Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ:
KPLT), an e-commerce-focused financial technology company, today
reported its financial results for the third quarter ended
September 30, 2024.
“We are continuing to grow across key financial and
operating metrics including gross originations and revenue, and we
believe we are laying the foundation for the long-term success of
Katapult,” said Orlando Zayas, CEO of Katapult. “As we have grown
the business, we’ve also meaningfully diversified our gross
originations base. In fact, in less than four years, we have
increased gross originations that exclude Wayfair from under 30% to
58% of our base, and this part of our business grew 37%
year-over-year during the third quarter. Katapult Pay(R) (“KPay”)
continues to be a big driver of our growth with KPay gross
originations increasing 86% year-over-year and representing 31% of
total gross originations during the quarter. As we head into the
holiday season, we intend to leverage the power of our waterfall
and direct merchant relationships, KPay and targeted marketing to
give our customers more reasons to shop with us and merchants more
reasons to partner with us. We are excited for a strong finish to
the year.”
Operating Progress: Recent
Highlights
- Leveraged our new waterfall
relationship with PayTomorrow, a premier waterfall financing
platform, to integrate our lease-to-own (LTO) offering in the
checkout process with new merchants, including:
- Tire Agent, an online tire and wheels
company that serves customers across the continental US
- BB Wheels, a tires, wheels and
accessories business with customers throughout the continental
US
- Extreme Customs, a tire, wheels and
accessories company that has a nationwide customer base. Extreme
Customs already has a direct integration with Katapult, which this
waterfall application process will complement.
- We currently have 24 total merchants
live on the PayTomorrow platform
- Continued to build momentum for KPay
and our app
- KPay gross originations grew 86%
year-over-year
- Launched Blue Nile and Tire Rack in
the KPay marketplace, bringing the total number of merchants on the
platform to 30
- Launched a pilot of product-based
search that upgrades our search functionality. Instead of
performing category or merchant level searches, consumers can now
search for specific, potentially lower-priced products available in
our merchants’ inventory.
- Customer satisfaction remained high
and Katapult had a Net Promoter Score of 61 as of
September 30, 2024. 60.3% of gross originations for the third
quarter of 2024 came from repeat customers1.
- Subsequent to quarter end, we signed a
non-binding letter of intent with a direct lender with respect to a
new revolving line of credit, working capital line of credit and
term loan (the “Potential Credit Facility”). If we consummate the
Potential Credit Facility, the new revolving line of credit and
term loan would refinance and replace our outstanding credit
facility. There can be no assurance that we will consummate this
Potential Credit Facility or any other credit facility with this or
any other lender.
Third Quarter 2024
Financial Highlights
(All comparisons are year-over-year unless stated
otherwise.)
- Gross originations were $51.2 million,
an increase of 3.3%
- Total revenue was $60.3 million, an
increase of 10.0%
- Total operating expenses in the third
quarter increased 37.7%. Excluding litigation settlement expenses,
total operating expenses increased 9.5%. Our fixed cash operating
expenses2, which exclude litigation settlement expenses, increased
approximately 8.5%.
- Net loss was $8.9 million for the
third quarter of 2024, compared with net loss of $4.1 million
reported for the third quarter of 2023.
- Adjusted net loss2 was $4.1 million
for the third quarter of 2024 compared to an adjusted net loss of
$3.1 million reported for the third quarter of 2023
- Adjusted EBITDA2 was $0.6 million for
the third quarter of 2024 compared to Adjusted EBITDA2 of $0.9
million in the third quarter of 2023
- Katapult ended the quarter with total
cash and cash equivalents of $30.3 million, which includes $4.4
million of restricted cash. The Company ended the quarter with
$67.3 million of outstanding debt on its credit facility.
- Write-offs as a percentage of revenue
were 9.5% in the third quarter of 2024 and are within the Company’s
8% to 10% long-term target range. This compares with 9.5% in the
third quarter of 2023.
[1] Repeat customer rate is defined as the
percentage of in-quarter originations from existing customers. [2]
Please refer to the “Reconciliation of Non-GAAP Measure and Certain
Other Data” section and the GAAP to non-GAAP reconciliation tables
below for more information.
Fourth Quarter and Full Year 2024 Business
Outlook
The Company is continuing to navigate a challenging
macro environment particularly within the home furnishings
category. Given the breadth of our merchant selection, our
strategic marketing and our strong consumer offering, we believe we
are well positioned heading into the holiday season. We continue to
believe that we have a large addressable market of underserved,
non-prime consumers, and it’s important to note that lease-to-own
solutions have historically benefited when prime credit options
become less available.
Based on these dynamics and the operating plan in
place for the full year 2024, Katapult expects to deliver the
following results for the fourth quarter of 2024:
- 6 to 8% year-over-year increase in
gross originations
- 5 to 7% year-over-year increase in
revenue
- Breakeven Adjusted EBITDA
For full year 2024, Katapult expects the
following:
- We expect to continue to expand our
customer base and acquire new customers
- We expect gross originations to grow 2
to 4%.This outlook does not include any material impact from prime
creditors tightening or loosening above us and assumes that there
are no significant changes to the macro environment.Both our fourth
quarter and full year outlooks assume that the home furnishings
category does not improve materially from our third quarter
performance.
- We also expect to maintain strong
credit quality in our portfolio. This will be driven by ongoing
enhancements to our risk modeling, onboarding high quality new
merchants through integrations, and repeat customers engaging with
Katapult Pay
- Revenue growth is expected to be at
least 10%
- Finally with the continued execution
of our disciplined expense management strategy combined with our
growing top-line, we expect to deliver approximately $5.5 million
in Adjusted EBITDA for full year 2024.
"We continue to execute our growth strategy and are
focused on influencing the drivers that are within our control,”
said Nancy Walsh, CFO of Katapult. “Our third quarter outlook
assumed that our home furnishings category would return to its
normal performance, but unfortunately we faced continued headwinds
in the quarter. We offset this dynamic by taking action that
supported strong performance in our business excluding Wayfair,
which grew nearly 40% year-over-year. In addition we are
maintaining an efficient expense structure, which, we believe, when
coupled with our continued top-line growth, positions Katapult to
deliver our first full-year of Adjusted EBITDA profitability since
2021. We are grateful for our team’s hard work and are looking
forward to giving our customers and merchants alike a great holiday
season.”
Conference Call and Webcast
The Company will host a conference call and webcast
at 8:00 AM ET on Wednesday, November 6, 2024, to discuss the
Company’s financial results. Related presentation materials will be
available before the call on the Company’s Investor Relations page
at https://ir.katapultholdings.com. The conference call will be
broadcast live in listen-only mode and an archive of the webcast
will be available for one year.
About Katapult
Katapult is a technology driven lease-to-own
platform that integrates with omnichannel retailers and e-commerce
platforms to power the purchasing of everyday durable goods for
underserved U.S. non-prime consumers. Through our point-of-sale
(POS) integrations and innovative mobile app featuring Katapult
Pay(R), consumers who may be unable to access traditional financing
can shop a growing network of merchant partners. Our process is
simple, fast, and transparent. We believe that seeing the good in
people is good for business, humanizing the way underserved
consumers get the things they need with payment solutions based on
fairness and dignity.
Contact
Jennifer Kull VP of Investor Relations
ir@katapult.com
Forward-Looking Statements
Certain statements included in this Press Release
and on our quarterly earnings call 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. In some cases, forward-looking statements may
be identified by words such as “anticipate,” “assume,” “believe,”
“continue,” “could,” “design,” “estimate,” “expect,” “intend,”
“may,” “plan,” “potentially,” “predict,” “should,” “will,” “would,”
or the negative of these terms or other similar expressions. These
forward-looking statements include, but are not limited to: in this
Press Release and on our associated earnings call, statements
regarding our fourth quarter 2024 and full year 2024 business
outlook and underlying assumptions, the expectation that the home
furnishings category will not materially improve in the fourth
quarter, and, on our associated earnings call, statements regarding
our expectations for 2025, our relationships with Wayfair and
PayTomorrow, our ability to consummate the Potential Credit
Facility or otherwise refinance our debt in the near term, the
impact of KPay on customer acquisition and our relationship with
existing customers, our ability to launch new referral
partnerships, our ability to keep acquisition costs low, the
durability and timing of macroeconomic headwinds, the impact of our
integrations within third-party waterfalls and our relationships
with new merchant-partners on gross originations and financial
expectations beyond 2024. 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 Katapult’s ability to refinance its
indebtedness, the execution of Katapult’s business strategy,
launching new product offerings and new brands and expanding
information and technology capabilities; Katapult’s market
opportunity and its ability to acquire new customers and retain
existing customers; adoption and success of our mobile application
featuring Katapult Pay; 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 customer spending, and
seasonal sales and spending patterns of customers; 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,
political conditions, and consumer perceptions of personal
well-being and security and willingness and ability of customers to
pay for the goods they lease through Katapult when due; 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; meet
future liquidity requirements and complying with restrictive
covenants related to our long-term indebtedness; the impact of
unstable market and economic conditions such as rising inflation
and interest rates; reliability of Katapult’s platform and
effectiveness of its risk model; data security breaches or other
information technology incidents or disruptions, including
cyber-attacks, and the protection of confidential, proprietary,
personal and other information, including personal data of
customers; ability to attract and retain employees, executive
officers or directors; effectively respond to general economic and
business conditions; obtain additional capital, including equity or
debt financing and servicing our indebtedness; enhance future
operating and financial results; anticipate rapid technological
changes, including generative artificial intelligence and other new
technologies; 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 with
respect to rental purchase transactions and privacy regulations;
maintain and grow relationships with merchants and partners;
respond to uncertainties associated with product and service
developments and market acceptance; the impacts of new U.S. federal
income tax laws; that Katapult has identified material weaknesses
in its internal control over financial reporting which, if not
remediated, could affect the reliability of its condensed
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 and the Israel-Hamas conflict), terrorism,
public health crises and pandemics (such as COVID-19), or responses
to such events; Katapult’s ability to meet the minimum requirements
for continued listing on the Nasdaq Global Market; the effects of
the reverse stock split on our common stock; 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”), and the Quarterly Report on Form 10-Q
for the quarter ended September 30, 2024 that Katapult filed
with the SEC.
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, gross profit, adjusted gross profit and adjusted
EBITDA.
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. Katapult measures this metric to assess
the total view of pay through 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.
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 description
and presentation of adjusted gross profit and adjusted EBITDA,
which are non-GAAP measures 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, adjusted net income/(loss) and fixed
cash operating expenses. The Company believes that for management
and investors to more effectively compare core performance from
period to period, the non-GAAP measures should exclude items that
are not indicative of our results from ongoing business
operations.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, and
underwriting fees. 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,
interest income, change in fair value of warrants and loss on
issuance of shares, provision for income taxes, depreciation and
amortization on property and equipment and capitalized software,
provision of impairment of leased assets, loss on partial
extinguishment of debt, stock-based compensation expense, and
litigation settlement expenses.
Adjusted net loss is a non-GAAP measure that is
defined as net loss before change in fair value of warrants and
loss on issuance of shares, stock-based compensation expense, and
litigation settlement expenses.
Fixed cash operating expenses is a non-GAAP measure
that is defined as operating expenses less depreciation and
amortization on property and equipment and capitalized software,
stock-based compensation expense, litigation settlement expenses
and variable lease costs such as servicing costs and underwriting
fees. Management believes that fixed cash operating expenses
provides a meaningful understanding of non-variable ongoing
expenses.
Adjusted gross profit, adjusted EBITDA and adjusted
net loss 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 not part of our core
operations, highly variable 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.
Therefore, these measures should not be considered in isolation or
as alternatives to revenue, net loss, gross profit, 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.
|
KATAPULT
HOLDINGS, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS(amounts in thousands, except per share
data)(unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
(As Restated)(1) |
|
|
|
(As Restated)(1) |
Revenue |
|
|
|
|
|
|
|
Rental revenue |
$ |
59,609 |
|
|
$ |
54,042 |
|
|
$ |
181,947 |
|
|
$ |
161,612 |
|
Other revenue |
|
698 |
|
|
|
769 |
|
|
|
2,284 |
|
|
|
2,418 |
|
Total revenue |
|
60,307 |
|
|
|
54,811 |
|
|
|
184,231 |
|
|
|
164,030 |
|
Cost of revenue |
|
48,358 |
|
|
|
43,342 |
|
|
|
145,866 |
|
|
|
131,224 |
|
Gross profit |
|
11,949 |
|
|
|
11,469 |
|
|
|
38,365 |
|
|
|
32,806 |
|
Operating expenses |
|
16,396 |
|
|
|
11,909 |
|
|
|
41,633 |
|
|
|
40,953 |
|
Loss from operations |
|
(4,447 |
) |
|
|
(440 |
) |
|
|
(3,268 |
) |
|
|
(8,147 |
) |
Loss on partial extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,391 |
) |
Interest expense and other fees |
|
(4,801 |
) |
|
|
(4,264 |
) |
|
|
(14,002 |
) |
|
|
(13,551 |
) |
Interest income |
|
332 |
|
|
|
287 |
|
|
|
1,015 |
|
|
|
1,334 |
|
Change in fair value of warrant liability |
|
75 |
|
|
|
382 |
|
|
|
22 |
|
|
|
771 |
|
Loss before income taxes |
|
(8,841 |
) |
|
|
(4,035 |
) |
|
|
(16,233 |
) |
|
|
(21,984 |
) |
Provision for income taxes |
|
(47 |
) |
|
|
(19 |
) |
|
|
(113 |
) |
|
|
(53 |
) |
Net loss |
$ |
(8,888 |
) |
|
$ |
(4,054 |
) |
|
$ |
(16,346 |
) |
|
$ |
(22,037 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic and diluted |
|
4,341 |
|
|
|
4,130 |
|
|
|
4,289 |
|
|
|
4,059 |
|
|
|
|
|
|
|
|
|
Net loss per common share - basic and diluted |
$ |
(2.05 |
) |
|
$ |
(0.98 |
) |
|
$ |
(3.81 |
) |
|
$ |
(5.43 |
) |
(1) |
|
Comparisons to 2023 financial results reflect the restatement made
to the Company’s unaudited interim condensed consolidated financial
statements for each of the interim periods within the year ended
December 31, 2023. For further information, refer to Notes 2 and 16
to the Consolidated Financial Statements included in Part II, Item
8 contained on Form 10-K for the fiscal year ended December 31,
2023. |
|
|
|
|
KATAPULT
HOLDINGS, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED BALANCE SHEETS(dollars in thousands,
except per share data) |
|
|
|
|
|
September 30, |
|
December 31, |
|
2024 |
|
2023 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
25,877 |
|
|
$ |
21,408 |
|
Restricted cash |
|
4,416 |
|
|
|
7,403 |
|
Property held for lease, net of accumulated depreciation and
impairment |
|
54,823 |
|
|
|
59,335 |
|
Prepaid expenses and other current assets |
|
4,430 |
|
|
|
4,491 |
|
Litigation insurance reimbursement receivable |
|
— |
|
|
|
5,000 |
|
Total current assets |
|
89,546 |
|
|
|
97,637 |
|
Property and equipment, net |
|
265 |
|
|
|
327 |
|
Capitalized software and intangible assets, net |
|
1,706 |
|
|
|
1,919 |
|
Right-of-use assets |
|
367 |
|
|
|
888 |
|
Security deposits |
|
91 |
|
|
|
91 |
|
Total assets |
$ |
91,975 |
|
|
$ |
100,862 |
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
912 |
|
|
$ |
903 |
|
Accrued liabilities |
|
23,257 |
|
|
|
24,146 |
|
Accrued litigation settlement |
|
5,805 |
|
|
|
12,000 |
|
Unearned revenue |
|
4,882 |
|
|
|
4,949 |
|
Revolving line of credit, net |
|
67,106 |
|
|
|
— |
|
Term loan, net, current |
|
28,781 |
|
|
|
— |
|
Lease liabilities |
|
256 |
|
|
|
297 |
|
Total current liabilities |
|
130,999 |
|
|
|
42,295 |
|
Revolving line of credit, net |
|
— |
|
|
|
60,347 |
|
Term loan, non-current |
|
— |
|
|
|
25,503 |
|
Lease liabilities, non-current |
|
416 |
|
|
|
614 |
|
Other liabilities |
|
823 |
|
|
|
95 |
|
Total liabilities |
|
132,238 |
|
|
|
128,854 |
|
STOCKHOLDERS' DEFICIT |
|
|
|
Common stock, 0.0001 par value-- 250,000,000 shares authorized;
4,222,722 and 4,072,713 shares issued and outstanding at September
30, 2024 and December 31, 2023, respectively |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
98,619 |
|
|
|
94,544 |
|
Accumulated deficit |
|
(138,882 |
) |
|
|
(122,536 |
) |
Total stockholders' deficit |
|
(40,263 |
) |
|
|
(27,992 |
) |
Total liabilities and stockholders' deficit |
$ |
91,975 |
|
|
$ |
100,862 |
|
|
|
|
|
|
|
|
|
|
KATAPULT
HOLDINGS, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)(dollars in thousands) |
|
|
|
Nine Months Ended September 30, |
|
2024 |
|
2023 |
|
|
|
(As Restated)(1) |
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Net loss |
$ |
(16,346 |
) |
|
$ |
(22,037 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Depreciation and amortization |
|
102,731 |
|
|
|
92,334 |
|
Net book value of property held for lease buyouts |
|
21,505 |
|
|
|
19,365 |
|
Impairment on property held for lease expense |
|
17,021 |
|
|
|
15,494 |
|
Change in fair value of warrants and other |
|
33 |
|
|
|
(771 |
) |
Stock-based compensation |
|
4,428 |
|
|
|
5,678 |
|
Loss on partial extinguishment of debt |
|
— |
|
|
|
2,391 |
|
Amortization of debt discount |
|
2,222 |
|
|
|
2,147 |
|
Amortization of debt issuance costs, net |
|
198 |
|
|
|
211 |
|
Accrued PIK Interest |
|
1,056 |
|
|
|
1,208 |
|
Amortization of right-of-use assets |
|
521 |
|
|
|
274 |
|
Increase (decrease) to cash due to changes in: |
|
|
|
Property held for lease |
|
(135,814 |
) |
|
|
(128,464 |
) |
Prepaid expenses and other current assets |
|
61 |
|
|
|
3,125 |
|
Litigation insurance reimbursement receivable |
|
5,000 |
|
|
|
— |
|
Accounts payable |
|
9 |
|
|
|
(529 |
) |
Accrued liabilities |
|
(889 |
) |
|
|
1,594 |
|
Accrued litigation settlement |
|
(5,500 |
) |
|
|
— |
|
Lease liabilities |
|
(239 |
) |
|
|
(312 |
) |
Unearned revenues |
|
(67 |
) |
|
|
572 |
|
Net cash used in operating activities |
|
(4,070 |
) |
|
|
(7,720 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
Purchases of property and equipment |
|
(36 |
) |
|
|
(10 |
) |
Additions to capitalized software |
|
(620 |
) |
|
|
(753 |
) |
Net cash used in investing activities |
|
(656 |
) |
|
|
(763 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
Proceeds from revolving line of credit |
|
16,100 |
|
|
|
10,916 |
|
Principal repayments on revolving line of credit |
|
(9,539 |
) |
|
|
(8,054 |
) |
Principal repayment on term loan |
|
— |
|
|
|
(25,000 |
) |
Payments of deferred financing costs |
|
— |
|
|
|
(34 |
) |
Repurchases of restricted stock |
|
(562 |
) |
|
|
(318 |
) |
Proceeds from exercise of stock options |
|
209 |
|
|
|
— |
|
Net cash provided by (used in) financing activities |
|
6,208 |
|
|
|
(22,490 |
) |
Net increase (decrease) in cash, cash equivalents and restricted
cash |
|
1,482 |
|
|
|
(30,973 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
|
28,811 |
|
|
|
69,841 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
30,293 |
|
|
$ |
38,868 |
|
Supplemental disclosure of cash flow
information: |
|
|
|
Cash paid for interest |
$ |
10,372 |
|
|
$ |
9,821 |
|
Cash paid for income taxes |
$ |
270 |
|
|
$ |
146 |
|
Deferred financing costs included in accrued liabilities |
$ |
— |
|
|
$ |
481 |
|
Issuance of warrants to purchase common stock in connection with
debt refinancing |
$ |
— |
|
|
$ |
4,060 |
|
Cash paid for operating leases |
$ |
275 |
|
|
$ |
390 |
|
|
|
|
|
|
|
|
|
|
KATAPULT HOLDINGS,
INC.RECONCILIATION OF NON-GAAP MEASURES AND
CERTAIN OTHER DATA (UNAUDITED)(amounts in
thousands) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
(As Restated)(1) |
|
|
|
(As Restated)(1) |
Net loss |
$ |
(8,888 |
) |
|
$ |
(4,054 |
) |
|
$ |
(16,346 |
) |
|
$ |
(22,037 |
) |
Add back: |
|
|
|
|
|
|
|
Interest expense and other fees |
|
4,801 |
|
|
|
4,264 |
|
|
|
14,002 |
|
|
|
13,551 |
|
Interest income |
|
(332 |
) |
|
|
(287 |
) |
|
|
(1,015 |
) |
|
|
(1,334 |
) |
Change in fair value of warrants and loss on issuance of
shares |
|
(20 |
) |
|
|
(382 |
) |
|
|
33 |
|
|
|
(771 |
) |
Provision for income taxes |
|
47 |
|
|
|
19 |
|
|
|
113 |
|
|
|
53 |
|
Depreciation and amortization on property and equipment and
capitalized software |
|
403 |
|
|
|
247 |
|
|
|
932 |
|
|
|
679 |
|
Provision for impairment of leased assets |
|
(295 |
) |
|
|
(324 |
) |
|
|
307 |
|
|
|
219 |
|
Loss on partial extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,391 |
|
Stock-based compensation expense |
|
1,485 |
|
|
|
1,375 |
|
|
|
4,428 |
|
|
|
5,678 |
|
Litigation settlement expenses |
$ |
3,352 |
|
|
$ |
— |
|
|
|
3,385 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
553 |
|
|
$ |
858 |
|
|
$ |
5,839 |
|
|
$ |
(1,571 |
) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
(As Restated)(1) |
|
|
|
(As Restated)(1) |
Net loss |
$ |
(8,888 |
) |
|
$ |
(4,054 |
) |
|
$ |
(16,346 |
) |
|
$ |
(22,037 |
) |
Add back: |
|
|
|
|
|
|
|
Change in fair value of warrants and loss on issuance of
shares |
|
(20 |
) |
|
|
(382 |
) |
|
|
33 |
|
|
|
(771 |
) |
Stock-based compensation expense |
|
1,485 |
|
|
|
1,375 |
|
|
|
4,428 |
|
|
|
5,678 |
|
Litigation settlement expenses |
|
3,352 |
|
|
|
— |
|
|
|
3,385 |
|
|
|
— |
|
Adjusted net loss |
$ |
(4,071 |
) |
|
$ |
(3,061 |
) |
|
$ |
(8,500 |
) |
|
$ |
(17,130 |
) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
(As Restated)(1) |
|
|
|
(As Restated)(1) |
Total operating expenses |
$ |
16,396 |
|
|
$ |
11,909 |
|
|
$ |
41,633 |
|
|
$ |
40,953 |
|
Less: |
|
|
|
|
|
|
|
Depreciation and amortization on property and equipment and
capitalized software |
|
403 |
|
|
|
247 |
|
|
|
932 |
|
|
|
679 |
|
Stock-based compensation expense |
|
1,485 |
|
|
|
1,375 |
|
|
|
4,428 |
|
|
|
5,678 |
|
Servicing costs |
|
1,160 |
|
|
|
1,100 |
|
|
|
3,433 |
|
|
|
3,193 |
|
Underwriting fees |
|
490 |
|
|
|
422 |
|
|
|
1,490 |
|
|
|
1,370 |
|
Litigation settlement expenses |
|
3,352 |
|
|
|
— |
|
|
|
3,385 |
|
|
|
— |
|
Fixed cash operating expenses |
$ |
9,506 |
|
|
$ |
8,765 |
|
|
$ |
27,965 |
|
|
$ |
30,033 |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
(As Restated)(1) |
|
|
|
(As Restated)(1) |
Total revenue |
$ |
60,307 |
|
|
$ |
54,811 |
|
|
$ |
184,231 |
|
|
$ |
164,030 |
|
Cost of revenue |
|
48,358 |
|
|
|
43,342 |
|
|
|
145,866 |
|
|
|
131,224 |
|
Gross profit |
|
11,949 |
|
|
|
11,469 |
|
|
|
38,365 |
|
|
|
32,806 |
|
Less: |
|
|
|
|
|
|
|
Servicing costs |
|
1,160 |
|
|
|
1,100 |
|
|
|
3,433 |
|
|
|
3,193 |
|
Underwriting fees |
|
490 |
|
|
|
422 |
|
|
|
1,490 |
|
|
|
1,370 |
|
Adjusted gross profit |
$ |
10,299 |
|
|
$ |
9,947 |
|
|
$ |
33,442 |
|
|
$ |
28,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CERTAIN KEY PERFORMANCE METRICS |
|
|
|
|
(in thousands) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
(As Restated)(1) |
|
|
|
(As Restated)(1) |
Total revenue |
$ |
60,307 |
|
|
$ |
54,811 |
|
|
$ |
184,231 |
|
|
$ |
164,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KATAPULT
HOLDINGS, INC.GROSS ORIGINATIONS BY
QUARTER |
|
|
|
|
|
Gross Originations by Quarter |
($ millions) |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
FY 2024 |
|
$ |
55.6 |
|
|
$ |
55.3 |
|
|
$ |
51.2 |
|
|
$ |
— |
|
FY 2023 |
|
$ |
54.7 |
|
|
$ |
54.7 |
|
|
$ |
49.6 |
|
|
$ |
67.5 |
|
FY 2022 |
|
$ |
46.7 |
|
|
$ |
46.4 |
|
|
$ |
44.1 |
|
|
$ |
59.8 |
|
FY 2021 |
|
$ |
63.8 |
|
|
$ |
64.4 |
|
|
$ |
61.0 |
|
|
$ |
58.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Katapult (NASDAQ:KPLT)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Katapult (NASDAQ:KPLT)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024