Yahoo Finance Pagaya Technologies Ltd. (PGY) Exceeds First Quarter 2024 Revenue and EBITDA Forecasts
Revenue: Reported $245 million, a 31% increase year-over-year, surpassing estimates of $225.97 million.
Net Income: Net loss improved to $21 million from a loss of $61 million in the previous year, and is misaligned with the estimated net loss of $3.41 million.
Adjusted EBITDA: Achieved a record $40 million, exceeding the forecast range of $32 million to $38 million.
EPS: Reported a GAAP EPS loss of $0.33, with an adjusted non-GAAP EPS of $0.20.
Cash Flow: Operating cash flow was positive at $20 million, marking the third consecutive quarter of positive operating cash flow.
Network Volume: Reached a record $2.42 billion, a 31% increase year-over-year, exceeding the outlook of $2.2 billion to $2.4 billion.
Capital Raising: Raised $330 million from corporate debt and equity offerings, enhancing financial stability.
Pagaya Technologies Ltd. (NASDAQ:PGY), a leading financial technology company, announced its first quarter results for 2024 on May 9, significantly surpassing its revenue and EBITDA expectations. The company's detailed financial performance can be accessed through its 8-K filing.
Headquartered in New York, Pagaya is revolutionizing the lending marketplace with its AI-driven infrastructure, primarily serving the U.S. market. This quarter, the company reported a record network volume of $2.42 billion and a total revenue of $245 million, up 31% year-over-year, driven by a 35% increase in fee revenue. This performance is a testament to Pagaya's robust operational execution and its strategic initiatives, including the expansion of its point-of-sale (POS) business with new bank partnerships.
Financial Highlights and Achievements
Pagaya's financial achievements this quarter underscore its strategic growth and operational efficiency. The company achieved a record Adjusted EBITDA of $40 million, surpassing the forecasted range of $32 million to $38 million. This represents a significant increase from the previous year, highlighting improved unit economics and operational leverage. Additionally, the company maintained positive GAAP operating income for the third consecutive quarter, reporting $8 million.
The company's strategic financial management was evident in its ability to enhance the Fee Revenue Less Production Costs (FRLPC), which soared to $92 million, marking an 84% increase year-over-year. The FRLPC margin also improved by 109 basis points to 3.8%. These metrics are crucial as they reflect the direct profitability from Pagaya's core operations, emphasizing the efficiency of its service model in the fintech sector.
Challenges and Market Adaptation
Despite its strong performance, Pagaya faces ongoing challenges, including the need to continuously innovate in a highly competitive market and manage the integration of new technologies and partnerships. The company's ability to adapt to market demands and regulatory environments remains critical for sustaining growth.
Outlook and Future Steps
Looking ahead to the second quarter of 2024, Pagaya expects network volumes to remain between $2.2 billion and $2.4 billion, with total revenue projected between $235 million and $245 million. The Adjusted EBITDA is anticipated to be between $40 million and $45 million. For the full year, the company forecasts a network volume of $9.0 billion to $10.5 billion, with total revenue potentially reaching up to $1.05 billion and Adjusted EBITDA between $150 million and $190 million.
These projections highlight Pagaya's confidence in its business model and its strategic initiatives aimed at sustaining growth and profitability. The company's focus on expanding its funding network and enhancing shareholder value through strategic equity and debt raises further solidifies its financial foundation.
In conclusion, Pagaya's first quarter results reflect a company that is not only exceeding financial expectations but also strategically positioning itself for sustained long-term growth. Investors and stakeholders may look forward to continued progress and innovations from Pagaya as it navigates the dynamic fintech landscape.
For further details on Pagaya's financial strategies and operational achievements, interested parties can access the full earnings call and accompanying materials through the Investor Relations section of Pagaya's website or by joining their upcoming webcast.
Explore the complete 8-K earnings release (here) from Pagaya Technologies Ltd for further details.
This article first appeared on GuruFocus.
