Q4 2024 Upbound Group Inc Earnings Call Transcript
Key Points
- Upbound Group Inc (UPBD) reported a 6% increase in fourth-quarter revenue, driven by the strength of Acima.
- The company achieved a 17% top-line growth for Acima, with revenue ending at approximately $2.3 billion.
- Upbound Group Inc (UPBD) successfully onboarded nearly a million new customers and thousands of new merchants in 2024.
- The company completed two transformative acquisitions, AEA and Bridget, establishing itself as a technology-driven growth company.
- Adjusted EBITDA for the year was over $473 million, up 3.8% from the prior year, indicating strong financial performance.
- The Rent-A-Center segment faced challenges due to economic uncertainty, impacting demand and payment behavior.
- Consolidated lease charge-offs for the year increased slightly to 7.3% from 7.1% in 2023.
- Rent-A-Center's revenue was down approximately $15 million year over year, partly due to store consolidations.
- The company expects Rent-A-Center's revenue to decline in the low single-digit range in 2025.
- Acima's EBITDA margins were down 90 basis points from Q4 of 2023, indicating pressure on profitability.
Hello and welcome to the Upbound Group in 4th quarter 2024 earnings conference call.
(Operator Instructions)
I would now like to turn the conference over to Jeffrey. You may begin.
Good morning and thank you all for joining us to discuss the company's performance for the 4th quarter and full year of 2024. We issued our earnings release this morning before the market opened, and the release and all related materials, including a link to the live webcast, are available on our website at investor.upbound.com.
On the call today from Upbound Group, we have Mitchell Fadel, our CEO, and Fahmi Karam, our CFO. As a reminder, some of the statements provided on this call are forward-looking and are subject to factors that could cause actual results to differ materially and adversely from our expectations.
These factors are described in our earnings release as well as in the company's SEC filings. Upbound Group undertakes no obligation to publicly update or revise
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