Open Lending (LPRO) 9 May 232023 Q1 Earnings call transcript

Good afternoon, and welcome to Open Lending's First Quarter 2023 Earnings Conference Call.

As a reminder, today's conference call is being recorded.

On the call today are Keith Jezek, CEO; and Charles Jehl, CFO. Earlier today, the company posted its first quarter 2023 earnings release to its Investor Relations website. In the release, you will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed on this call.

May like and you represent other view of I'd may this the begin, as estimated contain forward-looking today, we to that remind call company's Before XXXX. X, statements that events any disclaims these reflect to Open or Lending obligation circumstances. statements update to future more results with Please for to those or earnings implied differ statements. the today's that factors to and our from concerning refer with could such filings release SEC information cause actual expressed

Please Jezek. ahead. call over to now And pass Keith I'll the Mr. go

you, Open XXXX Thank today Call. Thank good for you everyone. operator, afternoon, Lending's and joining us Earnings for Quarter First Conference

For our the We quarter, results union impact the credit business. at interest faced and economic our were ahead constraints first customers despite on and the expectations our rising our our business. dynamics of continued of impacting rates majority industry liquidity of a

specifically demand-side interest by near We in challenges, non-prime to resulting disproportionately rates, affordability, continue hit are rising consumers as income. being disposable experience and lower

remains average. sentiment its historical below Consumer

market In as in addition, decade. the used over a has for the as it low X been is years past retail

modest of are seeing auto spoke in signs we we improvement February. new in market However, since the last

me our to let highlights. QX Now turn

we to positive million, would their million. million, certified metrics, I at Open loans, generated During the the guidance for for high QX of range EBITDA. exceeded of and Lending revenue, all contributions adjusted to like $XX.X all end results. certified loans, quarter, the team revenue gross adjusted total these We EBITDA XX,XX and $XX.X $XX.X profit thank of members of our

constraints supply are As improving. I mentioned, automobile new the pandemic-related slowly

transportation XX a XXXX. XX% sequentially their at have retail December plants mostly new was in vehicle new compared dealers replenished. April closer At as units, up over up market. intelligently April XX.X% stock, eased, the Taking growing with have fleets new million shortfalls the to improved light are auto look OEMs and chip rebuilt been running semiconductor inventory. are their and have their bottlenecks efficiency, Specifically,

New Fleet inventory highest in expand, continues at up many XX% nearly pandemic. share year-over-year. also vehicle the sales and total and the to since are instances, inventory volume, of year-over-year and increased XX.X% is up XX%

retail While welcome X% has fluctuated were improving The a supply from month-to-month. year declined the has April in down used new dynamics recovery and sales in March X% news and market, in been are from automobile ago. nonlinear new

You average increased an on used but factors supply non-prime of their of The and days, affordability estimated days to getting holding Consumers newer is benefit costs of a at the continues longer, show from near pent-up market in January buyers. retail down XX eventually, autos due repair XX to signs to XXXX. will are currently outweighed auto into facing the maintenance be vehicle. and by demand

that vehicle decline. and prior all-time This age used moderate a the We note the XX as of pent-up dynamic road cycles create have and will on this opportunity vehicle values lending in used for old, is high. an demand open an over interest seen rates average years

an additional incremental is default insurance potential are late the addition of and this this has premium of that effectively current X%. our our credit XXXX. credit for have incremental conditions. credit increases premium With premium we insurance XX% consumer in discount increase appropriately underwriting reflect the economic delinquencies us our other auto additional a result action default Like to adjustment, This March, average second to to categories, compensate value in Accordingly, the continued by our risk factor. in loan pricing tightened as we quarter Recall increase taking. increased vehicle and increased

have and continue adjustments. ability the portfolio and performance, will risk and we always, additional flexibility As to we to monitor make

second the we with along underwriting months. to to of program expand XXXX each. in XX other vehicles brief changes and XXXX, made In term to extend early made and qualifying loan limits XXXX, the turning quarter updates changes we Now on

quarter of loans expected Their unit of default date rollout. of term economics premiums performance due our has As based better-than-expected initial since first modeled. claims higher to yielded XXXX, lower comprised than and XX-month the credit are XX% than performance importantly, our claims to lower stronger and volume, on insurance

ratios program, As and XXXX, on PTI And this with volume. pandemic. are loss quarter ratios PTI with where charged recall, a loans income the we higher higher we PTI tighter payment ratios or initiated has second our at performance a of lower you a may our and put the enhancement of the having premium program is PTI Early to conversely place shows receive in in across new better-aligned constraints premium. onset impact pricing discounted loans positive

most we vehicle This to our change year, increase X the vehicles incremental loan as reduced and years. vehicle. our road would significant without closure with of XX did approvals, but point small risk. the allowable this a I average that certified this high on on to of age importantly, to rates, Earlier age counter out the taking factor flexibility depreciation is used driver increase of increased all-time from provided the a improved not knowledge we most customers provided volume, the much

reinstated processes. channels. from and have the days our for customers menu refinance offers age and change their to sufficient with approval days This Along pre-pandemic vehicle XX funding loan XX update, respective partners time complete policy our exploration the to needed direct our we for

smaller more don't credit unions. recent direct banking a exposure banks how crisis, current to Although landscape the take the to to address wanted I and customer relates specifically, importantly, core moment any to and, banking our we have it to

maximize credit to and the bank The leverage, of conservatively type failed outflows by to to institutions of by balance credit little seen lend of in sheet in regional as the some unions Furthermore, are credit when continue have unions pressured activity members, nature. not more type some managing investment fundamentally comes by to that with not are in failures unions. the their consumers, it mandated they deposit very recent underwritten they been high-quality their experienced loans not engage more conventional they seen members, their are operate The given returns. to of recently serve

more addition, which deliberate loan strengthens credit recession. great it is unions and standpoint, cycles, for asset strategies In liability when to matching during from to position through pricing comes the it their common further evidenced have an as lending

In consumers since place fact, during grew union their a as money. that to deposits actually were safer time, credit they by viewed keep

These XXXX include optimizing further enhancing our last and areas call, sales and environment channels, us our advantages and shared for position market strengthen comes. that and our our areas that refining technology the and talent. offering, and On I effectively support it our competitive believe we are long-term as retaining improvement attracting current focus

investments First, on we seeing in sales, good from made progress are operations and the XXXX. marketing, we

volume of open of quarter share lending. While per increase results the represent of to targeted financial added XXX% QX average our larger we to XXXX XXXX. business closing the share accounts compared institutions shifting to compared with as to target of in us accounts signed a X new goal of a XX The higher our in in added to we achieved XXXX, accounts QX new QX as during up

integration. for continue we financial loan which enroll technology institutions In existing systems successful to we origination operate already have addition, to

to and further improvement reduce anticipate first a to result, processes workflow in of we revenue. the streamlined As continued days onboarding number

as sales team presence well generation including participation in marketing instrumental assets has thought targeted supporting generate with media sales leads channels, the increased team personalized shareable of paid earned on both tool. to a strong lead as enabling program, leadership robust proprietary our Our outreach other event to in based campaign institutions, research, been and industry and production

We believe the us that the resources right we strategy executing in recovers. as industry sales will position our place to have continue go-to-market that well

collaboration our solidify focused and existing customer management engagement their on team Our expand of both base our with program. and account remains use to

reinforce to individual During these lending our as is runoff program members the of especially continue team and our uncertain with assisting One risk relates value their accounts offers, markets. loans. times, growing it the in work our respective focus of existing footprint additional area to mitigation economic auto to their clients

adjudication. progress strong also the In technology needed data to and for notable additional us the we reporting efficiencies enhanced new of completed on but brings to claims front. milestone allows adjudication platform only deploying analytics. We also for QX, collect This our have a internal process platform made major not

allow the process environment. this in initiative. We're to grow enhanced offer internal the will we access a technologies public date, all To major us completing existing in important security cost-efficient for on-prem of manner, bring which to and cloud, in have not a framework, our transition to and milestones readily available achieved services our to

and will clients. a quarter program streamline introduced change was Finally, design our efficiencies workflows the for in partners that and significantly increase significant

positioned be refinance As channel interest our expected protection. lenders returns, to volumes the lender will our with larger and volume support rates partners stabilize

a by hiring expedite We support strong objectives building strategy people and top talent. Open remain Lastly, on retaining talent. focused to growth Lending's on long-term and

ecosystem to Having to businesses of ever. industry to be We We help beyond well-positioned gaining accounts both continue I foster the company through will we driving the continue recession, the the encouraged recover. as in throughout environment measured we diverse members teams, by is team confident and to auto thoughtful market value lenders to underserved great of goal creating for the by remain ability believe new culture pent-up centered the in as managed as I demand as we value a and and strong remainder consumers. environment. to That manage growth execute our our of said, our XXXX to on and on retail as unlock the response signing in committed our collaborative scaled current the add proposition the position mission expect and players team XXXX. various in be about sector and continues to meet be to business. will auto I remain our individuals, and and our share through

well Charles? to to with turn further QX. the to the as outlook as our in provide review Now like would QX I for detail call on over Charles thoughts that,

Thanks, Keith.

of quarter XX,XXX is first administration in our first business for other resulted due fees compared fees claims a quarter as XX% million. economics. the program first quarter of $XX.X which down to was revenues During of and revenue down was the was XX,XXX certified XXXX, in while million share program in compared only million revenue note mix XXXX, fee of quarter in unit down revenue loans first $XX.X XX% of million, The XXXX. in quarter of $XX.X were of the compared To total first certified our certified loan It were to volume higher and to $X.X XXXX, the important certified, $XX.X XXXX of that facilitated first loans we XXXX break Program total to represented to XXXX. the quarter million. quarter profit first the fee the

period. first loan Turning I quarter net first contracts, share. attributable receipts to that the expected million to contract is expected per monthly insurance share earned of be of reduce program. the expenses over The was paid $XXX and $XX.X new comprised share less of XXXX from or remind profit our the everyone in less as certified originations or want to assets revenue of Profit the to profit premiums $XX.X to our the compared per quarter to certified is in share us XXXX. XX%, carriers the with profit the revenue loan the claims million each $XXX life associated

Used tracks positive Vehicle in wholesale XXXX, which business quarter the our change profit estimate first auction used In one to evaluating recorded share period. in and change Manheim related million of factors car we is estimated a dealers-pay at each in for future cars prices vintages. historic industry Value the Index, $X.X The consider we

nearly XX% XXXX, you in fell decline the in of index. As X-year the largest this may the history recall, index

compared was This increase quarter Accordingly, our first the Manheim the a impact XXXX. in not X.X% unseasonable as index However, seen to increase on positive increased was an contract XXXX, asset. since the for December. this

the longer positive due slower impacting factor elevated loans portfolio than was remaining rate speeds the Another contract interest and prepay the asset expected. in to environment

the frequency. was quarter loan delinquencies revenue offset the million and first change first margin the $XX.X compared as first higher-than-anticipated of profit result The were on in gross projected fourth of Gross expenses estimated primarily stress default additional XXXX periods. comparison, claim technology. rising in of controlled a $XX to quarter approximately focus due on revenues members XXXX, by million was is first decrease support XX% and events strategy loans a incurring the in million million general quarter our the $XX.X future million quarter in XXXX, was during In and positive and positive approximately historical environment. to auto income first to of in from quarter XXXX. to a to of applied included the is XXXX. of million incremental increase XXXX loan $X.X quarter XXXX certified Both our go-to-market Selling, in $XX.X $XX.X investment the first measured and fourth million in approach of the of the compared and year-over-year margin and of the result million quarter $XX.X XXXX. XX% Operating of team compared quarter to in sales current administrative were to gross quarter to our cost $XX.X the in compared first of originated XXXX our in The in portfolio

in year and of our total assets, Basic $XX.X cash, was of net $X.XX $XX.X $X.XX earnings earnings with million We be first of of million XXXX as cash our $X.XX the in We $XX.X as first of XXXX $XX.X release. unrestricted the was contract at first in quarter $XX.X and press the the was of before $XX.X for quarter liabilities, for reconciliation during debt. in measures an found for income million approximately of total the price XXXX shares had of assets. in X.X at $XXX.X in million previous share a of income share. quarter million is Net average million outstanding financial EBITDA which stock million in The repurchasing per exited compared to GAAP the XXXX. of million which first million per $XXX.X million We of to quarter the net back $XXX.X compared common There million quarter. quarter tax million that was the $XXX.X the deferred in to $XX.X can was million non-GAAP an compared XXXX. in Adjusted to $XX.X in first quarter quarter diluted of generated assets, was

under million remaining We our board-approved program. have share repurchase approximately $XX

to QX on 'XX. moving Now our guidance for

high may supply feel affordability on and near began demand. ago to pressure the overall have and continuing our costs to upward troughed compared financing While of consumers impact improving, and are year non-prime a and the

prior in continuing to to going effects data, Conversely, certainty that forward, guidance we The have would our on provide tighten to be to Reserve's we cycles. for the affordability challenge. monetary more stabilize, our visibility indications growth, beginning to expect is be but continues feel to more initiative dovish portfolio see has recessionary business our felt We Until of we into on to the based a monitor an of policy. Fed analysis auto should it looking are basis. Federal prudent clearly continues improvement sector a and this the our customers' lean auto quarterly

we EBITDA following million million. to the for XX,XXX adjusted follows: be to to elevated guidance, XXXX of and loans quarter continued and and of $XX between car and target index $XX the total our elevated $XX,XXX, into ago compared used and borrower. year interest Guidance second the consideration, a taken as to of our between values, total borrower the score between due revenue levels, is $XX credit be factors non-prime inflation, to In have certified financial $XX the affordability be million million, condition and rates near the

attractive at which common We thoughtfully and have business us a balance to has prices. invest stock our in repurchase sheet, our allowed strong

We While your would well today, us will for maintaining financial fundamentals very like us take flexibility everyone now and that questions. joining as will demand position thank we improve. to

JMP The David Instructions] first line Securities. Scharf question of the comes with [Operator from

the out sources. Keith, union at on credit just core the start funding I revisiting wanted to landscape

there? from mentioned, origination invest auto rise Just provide pool relative on my color over to trends are overall looking I'm sort they you're last update rates, at terms at you the in the Can know I few they or on But of out the of there. of more you months. quarter, and of just competitive have with notes in terms classes an of time, loans the just saying of kind obviously probably asset other kind the way classes how particularly I asset attractive now. So another to in had what last deposit appreciate alternatives that seeing in

the Yes, have I thoughtful Credit unions been appreciate wonderfully question. certainly resilient.

first producing loan the new in For of leadership of maintained out their loan originations they all XXXX, quarter there. XX% originations

their over first they've position place maintained So than banks captives.

So do they to are continuing very, well. very

firsthand loans As fronts. deposits, know you just with they've that know, through they're conversations working all and large And those been them And I say to liquidity way sourced the have replenish diligently X that runoff of securitizations. to existing for of resilient. on of through the our principals customers they're through progressing at some I on incredibly is through

you and XX% quarter-on-quarter we're base. at credit from the out back our look actually same time channel at for look the If core last numbers refi only, QX year customer unions up credit for our union

credit are So very the resilient have doing unions a been wonderful job. and very,

Got topic. it. helpful. the guess, the talk staying on one, I I on you effectively When the as union a can No, premiums same assumes expense. maybe added general you that of number policies, sort assume follow-up, And that's increase about, credit default

product the on seeing what based of when you premium does your competitors, how that another implement increase? impact you're Just from competitiveness

sure. for Yes,

value One success-based is consumer. with into of cost that all program the only. the secondly, of have they're propositions foremost, we all the of rate are, the the And that first contract enduring rolled then and

of union themselves. end none are flowed borne these so the consumer. credit to the costs They're And through by

all effect or increasing our premium, our partners all. matter so for of of any the we raised the the it credit partners expenses union And when doesn't of at have at that

account this recent the have and initiative. been decreases into model increases very in of in competitiveness the performance pleased rate take or and most accordingly with we of of Now, resulting volume course, the

Bob the of question comes The line with William from Napoli next Blair.

James of Napoli. for you land Spencer the is if wondering I to at some could This lower your guidance the might that TAT talk the through end swing you on range? lead was Bob or higher within factors end maybe of the

Yes, is Spencer. sure. Chuck, This yes,

XX auto environment the the you As prepared the look actually think the macro about up, obviously, unseasonably it comments, And in the as since environment year, industry 'XX. continued at, the sentiment not used in we where where the last Manheim I points values, went XXX about it's last, elevated overall inflation, that guess guidance, is interest rates. seen in obviously, car we rates over over unprecedented now as saw indicators The leading the at. and which consumer rate well actions

all things, those is being of maybe think on as improving if a still the primarily the So impact. timing and which that about that's affordability business demand bit, of talk we used, And but new the front. affordability, supply our is you

So that near improves, macro. consumer non-prime to more will us help the for to as exceed or is midpoint high the overall affordability that the around there improvement the or just and end get

you say hearing midpoint would improvements that of affordability. Is in correctly And fair? maybe Okay. you the guidance incremental assumes I'm some that

Yes.

going I we we on on out to And the pointed run in exceeded the and And based midpoint all SERT think business the can really call, revenue everything we in were and environment we're we adjusted can. and current Keith what our the of control collective as EBITDA execute to QX. do fronts. conditions. good of the And we guide team about feel in the this -- midpoint proud efforts of

question the Joseph Vafi next Canaccord. line comes The with from of

on partners. insurance first update carrier our Maybe an

I on And last news other a have the on comments that quarter CNA, how ones volumes the to and is And any going then Given each? relative carriers? follow-up. the to existing

Yes. from Joe, Good hear to this Chuck. is you.

a of still you, an with are it since of when written As many over for in quarter this transitioning time, They're balance transition to not us the We're they'll been pool new write be you notice the they've I'll But far loans XXXX CNA. good mentioned, after new in but that gave notice very the on. last year. that keep business. they'll it's that writing through so write carrier still they came mind, CNA year. tell business the insurance

that transition. it's good and orderly, it's really a feel relationship, we good So about

the think have we key that X today. our carriers is I with

We of we beyond have and plenty beyond. business look XXXX our of 'XX as and capacity for forward growth our into

our the about So really we feel collectively. of capacity carriers X good

it there's car That's insight kind a and out. soft used feels could market too. kind landing, improve helpful. looking And a increased if this at then landing would of we assume the some Keith I'd level down in may used be high hard prices coming here. front just provide that volume, can potential of It scenarios like shirt play pretty on more if Obviously, see inventories quickly, that quickly, but

about moving pricing then there. So see here and rather car how inputs your I may if the underwriting got recover quickly. and to a we were are kind of we car with that relative parts the interest you And your used few affect think thinking model? used obviously, how to higher rates other market inventories to

So color just any on that.

in Yes. question, I mean at and market. I pretty it captured looking compounded And being think affordability, Keith with we well have is we're this problem which just then Lowe's supply-side at enumerated. and used all your speaking. that also problems by is you volumes certainly the Yes,

has highs December, affordability as X it's The ticked good the think on all-time track at I recently the side pretty better. regularly last that is which as up months. down CoxMoody Index, getting been slightly equation, the we over of

especially to sign affordability that's especially of of relief cohort affordability hits So consumers our a little hard. and

to at a historical improvement seeing norms. little there, of we're sign still elevated compared So affordability very levels remains albeit

'XX of adjustment to our put higher, to to is in used where risk thing the we're in the appropriately in, the and it in we environment that we the an that's And environment. late for premium one taking we prudent I'd adjustment the elevated price March, felt premium we this -- car did are is that similar obviously to increase collateral add values on discussed, QX what was put for

as reward a as really move the So that's we risk economics company the preserve and well to take. unit protect for our

Vincent Caintic with line question next Your Instructions] Stephen. comes of to the [Operator

it there like again. reflected incentive they've programs the discussions and up pick First vehicles. seem back or question, just maybe new if can discussions wondering and be with you're OEM and improving volumes if to tracking specific And was started or improving terms volumes, with some in of seeing maybe been OEMs does I OEMs we've

the and Yes. question, Keith. I this is appreciate

We so to pleased this up quarter-on-quarter, QX QX year, to They're sequentially customers. quarter are very of they're year-on-year, OEM captive with year. current so up this last our compared

think by little you the in on that and of I a we're our always driven the lift new pleased in So kind hit with see to little customers, SAAR nail that head, and seeing the bounce incentives to to is them. partner flowing through pleased

As it safely including our That's relates prospects, had I large and have we've to prospects can we of pipeline in future ever very sources. before. OEM the than financing that banks number say captives, largest

Our it's as been, CRA, of the of assets. certainly certainly checking value as as requirements boxes such ever strong anticipating proposition depreciation is legislative

we're So very pleased.

Of longer course, these sales others. in cycles are than nature

we're making we the progress be with but front. cautiously to that so on optimistic And pleased very want

following the just And Great. profit Okay. on up share.

share underwriting I expecting for just So now what your down highlighted if understanding volatile. macro the that you the you slides is that are changes wondering about should assumptions that profit comes prospective was in that built into are March. prospective tightening be that back talk changes and were or completely could you maybe

ratio. XX,XXX that search QX, we'll And on the originated I'll call. in what we share we in I take unit booked got Yes, the kind What loss discussed to just back year-end loss our dovetail question. this want the we've done of the to Chuck. XX% that, or that's those $XXX And point economics. XX% is to is a That's ratio. a at target are stress benchmark to out XX% profit

of that think we stress We've future a conditions. we've model going you side to additional originations the And kind a process are $XXX severity in as default will risk the we're there's our tied of profit that's as into I about talented and to with of or continue a risk million involved is think feel Manheim is is place where number a very process, lot to the a about Keith the good for as as the closely good are So the today. inputs. It's the you quarterly and obviously, built to in predicting current and value prepay put as at team, team, we safeguard this rest loss, share We'll sell speeds. well periods default like as premium, on. in and vehicle our discount adequate new we number well putting originations and got of it robust frequency raise very which

the is a positive our And what unseasonably, rise defaults do but in in up as we on as Manheim was impact in defaults that saw that this the into delinquencies the share profit because as the change went and in we estimate, quarter future. we project stress well

in we'll estimate. as the and forward, was current and stress about call it, XXX,XXX facts So that's on obviously, it's quarter. change a the QX feel and But we've good of circumstances we where into each are But about vintages are. address it kind got it change, think on like books we that think adequate if future the you based, that in CIE we realized and prospective feel then that net,

comes the with Peter next from Heckmann Davidson. D.A. line The question of

I mean -- second I didn't I on the what's guess, thinking your in hear But and I you're the about combined sustainable? second what you the not you OEMs Do you like guidance? giving for year, you dynamics could implied talk apologize had. know some quarter think but comment, behind for be the and if are up you whether guidance of actually I about XX% Can that looks that year-over-year.

our sequential OEMs. quarters is this Chuck. growth last in Peter, of Yes, X with we've been pleased the the couple

increase If from you're in a about XX% about and is you QX QX, year-over-year X%. think it's -- sequentially right. about absolutely OEMs,

QX in with slightly a back and at we be pleased that I'd And we it'd were and up think incentives put see are have back encouraged maybe were then ticked we to comparable guide tell better. bit. that we where we that you QX But to in range OEMs in the that QX in our improvement as volume picking QX. So out, that

to in to in And it partners you have quarter then hear. I any good your any would with and that? comment, kick imply don't you material to Refi way visibility That's expect do then that guess, really second that in, so the

a That's good release Yes. website question. Refi, went got supplemental out. the our the posted that when to

that to see XX%. overall right QX X is search compared ago, X% Refi 'XX can at our of You year of

So about the no is taken continue for change. that Refi a that big returns or environment will in QX. X In action XX talked rate with our we the week but QX the we guide, XXX-plus the year monitor we clearly, last that, Especially don't big during guide action. and Fed's current and Fed anticipate me. week, points And excuse to with has bps change that late time, the this there

Right.

And first the down revenue revert Okay. sneak or infer trying if just guidance. could That's high. $XXX I then the that program you Again, in. just quarter seems kind It doesn't average one from would second-quarter more the appear at to implied per average of from just closer like back helpful. to least -- it se in fee revert

Yes, good would be XXX say on for range plus estimate. the I'd that the a in program fee fee program

the from We James. Raymond a Instructions] John of have question Davis [Operator with line now

just may fund behavior curious financial may depending on Any and to this FIs. kind the -- and missed kind earlier, commentary on liquidity or want But have, not giving banks from pullback of from institution. unions I Keith, I loans, obviously, a if in your just liquidity. I on institutions, change they on the just willingness the financial but challenges of your these apologize that credit

for we Yes. did And actual credit that XX%. is of customer Keith. to and certified this core Certainly, happy restate what the others ex Refi, mention is quarter-on-quarter have union number it. and loans base, earlier is our seen up I

are and we So into and generation #X talk with that these their liquidity challenges origination banks making they've in everything about captives. loans, despite to restraints, they maintained still loan compared position

they're well are program. they very doing well and our So strong on are and doing

this just kind seasonality guide, helpful. XQ. you going think best are [indiscernible] QX lot The don't a Anything of historically, That's as And from then obviously, I XQ think, via perspective? there's down is and on. guess? is of like your implies, down QX. certs about guide that Okay. guys I to flat in things the know different from if we Or slightly public a CERT been went

helpful. Refis Just way, any any color to expected in would come be meaningful heard guide? are the there behind not the but context a I back

Yes. so The call Yes, Chuck. XX,XXX down be was the of of we the is, the at to exited, the which John, XX,XXX. midpoint CERT, it, at midpoint guide CERT it's end QX where guide of high would that slightly

out company refunds. high with March I'd March, for the point So seasonally is the month just tax a

to about second quarter, So about if want just in and that good a and out trends I month. about But as our we guide felt the as monitor is we March April we our but to April, feel guide, May through into out, the continue good point forecast comparison well high there. think June, to we'll seasonally put

And we Blair. Bob William Napoli have a follow-up with question from

in breakdown just bank follow-up. bank This again. advantage that customers, you channel? I'm and remind any of certain a us softness and the you with with total unions for that's piece a is the banks small see to taking between night happen probably clarify credit of albeit Spencer if maybe credit union that and channel just core Could busy everyone

with of supplemental. we the, for I'd and for CERTs the are breakdown out. credit that credit call Yes. of We looking you of the quarter? is primarily it, say It's credit up Since just XX,XXX point banks our starts XX% unions, versus XX%, banks. regional roll I'd just between that unions in did union the that banks the

Understood.

So be XX at, the I XX. XX,XXX numbers that's looking should what to

credit. right. That's And that's primary right. That's

There time. to our back the I'll continue you. and your are closing remarks. presentation further call now with at Please turn no questions this

today. possible. that with all for thank exhibited just pleased I of us we that made joining again, And you you. employees results the for Well, to I sincere We're want thank Thank send Lending and QX. Open to to heartfelt the everybody want a it

Thanks a Have day. great us. for joining

disconnect the for your That ask to please for your today. conference participation does conclude thank call line. We you you and