What happened
Shares of the auto lending platform Open Lending Corp (LPRO 1.03%) have surged nearly 19% as of 11:55 a.m. EST today after the company reported earnings results for the fourth quarter and full year of 2021.
So what
Open Lending reported earnings per share of $0.23 on total revenue of $51.6 million. The company facilitated more than 42,600 certified loans through its platform in the fourth quarter of 2021. EPS beat estimates handily, while revenue was in line with what analysts had been projecting.
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"We saw incredible growth in 2021, with an 82% increase in certified loan growth, 98% increase in revenue and a 123% increase in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the full year 2021 compared to 2020," John Flynn, chairman and CEO of Open Lending, said in a statement. "We also added 71 new customers in 2021, up from 55 new accounts in 2020, and the average size of our lenders signed in 2021 exceeded $1.2 billion in total assets."
Open Lending expects total certified loans through its platform to come in between 195,000 and 225,000, which would be a 14% increase in facilitated loans from 2021 at the low end of the range. Total revenue is expected to come in between $210 million and $240 million and adjusted EBITDA between $135 million and $160 million.
Now what
Not much to say here: The quarterly results were very strong and guidance even better, so Open Lending looks well positioned.
Investors will want to keep an eye on how the auto lending market trends this year, especially with car prices up so much and the Federal Reserve set to raise interest rates. But so far, Open Lending has performed well and continued to show growth as well, so the company deserves credit.
