Yiren Digital Reports Second Quarter 2023 Financial Results

Rhea-AI Summary

Yiren Digital Ltd. announces unaudited financial results for Q2 2023. Cumulative number of insurance clients served reached 1,133,069, representing a 12.5% increase. Gross written premiums were RMB1,332.5 million. Total loans facilitated reached RMB8.2 billion, a 27.0% increase. Total net revenue was RMB1,324.2 million, a 65% increase. Net income was RMB527.3 million. Cash and cash equivalents were RMB5,808.8 million.

Positive

• Cumulative number of insurance clients served increased by 12.5%.
• Gross written premiums increased by 44.3%.
• Total loans facilitated increased by 27.0%.
• Total net revenue increased by 65%.
• Net income increased to RMB527.3 million.
• Cash and cash equivalents increased to RMB5,808.8 million.

Negative

• None.

BEIJING, Aug. 17, 2023 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), an AI-driven one-stop select financial and lifestyle services platform in China, today announced its unaudited financial results for the quarter ended June 30, 2023.

Second Quarter 2023 Operational Highlights

Insurance Brokerage Business

• Cumulative number of insurance clients served reached 1,133,069 as of June 30, 2023, representing an increase of 12.5% from 1,007,238 as of March 31, 2023 and compared to 755,819 as of June 30, 2022.
  
  
• Number of insurance clients served in the second quarter of 2023 was 135,449, representing an increase of 67.5% from 80,856 in the first quarter of 2023 and compared to 132,727 in the same period of 2022. The increase was attributed to the enhancement of digital operational efficiency, coupled with the optimization of products and service channels tailored to our customer base.
  
  
• Gross written premiums in the second quarter of 2023 were RMB1,332.5 million (US$183.8 million), representing an increase of 44.3% from RMB923.4 million in the first quarter of 2023 and compared to RMB797.9 million in the same period of 2022. The quarter-over-quarter increase was mainly attributed to the effectiveness of the cross-selling between property and life insurance, as well as an increase in high-premium policy sales.

Financial Services Business

• Total loans facilitated in the second quarter of 2023 reached RMB8.2 billion (US$1.1 billion), representing an increase of 27.0% from RMB6.4 billion in the first quarter of 2023 and compared to RMB4.9 billion in the same period of 2022.
  
  
• Cumulative number of borrowers served reached 8,002,372 as of June 30, 2023, representing an increase of 5.5% compared to 7,582,435 as of March 31, 2023 and compared to 6,514,111 as of June 30, 2022.
  
  
• Number of borrowers served in the second quarter of 2023 was 1,013,972 representing an increase of 16.2% from 872,235 in the first quarter of 2023 and compared to 556,094 in the same period of 2022. The increase was driven by the strong demand for our small revolving loan products and the improvement of customer acquisition efficiency.
  
  
• Outstanding balance of performing loans facilitated reached RMB12.8 billion (US$1.8 billion) as of June 30, 2023, representing an increase of 14.7% from RMB11.1 billion as of March 31, 2023 and compared to RMB10.6 billion as of June 30, 2022.

Consumption & Lifestyle Business

• Total gross merchandise volume generated through our e-commerce platform and "Yiren Select" channel reached RMB395.8 million (US$54.6 million) in the second quarter of 2023, representing an increase of 28.3% from RMB308.6 million in the first quarter of 2023 and compared to RMB87.1 million in the same period of 2022.

"I am very excited to reveal our new corporate positioning as an AI and technology-driven financial and lifestyle services platform, which better aligns with our business model that is anchored by three key pillars -- financial services, insurance brokerage and consumption and lifestyle services." said Mr. Ning Tang, Chairman and Chief Executive Officer. "In the long term, we will continue to focus on delivering shareholder value by expanding our business and investing in technology."

"Despite a sequentially more challenging macro environment this quarter, we are pleased to report another quarter of solid financial results.," Ms. Na Mei, Chief Financial Officer, commented. "For the second quarter of 2023, our total revenue increased by 65% year-over-year to RMB1.3 billion driven by rapid growth across all business segments. Net income reached RMB527.3 million for this quarter as we continued to strengthen operational efficiencies."

Second Quarter 2023 Financial Results

Total net revenue in the second quarter of 2023 was RMB1,324.2 million (US$182.6 million), representing an increase of 65% from RMB801.1 million in the second quarter of 2022. Particularly, in the second quarter of 2023, revenue from financial services business was RMB582.0 million (US$80.3 million), representing an increase of 33.3% from RMB436.7 million in the same period of 2022. The increase was due to an increase of our small revolving loan products amid strong demand for consumption. Revenue from insurance brokerage business was RMB404.7 million (US$55.8 million), representing an increase of 114.6% from RMB188.6 million in the second quarter of 2022. The increase was due to the effectiveness of the cross-selling between property and life insurance, as well as an increase in high-premium policy sales.

Sales and marketing expenses in the second quarter of 2023 were RMB148.9 million (US$20.5 million), compared to RMB158.0 million in the same period of 2022. The decrease was primarily due to the optimization of the cost structure for our offline business and improvement of customer acquisition efficiency.

Origination, servicing and other operating costs in the second quarter of 2023 were RMB346.4 million (US$47.8 million), compared to RMB188.7 million in the same period of 2022. The increase was due to the expanding insurance brokerage business.

General and administrative expenses in the second quarter of 2023 were RMB96.7 million (US$13.3 million), compared to RMB112.0 million in the same period of 2022. The decrease was primarily a result of optimizing the company's offline business operations and achieving overall cost-efficiency improvements.

Allowance for contract assets, receivables and others in the second quarter of 2023 was RMB60.8 million (US$8.4 million), compared to RMB65.6 million in the same period of 2022. The decrease was primarily due to the continued improvement in the risk performance.

Income tax expense in the second quarter of 2023 was RMB139.8 million (US$19.3 million).

Net income in the second quarter of 2023 was RMB527.3 million (US$72.7 million), as compared to RMB254.5 million in the same period in 2022. The increase was primarily due to the recovery of business volume and optimization of our business structure.

Adjusted EBITDA^[1] (non-GAAP) in the second quarter of 2023 was RMB661.7 million (US$91.2 million), compared to RMB312.9 million in the same period of 2022.

Basic and diluted income per ADS in the second quarter of 2023 was RMB6.0 (US$0.8) and RMB5.9 (US$0.8), compared to a basic per ADS of RMB3.0 and a diluted per ADS of RMB3.0 in the same period of 2022.

Net cash generated from operating activities in the second quarter of 2023 was RMB718.1 million (US$99.0 million), compared to RMB666.9 million in the same period of 2022.

Net cash used in investing activities in the second quarter of 2023 was RMB20.0 million (US$2.8 million), compared to RMB255.7 million provided by investing activities in the same period of 2022.

As of June 30, 2023, cash and cash equivalents were RMB5,808.8 million (US$801.1 million), compared to RMB5,077.2 million as of March 31, 2023. As of June 30, 2023, the balance of held-to-maturity investments was RMB5.8 million (US$0.8 million), compared to RMB3.3 million as of March 31, 2023. As of June 30, 2023, the balance of available-for-sale investments was RMB102.6 million (US$14.1 million), compared to RMB250.8 million as of March 31, 2023.

Delinquency rates. As of June 30, 2023, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.7%, 1.1% and 1.1% respectively, compared to 0.6%, 1.2% and 1.2% respectively as of March 31, 2023.

Cumulative M3+ net charge-off rates. As of June 30, 2023, the cumulative M3+ net charge-off rates for loans originated in 2020, 2021 and 2022 were 8.0%, 6.6% and 3.9% respectively, as compared to 8.1%, 6.6% and 2.6% respectively as of March 31, 2023.

Business Outlook

Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the third quarter of 2023 to be between RMB0.9 billion to RMB1.1 billion, with net profit margin expected to remain stable.

This is the Company's current and preliminary view, which is subject to changes and uncertainties.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release.

Currency Conversion

This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.2513 to US$1.00, the effective noon buying rate on June 30, 2023, as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yiren Digital's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on August 17, 2023 (or 8:00 p.m. Beijing/Hong Kong Time on August 17, 2023).

Participants who wish to join the call should register online in advance of the conference at:

https://s1.c-conf.com/diamondpass/10033013-5tdywj.html

Once registration is completed, participants will receive the dial-in details for the conference call.

Additionally, a live and archived webcast of the conference call will be available at https://ir.yirendai.com/presentations-webcasts 

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital's control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren Digital's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yiren Digital's ability to meet the standards necessary to maintain the listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Yiren Digital

Yiren Digital Ltd. is an AI-driven one-stop select financial and lifestyle services platform in China. The Company provides personalized insurance solutions for individuals, families, and businesses, along with high-quality lifestyle services to enhance clients' well-being and security, as well as offers financial consulting services for clients throughout their growth journey, addressing financing needs that arise from consumption and production.

[1] "Adjusted EBITDA" is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

 

 

Unaudited Condensed Consolidated Statements of Operations
(in thousands, except for share, per share and per ADS data, and percentages)
	For the Three Months Ended									For the Six Months Ended
	June 30, 2022		March 31, 2023		June 30, 2023		June 30, 2023			June 30, 2022		June 30, 2023		June 30, 2023
	RMB		RMB		RMB		USD			RMB		RMB		USD
Net revenue:
Loan facilitation services	273,725		417,165		514,353		70,933			503,386		931,518		128,462
Post-origination services	55,311		6,316		5,273		727			92,287		11,589		1,598
Insurance brokerage services	188,570		196,358		404,695		55,810			343,751		601,053		82,889
Financing services	78,530		22,577		14,896		2,054			188,141		37,473		5,168
Electronic commerce services	70,977		242,858		287,725		39,679			120,788		530,583		73,171
Others	134,011		101,069		97,264		13,413			257,536		198,333		27,351
Total net revenue	801,124		986,343		1,324,206		182,616			1,505,889		2,310,549		318,639
Operating costs and expenses:
Sales and marketing	157,958		106,212		148,947		20,541			334,141		255,159		35,188
Origination,servicing and other operating costs	188,687		199,745		346,367		47,766			341,628		546,112		75,312
General and administrative	111,964		92,550		96,741		13,341			228,512		189,291		26,104
Allowance for contract assets, receivables and others	65,575		44,905		60,840		8,390			97,402		105,745		14,584
Total operating costs and expenses	524,184		443,412		652,895		90,038			1,001,683		1,096,307		151,188
Other (expenses)/income:
Interest (expense)/income, net	(3,790)		14,519		10,535		1,453			(29,363)		25,054		3,455
Fair value adjustments related to Consolidated ABFE	15,020		(11,203)		(17,470)		(2,409)			19,785		(28,673)		(3,954)
Others, net	8,481		3,589		2,730		376			15,895		6,319		872
Total other income/(expenses)	19,711		6,905		(4,205)		(580)			6,317		2,700		373
Income before provision for income taxes	296,651		549,836		667,106		91,998			510,523		1,216,942		167,824
Income tax expense	42,163		122,670		139,758		19,273			71,207		262,428		36,190
Net income	254,488		427,166		527,348		72,725			439,316		954,514		131,634
Weighted average number of ordinary shares outstanding, basic	170,008,652		177,782,059		176,929,176		176,929,176			170,005,103		177,353,262		177,353,262
Basic income per share	1.4969		2.4028		2.9806		0.4110			2.5841		5.3820		0.7422
Basic income per ADS	2.9938		4.8056		5.9612		0.8220			5.1682		10.7640		1.4844
Weighted average number of ordinary shares outstanding, diluted	170,871,232		180,180,975		179,124,032		179,124,032			170,932,908		179,650,148		179,650,148
Diluted income per share	1.4894		2.3708		2.9440		0.4060			2.5701		5.3132		0.7327
Diluted income per ADS	2.9788		4.7416		5.8880		0.8120			5.1402		10.6264		1.4654
Unaudited Condensed Consolidated Cash Flow Data
Net cash generated from operating activities	666,901		390,307		718,058		99,026			1,034,652		1,108,365		152,852
Net cash  provided by/(used in) investing activities	255,693		774,283		(19,988)		(2,757)			604,478		754,295		104,022
Net cash used in financing activities	(50,166)		(392,831)		(6,120)		(844)			(158,374)		(398,951)		(55,018)
Effect of foreign exchange rate changes	1,580		(181)		329		45			1,308		148		20
Net increase in cash, cash equivalents and restricted cash	874,008		771,578		692,279		95,470			1,482,064		1,463,857		201,876
Cash, cash equivalents and restricted cash, beginning of period	3,553,400		4,360,695		5,132,273		707,773			2,945,344		4,360,695		601,367
Cash, cash equivalents and restricted cash, end of period	4,427,408		5,132,273		5,824,552		803,243			4,427,408		5,824,552		803,243

 

 

Unaudited Condensed Consolidated Balance Sheets
(in thousands)
	As of
	December 31, 2022		March 31, 2023		June 30, 2023		June 30, 2023
	RMB		RMB		RMB		USD
Cash and cash equivalents	4,271,899		5,077,211		5,808,775		801,067
Restricted cash	88,796		55,062		15,777		2,176
Accounts receivable	221,004		320,440		490,680		67,666
Contract assets, net	626,739		609,969		694,507		95,777
Contract cost	787		480		356		49
Prepaid expenses and other assets	321,411		258,786		297,018		40,961
Loans at fair value	54,049		175,411		412,389		56,871
Financing receivables	514,388		371,196		252,878		34,874
Amounts due from related parties	1,266,232		1,281,348		1,098,164		151,444
Held-to-maturity investments	2,700		3,320		5,820		803
Available-for-sale investments	972,738		250,788		102,594		14,148
Property, equipment and software, net	77,256		75,726		73,991		10,204
Deferred tax assets	84,187		90,855		92,359		12,737
Right-of-use assets	33,909		29,606		25,424		3,506
Total assets	8,536,095		8,600,198		9,370,732		1,292,283
Accounts payable	14,144		19,887		66,738		9,203
Amounts due to related parties	227,724		247,717		338,779		46,720
Deferred revenue	65,539		36,555		32,450		4,475
Accrued expenses and other liabilities	1,315,006		1,342,251		1,427,016		196,795
Secured borrowings	767,900		392,100		392,100		54,073
Deferred tax liabilities	79,740		84,824		100,178		13,815
Lease liabilities	35,229		30,274		26,930		3,714
Total liabilities	2,505,282		2,153,608		2,384,191		328,795
Ordinary shares	129		129		130		18
Additional paid-in capital	5,160,783		5,164,104		5,168,632		712,787
Treasury stock	(46,734)		(61,046)		(66,914)		(9,228)
Accumulated other comprehensive income	7,765		8,599		23,748		3,275
Retained earnings	908,870		1,334,804		1,860,945		256,636
Total equity	6,030,813		6,446,590		6,986,541		963,488
Total liabilities and equity	8,536,095		8,600,198		9,370,732		1,292,283

 

 

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except for number of  borrowers, number of insurance clients, cumulative number of insurance clients and percentages)
	For the Three Months Ended									For the Six Months Ended
	June 30, 2022		March 31, 2023		June 30, 2023		June 30, 2023			June 30, 2022		June 30, 2023		June 30, 2023
	RMB		RMB		RMB		USD			RMB		RMB		USD
Operating Highlights
Gross written premiums	797,881		923,382		1,332,458		183,754			1,604,236		2,255,841		311,095
First year premium	764,318		627,314		1,101,928		151,962			1,304,360		1,729,243		238,474
Renewal premium	33,563		296,068		230,530		31,792			299,876		526,598		72,621
Number of insurance clients	132,727		80,856		135,449		135,449			266,199		212,414		212,414
Cumulative number of insurance clients	755,819		1,007,238		1,133,069		1,133,069			755,819		1,133,069		1,133,069
Amount of loans facilitated	4,934,167		6,420,213		8,156,201		1,124,792			9,541,056		14,576,413		2,010,179
Number of borrowers	556,094		872,235		1,013,972		1,013,972			827,767		1,457,736		1,457,736
Remaining principal of performing loans	10,613,125		11,129,221		12,768,448		1,760,850			10,613,125		12,768,448		1,760,850
Gross merchandise volume	87,117		308,567		395,820		54,586			146,138		704,387		97,139
Segment Information
Insurance Brokerage Business:
Revenue	188,570		196,358		404,695		55,810			343,751		601,053		82,889
Sales and marketing expenses	7,046		2,289		3,845		530			12,218		6,134		846
Origination, servicing and other operating costs	141,338		133,617		289,851		39,972			234,528		423,468		58,399
Financial Services Business:
Revenue	436,723		483,873		581,974		80,258			827,196		1,065,847		146,987
Sales and marketing expenses	99,661		62,218		103,164		14,227			237,220		165,382		22,807
Origination, servicing and other operating costs	33,833		47,609		38,961		5,373			73,503		86,570		11,940
Consumption & Lifestyle Business and others:
Revenue	175,831		306,112		337,537		46,548			334,942		643,649		88,763
Sales and marketing expenses	51,251		41,705		41,938		5,784			84,703		83,643		11,535
Origination, servicing and other operating costs	13,516		18,519		17,555		2,421			33,597		36,074		4,973
Reconciliation of Adjusted EBITDA
Net income	254,488		427,166		527,348		72,725			439,316		954,514		131,634
Interest expense/(income), net	3,790		(14,519)		(10,535)		(1,453)			29,363		(25,054)		(3,455)
Income tax expense	42,163		122,670		139,758		19,273			71,207		262,428		36,190
Depreciation and amortization	9,119		1,868		1,778		245			15,379		3,646		503
Share-based compensation	3,382		2,089		3,321		458			4,882		5,410		746
Adjusted EBITDA	312,942		539,274		661,670		91,248			560,147		1,200,944		165,618
Adjusted EBITDA margin	39.1 %		54.7 %		50.0 %		50.0 %			37.2 %		52.0 %		52.0 %

 

 

Delinquency Rates
		15-29 days		30-59 days		60-89 days
December 31, 2019		0.8 %		1.3 %		1.0 %
December 31, 2020		0.5 %		0.7 %		0.6 %
December 31, 2021		0.9 %		1.5 %		1.2 %
December 31, 2022		0.7 %		1.3 %		1.1 %
March 31, 2023		0.6 %		1.2 %		1.2 %
June 30,2023		0.7 %		1.1 %		1.1 %

 

 

Net Charge-Off Rate
Loan Issued Period		Amount of Loans Facilitated  During the Period		Accumulated M3+ Net Charge-Off  as of June 30, 2023		Total Net Charge-Off Rate  as of June 30, 2023
		(in RMB thousands)		(in RMB thousands)
2019		3,431,443		392,882		11.4 %
2020		9,614,819		767,540		8.0 %
2021		23,195,224		1,520,740		6.6 %
2022		22,623,101		871,590		3.9 %
2023Q1		6,420,213		38,654		0.6 %

 

 

		M3+ Net Charge-Off Rate
Loan Issued Period		Month on Book
		4	7	10	13	16	19	22	25	28	31	34
2019Q1		0.0 %	0.8 %	2.0 %	3.4 %	5.3 %	5.9 %	6.3 %	6.3 %	6.3 %	6.3 %	6.3 %
2019Q2		0.1 %	1.5 %	4.5 %	7.5 %	8.8 %	9.2 %	9.9 %	10.3 %	10.6 %	10.6 %	10.6 %
2019Q3		0.2 %	2.9 %	6.8 %	9.0 %	10.4 %	12.0 %	13.2 %	13.8 %	14.4 %	14.6 %	14.6 %
2019Q4		0.4 %	3.1 %	4.9 %	6.3 %	7.2 %	7.9 %	8.4 %	8.9 %	9.5 %	9.8 %	9.8 %
2020Q1		0.6 %	2.3 %	4.1 %	5.2 %	6.0 %	6.2 %	6.6 %	7.2 %	7.7 %	7.9 %	7.8 %
2020Q2		0.5 %	2.5 %	4.2 %	5.3 %	6.1 %	6.7 %	7.5 %	8.1 %	8.2 %	8.2 %	8.2 %
2020Q3		1.1 %	3.3 %	5.1 %	6.3 %	7.1 %	8.1 %	8.7 %	8.8 %	8.8 %	8.7 %
2020Q4		0.3 %	1.8 %	3.2 %	4.6 %	6.0 %	7.0 %	7.4 %	7.5 %	7.5 %
2021Q1		0.4 %	2.3 %	3.9 %	5.5 %	6.6 %	6.9 %	7.1 %	7.1 %
2021Q2		0.4 %	2.4 %	4.5 %	5.9 %	6.4 %	6.5 %	6.6 %
2021Q3		0.5 %	3.1 %	5.0 %	5.9 %	6.1 %	6.2 %
2021Q4		0.6 %	3.2 %	4.6 %	5.1 %	5.2 %
2022Q1		0.6 %	2.6 %	3.4 %	4.1 %
2022Q2		0.4 %	1.6 %	3.0 %
2022Q3		0.5 %	2.7 %
2022Q4		0.6 %

 

 

View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-second-quarter-2023-financial-results-301903466.html

SOURCE Yiren Digital Ltd.

FAQ

What are the operational highlights for Q2 2023?

The cumulative number of insurance clients served reached 1,133,069, representing a 12.5% increase. Gross written premiums were RMB1,332.5 million.

What is the financial performance for Q2 2023?

Total net revenue was RMB1,324.2 million, a 65% increase. Net income was RMB527.3 million. Cash and cash equivalents were RMB5,808.8 million.

What is the business outlook for the company?

The company projects total revenue in Q3 2023 to be between RMB0.9 billion to RMB1.1 billion, with a stable net profit margin.

What are the non-GAAP financial measures used by the company?

The company uses adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance.