento del 49% interanual
- EBITDA ajustado récord de 50 millones de dólares
- Ingreso operativo GAAP positivo por cuarto trimestre consecutivo
- Ingreso neto ajustado positivo por quinto trimestre consecutivo
La empresa amplió sus asociaciones, incluyendo un nuevo banco entre los cinco principales y OneMain Financial. Pagaya también logró un acuerdo de flujo anticipado de 1 mil millones de dólares y su primera calificación AAA en el programa ABS de préstamos personales. La empresa elevó sus perspectivas para todo el año 2024, esperando ingresos totales entre 975 millones y 1,050 millones de dólares.
파가야 테크놀로지(Pagaya Technologies; NASDAQ: PGY)는 2024년 2분기 및 상반기 동안 기록적인 재무 결과를 보고하며 예상치를 초과했습니다. 주요 사항은 다음과 같습니다:
- 네트워크 거래량 23억 달러, 전년 대비 19% 증가
- 총 수익 2억 5천만 달러, 전년 대비 28% 증가
- 기록적인 조정 후 순수익(FRLPC) 9천 7백만 달러, 전년 대비 49% 증가
- 조정된 EBITDA 5천만 달러
- GAAP 운영 소득 긍정적, 4분기 연속
- 조정된 순이익 긍정적, 5분기 연속
회사는 새로운 5대 은행과 OneMain Financial을 포함하여 파트너십을 확장했습니다. 파가야는 또한 10억 달러의 선행 유입 계약과 개인 대출 ABS 프로그램에서 첫 번째 AAA 등급을 달성했습니다. 이 회사는 2024년 전체 연도 전망을 상향 조정하여 총 수익이 9억 7천5백만 달러에서 10억 5천만 달러 사이일 것으로 예상하고 있습니다.
Pagaya Technologies (NASDAQ: PGY) a annoncé des résultats financiers records pour le deuxième trimestre et le premier semestre 2024, dépassant les attentes. Les points importants incluent :
- Volume du réseau de 2,3 milliards de dollars, en hausse de 19% par rapport à l'année précédente
- Chiffre d'affaires total record de 250 millions de dollars, en hausse de 28% par rapport à l'année précédente
- FRLPC record de 97 millions de dollars, en hausse de 49% par rapport à l'année précédente
- EBITDA ajusté record de 50 millions de dollars
- Bénéfice d'exploitation GAAP positif pour le quatrième trimestre consécutif
- Bénéfice net ajusté positif pour le cinquième trimestre consécutif
L'entreprise a élargi ses partenariats, y compris une nouvelle banque dans le top 5 et OneMain Financial. Pagaya a également réalisé un accord de flux anticipé de 1 milliard de dollars et obtenu sa première note AAA sur son programme ABS de prêts personnels. L'entreprise a relevé ses prévisions pour l'année 2024, s'attendant à un chiffre d'affaires total compris entre 975 millions et 1 050 millions de dollars.
Pagaya Technologies (NASDAQ: PGY) berichtete von rekordverdächtigen finanziellen Ergebnissen für das 2. Quartal und das erste Halbjahr 2024, die die Erwartungen übertrafen. Die wichtigsten Punkte sind:
- Netzwerkvolumen von 2,3 Milliarden Dollar, ein Anstieg von 19% im Jahresvergleich
- Rekordgesamtumsatz von 250 Millionen Dollar, ein Anstieg von 28% im Jahresvergleich
- Rekord-FRLPC von 97 Millionen Dollar, ein Anstieg von 49% im Jahresvergleich
- Rekordbereinigtes EBITDA von 50 Millionen Dollar
- Positives GAAP-Betriebsergebnis im vierten aufeinanderfolgenden Quartal
- Positives bereinigtes Nettoergebnis im fünften aufeinanderfolgenden Quartal
Das Unternehmen erweiterte seine Partnerschaften, darunter eine neue Bank unter den Top 5 und OneMain Financial. Pagaya schloss außerdem eine Vorlaufvolumenvereinbarung über 1 Milliarde Dollar und erhielt die erste AAA-Bewertung für sein ABS-Programm für Privatkredite. Das Unternehmen hob die Jahresprognose für 2024 an und erwartet einen Gesamtumsatz zwischen 975 Millionen und 1.050 Millionen Dollar.
- Record total revenue of $250 million, up 28% YoY
- Record FRLPC of $97 million, increased 49% YoY
- Record adjusted EBITDA of $50 million, compared to $17 million in Q2 2023
- Positive GAAP operating income for 4th consecutive quarter
- Signed $1 billion forward flow agreement, enhancing capital efficiency
- Achieved first AAA rating on personal loan ABS program
- Expanded partner network with new top 5 bank and OneMain Financial
- Raised full-year 2024 outlook for revenue and adjusted EBITDA
- Net loss attributable to Pagaya shareholders of $75 million
Insights
Pagaya's Q2 2024 results demonstrate robust growth and improved financial performance. Total revenue reached
The record adjusted EBITDA of
Pagaya's AI infrastructure for the financial ecosystem is proving its value, as evidenced by the expanding network of top lenders. The onboarding of a top 5 bank in the point-of-sale vertical and new enterprise partnerships demonstrate the scalability and attractiveness of their technology. This expansion not only diversifies their client base but also provides more data to refine their AI models.
The company's ability to achieve a AAA rating on their personal loan ABS program is a significant technological milestone. It suggests that their AI-driven underwriting and risk assessment models are performing exceptionally well, providing stable and predictable outcomes. This rating could lead to lower funding costs and increased investor confidence in Pagaya's AI-powered financial products, potentially driving further growth and market penetration.
Pagaya's Q2 results and raised full-year outlook indicate strong market positioning in the AI-driven financial services sector. The 19% YoY growth in network volume to
The company's focus on capital efficiency through initiatives like the
- Record Total Revenue, FRLPC and Adjusted EBITDA, raising full-year outlook
-
Signed our first forward flow agreement for
$1 billion - New enterprise partnership with OneMain Financial and onboarding a new top 5 bank to our network
- First AAA rating on personal loan ABS program, reflecting stable performance and scale
For additional information, view Pagaya's second quarter 2024 letter to shareholders here.
“We set ambitious goals for our business this year and delivered on all of them,” said Gal Krubiner, co-founder and CEO of Pagaya Technologies. “We had another quarter of record financial results, expanded our network with more top lenders and enhanced our funding capacity. Our business has strong momentum as we continue to execute on our strategy in the second half.”
Second Quarter 2024 Highlights
All comparisons are made versus the same period in 2023 and on a year-over-year basis unless otherwise stated.
-
Network volume of
(in line with outlook of$2.3 billion to$2.2 billion ) grew by$2.4 billion 19% year-over-year. - Growing our partner network with top lenders. Onboarding a new top 5 bank by total assets in our point-of-sale (“POS”) vertical. Added an enterprise relationship with OneMain Financial across auto and personal loans. Expanded our partnership with LendingClub to our flagship personal loan product.
-
Achieved a step-change in capital efficiency, with a
forward flow purchase agreement, upcoming acquisition of Theorem, and AAA-rated personal loan ABS program. These initiatives are expected to enhance capital efficiency by reducing Pagaya’s capital needs to fund network volume.$1 billion -
Record total revenue and other income of
(exceeding outlook of$250 million to$235 million ) increased by$245 million 28% year-over-year, driven by a31% increase in revenue from fees, and is now at an annual run-rate of approximately .$1 billion -
Record revenue from fees less production costs (“FRLPC”) of
increased by$97 million 49% year-over-year, and is now at an annual run-rate of approximately . FRLPC as a percentage of network volume improved 84 basis points year-over-year to$400 million 4.2% , exceeding4% for the first time in our history as a public company. -
Net loss attributable to Pagaya shareholders of
was impacted by non-cash items such as fair value adjustments and share-based compensation.$75 million -
Record adjusted EBITDA of
(exceeding outlook of$50 million to$40 million ), compared to$45 million in the second quarter of 2023, is now at an annual run-rate of approximately$17 million . Growth was driven by higher FRLPC and a continued focus on operating efficiency. GAAP operating income of$200 million represents the fourth consecutive quarter of positive GAAP operating income.$5 million -
Adjusted net income of
, which excludes the impact of non-cash items such as share-based compensation expense and fair value adjustments, represents the fifth consecutive quarter of positive adjusted net income.$7 million -
Cash flow from operating activities of
represents the fourth consecutive quarter of positive operating cash flow.$15 million
Third Quarter 2024 Outlook
|
3Q24 |
|
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, August 9, 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# 13747114. The telephone replay will be available starting shortly after the call until Friday, August 23, 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 an 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; and the Company’s financial outlook for Network Volume, Total Revenue and Other Income and Adjusted EBITDA for the third quarter of 2024 and 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 other funding 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 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 8-K, such as Fee Revenue Less Production Costs (“FRLPC”), FRLPC as a percentage of network volume (or FRLPC %), 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 as a percentage of network volume (or FRLPC %) 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 as a percentage of network volume (or FRLPC %), 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 as a percentage of network volume (or FRLPC %), 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 third quarter of 2024 and 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 Financial 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. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
(In thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Revenue from fees |
$ |
242,594 |
|
|
$ |
185,685 |
|
|
$ |
479,598 |
|
|
$ |
360,939 |
|
Other Income |
|
|
|
|
|
|
|
||||||||
Interest income |
|
8,193 |
|
|
|
10,193 |
|
|
|
15,937 |
|
|
|
20,590 |
|
Investment income (loss) |
|
(443 |
) |
|
|
(266 |
) |
|
|
85 |
|
|
|
721 |
|
Total Revenue and Other Income |
|
250,344 |
|
|
|
195,612 |
|
|
|
495,620 |
|
|
|
382,250 |
|
Production costs |
|
145,602 |
|
|
|
120,613 |
|
|
|
290,483 |
|
|
|
245,670 |
|
Technology, data and product development (1) |
|
21,935 |
|
|
|
17,663 |
|
|
|
41,315 |
|
|
|
38,794 |
|
Sales and marketing (1) |
|
13,331 |
|
|
|
14,558 |
|
|
|
23,588 |
|
|
|
28,858 |
|
General and administrative (1) |
|
64,449 |
|
|
|
53,016 |
|
|
|
127,517 |
|
|
|
104,142 |
|
Total Costs and Operating Expenses |
|
245,317 |
|
|
|
205,850 |
|
|
|
482,903 |
|
|
|
417,464 |
|
Operating Income (Loss) |
|
5,027 |
|
|
|
(10,238 |
) |
|
|
12,717 |
|
|
|
(35,214 |
) |
Other expense, net |
|
(73,194 |
) |
|
|
(16,895 |
) |
|
|
(107,543 |
) |
|
|
(83,875 |
) |
Loss Before Income Taxes |
|
(68,167 |
) |
|
|
(27,133 |
) |
|
|
(94,826 |
) |
|
|
(119,089 |
) |
Income tax expense |
|
14,512 |
|
|
|
5,006 |
|
|
|
19,515 |
|
|
|
11,673 |
|
Net Loss Including Noncontrolling Interests |
|
(82,679 |
) |
|
|
(32,139 |
) |
|
|
(114,341 |
) |
|
|
(130,762 |
) |
Less: Net loss attributable to noncontrolling interests |
|
(7,894 |
) |
|
|
(842 |
) |
|
|
(18,333 |
) |
|
|
(38,494 |
) |
Net Loss Attributable to Pagaya Technologies Ltd. |
$ |
(74,785 |
) |
|
$ |
(31,297 |
) |
|
$ |
(96,008 |
) |
|
$ |
(92,268 |
) |
|
|
|
|
|
|
|
|
||||||||
Per share data: |
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic and Diluted (3) |
$ |
(1.04 |
) |
|
$ |
(0.53 |
) |
|
$ |
(1.41 |
) |
|
$ |
(1.55 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjusted net income (loss) (2) |
$ |
7,188 |
|
|
$ |
886 |
|
|
$ |
20,519 |
|
|
$ |
(10,129 |
) |
Non-GAAP adjusted net income (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic (3) |
$ |
0.10 |
|
|
$ |
0.01 |
|
|
$ |
0.30 |
|
|
$ |
(0.17 |
) |
Diluted (3) |
$ |
0.10 |
|
|
$ |
0.01 |
|
|
$ |
0.30 |
|
|
$ |
(0.17 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic (3) |
|
71,765,884 |
|
|
|
59,609,788 |
|
|
|
68,113,860 |
|
|
|
59,386,974 |
|
Diluted (3) |
|
73,002,689 |
|
|
|
60,330,996 |
|
|
|
69,485,741 |
|
|
|
60,105,698 |
|
(1) The following table sets forth share-based compensation for the periods indicated below: |
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Technology, data and product development |
$ |
3,069 |
|
$ |
2,990 |
|
$ |
5,974 |
|
$ |
5,448 |
Selling and marketing |
|
3,867 |
|
|
4,756 |
|
|
6,719 |
|
|
7,510 |
General and administrative |
|
11,108 |
|
|
12,462 |
|
|
20,826 |
|
|
23,617 |
Total |
$ |
18,044 |
|
$ |
20,208 |
|
$ |
33,519 |
|
$ |
36,575 |
(2) See “Reconciliation of Non-GAAP Financial Measures.” |
|||||||||||
(3) Share amounts have been retroactively adjusted to reflect the 1-for-12 reverse share split effected on March 8, 2024. |
PAGAYA TECHNOLOGIES LTD. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) |
|||||||
(In thousands) |
|||||||
|
June 30, |
|
December 31, |
||||
|
2024 |
|
2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
233,593 |
|
|
$ |
186,478 |
|
Restricted cash |
|
17,469 |
|
|
|
16,874 |
|
Fees and other receivables |
|
93,460 |
|
|
|
79,526 |
|
Investments in loans and securities |
|
1,663 |
|
|
|
2,490 |
|
Prepaid expenses and other current assets |
|
15,012 |
|
|
|
18,034 |
|
Total current assets |
|
361,197 |
|
|
|
303,402 |
|
Restricted cash |
|
16,864 |
|
|
|
19,189 |
|
Fees and other receivables |
|
32,987 |
|
|
|
34,181 |
|
Investments in loans and securities |
|
909,762 |
|
|
|
714,303 |
|
Equity method and other investments |
|
26,593 |
|
|
|
26,383 |
|
Right-of-use assets |
|
51,631 |
|
|
|
55,729 |
|
Property and equipment, net |
|
40,628 |
|
|
|
41,557 |
|
Goodwill |
|
10,945 |
|
|
|
10,945 |
|
Intangible assets |
|
1,275 |
|
|
|
2,550 |
|
Prepaid expenses and other assets |
|
1,095 |
|
|
|
137 |
|
Total non-current assets |
|
1,091,780 |
|
|
|
904,974 |
|
Total Assets |
$ |
1,452,977 |
|
|
$ |
1,208,376 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
7,303 |
|
|
$ |
1,286 |
|
Accrued expenses and other liabilities |
|
36,090 |
|
|
|
28,562 |
|
Current maturities of operating lease liabilities |
|
6,427 |
|
|
|
6,931 |
|
Current portion of long-term debt |
|
12,750 |
|
|
|
— |
|
Secured borrowing |
|
176,223 |
|
|
|
37,685 |
|
Income taxes payable |
|
2,461 |
|
|
|
461 |
|
Total current liabilities |
|
241,254 |
|
|
|
74,925 |
|
Non-current liabilities: |
|
|
|
||||
Warrant liability |
|
1,671 |
|
|
|
3,242 |
|
Revolving credit facility |
|
— |
|
|
|
90,000 |
|
Long-term debt |
|
219,842 |
|
|
|
— |
|
Secured borrowing |
|
223,998 |
|
|
|
234,028 |
|
Operating lease liabilities |
|
39,529 |
|
|
|
43,940 |
|
Long-term tax liabilities |
|
36,752 |
|
|
|
22,135 |
|
Deferred tax liabilities, net |
|
107 |
|
|
|
107 |
|
Total non-current liabilities |
|
521,899 |
|
|
|
393,452 |
|
Total Liabilities |
|
763,153 |
|
|
|
468,377 |
|
Redeemable convertible preferred shares |
|
74,250 |
|
|
|
74,250 |
|
Shareholders’ equity: |
|
|
|
||||
Additional paid-in capital |
|
1,235,677 |
|
|
|
1,101,914 |
|
Accumulated other comprehensive income (loss) |
|
(71,050 |
) |
|
|
444 |
|
Accumulated deficit |
|
(638,645 |
) |
|
|
(542,637 |
) |
Total Pagaya Technologies Ltd. shareholders’ equity |
|
525,982 |
|
|
|
559,721 |
|
Noncontrolling interests |
|
89,592 |
|
|
|
106,028 |
|
Total shareholders’ equity |
|
615,574 |
|
|
|
665,749 |
|
Total Liabilities, Redeemable Convertible Preferred Shares, and Shareholders’ Equity |
$ |
1,452,977 |
|
|
$ |
1,208,376 |
|
PAGAYA TECHNOLOGIES LTD. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||
(In thousands) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities |
|
|
|
||||
Net loss including noncontrolling interests |
$ |
(114,341 |
) |
|
$ |
(130,762 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
||||
Equity method income (loss) |
|
(86 |
) |
|
|
(721 |
) |
Depreciation and amortization |
|
13,359 |
|
|
|
7,984 |
|
Share-based compensation |
|
33,519 |
|
|
|
36,575 |
|
Fair value adjustment to warrant liability |
|
(1,571 |
) |
|
|
2,435 |
|
Impairment loss on investments in loans and securities |
|
79,911 |
|
|
|
78,327 |
|
Write-off of capitalized software |
|
2,561 |
|
|
|
1,630 |
|
Other non-cash items |
|
1,435 |
|
|
|
(94 |
) |
Change in operating assets and liabilities: |
|
|
|
||||
Fees and other receivables |
|
(12,725 |
) |
|
|
(7,602 |
) |
Deferred tax liabilities, net |
|
— |
|
|
|
2 |
|
Prepaid expenses and other assets |
|
998 |
|
|
|
4,587 |
|
Right-of-use assets |
|
3,879 |
|
|
|
4,619 |
|
Accounts payable |
|
6,071 |
|
|
|
2,083 |
|
Accrued expenses and other liabilities |
|
7,793 |
|
|
|
(21,395 |
) |
Operating lease liability |
|
(3,205 |
) |
|
|
(4,455 |
) |
Income tax receivable / payable |
|
18,363 |
|
|
|
1,274 |
|
Net cash provided by (used in) operating activities |
|
35,961 |
|
|
|
(25,513 |
) |
Cash flows from investing activities |
|
|
|
||||
Proceeds from the sale/maturity/prepayment of: |
|
|
|
||||
Investments in loans and securities |
|
66,822 |
|
|
|
91,360 |
|
Cash and restricted cash acquired from Darwin Homes, Inc. |
|
— |
|
|
|
1,608 |
|
Payments for the purchase of: |
|
|
|
||||
Investments in loans and securities |
|
(408,459 |
) |
|
|
(273,339 |
) |
Property and equipment |
|
(9,525 |
) |
|
|
(10,496 |
) |
Equity method and other investments |
|
(125 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(351,287 |
) |
|
|
(190,867 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from sale of ordinary shares, net of issuance costs |
|
89,956 |
|
|
|
— |
|
Proceeds from long-term debt |
|
244,725 |
|
|
|
— |
|
Proceeds from issuance of redeemable convertible preferred shares, net |
|
— |
|
|
|
74,250 |
|
Proceeds from secured borrowing |
|
207,317 |
|
|
|
192,420 |
|
Proceeds received from noncontrolling interests |
|
2,815 |
|
|
|
15,293 |
|
Proceeds from revolving credit facility |
|
44,000 |
|
|
|
100,000 |
|
Proceeds from exercise of stock options |
|
759 |
|
|
|
1,430 |
|
Proceeds from issuance of ordinary shares from the Equity Financing Purchase Agreement |
|
5,338 |
|
|
|
— |
|
Distributions made to noncontrolling interests |
|
(5,318 |
) |
|
|
(28,913 |
) |
Payments made to revolving credit facility |
|
(134,000 |
) |
|
|
(25,000 |
) |
Payments made to secured borrowing |
|
(78,809 |
) |
|
|
(115,471 |
) |
Payments made to long-term debt |
|
(6,375 |
) |
|
|
— |
|
Long-term debt issuance costs |
|
(7,974 |
) |
|
|
— |
|
Settlement of share-based compensation in satisfaction of tax withholding requirements |
|
— |
|
|
|
(650 |
) |
Net cash provided by financing activities |
|
362,434 |
|
|
|
213,359 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(1,723 |
) |
|
|
(2,687 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
45,385 |
|
|
|
(5,708 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
222,541 |
|
|
|
337,076 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
267,926 |
|
|
$ |
331,368 |
|
PAGAYA TECHNOLOGIES LTD. |
|||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
|||||||||||||||
($ in thousands, unless otherwise noted) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net Loss Attributable to Pagaya Technologies Ltd. |
$ |
(74,785 |
) |
|
$ |
(31,297 |
) |
|
$ |
(96,008 |
) |
|
$ |
(92,268 |
) |
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Share-based compensation |
|
18,044 |
|
|
|
20,208 |
|
|
|
33,519 |
|
|
|
36,575 |
|
Fair value adjustment to warrant liability |
|
329 |
|
|
|
2,625 |
|
|
|
(1,571 |
) |
|
|
2,435 |
|
Impairment loss on certain investments |
|
58,179 |
|
|
|
4,236 |
|
|
|
77,662 |
|
|
|
30,648 |
|
Write-off of capitalized software |
|
2,561 |
|
|
|
106 |
|
|
|
2,561 |
|
|
|
1,630 |
|
Restructuring expenses |
|
2,725 |
|
|
|
1,146 |
|
|
|
3,545 |
|
|
|
4,966 |
|
Transaction-related expenses |
|
135 |
|
|
|
2,025 |
|
|
|
535 |
|
|
|
2,025 |
|
Non-recurring expenses |
|
— |
|
|
|
1,837 |
|
|
|
276 |
|
|
|
3,860 |
|
Adjusted Net Income (Loss) |
$ |
7,188 |
|
|
$ |
886 |
|
|
$ |
20,519 |
|
|
$ |
(10,129 |
) |
Adjusted to exclude the following: |
|
|
|
|
|
|
|
||||||||
Interest expenses |
|
21,563 |
|
|
|
7,134 |
|
|
|
36,727 |
|
|
|
10,014 |
|
Income tax expense |
|
14,512 |
|
|
|
5,006 |
|
|
|
19,515 |
|
|
|
11,673 |
|
Depreciation and amortization |
|
7,042 |
|
|
|
4,468 |
|
|
|
13,359 |
|
|
|
7,984 |
|
Adjusted EBITDA |
$ |
50,305 |
|
|
$ |
17,494 |
|
|
$ |
90,120 |
|
|
$ |
19,542 |
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Fee Revenue Less Production Costs (FRLPC): |
|
|
|
|
|
|
|
||||||||
Revenue from fees |
$ |
242,594 |
|
|
$ |
185,685 |
|
|
$ |
479,598 |
|
|
$ |
360,939 |
|
Production costs |
|
145,602 |
|
|
|
120,613 |
|
|
|
290,483 |
|
|
|
245,670 |
|
Fee Revenue Less Production Costs (FRLPC) |
$ |
96,992 |
|
|
$ |
65,072 |
|
|
$ |
189,115 |
|
|
$ |
115,269 |
|
|
|
|
|
|
|
|
|
||||||||
Fee Revenue Less Production Costs % (FRLPC %): |
|
|
|
|
|
|
|
||||||||
Fee Revenue Less Production Costs (FRLPC) |
$ |
96,992 |
|
|
$ |
65,072 |
|
|
$ |
189,115 |
|
|
$ |
115,269 |
|
Network Volume (in millions) |
|
2,331 |
|
|
|
1,957 |
|
|
|
4,750 |
|
|
|
3,807 |
|
Fee Revenue Less Production Costs % (FRLPC %) |
|
4.2 |
% |
|
|
3.3 |
% |
|
|
4.0 |
% |
|
|
3.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808427691/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
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