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 : Yeah, okay. So that's a good introduction of the company. Yeah, obviously the macro environment matters in terms of how you kind of focus on which levers to pull for growth, as well as just make sure we manage risk and so forth. So maybe can you just discuss how you guys perceive the macro environment, both from a demand for credit perspective and then a quality of credit perspective?

Question: John Hecht - Jefferies LLC - Analyst : Okay. So just for the audience so the audience has context for that. I mean, yeah, in the Q1, when Steve's talking about strong demand, it's very apparent in their numbers that the consumer loan originations were up more than 50%, I think, year over year in small business even more than that. So we are seeing very strong growth in demand. And similarly, they are running at 70% gross margin through the first quarter, which is very high relative to the long-term averages. So we are still seeing very strong credit results as well. But obviously something that's on top of everybody mind's, Steve, is rising rates. So maybe we could turn to how that rising rates and maybe rising rates that -- at a more rapid pace than we expected, how does that impact your business?

Question: John Hecht - Jefferies LLC - Analyst : Yeah. Okay, that's helpful. I think obviously, a lot of, call it, variableness of information we are getting in terms of macro outputs, so forth, and some uncertainties and this and that. How do you guys balance between growth and credit, given the current environment and the overall growth opportunity that you guys have in front of you?

Question: John Hecht - Jefferies LLC - Analyst : Okay. And we know you've been doing that for a long time. So it's a core of the company. So appreciate that detail. I think you have been doing consumer credit for 20 years-ish. And so I think we are all pretty familiar with that component of the business. You mentioned the acquisition of On Deck. Maybe can you talk about what you've done with On Deck since you had that on board? And obviously, it really gives a lot more opportunity for growth and obviously balance and diversification, so forth. So maybe talk about the progress you've made with On Deck, but also what the intermediate terms or plans are there.

Question: John Hecht - Jefferies LLC - Analyst : Okay. Just because capital markets are more jittery across the board now, maybe touching the balance sheet, how have funding opportunities and costs of capital change do you think over the past several months? And are there any major funding requirements that you guys have in the near term that we should be thinking about?

Question: John Hecht - Jefferies LLC - Analyst : Okay. And then just touching real quick on a key -- a key investment topic recently is ESG. So maybe just really quickly talk about your key accomplishments thus far and the intermediate term plans on the ESG front.

Question: John Hecht - Jefferies LLC - Analyst : Okay. Well, that's great to hear about all those efforts. So thanks very much. And then just final question is, I know you guys haven't given any long-term guidance out. But maybe what should the investors and the analysts be focused on for you thinking 2023? 2024? 2025? What's the prime priorities?

Question: John Hecht - Jefferies LLC - Analyst : Okay. Well, that's been a great introduction as well as going a little bit on the details of the success and priorities of the company. So we thank you very much. Again, everybody, thanks for listening in.

Question: John Hecht - Jefferies LLC - Analyst : Take care.