FlexShopper (FPAY) 14 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, good morning, and welcome to the FlexShopper Inc.

Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Andrew Berger from Investor Relations. Please go ahead.

good and Ryan, you, morning, everyone. Thank FlexShopper's to Third Quarter Call. Conference Results Financial XXXX Welcome are our Russ and today me With Heiser, our Operating John Chief Chief Officer. Davis, Officer; Executive be earnings morning, release We today's issued which an we'll call. referencing this during

our can website. of on Relations section Our earnings found Investor release be our

remarks. We will prepared be Q&A for available today's following

opportunity, and the Before we contain future to statements including statements initiatives recent most future regarding like regarding forward-looking financial statements that most performance, our of everyone These and our performance. conjunction including with begin, should and remind I company's in financial the our earnings underway XX-Q. be cautionary market events recent the growth in reports, report would will considered periodic SEC this impact statements and contained annual release call

reflect we undertake management's result cause that factors are of those statements. of required assumptions number otherwise. revise as or and information, events Except differ from any these beliefs, or to may a to any statements, current future a materially may expectations whether as subject no law, These obligation and publicly of update actual new to results statements by

of replay call of Investor we also certain recorded, information our in under net section section considered GAAP on and our a income. Relations will of our contains is earnings measures not financial Reconciliation today's financial the results. financial should as measures our should include measurements be with is SEC This replacements available non-GAAP Relations website. income provide will additional financial be measures and These our and also together and these available adjusted being website. During for that rules. be such discussion webcast of net today's performance, are EBITDA, on certain release, These read non-GAAP which information included investor

over CEO, Russ, to will the Russ I our Heiser. turn call now go ahead.

our third this our us and are over financial today's start results pursuing quarter and your on before thanks more call review then call take everyone detail performance. update for discuss we we with call morning's and turn to Andy, you, strategies joining will operations an I'll who we'll to for questions. Thank growth the in JD, to the

busy was quarter growing business. the exceptionally an across period, momentum demonstrating Third underway our

As to our FlexShopper recognize payment of shaping to consumers profitably a hold solutions. believe we result, are value up we a partners retail XXXX pursuing and business, be our year unique the is grow transformative strategies as for more take and the

members. and strong More our importantly, team work reflect of hard our third the commitment quarter results

our digital offerings, lease-to-own platform with pursued business last As we have Today, range resulted payment solutions products unsecured financing options. of retail a we loan consumer mentioned to traditional marketplace. have within e-commerce strategies and in consists growing of of quarter, our our full expand financing options, a a which suite traditional

we now After including BXB the directly leading focused as our BXC pan addition, and making well our pursuing payment spaces. our growth and in electronics capabilities, our as with automotive, are on enhancements retailers servicing collections across website underwriting, meaningful and In offer through to account partnerships investments proactive we business, and within strategies internal our brick-and-mortar channels. diverse solutions e-commerce to through customers

$X.XX we XX% and per million $XX million, increased third to nearly share. adjusted underway of more XXXX million a $XX the or than of produced transformation XX% attributable net common income by stockholders of Our demonstrate of record quarter a successful diluted to record quarterly results as revenue $X.X quarterly increased to total EBITDA

[indiscernible] leading partner payment are date, payment our as retailers. new at partnerships have Tomorrow, So channel. accelerating we Credit let's in Finance, performance the and platforms we BXB more with announced quarter's To Pay Pay Possible. look in within Versal BXB more detail, starting with with third our growth the business platforms, Trends including and

As to their these LTO merchant networks leverage provide to payment partners. we our solutions integrate leading FlexShopper platforms their into waterfalls, can their

continue we to addition, LTO directly pursue In retailers solution. that need an

As the year $XX during quarter have XX% count approvals million. increased new to increase a locations To date, prior our total Parts recent locations, approximately with upcoming nearly aftermarket the of XXX% X,XXX third efforts, compared period Auto with signed of from the end lease XXXX. result over our funding Alliance. the we retail approximately rollout a This partnership store X,XXX to of of at the includes associated X,XXX locations

We with and Randy's Worldwide exceeded Location projections. have also partnerships retail announced our recently Monroe. growth has

retail and new to strong coming payment in of a potential partners, pipeline announce the we partners expect have and We months.

payment Higher investments strategies our being by growth platform demand we pursuing. are and have is solutions to the driven we the our for made

as their have [indiscernible], have needed addition, customers. we credit retail the other lenders we In provide to our partners tightened to incremental opportunities believe resources capture with

the our LTO leading we emerging pursue the marketplace, Flexshopper.com, Looking at BXC sales strategies in at marketplace continue to to growth is industry. which increase

growth the million steady the have that receive customers quarter new to customers is March $XXX,XXX added on payment from their launching and serve regardless retail allow market marketplace for have first this, broadened credit XXXX, conjunction to website seen ended options XXXX. increased quarter profile. capabilities available September assortment XX, we resonating with consumers on for $X.X more our sale score. credit we addressable expanded these their of quarter product This fit of in have that to with We during broadens XX, In our the revenue Flexshopper.com. Since for the capabilities XXXX, ended

sales. continue We test, growing to adjust focus learn our approach to and retail profitably on

over to and spend FlexShopper recent the marketplace and retail our marketing plan pursuing increasing performance traffic quarters. to coming expect grow on drive revenue to the we we're continue strategies We the our Based to increase conversion. expand

and the larger share We also spend. more product of site continue to SKUs gain add to a our FlexShopper to customer categories

continue freight watches. shipping, furniture and luxury LTL supported as and We expand handbags, launched category, we personal in the sunglasses to by such categories, have

Flexshopper.com micro important It's that that any of to our on launching inventory sites in more at have look marketplace a a site. reach to note not to continue take we website. we addition, offered potential In single products do customers

directly distributors this provides manufacturers the drop business. who to a with ship advantage of believe products and We competitive by capital have reducing and We strategic requirements developed risks us with our customers. inventory eliminating relationships

capital our to turn, This, map, loan technology us in growth. to marketing road invest lease support allows programs and and

see, can underway, you and positive trends the feel about are good As growth direction our really business. of we

JD X our stock. proposed want preferred have provide review the opportunity offering call. the including of the I against review the filed I detail call on our performance, rights patent we of Before I'll competitors, our to the recently turn X the to lawsuits actions And to important that we infringement over more Series at to redeem announced, end

capital historically, business outlined the to with an LTO to we've and both platform and time create received our heavily invested issued As and innovative strategies. X central patents our we next-generation FlexShopper has are have

] District of we [ [indiscernible] to Court company. Quintamany Eastern filed and have for result, the the a retained We Texas infringement against As upbound District the patent catapults. well initial represent in U.S. lawsuits

look updating insight September protect along investors revolve these lawsuits The and X into to [indiscernible] quickly, key against XXXX our We complaint lawsuits gain and The the more moving and online filed way. which X to initially read around were lawsuits forward patents Investors forward our rationale FlexShopper's should position. XX. on between we'll the be technology. LTO granted present,

from vigorously on are is fund patented to redeem to today's that against forward, a we action The This I who technologies. our investment our opportunity XX% stock defend review X last preferred next remaining plan LTO the to stock. of winding infringing down. Going want is competitors Series preferred

our per stock this As million at a its shareholder shareholders, than the capital, capital have simplifying by redeem XX% the transferring at of to of of cost improving liquidation our preferred believe opportunity value our a approximately our We million a September structure XXXX. representing value greater of $XX we share. common value result, opportunity discount majority XX, will and to of to equity $XX discount $X enhance

the accretive repayments contribute to earnings In option and of operating redemption will last our $X purchase the addition, is period. stock upon based X XX% over data a Series the highly to The X-year be and will income. for million discount annual of to preferred

required the and the or price may months next the settlement control addition, XX months. the in in seller further XX purchase be patent the upon announcements of payments to change next In of based a stock preferred

we're our forward our investors in shareholders We term, performance favorable positive across and months quarter at near business are the the value. to significant value success working common hard so significant trends beyond. excited by in on significant I owned aspects our third to Series opportunities for headed, of FlexShopper and can transformation company. D many are the in the create ahead. and to redeem additional preferred I'm stock underway shareholders XXXX The the believe look momentum updating direction our supporting unlock the demonstrates We underway the

changes Before call apologize SEC If over plan mention that so, financial need our company's quarter the last automatic We business-day call. earnings anticipate file XXXX, are quarter in extension to X within conference We'll for in today. an window. results. additional I ] [ of time the third file turn any may Thorton the the extension our results release later earnings for we XX-Q to the don't JD, finalize ended want to communicated with to minute XX, audit our release. I the to financial Grant and presented today's September

the hand company's over to quarter I'll So with the into third overview, performance. this dive JD to call

Thanks, Russ.

I've plan As X stated prior items. our long-term of key for our consists business calls, on lease

higher overall performance. the more of government and savings periods want caused in where consumer quality stimulus, deterioration First, payment to improve a reduced price inflation we removal from time asset challenging

to want on we retail realize we where take want margin to on flexshopper.com we Second, our sell strategy third, our out grow these And them. revenue we products quality product marketplace. roll continue to and the originations online

these Our demonstrates third improvement quarter growth in revenue we significant profitability a against executing the strategies. are and strong making progress

improvement of gross in year. asset start a me $X as XX.X% with to Improved percentage QX XXXX. lease the was in quality was QX drove and compared doubtful for XXXX, asset a billings the XX.X% quarter provision third fees benefit which point a period compares in accounts of of Let XX.X% to quality. or reduction provision This a year-over-year. last basis same XXX million The

New I'm originations last performance short-term absent that favorable first asset provision macroeconomic the which the suggests we pleased goal quality are with year-over-year QX, continue and versus of impacts. continue its unforeseen period payments originations should our any improvement. of demonstrate year, accomplishing the to today, favorability into same continued level early

benefits strategy, to online our of we by our flexshopper.com Regarding the our introducing retail realize to margin product continue enabled marketplace. business.

costs and the quarter same impairment depreciation last of fees, percentage a continued lease gross XXXX in Our improve XX.X% XX.X% merchandise year. and to of in as QX of was lease to and billings compared

portfolio. to the a depreciation product margins year-over-year, Overall into for XXX $X.X This product to is in a year-over-year versus this year is significant by increase basis Adjusting costs and our as margin lease million year. this $X.X lease improve million improvement this but year-over-year by of due improved improved million. point this $X.X same profitability and last impairment continue mature increased quarter the increase, revenue revenue

XX.X% gross XXXX. gross produced XXXX quarter and XX% third compared XX% in XXXX QX of our in a addition, profit QX In of margin expanded year-over-year. in of XX% This to QX

furniture, gross our margins, adding a a gross progress improving product the second with higher-margin in profit and work we personal to gross on including margin. direct retail result luxury growth margins to strategies higher significant items. The to capture and products we to of with I'm marketplace, jewelry -- on are is margin pleased continue revenue goal mattresses, pursuing and and our

our We their provider. from payment credit profile on an which obtain options provides marketplace, solutions with can on now and another that transact offer customers what more marketplace to credit offer fits for multiple the they

our credit expand to working This and this visit to increase our lease online increase increased originations providers large dramatically overall efficiency. attract positive are and that our addressable traffic and the prime provide customers that a spectrum quality of the marketplace a marketing increase on range customers of broader impact our revenue, sales to options of expand in site failing. full already includes on market our total We panel customer should levels to of beyond a subsequently of subprime payment can interest payment traditional FlexShopper.com. Providing a issuer

traditional XX-month over our that Every income incremental and cash outside lease. versus immediately recognized flow offerings sale customers amortized expands on our marketplace a to is LTO

$X.X our of discuss goal XX.X% million. million revenue total revenues versus QX versus increasing revenue. increased $XX.X lease XXXX net net lease million by increasing last grew now QX Gross million. me of for million by to $XX.X QX $XX.X to $X.X year-over-year Overall year's revenues with profitable to Let versus third

is coming grew by value. a accelerated by last revenue XXXX. counts QX dollars gross higher lease of revenue increase average lease were fueled in lease is and year-over-year, by increased which a in revenue XX% both up lease million X.X% from ago, Lease from increase is origination year-over-year comparative This being and to QX $X.X year, from lease compared quarter

As Russ store mentioned beginning year. our signed of With is the count has advantage marketplace, our is count our focused the ability our location blown mainly approximately competitive year-end of FlexShopper companies approximately model greatly original versus a earlier, in XXX% industry by our our higher Unique X,XXX that is by XXXX. repeat than X,XXX enhances locations, versus has to retail which drive originations that only. other target

funding repeat were $XX.X location QX demand the purchases of revenue As our ] we Emitted XXXX $XX this to strong increasing [ location marketing also Total XX% our higher approvals base. direct-to-consumer lease and higher of add through were ecosystem, versus more applications QX new our expanding year-over-year. XX% benefit in million customers beyond Marketplace Showing XXXX. from consumer counts. will million at of in impact efforts.

Our to marketing use marketplace upcoming more season. team during shopping a easily on has approved engine, remarketing available limits developed the which spending our their customers will robust holiday enable

were partner $XXX,XXX million $XX.X this our year. XXX% revenues loan versus business year. to gain net Net last bank from versus dropped last $X license a year last loan model state revenue while in net million of revenues Overall, a versus million model $X.X loss year, our increased

APR Our exit bank business partner XXXX. chose the to in high

loan branch-based owned operated among and XXXX lending franchise-owned licensed as state locations. and of was in consists as well distributions Our third-party December acquired business

that the In recorded versus QX, origination of in many brought new year-over-year demonstrating cash improved gain estimate at dollars partner the on third customer QX year-over-year to September up and portfolio, leadership we originations is October. placed a as were XX% in due Overall, improvement loans value of with a fair the we third-party X% new counts in in year. the This the collections. were new these of new middle same origination is down part period last XX% in customer were in collections quarter. in,

volume customer has customer Our high state of new customer licensed repeat model hire grow to repeat that will an remain annuity comps propensity volumes create a loan will new favorable. as

advantage finance FlexShopper continued synergy monoline Additionally, loan The with of to and pleased lending the momentum marketing of and and profitability channel. business, I'm XXXX. and customer the a growth is our new loan revenue the increase between expanded hopeful that million produced bringing businesses am our versus I sharing lease has result for risk, of for resources cross-marketing is through which and [indiscernible] QX team our natural initial of to they EBITDA, $X.X $XX.X adjusted of back-office that this a underway growth from will material in XXXX QX combined bring strategies for a million business.

was As year. of last compared our same EBITDA revenue, margin adjusted XX.X% a percentage total period for the to XX.X%

revenue, revenue lease depreciation by debt in bad In improved excluding expenses, of as addition points. salaries XXX a and marketing a operating basis as the percentage improvements and to approximately percentage of

costs a percentage Additionally, points. loan basis origination as marketing improved of and revenue by approximately and fees XXX

plan front which online remains is to in and loan that to favorable performance strategic that retail lease place, continue we with grow Our our of the is and are asset business expand seeing us. opportunities in

year-over-year and quarterly achieving sequential growth. are revenue We

lower with quality bad debt. seeing are asset improved We

We material has are a increasing income product benefit our margin, statement. to which

marketing strategies Result of EBITDA and significant quarter. income on net leverage our the expenses. gaining third positive are growth during We produced and year-over-year has these operating

unemployment economic signs consumer vigilant of rates our and as remain in in potential shopping stabilizing we see job will within as with growth interest prices. to future slowdown, customer low continued and to channels well continue any We regards

thank I want for and to we the our positioned and and believe work XXXX results. XXXX We for in we and achieve look hard forward to team continued well profitability in improved what can beyond. growth are

more rights detail. let review call offering the the back in that, With me over to to Russ turn

Thanks, JD.

Our EBITDA success record is growth strategy underway. the and demonstrates third adjusted revenue the of quarter

and Series provision has sustainable and XX% liquidation preferred of the simultaneously its X had accretively anti-dilution fundamental to favorable structure we common we ultimately added raise per plus majority capital to interest to our positioned weighted for As Agreeing price to redeem net income improve dividend growth simplify catalyst share. are have our of discount the increase negating and preferred value and that earnings XX% actions expense. intended reduce of effect as on a for a have pursuing stock business average the we the and capital vast a is profitability, been stock equity purchase

of impact maintain investors preferred the discount a believe for company. stays current earlier, our add We the XX, stock nontransferable October value a consists learning purchase and addition, S-X C record through on of rights the launch with shareholders the days, plan A, XX% participants which the the becomes it short-dated at based XX XX offering potential additional registration in stock existing sheet because constant, their balance common X rights in the XX capital expires offering. on Therefore, per share is the right, I offering each count. initial SX an units, enterprise These interest B from date enterprise after to and opportunity to proceeds respectively, XXXX, purchase approximately units. purchases share raising improvements offering. after proposed rights share to allows In shareholder to raise. ownership X as received of of level initial our and make of Series When Unit best filed to on the we XX, redeeming in $X to to our as rights a mentioned statement SEC the to a which the the value assuming has million share up a of effective, rights we

holders the subscription actions know fact, negatively exercised subject intend largest to an pro who will allocate will oversubscription fully of the raises be to offering to if cost often capital. rata to to I are entitled face the reduction We that purchased not other by their proceeds that of produce request. for at value. on are number available viewed the oversubscribe units, stockholders, of In rights our equity based additional basic that allocation

previously, proceeds accretive in this mentioned use transaction I be as to instance, clear of has believe a investors. However, that we this will

And the transaction more will is. sold, fact, all for by by increase filed the of free the price, shares $XX million accretive The In the we for we $X.X every offering, shareholders. writing October is the million. higher that on offering accretive estimate more the the SEC with offering income more proceeds the prospectus net raised course, in net XX,

save Looking the to the $XX $X.X remaining way off million a add net have the assuming credit of of expense, the proceeds, stock, an redeemed us $X portion pay paid year at Series in we will additional reduce million of down another and subordinated million which capital agreement, our offering preferred which $X.X rights facility will and accretive per interest annual million of associated X annual of use notes, flexibility nature our XX% savings. in we our which raised $XX.X will million the balance dividends by interest

more $X and earnings to us combined interest increased and return common net will of capital growth earnings dividend equity. these produce internally business, into a increase while structure, to fund or estimate expense allocate and reducing We income allow our back share. our on equitizing actions Simplifying million by per common higher our shareholders annual approximately

of I call. to quarter and updating management third and rights FlexShopper's FlexShopper's in from the Directors forward position releases offering investors of Board pursuing on and plan completing success rights the offering. demonstrates months to our a look offering on upcoming of in coming press and next strength the we team members participate through continued Our this performance are our

This completes please Operator, our prepared open call the remarks. questions. for

from [Operator Scott Buck Instructions] the from H.C. question comes of The first line Wainwright.

quality How the in that versus is of of account to borrower I much results. the payment performance. improvement about improvements driven improved the on Congrats in versus by wanted underwriting servicing. ask

more and see room piece to that -- maybe there improvement. of if trying Just some all for together there's even kind some

is Sure. Yes, JD. this

had improved X if order, evaluation. fraud think I and So I first the to rank is underwriting

So lot lot we've and invested a lot done and efforts. of kind really a in a to team have our of that headway in make analytics risk

X the of is be I think quality the going second the customer. to on

of evaluate a So a of in as our have customers. mix marketing, bit in we And actually credit. that ideal lot algorithms for seen look that, we way the actually we've part upwards of a a that

above us bottom not to think and that to above credit contributor those are pulling us that by are approved down now companies as another provider getting coming I customers Their back. are is to take offers. us

bit seeing it So we're comes to a when the quality. a of tailwind also

but lot XXXX And capabilities. to One automation is our behind collector think not our actually in initiative then third, I third-party as first is of both capabilities of party far for too introduce servicing some AI-driven as big servicing through well a partners.

that the as which As right and offer XXXX. of us presented channel, right for a in an initiative be right there time tailwind, the will a the bit be at is is customer to to through deployed gets going the right

And remember, XX% of generating Great. leases? is principle takes locations that it it color, the can are And you different new speed? here than there that. to where appreciate remind then to of XX% how up is I can't an the on us significantly Or of these long some locations kind business, BXB XX% get I JD.

right? but mean, for right. work certainly, And on vintage. entire I are deciles We those the you're doesn't mean the of -- think few responsible what the contribute like or I -- other No, the in the decile XX/XX, X our underwriting lot. not top we it's quite off But I a side, whole much process, that bottom have certainly majority.

other, sort segment, But we're reverts are to a about and it that certainly versus when of discrepancies. mean. there as some comes comes by entire that it similar noticed everyone we've find so how segment automotive thinking to And together, tend we down to

automotive sector see to that in we progress. as hopeful I'm similar we'll continue the to stay continue So

will result in adding gains BXB significant this And side. pretty the many on stores so

it in to down upcoming tends On to probably that's that they always an time, so are we'll rollout of we'll that that the really you bit. product. end will in and slower terms always start wants little next it growth, drive more lift. really issue. And part during have embrace when you top that a hand, seasonality holidays, retailers In factor one to portion slow embrace year up sort get ones to some and the really holidays, the significant that early of before And embrace of

We'd like to other to time integrating think the we've when the maybe find within to to to we you've right, directly plateau X- stores making just it those to that in frame, months. process, are plateau to more to that being store or within improvements modifications X-month the of outside some you X do in what started the count teams started stores, X efforts constant, able that and comes

et said, definitely based embrace So by I the it's how we'll upcoming team upon really cetera, -- But be holidays. it. lead individual like there is store the leaders, a compounded time may managers,

Yes, appreciate me. for I last one can that. And then

Just curious, we retail kind component should a quarter? and up, the coming see in X the a holidays expect a revenue bit we see shift whether verticals, of here should to the seasonality given higher mix between fourth of

it's place the frame, for important to originations revenue also a quarter. fully is We and fourth will time that perspective big a remember fourth followed of Christmas grows a the that marketing from lot won't take Thanksgiving us you to a see spend, in think usually for that represented you'll know you'll one having as definitely the that Well, the in Certainly, see these origination counts. be quarter -- component, flexshopper.com but retail while, good that bit. From us. a a

the see You'll until that first in it next itself the the doesn't but fourth take quarter, show place all really of of quarter year.

comes of Maxim question Michael from Group. line the Diana from next The

Okay.

receive that And great been XX%. do of up to some you main want benchmark forward. has you for new you, material like seems the improvement that think? quality. kick improvement to such I think the margin for extremely wrong? the Is was to right that back go the So effect, going I sort reason won't of a It Is or busy all you've and gross probably a sort credit of quarter. that

I we how And over here. at earnings from when Yes. think increase time look

and from more the of least I getting as then as top don't per to do is of more it percentage depreciation where think debt on continuing our anticipate margin, lease to kind We we goal drop side, a are of kind the growing significantly big really contribution the is marketplace. bad profitability at our revenue account up here. more levels retail see today, really, shows our is thing But which to the a added better as products line. debt

of that So IRRs good. we very kind the get with is this customer

ability if bad So . you to place where to to the you get tightening try to continue the restrict decrease debt through than grow. actually you

-- everything we're debt no. on side? said do we having we The done answer are saying can that, the we've is that Now bad

And soft as actually benefit every benefit day are And site, shift produce more mix work see upward out to hard liquidity-constrained more continue existing earlier, have on we team to will a from they try very that and book. the a landing than I our of the servicing hopefully, more evolves our gain here mentioning the you levels. to risk was -- analytics We are, more which as the continue describe to or economy how customers whatever will however natural that have, AI-driven today. will debt capabilities more to bad then

potential kind a level, that bedded keep don't lower we plan certainly for So will it hopefully pressure but down. upward is, we forward, at of is have where going some any that initiatives

choose the I that think people that, need spending in time number gross are that thinking of on they a we what when But to have, and that numerous at Mike, options on that level, site. not to we've to different that are piece makes think comes solve, the our site credit there's time they're our the to times, one think might about we it band is that out, adding there the next good as sites. to sense available I on think they check puzzle at talked they I have the looking profit coming is

we go we've and credit on the been lease-to-own to a pull liquidity and of really our consumers it's convenient longer for than for taken or and site. consumer, hope than their we've fill out that card traditional do focused at say, credit credit is a in need what that or expected website, store we'll a So those card are, purchase, on but debit et don't better have local quality a have options cetera, while, an trying the to option purchase some soon to

we as quarter. how for to given the, continuing about website, don't we of move great into and expand sort much think catch an our could top know, certainly of that's that if place our... there haven't I the low provide we If solved December drive that lot next we I that a before profit, part of last of where credit fourth -- the solve But actually it the would for upside data can and XXX is option right we're of lot yet, us. we a in of where mind. Christmas, of we'll think is have score, say we piece But be think can hit we're trying So before big to I to that gross volume that's sort wave be something the way

in show hopefully, seen effort marketing a marketing up margin we've a more that efficiency. which but I improvement will efficiency, would retail add this some of revenue Yes, either higher net talking already, about, Russ was additional better actually think combination margin with or

The Steve Silva from line next from Research. the Argus question comes of

results. strong well pipeline. as on on provide you I And some color was could the the hoping retail congratulations

that date prepared You your earlier to number expansion the in estimates and on locations year. remarks the blew own guys mentioned past strong the the fact of internal you in the

the to are see pipeline as XXXX? you that initial And can you curious pipeline whether in acceleration continuing estimates? your there . any compared to Just of for the the in how retail factors cite breadth

Sure, of course.

to high planned. to of you Conversations don't potential make so know hunting, of a these out make you're of is seems be to a to in inroads. hit. but them, Tests are you counts, space the but going website it's work always companies sure that contracts being speak. And going being through door sure So retail a sure our high you around just that them, goes is, there when know when similar which make partners continuing. close volume, you finalized, process, just worked very elephant is And other lot are I'm are integrations being number them right? there right lot there, don't you target large, our are to Technology

and of of we we've once sometimes significantly to it's many singles X where deals. that lot hit tended home this for changes to our larger year I homers, approach a a run budgeted estimates. we and a think that we're are inroads and more the sort easier a to But intriguing success we've it make what sitting continue So that take there lot have I becomes is that year, these internally opportunities these for as had especially out that as close we is sort to -- success, have the they reasons, going begets said is -- of and continue of the -- of X home

So a we're the and pace this turned that -- continue forward. going that year the stay normal at one will excited home year to X one to

And the I last may. if color. I one, X appreciate Great.

that down capital lot risk independent over lower place. of debt of the the given implications Given the favorable bring fact GAAP investments has any in company's quarter ability a this to the forward. IT that as are the time and for remains A whether to are return the company already to profitability Curious the expectation offering, moving its the business there further rights

the Just be other offering? whether to of down bring positive utilized to into the the uses there curious income some for or as are independent income could back debt of net that rights business invest to

a question, good Steve. That's

in increased would I I this cost likely amount an that enough point to of net you proceeds transition capital. There lower offering. think a net upon you way think what debt obviously, the it's is -- way to start enough dependent which inflection the rights we income to most at have delevered do that's of find approach. And

business, it's through the growing this, to the on capital through of long making bit around let's focus sort where to right in continue a thoughtful lower it answer, sort of and a I about instinct vacuum, but can, be how little And be so our be let's I in the of of ways might finding to cost thinking -- to all and guess, think decisions difficult let's sort impacts we run. with delever of that us would lead

you'll and to of servicing sort continue given have we that cetera, the there you et of sort this is to successfully a where think of have as think as step we not a would that be able business, -- to of that I costs continue capital-intensive back online start you BXB to success terms business are we grow? that do in grow produce continue headcount, So capital marketing would take to as that nearly growing lot which

like cannot and or just the right? doesn't have we it it BXB doesn't you I that moving business as always economic marketing story, can drive that retailers to. And bit and much side point, little FlexShopper is underwriting you you're mean retailer, sense. but to constraints, grow, more, spend so to a you becomes decisions efficient. the -- could But continue us do is while just Obviously, we The making website you're people into those as to of -- the said driving to make so advantage forward. consumers good retailer we've retailer you would plugging the that spend at and of very dollars to the I a some know make any fewer the as is we continue hopefully of direct-to-consumer site. the with You're less what

continue rather rather make But delever and I restrictive spend that all So of ways. way. grow options go the and said, less to along to flexshopper.com, where would to that like course, capital about really certainly you anymore. And than exploring growing of proving to including you But it's efficient at business. also point get would looking for isn't the through to other about grow debt the them inefficiently, a to point, do decision we really forms continuing you said, it's

closing concludes gentlemen, conference you. this to comments. our would I Russ question-and-answer session. now the Heiser and over Ladies Thank for his hand

Thank Thanks communicating everyone's time, today. look appreciate our next to forward you. holiday for all season We the and questions we results our call. on

concluded. FlexShopper your of Thank you now conference for has The participation.

your now may disconnect You lines.