Enova International Inc at Jefferies Consumer Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: John Hecht - Jefferies LLC - Analyst : So, Steve, first question is can you review the recent quarters? What do you perceive as the puts and takes on the quarterly performance? And I know you guys put out some updated guidance, so we'll visit that next, but I'm more looking at kind of rearview-mirror stuff, what have you seen and what have you learned from in terms of the performance in recent quarters?

Question: John Hecht - Jefferies LLC - Analyst : Okay. That's a good, like I said, sort of backward look. But you guys gave some guidance -- or not guidance. You guys gave sort of a business update this morning that was very helpful and [maybe give] some context in a moment. Then, we've all seen a lot of really positive intra-quarter kind of ABS details, which gives us a perspective that credit still remains really positive. Maybe given what we've seen in the market through the quarter and your update this morning -- which by the way just again I said maybe give us context -- our published model I think has about a 1.3 -- a little bit more than $1.3 billion loan balance at Q1, and the update you gave this morning suggests that you're a few percent ahead of that. So maybe can you talk about what are you able to talk about in terms of credit during the quarter and the loan balance trends during the quarter? And can you break that down as where that came from on OnDeck versus the traditional consumer finance segment?

Question: John Hecht - Jefferies LLC - Analyst : Okay. And that's a good segue to my next question, which is a little bit more near-term forward-looking. It's such a unique period of time with respect to both credit demand and credit quality. I don't even think it's nearly comparable to the Great Financial Crisis. But how are you guys internally thinking about the cadence for the next several months as loan demand recovers and theoretically, maybe as credit trends maybe normalized? How do you think about that? What's your appetite to loosen -- and you can even talk about across product lines, whether it's line of credit, installment and small business, how do you think about those factors across those business lines?

Question: John Hecht - Jefferies LLC - Analyst : Okay. (Conference Instructions) I guess chat a little bit about the OnDeck acquisition, the integration. You guys had some synergy goals. Maybe can you give us an update there and any other opportunities you are finding within that platform as you move forward.

Question: John Hecht - Jefferies LLC - Analyst : Great. And maybe talk about, like, is there any kind of over -- notable kind of margin difference with the products? Or yes, I know the yields are slightly different, that obviously the loss trends can be different. But at the end of the day, is there anything to talk about with respect to the OnDeck operating margins versus the, call it, the traditional Enova operating margins? Or do they fall in a similar line?

Question: John Hecht - Jefferies LLC - Analyst : Okay. And then how should we think about -- and I know you guys have gathered market share, so you've grown faster than the market over time, and you have different capabilities that allow you to do that. But how do you think about secular growth, so call it market growth and market opportunities across the consumer versus small business product? And I guess at the end of the day, the real question is where is there more opportunity for advancement over the next three to five years?

Question: John Hecht - Jefferies LLC - Analyst : Okay, so it's a good segue to the next question. Obviously, your balance sheet, obviously given the growth outlook, there's probably a lot of capital you want to keep for growth. But relative to your historical leverage, you are below your historical leverage multiples; you've got a lot of cash. Maybe give us kind of how you prioritize the excess capital. Is there any capital return program that you want to highlight? Are there any acquisition opportunities that you continue to evaluate? And then how much capital do you want to retain just to further the growth opportunities of the business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 23, 2021 / 12:35PM, ENVA.N - Enova International Inc at Jefferies Consumer Conference (Virtual)

Question: John Hecht - Jefferies LLC - Analyst : Okay. That's very helpful. And just a couple more questions, a few minutes left here. Second to the last one is on the competitive environment. What have you seen in terms of any migration of the competitive environment, particularly over the last year, given all the uncertainties in the world? And then attached to that, there's a lot of -- obviously a lot of focus on like buy now, pay later and emerging products. Have you seen any impact of those on the overall business as well?

Question: John Hecht - Jefferies LLC - Analyst : Okay. So just a couple of minutes left. And last sort of more broad open-minded question is what do you think investors should be focused on for you guys? And what are your top objectives over the next few quarters?

Question: John Hecht - Jefferies LLC - Analyst : All right. Well, we are just about out of time. Steve, always good to see you. Thanks very much for the detailed update. Appreciate everybody's participation here. I hope everybody has a good conference, and I hope to see you all in person next year at the conference. Thanks very much. Take care.