Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Pagaya Technologies Ltd | NASDAQ:PGY | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.22 | 2.05% | 10.93 | 10.81 | 10.94 | 11.17 | 10.73 | 10.89 | 701,356 | 22:00:00 |
From Oct 2024 to Nov 2024
Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”, the “Company” or “we”), a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, today announced financial results for the third quarter and nine months ended 2024.
For additional information, view Pagaya's third quarter 2024 letter to shareholders here.
"We delivered another set of strong results, with a laser-focus on profitable, sustainable growth,” said Gal Krubiner, co-founder and CEO of Pagaya Technologies. “With successful execution of our 2024 strategy, we are well on the way to reaching GAAP profitability and cash flow generation during 2025. We have built a franchise that we believe can deliver long-term value for our shareholders, lending and funding partners, and U.S. consumers."
Third Quarter 2024 Highlights
All comparisons are made versus the same period in 2023 and on a year-over-year basis unless otherwise stated.
Full Year 2024 Outlook
FY24
Network Volume
Expected to be between $9.5 billion and $9.7 billion
Total Revenue and Other Income
Expected to be between $1,010 million and $1,025 million
Adjusted EBITDA
Expected to be between $195 million and $205 million
Webcast
The Company will hold a webcast and conference call today, November 12, 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# 13749063. The telephone replay will be available starting shortly after the call until Tuesday, November 26, 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 New York and Tel Aviv. For more information, visit pagaya.com.
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 fourth 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 Israel; its ability to realize the potential benefits of past or future acquisitions; anticipated benefits and savings from our recently announced reduction in workforce; changes in the political, legal and regulatory framework for AI technology, machine learning, financial institutions and consumer protection; the ability to maintain the listing of our securities on Nasdaq; the financial performance of its partners, and fluctuations in the U.S. consumer credit and housing market; its ability to grow effectively through strategic alliances; seasonal fluctuations in our revenue as a result of consumer spending and saving patterns; pending and future litigation, regulatory actions and/or compliance issues including with respect to the merger with EJF Acquisition Corp.; and other risks that are described in the Company’s Form 10-K filed on April 25, 2024 and subsequent filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company's views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, reflect the Company’s current beliefs and are based on information currently available as of the date they are made, and the Company assumes no obligation and does not intend to update these forward-looking statements.
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 United States generally accepted accounting principles (“U.S. GAAP”). To supplement the unaudited consolidated financial statements prepared and presented in accordance with U.S. GAAP, management uses the non-GAAP financial measures FRLPC, FRLPC as a percentage of network volume (or FRLPC %), Adjusted Net Income (Loss) and Adjusted EBITDA to provide investors with additional information about our financial performance and to enhance the overall understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our business. Management believes these non-GAAP measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods. However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by U.S. GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our unaudited consolidated financial statements prepared and presented in accordance with U.S. GAAP. To address these limitations, management provides a reconciliation of Adjusted Net Income (Loss) and Adjusted EBITDA to net income (loss) attributable to Pagaya’s shareholders and a calculation of FRLPC and FRLPC as a percentage of network volume (or FRLPC %). Management encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view Adjusted Net Income (Loss) and Adjusted EBITDA in conjunction with its respective related GAAP financial measures.
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 U.S. GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. The tables below provide reconciliations of Adjusted EBITDA to Net Loss Attributable to Pagaya Technologies Ltd., its most directly comparable U.S. GAAP amount.
In addition, Pagaya provides outlook for the fourth 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 U.S. GAAP financial results.
PAGAYA TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except share and per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Revenue
Revenue from fees
$
249,283
$
201,447
$
728,881
$
562,386
Other Income
Interest income
8,735
10,375
24,672
30,965
Investment income (loss)
(784
)
(65
)
(699
)
656
Total Revenue and Other Income
257,234
211,757
752,854
594,007
Production costs
148,965
128,792
439,448
374,462
Technology, data and product development (1)
16,655
18,039
57,970
56,833
Sales and marketing (1)
11,440
11,339
35,028
40,197
General and administrative (1)
57,790
53,425
185,307
157,567
Total Costs and Operating Expenses
234,850
211,595
717,753
629,059
Operating Income (Loss)
22,384
162
35,101
(35,052
)
Other expense, net
(108,139
)
(47,260
)
(215,682
)
(131,135
)
Loss Before Income Taxes
(85,755
)
(47,098
)
(180,581
)
(166,187
)
Income tax expense (benefit)
(11,524
)
(1,158
)
7,991
10,515
Net Loss Including Noncontrolling Interests
(74,231
)
(45,940
)
(188,572
)
(176,702
)
Less: Net loss attributable to noncontrolling interests
(6,755
)
(24,188
)
(25,088
)
(62,682
)
Net Loss Attributable to Pagaya Technologies Ltd.
$
(67,476
)
$
(21,752
)
$
(163,484
)
$
(114,020
)
Per share data:
Net loss per share:
Basic and Diluted (3)
$
(0.93
)
$
(0.36
)
$
(2.35
)
$
(1.91
)
Non-GAAP adjusted net income (2)
$
33,122
$
14,296
$
53,641
$
4,167
Non-GAAP adjusted net income per share:
Basic (3)
$
0.46
$
0.24
$
0.77
$
0.07
Diluted (3)
$
0.44
$
0.22
$
0.75
$
0.07
Weighted average shares outstanding:
Basic (3)
72,728,667
60,713,648
69,619,813
59,617,660
Diluted (3)
74,465,363
66,366,055
71,130,891
61,512,327
(1)
The following table sets forth share-based compensation for the periods indicated below:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Technology, data and product development
$
1,011
$
3,467
$
6,985
$
8,915
Selling and marketing
2,875
3,469
9,594
10,979
General and administrative
8,447
13,801
29,273
37,418
Total
$
12,333
$
20,737
$
45,852
$
57,312
(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)
September 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
147,099
$
186,478
Restricted cash
17,617
16,874
Fees and other receivables
98,280
79,526
Investments in loans and securities
11,251
2,490
Prepaid expenses and other current assets
24,214
18,034
Total current assets
298,461
303,402
Restricted cash
16,331
19,189
Fees and other receivables
30,783
34,181
Investments in loans and securities
912,131
714,303
Equity method and other investments
25,778
26,383
Right-of-use assets
34,087
55,729
Property and equipment, net
39,359
41,557
Goodwill
10,945
10,945
Intangible assets
638
2,550
Prepaid expenses and other assets
1,064
137
Deferred offering costs
1,198
—
Total non-current assets
1,072,314
904,974
Total Assets
$
1,370,775
$
1,208,376
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable
$
5,835
$
1,286
Accrued expenses and other liabilities
32,550
28,562
Current maturities of operating lease liabilities
5,491
6,931
Current portion of long-term debt
12,750
—
Secured borrowing
195,457
37,685
Income taxes payable
2,370
461
Total current liabilities
254,453
74,925
Non-current liabilities:
Warrant liability
2,884
3,242
Revolving credit facility
15,000
90,000
Long-term debt
217,424
—
Secured borrowing
213,268
234,028
Operating lease liabilities
27,693
43,940
Long-term tax liabilities
22,839
22,135
Deferred tax liabilities, net
189
107
Total non-current liabilities
499,297
393,452
Total Liabilities
753,750
468,377
Redeemable convertible preferred shares
74,250
74,250
Shareholders’ equity:
Additional paid-in capital
1,258,862
1,101,914
Accumulated other comprehensive income (loss)
(90,432
)
444
Accumulated deficit
(706,121
)
(542,637
)
Total Pagaya Technologies Ltd. shareholders’ equity
462,309
559,721
Noncontrolling interests
80,466
106,028
Total shareholders’ equity
542,775
665,749
Total Liabilities, Redeemable Convertible Preferred Shares, and Shareholders’ Equity
$
1,370,775
$
1,208,376
PAGAYA TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Nine Months Ended September 30,
2024
2023
Cash flows from operating activities
Net loss including noncontrolling interests
$
(188,572
)
$
(176,702
)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity method (income) loss
699
(655
)
Depreciation and amortization
20,475
13,161
Share-based compensation
45,852
57,312
Fair value adjustment to warrant liability
(358
)
3,763
Impairment loss on investments in loans and securities
155,960
115,644
Write-off of capitalized software
3,145
1,935
Tax benefit related to release of valuation allowance
—
(1,162
)
Long-term debt issuance costs amortization
2,065
—
Loss (gain) on foreign exchange
4,178
(302
)
Other non-cash items
367
—
Change in operating assets and liabilities:
Fees and other receivables
(15,332
)
(7,666
)
Deferred tax liabilities, net
82
13
Prepaid expenses and other assets
(8,213
)
1,812
Right-of-use assets
1,462
6,435
Accounts payable
4,607
(374
)
Accrued expenses and other liabilities
4,121
(16,682
)
Operating lease liability
(441
)
(6,433
)
Income tax / long-term tax liabilities
4,360
529
Net cash provided by (used in) operating activities
34,457
(9,372
)
Cash flows from investing activities
Proceeds from the sale/maturity/prepayment of:
Investments in loans and securities
89,905
134,101
Equity method and other investments
31
—
Cash and restricted cash acquired from Darwin Homes, Inc.
—
1,608
Payments for the purchase of:
Investments in loans and securities
(538,727
)
(436,242
)
Property and equipment
(13,761
)
(15,555
)
Equity method and other investments
(125
)
—
Net cash used in investing activities
(462,677
)
(316,088
)
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
254,895
314,276
Proceeds received from noncontrolling interests
2,815
19,235
Proceeds from revolving credit facility
59,000
110,000
Proceeds from exercise of stock options and stock purchase plan
3,160
2,538
Proceeds from issuance of ordinary shares from the Equity Financing Purchase Agreement
11,865
3,793
Distributions made to noncontrolling interests
(7,892
)
(39,321
)
Payments made to revolving credit facility
(134,000
)
(25,000
)
Payments made to secured borrowing
(117,883
)
(182,358
)
Payments made to long-term debt
(9,563
)
—
Long-term debt issuance costs
(7,974
)
—
Payments for deferred offering costs
(1,198
)
—
Settlement of share-based compensation in satisfaction of tax withholding requirements
—
(650
)
Net cash provided by financing activities
387,906
276,763
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(1,180
)
(4,201
)
Net increase (decrease) in cash, cash equivalents and restricted cash
(41,494
)
(52,898
)
Cash, cash equivalents and restricted cash, beginning of period
222,541
337,076
Cash, cash equivalents and restricted cash, end of period
$
181,047
$
284,178
PAGAYA TECHNOLOGIES LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
($ in thousands, unless otherwise noted)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Net Loss Attributable to Pagaya Technologies Ltd.
$
(67,476
)
$
(21,752
)
$
(163,484
)
$
(114,020
)
Adjusted to exclude the following:
Share-based compensation
12,333
20,737
45,852
57,312
Fair value adjustment to warrant liability
1,213
1,328
(358
)
3,763
Impairment loss on certain investments
81,827
9,130
159,489
39,778
Write-off of capitalized software
584
305
3,145
1,935
Restructuring expenses
38
484
3,583
5,450
Transaction-related expenses
1,072
2,472
1,607
4,497
Non-recurring expenses
3,531
1,592
3,807
5,452
Adjusted Net Income
$
33,122
$
14,296
$
53,641
$
4,167
Adjusted to exclude the following:
Interest expenses
27,371
9,918
64,098
19,932
Income tax expense (benefit)
(11,524
)
(1,158
)
7,991
10,515
Depreciation and amortization
7,116
5,205
20,475
13,189
Adjusted EBITDA
$
56,085
$
28,261
$
146,205
$
47,803
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Fee Revenue Less Production Costs (FRLPC):
Revenue from fees
$
249,283
$
201,447
$
728,881
$
562,386
Production costs
148,965
128,792
439,448
374,462
Fee Revenue Less Production Costs (FRLPC)
$
100,318
$
72,655
$
289,433
$
187,924
Fee Revenue Less Production Costs % (FRLPC %):
Fee Revenue Less Production Costs (FRLPC)
$
100,318
$
72,655
$
289,433
$
187,924
Network Volume (in millions)
2,351
2,112
7,101
5,919
Fee Revenue Less Production Costs % (FRLPC %)
4.3
%
3.4
%
4.1
%
3.2
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20241111271660/en/
Investors & Analysts Joshua Fagen Head of Investor Relations IR@pagaya.com
Media & Press Emily Passer Head of PR & External Communications Press@pagaya.com
1 Year Pagaya Technologies Chart |
1 Month Pagaya Technologies Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Hot Features
Premium
