Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ:
KPLT), an e-commerce-focused financial technology company, today
reported its financial results for the second quarter ended June
30, 2022.
Second Quarter 2022 Financial and Operational
Highlights:
- Recorded total revenue of $53.0 million in second quarter 2022
compared to $77.5 million in the prior year, a decrease of $24.5
million. $8.0 million of this decline was attributable to the
Company’s adoption of ASC 842 as of January 1, 2022.
- Added 42 new merchants in the second quarter 2022.
- Continued high customer satisfaction with Net Promoter Score of
60 as of June 30, 2022. More than 52% of gross originations for
second quarter 2022 came from repeat customers (customers who have
originated more than one lease with Katapult over their
lifetime).
- Continued targeted tightening of our underwriting processes in
Q2 2022.
- Ended Q2 2022 with $85.0 million of unrestricted cash on the
balance sheet and $69.3 million available on the asset-backed
revolving line of credit.
“Though our retailers and consumers continue facing near-term
macro headwinds, we are confident in our long-term ability to
weather these challenges. We continue to execute on the initiatives
that we committed to as part of our strategic growth plan and are
building momentum as it relates to capturing new volume
opportunities from a very large addressable market,” said Orlando
Zayas, CEO of Katapult.
Second Quarter 2022 Results
(Comparisons are to the respective periods of the prior year
unless otherwise noted.)
The Company recorded second quarter revenue of $53.0 million,
which was down $24.5 million compared to the second quarter of the
prior year. Gross originations for the second quarter were $46.4
million, a 28% decline from the prior year due to ongoing macro
challenges, including record levels of inflation, ongoing supply
chain headwinds and the end of government stimulus, which have led
to declining consumer confidence and spending, combined with the
Company proactively tightening lease underwriting in response to
credit performance normalizing.
Net loss was $9.7 million for the second quarter 2022, including
a $2.3 million revaluation gain related to our warrants. Adjusted
net loss was $10.2 million for the second quarter, which is down
from adjusted net income of $1.5 million in the prior year period.
Adjusted EBITDA was $(5.3) million for the second quarter 2022,
down from $3.9 million in the prior year period, which reflects
lower lease margins year-over-year and higher general and
administrative expense from public company costs and higher
marketing spend in the second quarter of 2022.
Katapult CEO, Orlando Zayas, Katapult CFO, Karissa Cupito, and
Katapult COO, Derek Medlin will discuss the Company’s performance,
outlook and overall growth strategy in greater detail on the
company's earnings conference call and webcast.
Conference Call and Webcast
Katapult will host a conference call and webcast at 8:00 AM ET
on August 9, 2022 to discuss these financial results, our current
outlook and our growth strategy.
A live audio webcast of the event will be available on the
Katapult Investor Relations website at
http://ir.katapultholdings.com/. A copy of the earnings call
presentation will also be posted to our website.
A live dial-in will be available at (800) 715-9871 (domestic) or
(646) 307-1963 (international). The conference ID number is
4225698. Shortly after the conclusion of the call, a replay of this
conference call will be available on the Katapult Investor
Relations website at
https://ir.katapultholdings.com/news-events/investor-calendar.
About Katapult
Katapult is a next generation platform for digital and
mobile-first commerce for the non-prime consumer. Katapult provides
point of sale lease purchase options for consumers challenged with
accessing traditional financial products who are seeking to obtain
everyday durable goods. The Company has developed a sophisticated
end-to-end technology platform that enables seamless integration
with merchants, underwriting capabilities that exceed the industry
standard, and exceptional customer experiences.
Forward-Looking Statements
Certain statements included in this Press Release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
are accompanied by words such as “believe,” “may,” “will,”
“estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,”
“would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,”
“outlook,” and similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
These forward-looking statements include, but are not limited to,
statements regarding our ability to weather the macroeconomic
headwinds and our momentum in building volume opportunities in our
addressable market. These statements are based on various
assumptions, whether or not identified in this Press Release, and
on the current expectations of Katapult’s management and are not
predictions of actual performance. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as, a guarantee, an assurance, a prediction or a definitive
statement of fact or probability. Actual events and circumstances
are difficult or impossible to predict and will differ from
assumptions. Many actual events and circumstances are beyond the
control of Katapult. These forward-looking statements are subject
to a number of risks and uncertainties, including execution of
Katapult’s business strategy, including launching new product
offerings, new brand and expanding information and technology
capabilities; Katapult’s market opportunity and its ability to
acquire new customers and retain existing customers; the timing and
impact of our growth initiatives on our future financial
performance and the impact of our new executive hires and brand
strategy; anticipated occurrence and timing of prime lending
tightening and impact on our results of operations; general
economic conditions in the markets where Katapult operates, the
cyclical nature of consumer spending, and seasonal sales and
spending patterns of customers; failure to realize the anticipated
benefits of the business combination with FinServ Acquisition Corp.
(the “Merger”); risks relating to factors affecting consumer
spending that are not under Katapult’s control, including, among
others, levels of employment, disposable consumer income,
inflation, prevailing interest rates, consumer debt and
availability of credit, pandemics (such as COVID-19), consumer
confidence in future economic conditions and political conditions,
and consumer perceptions of personal well-being and security; risks
relating to uncertainty of Katapult’s estimates of market
opportunity and forecasts of market growth; risks related to the
concentration of a significant portion of our transaction volume
with a single merchant partner, or type of merchant or industry;
the effects of competition on Katapult’s future business; the
impact of the COVID-19 pandemic and its effect on Katapult’s
business; unstable market and economic conditions, including as a
result of the conflict involving Russia and Ukraine; reliability of
Katapult’s platform and effectiveness of its risk model; protection
of confidential, proprietary or sensitive information, including
confidential information about consumers, and privacy or data
breaches, including by cyber-attacks or similar disruptions;
ability to attract and retain employees, executive officers or
directors; meeting future liquidity requirements and complying with
restrictive covenants related to long-term indebtedness;
effectively respond to general economic and business conditions;
obtain additional capital, including equity or debt financing;
enhance future operating and financial results; anticipate rapid
technological changes; comply with laws and regulations applicable
to Katapult’s business, including laws and regulations related to
rental purchase transactions; stay abreast of modified or new laws
and regulations applying to Katapult’s business, including rental
purchase transactions and privacy regulations; maintain
relationships with merchant partners; respond to uncertainties
associated with product and service developments and market
acceptance; anticipate the impact of new U.S. federal income tax
law; that Katapult has identified material weaknesses in its
internal control over financial reporting which, if not remediated,
could affect the reliability of its consolidated financial
statements; successfully defend litigation; litigation, regulatory
matters, complaints, adverse publicity and/or misconduct by
employees, vendors and/or service providers; and other events or
factors, including those resulting from civil unrest, war, foreign
invasions (including the conflict involving Russia and Ukraine),
terrorism, or public health crises, or responses to such
events); and those factors discussed in greater detail
in the section entitled “Risk Factors” in Katapult’s periodic
reports filed with the Securities and Exchange Commission (“SEC”),
including Katapult’s Quarterly Report on Form 10-Q for the quarter
ended March 31, 2022 and the Quarterly Report on Form 10-Q Katapult
intends to file for the quarter ended June 30, 2022.
If any of these risks materialize or our assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. There may be
additional risks that Katapult does not presently know or that
Katapult currently believes are immaterial that could also cause
actual results to differ from those contained in the
forward-looking statements. Undue reliance should not be placed on
the forward-looking statements in this Press Release. All
forward-looking statements contained herein are based on
information available to Katapult as of the date hereof, and
Katapult does not assume any obligation to update these statements
as a result of new information or future events, except as required
by law.
Key Performance Metrics
Katapult regularly reviews several metrics, including the
following key metrics, to evaluate its business, measure its
performance, identify trends affecting our business, formulate
financial projections and make strategic decisions, which may also
be useful to an investor: Gross Originations, Total Revenue,
Unearned Revenue and Gross Profit.
Gross Originations are defined as the retail price of the
merchandise associated with lease-purchase agreements entered into
during the period through the Katapult platform. Gross Originations
do not represent revenue earned. However, we believe this is a
useful operating metric for both Katapult’s management and
investors to use in assessing the volume of transactions that take
place on Katapult’s platform.
Total revenue represents the summation of rental revenue and
other revenue. Unearned revenue represents the Company’s liability
for cash received from customers prior to the related revenue being
earned. Katapult measures these metrics to assess the total view of
paythrough performance of its customers. Management believes
looking at these components is useful to an investor as it helps to
understand the total payment performance of customers. In
connection with the adoption of ASU No. 2016-02, Leases (Topic
842), as amended (“ASC 842”), effective January 1, 2022, Katapult
recognizes revenue from customers (rental revenue) when the revenue
is earned and the cash is collected. Accordingly, the Company no
longer records rental revenue arising from lease payments earned
but not yet collected or any corresponding bad debt expense, or
disclose bad debt recoveries in its periodic reports starting in
the first quarter of 2022.
Gross profit represents total revenue less cost of revenue, and
is a measure presented in accordance with generally accepted
accounting principles in the United States ("GAAP"). See the
“Non-GAAP Financial Measures” section below for a presentation of
this measure alongside adjusted gross profit, which is a non-GAAP
measure utilized by management.
Non-GAAP Financial Measures
To supplement the financial measures presented in this press
release and related conference call or webcast in accordance with
GAAP, the Company also presents the following non-GAAP and other
measures of financial performance: adjusted gross profit, adjusted
EBITDA, and adjusted net (loss) income. The Company urges investors
to consider non-GAAP measures only in conjunction with its GAAP
financials and to review the reconciliation of the Company’s
non-GAAP financial measures to its comparable GAAP financial
measures, which are included in this press release.
Adjusted gross profit represents gross profit less variable
operating expenses, which are servicing costs, underwriting fees,
and bad debt expense. Management believes that adjusted gross
profit provides a meaningful understanding of one aspect of its
performance specifically attributable to total revenue and the
variable costs associated with total revenue.
Adjusted EBITDA is a non-GAAP measure that is defined as net
loss before interest expense and other fees, change in fair value
of warrant liability, (provision) benefit for income taxes,
depreciation and amortization on property and equipment and
capitalized software, impairment of leased assets, stock-based
compensation expense, and transaction costs associated with the
Merger.
Adjusted net (loss) income is a non-GAAP measure that is defined
as net loss before change in fair value of warrant liability,
stock-based compensation expense and transaction costs associated
with the Merger.
Adjusted gross profit, adjusted EBITDA and adjusted net (loss)
income are useful to an investor in evaluating the Company’s
performance because these measures:
• Are widely used to measure a company’s operating
performance;
• Are financial measurements that are used by rating agencies,
lenders and other parties to evaluate the Company’s credit
worthiness; and
• Are used by the Company’s management for various purposes,
including as measures of performance and as a basis for strategic
planning and forecasting.
Management believes the use of non-GAAP financial measures, as a
supplement to GAAP measures, is useful to investors in that they
eliminate items that are either not part of our core operations or
do not require a cash outlay, such as stock-based compensation
expense. Management uses these non-GAAP financial measures when
evaluating operating performance and for internal planning and
forecasting purposes. Management believes that these non-GAAP
financial measures help indicate underlying trends in the business,
are important in comparing current results with prior period
results, and are useful to investors and financial analysts in
assessing operating performance. However, these non-GAAP measures
exclude items that are significant in understanding and assessing
Katapult’s financial results or position. Therefore, these measures
should not be considered in isolation or as alternatives to
revenue, net (loss) income, cash flows from operations or other
measures of profitability, liquidity or performance under GAAP. You
should be aware that Katapult’s presentation of these measures may
not be comparable to similarly titled measures used by other
companies.
ASC 842 Adoption
The Company was required to adopt ASC 842 relating to lessor
accounting, effective January 1, 2022. The Company's lease-to-own
agreements, which comprise the majority of the Company’s revenue,
fall within the scope of ASC 842 and are impacted by this change.
As a result of the adoption, the Company now recognizes revenue
from customers when revenue is earned and cash is collected instead
of on an accrual basis, which it has done historically. The Company
has adopted ASC 842 using the transition method, which permits the
Company to not apply ASC 842 for comparative periods in the year of
adoption. As a result, the Company is not recasting or restating
2021 or prior periods to conform to ASC 842. The adoption of ASC
842 is reflected in the Company’s financial statements and related
notes and periodic reports filed with the SEC beginning with the
Company’s quarterly report on Form 10-Q for the quarter ended March
31, 2022.
For illustrative purposes only, the Company is disclosing total
revenue, bad debt expense (net of recoveries) and income (loss)
before provision for income taxes for each quarter during years
ended December 31, 2021 and 2020, respectively, as if the lessor
accounting impacts of ASC 842 were in effect for these periods.
“Total revenue”, “bad debt expense (net of recoveries)” and “income
before provision for income taxes” for 2021 and 2020 are
supplemental disclosures that are not calculated in accordance with
GAAP in place during these periods.
Management believes the supplemental information showing the
impact of ASC 842 for 2021 and 2020 provides relevant and useful
information for users of the Company’s financial statements, as it
provides comparability with the financial results the Company is
reporting beginning in 2022 when ASC 842 became effective and the
Company began to recognize revenue from customers when the revenue
is earned and cash is collected. Upon adoption, the Company no
longer records accounts receivable arising from lease receivables
due from customers incurred during the normal course of business
for lease payments earned but not yet received from the customer or
any corresponding allowance for doubtful accounts.
Contacts
Katapult Vice President of Investor RelationsBill
Wright917-750-0346bill.wright@katapult.com
Press Inquiries:Allison +
Partners908-566-2090katapult@allisonpr.com
KATAPULT HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(UNAUDITED)(amounts in thousands, except share and per
share amounts)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
|
|
|
|
|
|
Rental revenue |
$ |
53,020 |
|
|
$ |
77,237 |
|
|
$ |
112,851 |
|
|
$ |
157,862 |
|
Other revenue |
|
19 |
|
|
|
232 |
|
|
|
66 |
|
|
|
242 |
|
Total revenue |
|
53,039 |
|
|
|
77,469 |
|
|
|
112,917 |
|
|
|
158,104 |
|
Cost of revenue |
|
44,849 |
|
|
|
55,922 |
|
|
|
92,962 |
|
|
|
108,804 |
|
Gross profit |
|
8,190 |
|
|
|
21,547 |
|
|
|
19,955 |
|
|
|
49,300 |
|
Operating expenses: |
|
|
|
|
|
|
|
Servicing costs |
|
1,131 |
|
|
|
1,072 |
|
|
|
2,337 |
|
|
|
2,210 |
|
Underwriting fees |
|
423 |
|
|
|
477 |
|
|
|
910 |
|
|
|
944 |
|
Professional and consulting fees |
|
2,259 |
|
|
|
1,324 |
|
|
|
5,547 |
|
|
|
2,858 |
|
Technology and data analytics |
|
2,455 |
|
|
|
2,344 |
|
|
|
4,864 |
|
|
|
3,893 |
|
Bad debt expense |
|
— |
|
|
|
8,026 |
|
|
|
— |
|
|
|
12,913 |
|
Compensation costs |
|
6,470 |
|
|
|
14,755 |
|
|
|
11,847 |
|
|
|
17,337 |
|
General and administrative |
|
3,649 |
|
|
|
2,503 |
|
|
|
7,459 |
|
|
|
3,686 |
|
Total operating expenses |
|
16,387 |
|
|
|
30,501 |
|
|
|
32,964 |
|
|
|
43,841 |
|
(Loss) income from
operations |
|
(8,197 |
) |
|
|
(8,954 |
) |
|
|
(13,009 |
) |
|
|
5,459 |
|
Interest expense and other fees |
|
(3,794 |
) |
|
|
(4,146 |
) |
|
|
(7,594 |
) |
|
|
(8,286 |
) |
Change in fair value of warrant liability |
|
2,323 |
|
|
|
3,169 |
|
|
|
5,412 |
|
|
|
2,811 |
|
Loss before income taxes |
|
(9,668 |
) |
|
|
(9,931 |
) |
|
|
(15,191 |
) |
|
|
(16 |
) |
(Provision) benefit for income taxes |
|
(65 |
) |
|
|
1,828 |
|
|
|
(100 |
) |
|
|
3 |
|
Net loss |
$ |
(9,733 |
) |
|
$ |
(8,103 |
) |
|
$ |
(15,291 |
) |
|
$ |
(13 |
) |
Net loss per share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.10 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.16 |
) |
|
$ |
— |
|
Diluted |
$ |
(0.10 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.16 |
) |
|
$ |
— |
|
Weighted average shares used
in computing net loss per share: |
|
|
|
|
|
|
|
Basic |
|
97,944,724 |
|
|
|
46,989,376 |
|
|
|
98,036,263 |
|
|
|
39,274,794 |
|
Diluted |
|
97,944,724 |
|
|
|
46,989,376 |
|
|
|
98,036,263 |
|
|
|
39,274,794 |
|
KATAPULT HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(amounts in thousands, except share and per share
amounts)
|
June 30, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
ASSETS |
(Unaudited) |
|
|
Current assets: |
|
|
|
Cash |
$ |
85,025 |
|
|
$ |
92,494 |
|
Restricted cash |
|
2,229 |
|
|
|
3,937 |
|
Accounts receivable, net of allowance for doubtful accounts of
$6,248 at December 31, 2021 |
|
— |
|
|
|
2,007 |
|
Property held for lease, net of accumulated depreciation and
impairment |
|
45,935 |
|
|
|
61,752 |
|
Prepaid expenses and other current assets |
|
4,646 |
|
|
|
4,249 |
|
Total current assets |
|
137,835 |
|
|
|
164,439 |
|
Property and equipment,
net |
|
636 |
|
|
|
576 |
|
Security deposits |
|
91 |
|
|
|
91 |
|
Capitalized software and
intangible assets, net |
|
1,687 |
|
|
|
1,056 |
|
Right-of-use assets |
|
960 |
|
|
|
— |
|
Total assets |
$ |
141,209 |
|
|
$ |
166,162 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,752 |
|
|
$ |
2,029 |
|
Accrued liabilities |
|
10,914 |
|
|
|
11,959 |
|
Unearned revenue |
|
1,623 |
|
|
|
2,135 |
|
Lease liabilities |
|
439 |
|
|
|
— |
|
Total current liabilities |
|
14,728 |
|
|
|
16,123 |
|
Revolving line of credit |
|
55,183 |
|
|
|
61,238 |
|
Long term debt |
|
42,461 |
|
|
|
40,661 |
|
Other liabilities |
|
1,929 |
|
|
|
7,341 |
|
Lease liabilities,
non-current |
|
600 |
|
|
|
— |
|
Total liabilities |
|
114,901 |
|
|
|
125,363 |
|
STOCKHOLDERS' EQUITY |
|
|
|
Common stock, $.0001 par value-- 250,000,000 shares authorized;
98,334,413 and 97,574,171 shares issued and outstanding at June 30,
2022 and December 31, 2021, respectively |
|
10 |
|
|
|
10 |
|
Additional paid-in capital |
|
80,394 |
|
|
|
77,632 |
|
Accumulated deficit |
|
(54,096 |
) |
|
|
(36,843 |
) |
Total stockholders' equity |
|
26,308 |
|
|
|
40,799 |
|
Total liabilities and stockholders' equity |
$ |
141,209 |
|
|
$ |
166,162 |
|
KATAPULT HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)(amounts in thousands)
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(15,291 |
) |
|
$ |
(13 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
62,438 |
|
|
|
73,160 |
|
Net book value of property buyouts |
|
19,040 |
|
|
|
22,836 |
|
Impairment expense |
|
7,490 |
|
|
|
7,721 |
|
Bad debt expense |
|
— |
|
|
|
12,913 |
|
Change in fair value of warrants liability |
|
(5,412 |
) |
|
|
(2,811 |
) |
Stock-based compensation |
|
2,946 |
|
|
|
9,766 |
|
Amortization of debt discount |
|
1,015 |
|
|
|
1,390 |
|
Amortization of debt issuance costs |
|
181 |
|
|
|
179 |
|
Accrued PIK Interest |
|
785 |
|
|
|
760 |
|
Amortization of right-of-use assets |
|
179 |
|
|
|
— |
|
Change in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
— |
|
|
|
(13,475 |
) |
Property held for lease |
|
(72,844 |
) |
|
|
(105,251 |
) |
Prepaid expenses and other current assets |
|
(397 |
) |
|
|
(4,667 |
) |
Accounts payable |
|
(277 |
) |
|
|
5,813 |
|
Accrued liabilities |
|
(899 |
) |
|
|
(1,516 |
) |
Lease liabilities |
|
(201 |
) |
|
|
— |
|
Unearned revenues |
|
(512 |
) |
|
|
321 |
|
Net cash (used in) provided by operating activities |
|
(1,759 |
) |
|
|
7,126 |
|
Cash flows from investing
activities: |
|
|
|
Purchases of property and equipment |
|
(153 |
) |
|
|
(198 |
) |
Additions to capitalized software |
|
(845 |
) |
|
|
(423 |
) |
Net cash used in investing activities |
|
(998 |
) |
|
|
(621 |
) |
Cash flows from financing
activities: |
|
|
|
Principal repayments on revolving line of credit |
|
(16,171 |
) |
|
|
(7,948 |
) |
Principal advances on revolving line of credit, net of issuance
costs |
|
9,935 |
|
|
|
5,809 |
|
Repurchases of restricted stock |
|
(244 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
60 |
|
|
|
442 |
|
PIPE proceeds |
|
— |
|
|
|
150,000 |
|
Merger financing, net of redemptions |
|
— |
|
|
|
251,109 |
|
Consideration paid to selling shareholders |
|
— |
|
|
|
(329,560 |
) |
Transaction costs paid |
|
— |
|
|
|
(33,534 |
) |
Net cash (used in) provided by financing activities |
|
(6,420 |
) |
|
|
36,318 |
|
Net (decrease) increase in
cash and restricted cash |
|
(9,177 |
) |
|
|
42,823 |
|
Cash and restricted cash at
beginning of period |
|
96,431 |
|
|
|
69,597 |
|
Cash and restricted cash at
end of period |
$ |
87,254 |
|
|
$ |
112,420 |
|
|
|
|
|
Supplemental
disclosure of cash flow information: |
|
|
|
Cash paid for interest |
$ |
5,200 |
|
|
$ |
5,868 |
|
Cash paid for income taxes |
$ |
362 |
|
|
$ |
— |
|
Right-of-use assets obtained in exchange for operating lease
liabilities |
$ |
1,139 |
|
|
$ |
— |
|
Cash paid for operating leases |
$ |
254 |
|
|
$ |
— |
|
Assumed warrant liability in connection with the Merger |
$ |
— |
|
|
$ |
44,272 |
|
Exercise of common stock warrant accounted for as a liability |
$ |
— |
|
|
$ |
13,102 |
|
KATAPULT HOLDINGS,
INC.RECONCILIATION OF NON-GAAP MEASURES AND
CERTAIN OTHER DATA (UNAUDITED)(amounts in
thousands)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
$ |
53,039 |
|
$ |
77,469 |
|
$ |
112,917 |
|
$ |
158,104 |
Cost of revenue |
|
44,849 |
|
|
55,922 |
|
|
92,962 |
|
|
108,804 |
Gross profit |
|
8,190 |
|
|
21,547 |
|
|
19,955 |
|
|
49,300 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
Servicing costs |
|
1,131 |
|
|
1,072 |
|
|
2,337 |
|
|
2,210 |
Underwriting fees |
|
423 |
|
|
477 |
|
|
910 |
|
|
944 |
Bad debt expense |
|
— |
|
|
8,026 |
|
|
— |
|
|
12,913 |
Adjusted gross profit |
$ |
6,636 |
|
$ |
11,972 |
|
$ |
16,708 |
|
$ |
33,233 |
(in thousands) |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net loss |
$ |
(9,733 |
) |
|
$ |
(8,103 |
) |
|
$ |
(15,291 |
) |
|
$ |
(13 |
) |
Add back: |
|
|
|
|
|
|
|
Interest expense and other fees |
|
3,794 |
|
|
|
4,146 |
|
|
|
7,594 |
|
|
|
8,286 |
|
Change in fair value of warrant liability |
|
(2,323 |
) |
|
|
(3,169 |
) |
|
|
(5,412 |
) |
|
|
(2,811 |
) |
Provision (benefit) for income taxes |
|
65 |
|
|
|
(1,828 |
) |
|
|
100 |
|
|
|
(3 |
) |
Depreciation and amortization on property and equipment |
|
186 |
|
|
|
70 |
|
|
|
308 |
|
|
|
118 |
|
Impairment of leased assets |
|
866 |
|
|
|
(15 |
) |
|
|
315 |
|
|
|
(640 |
) |
Stock-based compensation expense (1) |
|
1,857 |
|
|
|
10,140 |
|
|
|
2,946 |
|
|
|
10,221 |
|
Transaction costs associated with Merger (2) |
|
— |
|
|
|
2,675 |
|
|
|
— |
|
|
|
3,350 |
|
Adjusted EBITDA |
$ |
(5,288 |
) |
|
$ |
3,916 |
|
|
$ |
(9,440 |
) |
|
$ |
18,508 |
|
(1) Includes employer payroll taxes.(2) Consists of
non-capitalizable transaction cost associated with the Merger
during the three and six months ended June 30, 2021.
(in thousands) |
Three Months Ended June 30, |
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Net loss |
$ |
(9,733 |
) |
|
$ |
(8,103 |
) |
$ |
(15,291 |
) |
|
$ |
(13 |
) |
Add back: |
|
|
|
|
|
|
Change in fair value of warrant liability |
|
(2,323 |
) |
|
|
(3,169 |
) |
|
(5,412 |
) |
|
|
(2,811 |
) |
Stock-based compensation expense (1) |
|
1,857 |
|
|
|
10,140 |
|
|
2,946 |
|
|
|
10,221 |
|
Transaction costs associated with Merger (2) |
|
— |
|
|
|
2,675 |
|
|
— |
|
|
|
3,350 |
|
Adjusted net (loss)
income |
$ |
(10,199 |
) |
|
$ |
1,543 |
|
$ |
(17,757 |
) |
|
$ |
10,747 |
|
(1) Includes employer payroll taxes.(2) Consists of
non-capitalizable transaction cost associated with the Merger
during the three and six months ended June 30, 2021.
CERTAIN KEY PERFORMANCE METRICS
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
2022 |
|
|
2021 |
Total revenue |
$ |
53,039 |
|
$ |
77,469 |
$ |
112,917 |
|
$ |
158,104 |
If ASC 842 was effective for the three and six
months ended June 30, 2021, total revenue would have been
$69,472 and $147,030, respectively.
KATAPULT HOLDINGS,
INC.GROSS ORIGINATIONS BY QUARTER
($ millions) |
|
Gross Originations by Quarter |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
FY 2022 |
|
$ |
46.7 |
|
$ |
46.4 |
|
$ |
— |
|
$ |
— |
FY 2021 |
|
$ |
63.8 |
|
$ |
64.4 |
|
$ |
61.0 |
|
$ |
58.9 |
FY 2020 |
|
$ |
37.2 |
|
$ |
77.6 |
|
$ |
60.5 |
|
$ |
61.1 |
KATAPULT HOLDINGS,
INCIMPACT OF ADOPTION OF ASC
842FOR ILLUSTRATIVE PURPOSES
ONLY(UNAUDITED)
|
Three Months Ended |
|
|
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
|
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
March 31, 2020 |
As
Reported: |
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
73,299 |
$ |
71,710 |
$ |
77,469 |
|
$ |
80,635 |
|
$ |
73,358 |
$ |
71,194 |
$ |
60,014 |
$ |
42,634 |
Bad debt expense (net of
recoveries) |
|
|
9,450 |
|
5,936 |
|
8,026 |
|
|
4,887 |
|
|
6,450 |
|
3,931 |
|
2,548 |
|
3,134 |
Income (loss) before provision
for income taxes |
|
$ |
7,213 |
$ |
14,548 |
$ |
(9,931 |
) |
$ |
9,915 |
|
$ |
3,996 |
$ |
10,073 |
$ |
5,199 |
$ |
3,749 |
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information - Impact of ASC 842: |
|
|
|
|
|
|
|
|
|
|
Total revenue under ASC
842 |
|
$ |
64,253 |
$ |
66,277 |
$ |
69,472 |
|
$ |
77,558 |
|
$ |
67,060 |
$ |
67,410 |
$ |
59,721 |
$ |
39,428 |
Bad debt expense (net of
recoveries) under ASC 842 |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
— |
|
— |
Income (loss) before provision
for income taxes under ASC 842 |
|
$ |
7,617 |
$ |
15,051 |
$ |
(9,902 |
) |
$ |
11,725 |
|
$ |
4,149 |
$ |
10,220 |
$ |
7,454 |
$ |
3,677 |
*Total revenue under ASC 842 also reflects the impact of the
change in recognizing revenue when it is earned and cash is
collected.
Katapult (NASDAQ:KPLTW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Katapult (NASDAQ:KPLTW)
Historical Stock Chart
From Apr 2023 to Apr 2024