Q4 2024 Katapult Holdings Inc Earnings Call Transcript
Key Points
- Katapult Holdings Inc (KPLT) reported a strong Q4 with gross originations growing over 11% year-over-year.
- The company has successfully transformed its business model into a multi-dimensional growth engine, enhancing its marketplace with the Katapult app and KPay feature.
- Katapult's app marketplace has driven significant growth, with 54% of 2024 originations starting within its ecosystem.
- The company achieved a 9.4% revenue growth in Q4, marking the seventh consecutive quarter of year-over-year growth.
- Katapult reported its first full year of positive adjusted EBITDA since 2021, reflecting disciplined expense management and top-line growth.
- Katapult Holdings Inc (KPLT) faces challenges in the home furnishings and mattress category, impacting overall growth.
- The company experienced an increase in lease merchandise write-offs year-over-year, although within the targeted range.
- Despite strong growth, the company reported a Q4 adjusted EBITDA loss of $1.1 million, below their outlook.
- Katapult's largest merchant, Wayfair, saw a decline in application flow, contributing to a conservative outlook for the home furnishing sector.
- The company is navigating a challenging macro environment and has yet to secure a refinancing deal for its credit facility, posing a risk to its financial stability.
Thank you for standing by and welcome to the Katapult Holdings fourth-quarter and full-year 2024 earnings conference call. (Operator Instructions) Thank you. I'd now like to turn the call over to Jennifer Kull, Vice President and Head of Investor Relations. You may begin.
Welcome to Katapult's fourth-quarter 2024 conference call. On the call with me today are Orlando Zayas, Chief Executive Officer; Nancy Walsh, Chief Financial Officer; and Derek Medlin, President and Chief Growth Officer. For your reference, we have posted materials related to today's call on the Investor Relations section of the Katapult website, which can be found at ir.katapultholdings.com.
Please keep in mind that our remarks today include forward-looking statements related to our financial guidance, our business, and our operating results as noted in the earnings release and slide deck posted to our website for your reference. Our actual results may differ materially.
Forward-looking
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