Digital lending platform Enova International reported Thursday (Feb. 4) that total revenue dropped 24 percent from the fourth quarter of 2019 to Q4 2020. However, the financial services firm reported that total company originations in Q4 surged by over three times from the previous quarter to $536 million.
Enova reported that the ratio of consolidated portfolio net charge-offs as a portion of average combined loan and finance receivables was 4.7 percent in Q4, which remained flat from the past quarter and below 15.6 percent a year ago. It had $388 million in overall cash and marketable securities at Dec. 31, with $453 million in available capacity on domestic committed facilities.
“Our volumes are obviously still down significantly year over year … everything we see tells us that’s temporary … nothing from … our customer research, from what we’re seeing in applications … from surveys tells us that … the small business market or the consumer markets are going to be any smaller post-pandemic … than they were pre-pandemic,” Enova CEO David Fisher said on an earnings conference call with analysts.
As for its overall results, Enova International reported $2.39 adjusted earnings per share on total revenue of $264 million for Q4 2020. The results topped analysts’ estimates of $1.26 per share in earnings on $250.37 million in revenue.
“Our strong financial performance this quarter reflects the continued robust credit quality of the portfolio as well as sequential growth in originations, receivables and revenue,” Enova Chief Financial Officer Steve Cunningham said in an earnings press release.
Management said in the release that it was not offering guidance for Q1 2021 amid “ongoing uncertainties related to COVID-19 resurgences, changes in governmental restrictions, potential economic stimulus, employment stabilization and business reopenings.”
Enova’s collection of brands includes Simplic, NetCredit, CashNetUSA, OnDeck, The Business Backer and Headway Capital. The company also offers digital platform services for lenders. Enova said in the release it has provided over 7 million clients worldwide with access to over $40 billion in loans and financing.