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Pagaya Technologies Ltd. (NASDAQ: PGY), a pioneering global technology company specializing in artificial intelligence infrastructure for the financial sector, has disclosed its financial performance for the quarter ending March 31, 2024.
Gal Krubiner, the co-founder and CEO of Pagaya Technologies, expressed satisfaction with the quarter's results, attributing the record performance to disciplined execution across various metrics. Krubiner highlighted the company's achievements in onboarding a bank partner in the point-of-sale (POS) vertical, enhancing unit economics, and fortifying funding capabilities. He emphasized Pagaya's steadfast dedication to providing increased financial opportunities for consumers in the United States.
The first quarter of 2024 saw several notable highlights for Pagaya:
- Record Network Volume: Pagaya reported a record network volume of $2.42 billion, surpassing the projected range of $2.2 billion to $2.4 billion, marking a robust 31% year-over-year growth.
- Expansion in POS Business: The company expanded its POS business by partnering with a bank, slated to go live on the network in the latter half of 2024. This move signifies Pagaya's continued expansion in the rapidly growing consumer credit market in the U.S., underscoring the strength of its enterprise-grade product.
- Enhanced Funding Network: Pagaya raised $1.9 billion across five transactions and expanded its funding network by adding 18 new investors, bringing the total count to 116 funding partners.
- Record Revenue: Total revenue and other income reached a record $245 million, surpassing the projected range of $225 million to $240 million, representing a 31% year-over-year increase. This growth was primarily driven by a 35% increase in revenue from fees.
- Improved Financial Performance: Pagaya reported record revenue from fees less production costs (FRLPC) of $92 million, marking an 84% year-over-year increase. Additionally, adjusted EBITDA reached $40 million, exceeding the projected range of $32 million to $38 million. The company also achieved positive GAAP operating income for the third consecutive quarter and recorded its fourth consecutive quarter of positive adjusted net income.
Looking ahead, Pagaya provided insights into its second-quarter and full-year 2024 outlook:
Second Quarter 2024 Outlook
- Network Volume: Expected to range between $2.2 billion and $2.4 billion.
- Total Revenue and Other Income: Expected to range between $235 million and $245 million.
- Adjusted EBITDA: Expected to range between $40 million and $45 million.
Full Year 2024 Outlook
- Network Volume: Expected to range between $9.0 billion and $10.5 billion.
- Total Revenue and Other Income: Expected to range between $925 million and $1,050 million.
- Adjusted EBITDA: Expected to range between $150 million and $190 million.
These projections reflect Pagaya's confidence in its continued growth trajectory and its commitment to delivering value to shareholders and consumers alike.
