Atlanticus Holdings Reports Continued Growth in Q3 2024

Atlanticus Holdings Corporation Delivers Solid Q3 2024 Results

Atlanticus Holdings Corporation (NASDAQ: ATLC), a pioneering financial technology company, recently announced impressive financial results for the third quarter of 2024. The company has made strides in enabling its bank, retail, and healthcare partners to provide more inclusive financial services to everyday Americans.

Financial Overview

During the third quarter, Atlanticus reported significant increases across various financial metrics compared to the same quarter last year. Notably, managed receivables surged by 14.6%, reaching approximately $2.7 billion. Alongside this, total operating revenue rose by 19.0% to hit $351.0 million. The company achieved a remarkable return on average equity of 21.0%, reflecting strong profitability.

Key Highlights

Several key performance indicators illustrate Atlanticus's robust growth trajectory:

• Managed Receivables: Increased by 14.6% to $2.7 billion.
• Total Operating Revenue: Up 19.0% to $351 million.
• New Accounts: Over 380,000 new accounts were served in the quarter.
• Net Income: Attributable to common shareholders was $23.2 million, translating to $1.27 per diluted share.

Management Perspective

Jeff Howard, the company’s President and CEO, expressed satisfaction with the quarter's performance, highlighting consistent growth in revenue and managed receivables. He noted the positive impact of rising incomes on consumer spending, which has enhanced the stability of consumer performance.

This upward trend in consumer performance, coupled with strong credit metrics, positions Atlanticus to explore new growth opportunities across its diverse credit product lines. The company is focused on three primary products within its Credit as a Service segment – general-purpose credit cards, point-of-sale financing, and healthcare payments.

Operational Highlights

The company continues to experience a growing demand for its services. The addition of new retail partners and the expansion of existing relationships have driven the rise in managed receivables. The company anticipates continued growth moving forward as it capitalizes on these opportunities.

Robust Revenue Streams

Atlanticus's total operating revenue reflects the strength of its business model, which encompasses interest income, finance charges, and ancillary income across its loan portfolio. The continual growth in private label credit and general-purpose credit card receivables bodes well for future net revenues.

In addition to operational revenues, Atlanticus recorded an increase in net interest expense as a result of growing outstanding debt associated with its receivables, which now total approximately $1.98 billion.

Future Outlook

Looking ahead, the management team is optimistic about the company's long-term growth potential. They plan to enhance product offerings and expand on existing platforms, leveraging industry trends to further increase market share. Strategic initiatives will play a crucial role in positioning Atlanticus for above-market growth rates moving forward.

Commitment to Stakeholders

The commitment to improving financial outcomes for everyday Americans remains at the forefront of Atlanticus’s strategy. By continuing to focus on innovative solutions, the company aims to provide enhanced access to essential financial services, ensuring both growth and value for its stakeholders.

Frequently Asked Questions

What were Atlanticus's key financial results for Q3 2024?

Atlanticus reported a 14.6% increase in managed receivables to $2.7 billion and a 19.0% rise in total operating revenue to $351 million.

How many new accounts did Atlanticus serve in Q3 2024?

Over 380,000 new accounts were served during the quarter, bringing the total to approximately 3.7 million accounts.

What does Atlanticus's growth translate to for their net income?

The company reported a net income of $23.2 million for the quarter, which amounts to $1.27 per diluted share.

What strategic initiatives are planned for the future?

Atlanticus plans to expand its product lines within the Credit as a Service segment and continue to seek new partnerships to fuel long-term growth.

What is the company’s primary focus?

The company focuses on empowering better financial outcomes for everyday Americans through inclusive financial services, leveraging its proprietary technology.

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