2Q’22 Network Volume and Total Revenue grow 79% and 83%, respectively, in the second quarter, Adjusted EBITDA of $4.9 million
1H’22 Total Revenue of $352.1 million, Adjusted EBITDA of $9.3 million
Provides full-year 2022 outlook
Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya” or the “Company”), a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, today announced financial results for the second quarter and the first half of 2022 and provided its full-year 2022 outlook.
“In our first quarter reporting as a public company, we are proud to report continued strong network volume and total revenue growth. These results reflect the strength of a proprietary A.I. network that drives better outcomes and a B2B2C business model that delivers consistent growth through macro cycles,” said Gal Krubiner, Chief Executive Officer of Pagaya. “Looking ahead, we will remain focused on our ambition to be the trusted A.I. partner for the banking system.”
Second Quarter 2022 Financial Highlights
All comparisons are made versus the same period in 2021 unless otherwise stated
- Network Volume increased 79% to $1.9 billion, reflecting strong growth from existing partnerships across all products
- Total revenue and other income increased 83% to $181.5 million, primarily due to increased fee revenue from Network Volume growth
- Net loss attributable to Pagaya shareholders of $146.3 million, impacted by share-based compensation of $146.0 million. Adjusted net income of $3.5 million, which excludes share-based compensation expense, change in fair value of warrant liability, and non-recurring expenses
- Adjusted EBITDA of $4.9 million, reflecting ongoing investments in the long-term growth and scalability of the business
Recent Business Highlights
- Business combination with EJF Acquisition Corp. closed on June 22, 2022, with an upsized PIPE investment of $350 million; Class A ordinary shares and public warrants began trading on Nasdaq on June 23, 2022 under the symbols “PGY” and “PGYWW,” respectively
- Onboarded large U.S. bank with over $100 billion in assets as a major partner in auto
- On July 1, 2022, former Barclays Bank UK CEO, Ashok Vaswani, joined Pagaya as President, bringing 30+ years of financial services experience to help take the Company into its next chapter of growth
- Continued strong application flow, with 63 million applications cumulatively evaluated from the beginning of 2019 through 2Q’22
- Raised approximately $1.8 billion in investor capital into financing vehicles, across new ABS issuances and privately managed funds
The following table summarizes the Company’s outlook for full-year 2022:
| FY22 | |
| Network Volume | Expected to range between $7.2 billion and $7.8 billion |
| Total Revenue | Expected to range between $700 million and $725 million |
| Adjusted EBITDA | Expected to range between negative $20 million and positive $10 million |
Webcast
The Company will hold a webcast and conference call today, August 16, 2022 at 8:30 a.m. Eastern Time. A live webcast of the call will be available via the Investor Relations section of the Company’s website at investor.pagaya.com. To listen to the live webcast, please go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly before the call, a copy of the accompanying presentation will be made available on the Company’s website. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.
The conference call can also be accessed by dialing 1-877-407-9208 or 1-201-493-6784. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13731631. The telephone replay will be available starting shortly after the call until August 30, 2022. A replay will also be available on the Investor Relations website following the call.
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