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Atlanticus Reports Fourth Quarter and Full Year 2022 Financial Results

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ATLANTA, March 14, 2023 (GLOBE NEWSWIRE) — Atlanticus Holdings Corporation (NASDAQ: ATLC) (“Atlanticus,” “the Company”, “we,” “our” or “us”), a financial technology company which enables its bank, retail and healthcare partners to offer more inclusive financial services to millions of everyday Americans, today announced its financial results for the fourth quarter and full year ended December 31, 2022. An accompanying earnings presentation is available in the “Investors” section of the Company’s website at www.atlanticus.com or by clicking here.

Financial and Operating Highlights

Fourth Quarter 2022 Highlights (all comparisons to the Fourth Quarter 2021)

  • Total operating revenue increased 24.1% to $268.7 million.
  • Purchase volume increased 1.4% to $625.2 million.
  • Net income attributable to common shareholders of $17.7 million, or $0.98 per diluted common share.

Full Year 2022 Highlights (all comparisons to the prior year period)

  • Total operating revenue increased 40.6% to $1.05 billion.
  • Purchase volume increased 33.2% to $2.7 billion.
  • Total number of accounts serviced1 at period end increased 22.3% to 3.3 million.
  • Over 600,000 (net) new serviced1 accounts added during the year.
  • Managed receivables2 increased 31.6% to $2.1 billion.
  • Net income attributable to common shareholders of $110.5 million, or $5.83 per diluted common share.

1In our calculation of total accounts serviced, we include all accounts with account activity and accounts that have open lines of credit at the end of the referenced period.
2Managed receivables is a non-GAAP financial measure and excludes the results of our Auto Finance receivables. See Non-GAAP Financial Measures for important additional information.

Management Commentary

Jeff Howard, President and Chief Executive Officer at Atlanticus stated, “We are pleased to report continued expansion despite the ongoing inflationary pressures felt across our serviced customers and partners. Both of our operating segments experienced meaningful growth with managed receivables and revenue increasing approximately 32% and 41% respectively during the year despite tightening in underwriting that led to materially slower growth in the second half. Even as receivables performance is coming off of historic lows in delinquency in 2020 and 2021, we are proud to report net income of $111 million and earnings per share of $5.83 for the year.

“Over our 25 plus year history, our actions have been guided by, in order of priority, asset level profitability, capital availability, then growth. As the consumers we serve experienced a rapid rise in the cost of living, we prudently revised our outlook for asset level profitability and rapidly deployed underwriting changes, portfolio management strategies, and customer service and collections programs to help everyday Americans adjust to increases in costs they care about the most – gas, food, and housing. Beginning in the third quarter of 2022, we have seen continued improvement in early asset performance metrics as a result of the actions mentioned, reductions in prices, particularly gas, and increases in wages experienced by the customer segment we serve.

“We are also confident in our capital availability, as we have a strong cash position, attractive fixed rate financings, and no material financing need in 2023. As a result, as we observe improvements in the performance of the consumers we serve, we will look to increase our growth rate, albeit not likely to the rate we achieved in the first half of 2022.

“Our ongoing investment in technology continues to bear fruit. Our bank, retail and healthcare partners benefit from our ease of integration. Our marginal cost to service accounts has declined by almost 50% over the previous 5 years allowing us to bring lower cost products to our partners’ customers. We see further opportunities to deploy technology, including artificial intelligence, to enhance the customer journey. Most importantly, the customers we service benefit from a unique customer experience through our ever-expanding Financial Empowerment Platform that offers curated features and functionality to help better manage their finances – to Empower Better Financial Outcomes.

“Although we have prudently slowed our rate of growth in the near term, we believe we are well positioned for sustained long term growth. The addressable market for our general purpose, private label, and healthcare categories is estimated to exceed $1 trillion in annual purchase volume. 

“Our decades of experience, unique combination of service offerings, and ample market size within each of our business lines creates substantial opportunity for long term value creation for our shareholders.”

Financial Results

($ in thousands, except per share data)

For Three Months Ended
December 31,
For Year Ended
December 31,
2022   2021   % Change   2022   2021   % Change  
Total operating revenue $ 268,664   $ 216,524   24.1   $ 1,046,104   $ 743,855   40.6  
Other non-operating revenue   429     743   nm     809     4,201   nm  
Total Revenue   269,093     217,267   23.9     1,046,913     748,056   40.0  
                     
Interest expense   (24,002 )   (15,669 ) 53.2     (81,851 )   (54,127 ) 51.2  
Provision for losses on loans, interest and fees receivable recorded at net realizable value   (542 )   (11,986 ) (96.5 )   (1,252 )   (36,455 ) (96.6 )
Changes in fair value of loans, interest and fees receivable and notes payable associated with structured financings recorded at fair value   (162,206 )   (73,752 ) 119.9     (577,069 )   (218,733 ) 163.8  
Net margin   82,343     115,860   (28.9 )   386,741     438,741   (11.9 )
                     
Total Operating Expense   52,561     52,905   (0.7 )   237,469     189,729   25.2  
Loss on repurchase and redemption of convertible senior notes                 29,439   nm  
Net income   23,690     49,839   (52.5 )   134,612     177,789   (24.3 )
Net loss attributable to noncontrolling interests   301     138   nm     985     113   nm  
Net income attributable to controlling interests   23,991     49,977   (52.0 )   135,597     177,902   (23.8 )
Preferred dividends and discount accretion   (6,317 )   (6,309 ) nm     (25,076 )   (22,363 ) nm  
Net income attributable to common shareholders   17,674     43,668   (59.5 )   110,521     155,539   (28.9 )
Net income attributable to common shareholders per common share – basic   1.22     2.91   (57.7 )   7.55     10.32   (26.8 )
Net income attributable to common shareholders per common share – diluted $ 0.98   $ 2.13   (54.0 ) $ 5.83   $ 7.56   (22.9 )

*nm = not meaningful 

Managed Receivables

Managed receivables increased 31.6% to $2.1 billion from December 31, 2021 largely driven by growth in the private label credit and general purpose credit card products offered by our bank partners. Total customers served increased 22.3% to 3.3 million. Recent recoveries in consumer spending behavior have helped increase the overall combined managed receivables levels and we currently expect this trend to continue into 2023, although we expect the pace of growth to slow when compared to earlier periods. 

Total Operating Revenue

Total operating revenue consists of: 1) interest income, finance charges and late fees on consumer loans, 2) other fees on credit products including annual and merchant fees and 3) ancillary, interchange and servicing income on loan portfolios. 

During the quarter and full year ended December 31, 2022, total operating revenue increased 24.1% to $268.7 million and 40.6% to $1.05 billion, respectively. We have higher growth in our acquisitions of general purpose credit card receivables (which tend to have higher yields and corresponding charge-offs) than in our acquisitions of private label credit receivables. This relative mix of receivable acquisitions led to an increase in our corresponding revenue.

We continue to experience period-over-period growth in all segments of our business including private label credit and general purpose credit card receivables and to a lesser extent in our CAR receivables. We expect net period-over-period growth in our total interest income and related fees for these operations for the majority of 2023. Future periods’ growth is also dependent on the addition of new retail partners and the expansion of existing relationships to expand the reach of private label credit operations and effective marketing for the general purpose credit card operations.

Interest expense

Interest expense was $24.0 million and $81.9 million for the quarter and year ended December 31, 2022, respectively, compared to $15.7 million and $54.1 million for the quarter and year ended December 31, 2021, respectively. The elevated expenses were primarily driven by the planned increases in outstanding debt related to the addition of multiple revolving credit facilities during 2021 and 2022.

Outstanding notes payable, net of unamortized debt issuance costs and discounts, associated with our private label credit and general purpose credit card platform increased from $1,223.5 million as of December 31, 2021 to $1,586.0 million as of December 31, 2022. Recent increases in the federal funds rate have thus far had a modest impact on our interest expense as over 90% of interest rates on our outstanding debt are fixed.

We anticipate additional debt financing over the next few quarters as we continue to grow coupled with increased effective interest rates resulting from recent and additional anticipated federal funds rate increases. As such, we expect our quarterly interest expense for these operations to increase compared to prior periods.

Provision for losses on loans, interest and fees receivable recorded at net realizable value

Provision for losses on loans, interest and fees receivable recorded at net realizable value decreased to $0.5 million and $1.3 million for the quarter and year ended December 31, 2022, respectively, compared to $12.0 million and $36.5 million for the quarter and year ended December 31, 2021, respectively. This reduction primarily reflects the effects of our adoption of the fair value option, which has resulted in a significant decline in the outstanding receivables subject to this provision.

We expect that our provision for losses on loans will increase modestly in 2023 (when compared to comparable periods in 2022) in relation to growth in the underlying Auto Finance receivables and increases in delinquencies, reflective of delinquency levels returning to historically normalized levels (i.e., those periods prior to COVID-19 and the related government stimulus programs).

Changes in fair value of loans, interest and fees receivable and notes payable associated with structured financings recorded at fair value

Changes in fair value of loans, interest and fees receivable and notes payable associated with structured financings recorded at fair value increased to $162.2 million and $577.1 million for the quarter and year ended December 31, 2022, respectively, compared to $73.8 million and $218.7 million for the quarter and year ended December 31, 2021, respectively. This increase was largely driven by growth in underlying receivables coupled with increased fee billings on those receivables.

Fee billings on our fair value receivables increased from $366.3 million for the year ended December 31, 2021 to $874.7 million for the year ended December 31, 2022. We include expected market degradation in our forecasts to reflect the possibility of delinquency rates increasing in the near term (and the corresponding increase in charge-offs and decrease in payments) above the level that historical and current trends would suggest. Offsetting this was a reduction in the discount rate applied to the net cash flows associated with these investments.

We expect our change in fair value of credit card receivables recorded at fair value to increase throughout 2023 consistent with growth in these receivables.

Total operating expense

Total operating expense decreased 0.7% in the quarter but increased 25.2% for the full year when compared to the same periods in 2021.

For the quarter, operating expenses decreased primarily driven by reductions in marketing, corresponding to strategic underwriting, tightening and selectively slowing our growth in receivables and new customers on behalf of our bank partners.

On a full year basis, operating expenses increased for the following reasons: 1) increases in salaries and benefit costs related to both the growth in the number of employees and inflationary compensation pressure, 2) increases in card and loan servicing expenses and marketing and solicitation costs due to growth in receivables, and 3) other costs associated with occupancy or other third party expenses including legal and travel expenses.

We expect some continued increase in portions of this cost for 2023 as we hire talent to meet our expected growing needs to manage increased levels of marketing, origination, and receivables.

Net Income Attributable to Common Shareholders

Net income attributable to common shareholders decreased 59.5% to $17.7 million, or $0.98 per diluted share, and 28.9% to $110.5 million, or $5.83 per diluted share, for the quarter and year ended December 31, 2022, respectively.

Share Repurchases

We repurchased and retired 1,674,161 shares of our common stock at an aggregate cost of $88.9 million, for the year ended December 31, 2022.

We will continue to evaluate the best use of our capital to increase shareholder value over time.

About Atlanticus Holdings Corporation

Empowering Better Financial Outcomes for Everyday Americans

Atlanticus’ technology allows bank, retail, and healthcare partners to offer more inclusive financial services to everyday Americans through the use of proprietary analytics. We apply the experience gained and infrastructure built from servicing over 18 million customers and over $30 billion in consumer loans over more than 25 years of operating history to support lenders that originate a range of consumer loan products. These products include retail and healthcare private label credit and general purpose credit cards marketed through our omnichannel platform, including retail point-of-sale, healthcare-point of-care, direct mail solicitation, internet-based marketing, and partnerships with third parties. Additionally, through our CAR subsidiary, Atlanticus serves the individual needs of automotive dealers and automotive non-prime financial organizations with multiple financing and service programs.

Forward-Looking Statements

This press release contains forward-looking statements that reflect the Company’s current views with respect to, among other things, its business, operations, financial performance, revenue, amount and pace of growth of managed receivables, total interest income and related fees and charges, debt financing, liquidity, interest expense, operating expense, fair value of credit card receivables, provision for losses on loans, value creation for shareholders, technology investments and economic developments. You generally can identify these statements by the use of words such as “outlook,” “potential,” “continue,” “may,” “seek,” “approximately,” “predict,” “believe,” “expect,” “plan,” “intend,” “estimate” or “anticipate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These risks and uncertainties include those risks described in the Company’s filings with the Securities and Exchange Commission and include, but are not limited to, risks related to the extent and duration of the COVID-19 pandemic and its impact on the Company, bank partners, merchant partners, consumers, loan demand, the capital markets, labor availability, supply chains and the economy in general; the Company’s ability to retain existing, and attract new, merchant partners and funding sources; changes in market interest rates; increases in loan delinquencies; its ability to operate successfully in a highly regulated industry; the outcome of litigation and regulatory matters; the effect of management changes; cyberattacks and security vulnerabilities in its products and services; and the Company’s ability to compete successfully in highly competitive markets. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.

Contact:
Investor Relations
(770) 828-2000
[email protected]

Atlanticus Holdings Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

    December 31,     December 31,  
    2022     2021  
                 
Assets                
Unrestricted cash and cash equivalents (including $202.2 million and $209.5 million associated with variable interest entities at December 31, 2022 and December 31, 2021, respectively)   $ 384,984     $ 409,660  
Restricted cash and cash equivalents (including $27.6 million and $75.9 million associated with variable interest entities at December 31, 2022 and December 31, 2021, respectively)     48,208       96,968  
Loans, interest and fees receivable:                
Loans, interest and fees receivable, at fair value (including $1,735.9 million and $925.5 million associated with variable interest entities at December 31, 2022 and December 31, 2021, respectively)     1,817,976       1,026,424  
Loans, interest and fees receivable, gross (including $369.6 million associated with variable interest entities at December 31, 2021)     105,267       470,293  
Allowances for uncollectible loans, interest and fees receivable (including $55.1 million associated with variable interest entities at December 31, 2021)     (1,643 )     (57,201 )
Deferred revenue (including $8.2 million associated with variable interest entities at December 31, 2021)     (16,190 )     (29,281 )
Net loans, interest and fees receivable     1,905,410       1,410,235  
Property at cost, net of depreciation     10,013       7,335  
Operating lease right-of-use assets     11,782       4,016  
Prepaid expenses and other assets     27,417       15,649  
Total assets   $ 2,387,814     $ 1,943,863  
Liabilities                
Accounts payable and accrued expenses   $ 44,332     $ 42,287  
Operating lease liabilities     20,112       4,842  
Notes payable, net (including $1,586.0 million and $1,223.4 million associated with variable interest entities at December 31, 2022 and December 31, 2021, respectively)     1,653,306       1,278,864  
Senior notes, net     144,385       142,951  
Income tax liability     60,689       47,770  
Total liabilities     1,922,824       1,516,714  
                 
Commitments and contingencies                
                 
Preferred stock, no par value, 10,000,000 shares authorized:                
Series A preferred stock, 400,000 shares issued and outstanding at December 31, 2022 (liquidation preference – $40.0 million); 400,000 shares issued and outstanding at December 31, 2021 (1)     40,000       40,000  
Class B preferred units issued to noncontrolling interests     99,950       99,650  
                 
Shareholders’ Equity                
Series B preferred stock, no par value, 3,204,640 shares issued and outstanding at December 31, 2022 (liquidation preference – $80.1 million); 3,188,533 shares issued and outstanding at December 31, 2021 (1)            
Common stock, no par value, 150,000,000 shares authorized: 14,453,415 and 14,804,408 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively            
Paid-in capital     121,996       227,763  
Retained earnings     204,415       60,236  
Total shareholders’ equity     326,411       287,999  
Noncontrolling interests     (1,371 )     (500 )
Total equity     325,040       287,499  
Total liabilities, preferred stock and equity   $ 2,387,814     $ 1,943,863  

(1) Both the Series A preferred stock and the Series B preferred stock have no par value and are part of the same aggregate 10,000,000 shares authorized. 


Atlanticus Holdings Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)

    For the Year Ended  
    2022     2021  
Revenue:                
Consumer loans, including past due fees   $ 786,235     $ 518,783  
Fees and related income on earning assets     217,071       194,466  
Other revenue     42,798       30,606  
Total operating revenue, net     1,046,104       743,855  
Other non-operating revenue     809       4,201  
Total revenue     1,046,913       748,056  
                 
Interest expense     (81,851 )     (54,127 )
Provision for losses on loans, interest and fees receivable recorded at net realizable value     (1,252 )     (36,455 )
Changes in fair value of loans, interest and fees receivable and notes payable associated with structured financings recorded at fair value     (577,069 )     (218,733 )
Net margin     386,741       438,741  
                 
Operating expense:                
Salaries and benefits     43,063       34,024  
Card and loan servicing     95,428       75,397  
Marketing and solicitation     62,403       56,635  
Depreciation     2,175       1,493  
Other     34,400       22,180  
Total operating expense     237,469       189,729  
Loss on repurchase and redemption of convertible senior notes           29,439  
Income before income taxes     149,272       219,573  
Income tax expense     (14,660 )     (41,784 )
Net income     134,612       177,789  
Net loss attributable to noncontrolling interests     985       113  
Net income attributable to controlling interests     135,597       177,902  
Preferred dividends and discount accretion     (25,076 )     (22,363 )
Net income attributable to common shareholders   $ 110,521     $ 155,539  
Net income attributable to common shareholders per common share—basic   $ 7.55     $ 10.32  
Net income attributable to common shareholders per common share—diluted   $ 5.83     $ 7.56  
                 

Atlanticus Holdings Corporation and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)

    Series B Preferred Stock   Common Stock                           Temporary Equity  
    Shares Issued   Amount   Shares Issued   Amount   Paid-In Capital   Retained Earnings (Deficit)   Noncontrolling Interests   Total Equity   Class B Preferred Units   Series A Preferred Stock  
Balance at December 31, 2020     $   16,115,353   $   $ 194,950   $ (117,666 ) $ (774 ) $ 76,510   $ 99,350   $ 40,000  
Accretion of discount associated with issuance of subsidiary equity                 (300 )           (300 )   300      
Preferred dividends                 (22,063 )           (22,063 )        
Stock option exercises and proceeds related thereto         526,015         1,885             1,885          
Compensatory stock issuances, net of forfeitures         56,654                              
Issuance of series B preferred stock, net   3,188,533               75,270             75,270          
Contributions by owners of noncontrolling interests                         387     387          
Deferred stock-based compensation costs                 3,240             3,240          
Redemption and retirement of shares         (1,893,614 )       (25,219 )           (25,219 )        
Net income                     177,902     (113 )   177,789            
Balance at December 31, 2021   3,188,533   $   14,804,408   $   $ 227,763   $ 60,236   $ (500 ) $ 287,499   $ 99,650   $ 40,000  
Cumulative effects from adoption of the CECL standard                         8,582         8,582          
Accretion of discount associated with issuance of subsidiary equity                 (300 )           (300 )   300      
Discount associated with repurchase of preferred stock                 18             18          
Preferred dividends                 (24,794 )           (24,794 )        
Stock option exercises and proceeds related thereto         1,211,141         3,731             3,731          
Compensatory stock issuances, net of forfeitures         112,027                              
Issuance of series B preferred stock, net   19,607               437             437          
Contributions by owners of noncontrolling interests                         114     114          
Deferred stock-based compensation costs                 4,167             4,167          
Redemption and retirement of preferred shares   (3,500 )             (87 )           (87 )        
Redemption and retirement of common shares         (1,674,161 )       (88,939 )           (88,939 )        
Net income                     135,597     (985 )   134,612          
Balance at December 31, 2022   3,204,640   $   14,453,415   $   $ 121,996   $ 204,415   $ (1,371 ) $ 325,040   $ 99,950   $ 40,000  
                                                           

Additional Information

Additional trends and data with respect to our private label credit and general purpose credit card receivables can be found in our latest 10-K filing with the Securities and Exchange Commission under Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Calculation of Non-GAAP Financial Measures

This press release presents information about managed receivables, which is a non-GAAP financial measure provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In addition to financial measures presented in accordance with GAAP, we present managed receivables, total managed yield, combined principal net charge-offs, and fair value to face value ratio, all of which are non-GAAP financial measures. These non-GAAP financial measures aid in the evaluation of the performance of our credit portfolios, including our risk management, servicing and collection activities and our valuation of purchased receivables. The credit performance of our managed receivables provides information concerning the quality of loan originations and the related credit risks inherent with the portfolios. Management relies heavily upon financial data and results prepared on the “managed basis” in order to manage our business, make planning decisions, evaluate our performance and allocate resources.

These non-GAAP financial measures are presented for supplemental informational purposes only. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, GAAP financial measures. These non-GAAP financial measures may differ from the non-GAAP financial measures used by other companies. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures or the calculation of the non-GAAP financial measures are provided below for each of the fiscal periods indicated.

These non-GAAP financial measures include only the performance of those receivables underlying consolidated subsidiaries (for receivables carried at amortized cost basis and fair value) and exclude the performance of receivables held by our former equity method investee. As the receivables underlying our former equity method investee reflect a small and diminishing portion of our overall receivables base, we do not believe their inclusion or exclusion in the overall results is material. Additionally, we calculate average managed receivables based on the quarter-end balances.

The comparison of non-GAAP managed receivables to our GAAP financial statements requires an understanding that managed receivables reflect the face value of loans, interest and fees receivable without any consideration for potential loan losses or other adjustments to reflect fair value.

A reconciliation of Loans, interest and fees receivable, at fair value to Loans, interest and fees receivable, at face value is as follows:

    At or for the Three Months Ended  
    2022       2021  
(in Millions)   Dec. 31 (1)     Sep. 30 (1)     Jun. 30 (1)     Mar. 31 (1)     Dec. 31 (1)     Sep. 30 (1)     Jun. 30 (1)     Mar. 31 (1)  
Loans, interest and fees receivable, at fair value   $ 1,818.0     $ 1,728.1     $ 1,616.9     $ 1,405.8     $ 1,026.4     $ 846.2     $ 644.7     $ 481.4  
Fair value mark against receivable (2)   $ 302.1     $ 322.3     $ 293.0     $ 272.9     $ 208.9     $ 182.2     $ 148.6     $ 112.3  
Loans, interest and fees receivable, at face value   $ 2,120.1     $ 2,050.4     $ 1,909.9     $ 1,678.7     $ 1,235.3     $ 1,028.4     $ 793.3     $ 593.7  
Fair value to face value ratio     85.8 %     84.3 %     84.7 %     83.7 %     83.1 %     82.3 %     81.3 %     81.1 %

(1) On January 1, 2022, we elected the fair value option under ASU 2016-13 for those private label credit and general purpose credit card receivables that were previously accounted for under the amortized cost method.
(2) The fair value mark against receivables reflects the difference between the face value of a receivable and the net present value of the expected cash flows associated with that receivable.
(3) The Fair value to face value ratio is calculated using Loans, interest and fees receivable, at fair value as the numerator, and Loans, interest and fees receivable, at face value, as the denominator

The calculation of managed receivables is as follows:

    At or for the Three Months Ended  
    2022     2021  
(in Millions)   Dec. 31 (1)     Sep. 30 (1)     Jun. 30 (1)     Mar. 31 (1)     Dec. 31     Sep. 30     Jun. 30     Mar. 31  
Loans, interest and fees receivable, gross   $     $     $     $     $ 375.7     $ 417.8     $ 454.2     $ 498.8  
Loans, interest and fees receivable, gross from fair value reconciliation above     2,120.1       2,050.4       1,909.9       1,678.7       1,235.3       1,028.4       793.3       593.7  
Total managed receivables   $ 2,120.1     $ 2,050.4     $ 1,909.9     $ 1,678.7     $ 1,611.0     $ 1,446.2     $ 1,247.5     $ 1,092.5  

(1) On January 1, 2022, we elected the fair value option under ASU 2016-13 for those private label credit and general purpose credit card receivables that were accounted for under the amortized cost method. 

A reconciliation of our operating revenues, net of finance and fee charge-offs, to comparable amounts used in our calculation of Total managed yield is as follows:

    At or for the Three Months Ended  
    2022     2021  
(in Millions)   Dec. 31     Sep. 30     Jun. 30     Mar. 31     Dec. 31     Sep. 30     Jun. 30     Mar. 31  
Consumer loans, including past due fees   $ 202.9     $ 208.9     $ 182.8     $ 156.5     $ 144.1     $ 132.7     $ 114.3     $ 94.1  
Fees and related income on earning assets     48.0       48.5       65.8       54.7       53.8       54.1       49.5       37.0  
Other revenue     8.5       11.1       12.2       10.0       9.7       8.4       7.0       4.2  
Adjustments due to acceleration of merchant fee discount amortization under fair value accounting     3.4       (7.9 )     (12.1 )     1.8       (3.4 )     (14.7 )     (18.6 )     (5.5 )
Adjustments due to acceleration of annual fees recognition under fair value accounting     7.9       10.0       (6.6 )     (1.3 )     (4.4 )     (12.0 )     (12.3 )     (4.6 )
Removal of expense accruals under GAAP                                   0.2       (0.4 )     0.2  
Removal of finance charge-offs     (58.3 )     (45.3 )     (41.2 )     (32.5 )     (28.1 )     (16.3 )     (14.1 )     (10.7 )
Total managed yield   $ 212.4     $ 225.3     $ 200.9     $ 189.2     $ 171.7     $ 152.4     $ 125.4     $ 114.7  

The calculation of Combined principal net charge-offs is as follows:

    At or for the Three Months Ended  
    2022     2021  
(in Millions)   Dec. 31 (1)     Sep. 30 (1)     Jun. 30 (1)     Mar. 31 (1)     Dec. 31     Sep. 30     Jun. 30     Mar. 31  
Net losses on impairment of loans, interest and fees receivable recorded at fair value   $ 182.3     $ 134.4     $ 126.5     $ 101.3     $ 46.7     $ 25.6     $ 22.7     $ 14.3  
Gross charge-offs on non-fair value accounts                             38.7       27.1       27.6       26.3  
Finance charge-offs (2)     (58.3 )     (45.3 )     (41.2 )     (32.5 )     (28.1 )     (16.3 )     (14.1 )     (10.7 )
Recoveries on non-fair value accounts                             (4.1 )     (2.7 )     (5.7 )     (3.4 )
Combined principal net charge-offs   $ 124.0     $ 89.1     $ 85.3     $ 68.8     $ 53.2     $ 33.7     $ 30.5     $ 26.5  

(1) On January 1, 2022, we implemented the fair value method under ASU 2016-13 for those private label credit and general purpose credit card receivables that were previously accounted for under the amortized cost method.
(2) Finance charge-offs are included as a component of our Provision for losses on loans, interest and fees receivable recorded at net realizable value and Changes in fair value of loans, interest and fees receivable and notes payable associated with structured financings recorded at fair value in the accompanying consolidated statements of income.

 

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Artificial Intelligence

Aurionpro Solutions acquires Arya.ai, to power next generation Enterprise AI platforms for Financial Institutions

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SINGAPORE, April 20, 2024 /PRNewswire/ — Aurionpro Solutions Limited (BSE: 532668) (NSE: AURIONPRO) announces the acquisition of Banking and Insurance focused PaaS startup, Arya.ai. With Arya.ai, Aurionpro will enhance its portfolio of enterprise fintech offerings to expedite adoption of AI that is responsible, accurate, and auditable.

 
 
Aurionpro Solutions Ltd. will acquire a majority stake (67%) in Arya.ai. This acquisition will bring products and expertise in Artificial Intelligence, Deep Learning, Intelligent Automation, PaaS, Autonomous AI Platforms, and more, to complement and strengthen Aurionpro’s industry leading portfolio.
The transaction comprises acquisition of shares held by the existing shareholders and subscription of new equity capital in the company. This will be an all-cash deal. The aggregate investment including  secondary acquisition and fund infusion is approximately 16.5 MN USD.
By integrating Arya.ai’s cutting-edge AI cloud platform, with Aurionpro’s comprehensive suite of offerings, the company will create an industry leading Enterprise AI platform focused on creating value for financial institutions globally. 
Commenting on the acquisition, Ashish Rai, CEO of Aurionpro Solutions, stated, “The acquisition of Arya.ai marries Aurionpro’s portfolio of industry leading enterprise software with one of the most mature Enterprise AI platforms focused on Banks and Insurers. We are incredibly excited about working with Arya.ai and our wider ecosystem partners to build out the leading Enterprise AI platform, for the financial industry worldwide.”
“Our decade long experience in building tools/platform for deep learning helped us to build a truly verticalized AI Operating System for Banking and Insurance.” Says Vinay Kumar CEO/Founder of Arya.ai. “Together with Aurionpro, we are going to build a new generation of Enterprise AI software for Banks and Insurers that truly embeds AI, augmenting a task or Autonomous Agents that can take over entire transactions”. 
Founded in 2013 by Vinay Kumar and Deekshith Marla, Arya.ai has been one of the first ‘AI’ startups to use Deep Learning and deploy in enterprises. Arya.ai’s BFSI PaaS offerings include Arya API with 80+ ML models, Libra for fine-tuning SOTA ML models, and AryaXAI for AI governance.
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Free Your Hands, QIDI Vida Smart AR Glasses Lead the Way in New Sports Experience.

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NEW YORK, April 19, 2024 /PRNewswire/ — Outdoor smart AR glasses, QIDI Vida, will officially launch on 23rd April on the Kickstarter platform.  QIDI Vida integrates the many functions of smart watches, sports headphones, cycling computers, heart rate monitors, and walkie-talkies using AR+AI technology, allowing users to bid farewell to cumbersome device management and enjoy outdoor sports anytime, anywhere with just one pair of glasses.

 
Function:
QIDI Vida uses high-tech HUD (Head-Up Display) which is similar to the technology used for aircrafts and premium cars and introduces it to the sports industry. Users can activate the HUD function at any time using voice control, enabling them to focus on the route ahead whilst simultaneously having access to information such as navigation, speed, heart rate, power and cadence, among other metrics. Another great function of the QIDI Vida is that users can also enjoy audiovisual entertainment through the optically perceived 100-inch AR  HUD screen, when having some down time. 
As cyclists and hikers often travel in groups, QIDI Vida supports eSIM and team functionality, allowing real-time voice communication without releasing handlebars, and users can monitor their groups’ real-time locations. The glasses also have comprehensive sensing and monitoring capabilities including temperature, humidity, UV, air pressure, geomagnetism and acceleration. In addition to obtaining environmental and health information, it also features health warnings such as altitude sickness symptoms and high heart rate, as well as fall and collision detection functions. And, in the event of danger, it can send distress signals to teammates.
Perks:
QIDI Vida has a global voice recognition and interaction feature that allows you to control all functions within the device by voice. To better provide users with an immersive sports experience, QIDI Vida’s intelligent system will have the capability to instantly gather personalised sports data, enabling it to deliver timely voice alerts and broadcasts, including the duration of exercise, distance, the environment and the weather – all tailored to the user’s preferences.
QIDI Vida enables voice-controlled photos and video recordings, allowing users to capture moments whilst cycling or hiking without the need to stop. QIDI Vida supports connections with common cycling smart hardware such as Garmin, Wahoo, Apple, and Samsung, supports GPX route files, and is compatible with professional sports apps such as Strava, Keep, Zwift, Apple Health, and All Trails.
QIDI Vida stands out for its lightweight and comfortable design with a dual lens for a full-colour data display, unlike competing AR glasses that typically have a single lens and limited colour. This innovation significantly enhances and augments the user’s sports and reality experience.
QIDI Vida will launch on the Kickstarter platform: https://www.kickstarter.com/projects/109560964/qidi-vida-smart-ar-glasses-for-sports
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Risk Analytics Market worth $180.9 billion by 2029 – Exclusive Report by MarketsandMarkets™

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CHICAGO, April 19, 2024 /PRNewswire/ — The growing use of real-time monitoring and advanced analytics, integration with cutting-edge technologies like blockchain and IoT, and an emphasis on cybersecurity, cross-industry applications, and regulatory compliance are the key factors that will shape the risk analytics market in the future. The market’s development will also be influenced by collaborative risk management, improved user experience, and an increasing focus on ESG factors and risk culture.

The Risk Analytics Market is estimated to grow from USD 59.7 billion in 2024 to USD 180.9 billion in 2029, at a CAGR of 24.8% during the forecast period, according to a new report by MarketsandMarkets™.  Several trends fuel the global spread of Risk Analytics. Increasingly Increasing Data Complexity, Rising Cybersecurity Threats and Rising Adoption of Cloud-Based Solutions A growing talent pool of data scientists and engineers is building the necessary tools and infrastructure. Governments are recognizing the potential of risk analytics for economic growth and are investing in research and development. These trends make DI more accessible and valuable, leading to its global adoption.
Browse in-depth TOC on “Risk Analytics Market”260 – Tables 60 – Figures350 – Pages
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=210662258
Scope of the Report
Report Metrics
Details
Market size available for years
2019–2023
Base year considered
2023
Forecast period
2024–2029
Forecast units
USD Billion
Segments Covered
Offering,Risk Type, Risk stages, Vertical, and Region.
Geographies covered
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
Companies covered
IBM (US), SAS Institute (US), Oracle (US), FIS(US), Moody’s Analytics (US), ProcessUnity(US), ServiceNow (US), Marsh (US), Aon (UK), MetricStream (US), Resolver (Canada), SAP (Germany), Milliman(US), LogicManager(US), Provenir(US), SAI360(US), Deloitte(UK), OneTrust(US), Diligent(US), Alteryx(US), CRISIL(India), Archer(US), ZestyAI(US), Fusion Risk Management(US), RiskVille(Ireland), SPIN Analytics(UK), Kyvos Insights(US), Imperva(US), Cirium(UK), Quantexa(UK), ClickUp(US), Sprinto(US), Ventiv(US), Adenza(US), Centrl.AI(Canada), SafetyCulture(Australia), Quantifi(US), CubeLogic(UK), Onspring(US), Riskoptics(US)
 
By offering the services segment to account for higher CAGR during the forecast period
In the Risk Analytics Market, the highest CAGR of services is fueled by Increasing Complexity of Risks, AI and machine learning advancements, big data analytics integration, business process optimization, cloud-based solutions adoption, data-driven culture, and diverse industry adoption. These trends reflect a global shift towards leveraging data for competitive advantage, driving a continuous need for sophisticated risk analytics services across sectors. As businesses prioritize agility, the growth of services in the Risk Analytics Market is driven by the need for effective risk management strategies in an increasingly complex and uncertain business environment.
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By Type, GRC software is expected to hold the largest market size for the year 2024
GRC software typically offers comprehensive solutions that cover a wide range of risk management needs, including compliance management, policy management, audit management, and risk assessment. They also provide organizations with enhanced visibility into their risk landscape. Through features such as risk assessment, risk monitoring, and reporting, organizations can identify and prioritize risks more effectively, enabling proactive risk management strategies.  GRC software streamlines risk management processes through automation, reducing manual effort and increasing efficiency. Tasks such as risk assessments, control testing, and incident management can be automated, freeing up resources to focus on strategic risk mitigation efforts. the combination of comprehensive functionality, regulatory compliance support, efficiency gains, scalability, integration capabilities, and culture enhancement makes GRC software a preferred choice for many organizations seeking to manage risk effectively.
By Vertical, Healthcare & Life Sciences is projected to grow at the highest CAGR during the forecast period
The Healthcare and Lifesciences is experiencing a surge in the adoption of risk analytics due to a confluence of factors. Healthcare providers and life sciences companies wants to ensure the safety and well-being of patients. Risk analytics helps in identifying potential risks to patient safety, such as medication errors, adverse events, and medical device failures. The healthcare and life sciences industries are heavily regulated, with strict guidelines for patient care, data privacy, drug development, and clinical trials. Risk analytics helps organizations ensure compliance with these regulations by identifying and mitigating risks of non-compliance.  Healthcare organizations and life sciences companies also face financial risks associated with fraud, billing errors, revenue cycle management, and reimbursement challenges. Risk analytics helps in detecting anomalies and optimizing financial processes to mitigate these risks.
Asia Pacific is expected to grow at the highest CAGR during the forecast period
The Asia-Pacific (APAC) region is experiencing rapid growth in the Risk Analytics Market, boasting the highest Compound Annual Growth Rate (CAGR). This surge is primarily attributed to rising demand for data-driven decision-making solutions, expanding digital transformation initiatives across industries.. Moreover, the region’s favorable regulatory environment, growing investments in big data analytics, and the integration of advanced technologies like the Internet of Things (IoT) further propel APAC’s dominance in Risk Analytics Market growth.
Top Key Companies in Risk Analytics Market:
The major risk analytics software and service providers include IBM (US), SAS Institute (US), Oracle (US), FIS(US), Moody’s Analytics (US), ProcessUnity(US), ServiceNow (US), Marsh (US), Aon (UK), MetricStream (US), Resolver (Canada), SAP (Germany), Milliman(US), LogicManager(US), Provenir(US), SAI360(US), Deloitte(UK), OneTrust(US), Diligent(US), Alteryx(US), CRISIL(India), Archer(US), ZestyAI(US), Fusion Risk Management(US), RiskVille(Ireland), SPIN Analytics(UK), Kyvos Insights(US), Imperva(US), Cirium(UK), Quantexa(UK), ClickUp(US), Sprinto(US), Ventiv(US), Adenza(US), Centrl.AI(Canada), SafetyCulture(Australia), Quantifi(US), CubeLogic(UK), Onspring(US), Riskoptics(US). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the Risk Analytics Market.
Recent Developments:
In March 2024, Orcale announced Oracle Risk Management Cloud in Release 24B. It offers comprehensive solution designed to help organizations identify, assess, and mitigate risks across their business operations. It offers advanced analytics, automation, and collaboration tools to streamline risk management.In March 2024, FIS Global announces card fraud detection capabilities leveraging artificial intelligence (AI) with aim to bolster FIS’s ability to identify and prevent fraudulent transactions, providing greater security for cardholders and financial institutions alike.In March 2024, Aon acquired an AI-powered platform to assist fleet and mobility clients in making data-driven decisions, enhancing operational efficiency and risk management. The platform utilizes artificial intelligence to analyze data and provide insights, enabling clients to optimize their fleet operations and improve decision-making processes.In March 2024, Crisp joined Resolver, with the aim to enhance Resolver’s risk intelligence capabilities by integrating Crisp’s expertise and technology into its platform, offering clients improved risk assessment and mitigation tools.In February 2024, SAS partnered with Carahsoft to bring analytics, AI, and data management solutions to the public sector. The aim is to leverage SAS’s expertise in advanced analytics and Carahsoft’s extensive government market reach to offer tailored solutions that enable public sector organizations to harness the power of data for informed decision-making and improved outcomes.Inquire Before Buying@ https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=210662258
Risk Analytics Market Advantages:
By offering insights into potential risks, opportunities, and trends, risk analytics helps organisations make data-driven decisions that improve strategic planning and resource allocation.In order to improve risk management procedures and lessen exposure to possible threats, risk analytics solutions assist businesses in identifying, evaluating, and mitigating risks across a range of business activities, including finance, operations, and compliance.Through real-time monitoring and anomaly detection made possible by risk analytics, organisations may proactively address shifting market situations, legal requirements, and cybersecurity threats.Risk analytics solutions assist organisations lower operating costs, increase productivity, and streamline compliance activities, which results in cost savings and resource optimisation. They do this by streamlining risk management procedures and automating routine work.Accurate risk assessments, audit trails, and reporting capabilities are just a few of the ways that risk analytics solutions help organisations comply with regulations and stay out of trouble.Organisations can enhance their resilience and competitiveness by anticipating and mitigating potential hazards before they materialise through the use of predictive modelling and advanced analytics approaches in risk analytics.Report Objectives
To define, describe, and predict the Risk Analytics Market by offering, risk type, risk stages, vertical, and regionTo provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the market growthTo analyze the opportunities in the market and provide details of the competitive landscape for stakeholders and market leadersTo forecast the market size of segments with respect to five main regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin AmericaTo profile the key players and comprehensively analyze their market rankings and core competenciesTo analyze the competitive developments, such as partnerships, product launches, and mergers & acquisitions, in the Risk Analytics MarketBrowse Adjacent Markets: Analytics Market Research Reports & Consulting
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Procurement Analytics Market- Global Forecast to 2026
About MarketsandMarkets™
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MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
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The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
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