PLANO, Texas - Katapult Holdings, Inc. (NASDAQ: KPLT), a financial technology company specializing in e-commerce lease-to-own (LTO) solutions, announced its first-quarter financial results, highlighting a year-over-year increase in gross originations and revenue. Despite a challenging retail environment, the company reported gross originations of $55.6 million, marking a 1.6% increase, and a revenue rise of 18.1% to $65.1 million.
The company's CEO, Orlando Zayas, expressed confidence in the consistent execution of Katapult's merchant and customer strategies, which is reflected in the financial outcomes. Notably, non-Wayfair gross originations grew by 9%, and Katapult Pay(R) gross originations soared by over 150%. The repeat purchase rate remained robust at 56%.
Katapult's recent operational advancements include upgrading its platform with the newest version of Shopify (NYSE:SHOP), expanding direct merchant-partner relationships, and launching Katapult Cartridge for B2C Commerce on Salesforce (NYSE:CRM) AppExchange. The company also made strides in integrating with Synchrony's digital waterfall application process and launched Lowe's (NYSE:LOW) in the Katapult marketplace, available for shopping using Katapult Pay as of May 7, 2024.
The company's Net Promoter Score stood at 65 as of March 31, 2024, with repeat customers accounting for 55.9% of the first-quarter gross originations. The first quarter also saw a reduction in total operating expenses by 18.5% and a significant improvement in adjusted net income to $1.0 million, compared to an adjusted net loss of $8.6 million in the first quarter of the previous year.
Adjusted EBITDA improved to a positive $5.6 million, and write-offs as a percentage of revenue were at the lower end of the company's long-term target range.
Looking ahead, Katapult maintains its outlook for the full year 2024, anticipating at least a 10% growth in gross originations and revenue. The company expects to continue expanding its customer base and maintain strong credit quality in its portfolio. For the second quarter of 2024, Katapult forecasts a 3 to 5% year-over-year increase in gross originations and an 8 to 10% increase in revenue.
CFO Nancy Walsh highlighted the company's disciplined expense management and strong revenue growth, which have contributed to the substantial year-over-year improvement in Adjusted EBITDA. The company remains on track to deliver its projected growth for 2024.
This report is based on a press release statement from Katapult Holdings, Inc.
InvestingPro Insights
Katapult Holdings, Inc. (NASDAQ: KPLT) continues to demonstrate a noteworthy performance in the e-commerce lease-to-own sector, as indicated by their recent financial results. A deeper dive into the company’s metrics using InvestingPro provides a more nuanced perspective on their financial situation and stock performance.
InvestingPro data shows a market capitalization of $70.32 million, which is relatively modest yet significant for a niche player in the fintech space. The company's revenue for the last twelve months as of Q4 2023 stands at $221.59 million, with a gross profit of $57.5 million, reflecting a healthy gross profit margin of 25.95%. These figures underscore Katapult's ability to generate earnings above its direct costs, which is crucial in a competitive retail environment.
The stock has also seen a significant return over the last month, with a 94.01% increase, and a strong return over the last three months, at 19.37%. This level of price performance indicates a bullish trend in investor sentiment, aligning with the company's positive outlook for 2024.
One of the InvestingPro Tips highlights that Katapult is quickly burning through cash, which is an important consideration for investors looking at the company's long-term sustainability. However, it's worth noting that the company has managed to exceed its short-term obligations with its liquid assets, as per another InvestingPro Tip, suggesting a level of financial resilience.
To gain a more comprehensive understanding of Katapult Holdings, Inc., investors can explore additional InvestingPro Tips. There are 11 more tips available that delve into various aspects of the company's financial health and stock performance. For those looking to deepen their analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
With its disciplined expense management and focus on strategic partnerships and platform enhancements, Katapult seems to be positioning itself for continued growth. The insights from InvestingPro data and tips can help investors make more informed decisions regarding the potential of KPLT stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.