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LPRO Open Lending

Participants
John Flynn Chairman, Chief Executive Officer
Ross Jessup President, Chief Operating Officer
Chuck Jehl Chief Financial Officer
Vincent Caintic Stephens
Joseph Vafi Canaccord
Peter Heckmann D.A. Davidson
James Faucette Morgan Stanley
Call transcript
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Operator

Good afternoon, and welcome to Open Lending's Third Quarter 2021 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's conference call is being recorded.

On the call today are John Flynn, Chairman and CEO; and Ross Jessup, President and COO; and Chuck Jehl, CFO. posted Relations quarter website. Company to earnings the Investor its today, its XXXX third release Earlier measures call. In non-GAAP the financial financial release, measures on the you'll to most find comparable reconciliations of discussed this GAAP

or call refer concerning cause reflect Before filings from more we to to as Please opening to the by represent and estimates the obligation with like pass over circumstances. Lending begin, our of that update materially I'll implied future today, call other today's statements statements earnings Company's XXXX. for to factors remarks. may The disclaims release to such John? that SEC for now, forward-looking John, Open remind and statements. those differ the contain you I'd actual events this to information view November expressed these or X, could And that results any you,

John Flynn

everyone. Lending's to earnings joining and and the Thank for Ross our manufacturing us on Thanks progress operator, by we've today and discuss start call. landscape an on Open for quarter provide conference objectives, to broader our made the reviewing good highlights you, is then growth lending third car opportunity. and XXXX quarter I'd OEM afternoon, our update third going like

Finally, updated QX Chuck outlook our is our going financials for and to review XXXX. full year

line, XXXX. penetrating expansion growth year-over-year encouraged to which quarter very to increase increased million, of XXX% of was report the further XXX% the refinance quarter credit and driven of third certs the $XX.X million, was a at XX% continued existing record XXXX. an by achieved union we increase another certs. new customers Open This revenue of high-level the compared to accounts, 'XX our of adjusted quarter our XX% in third program. where for pleased of our to by QX certified very an EBITDA was as Now loans we're addition increase results, We $XX.X which Lending. in by We're and of bank XX,XXX and reported

existing First, customer on side. the

customers, their growing have period credit share compared increased During quarter, the existing One volume adding are refinance is we customer to to our XXX% top XX by XXXX the wallet unions and by excluding as way the our same in year-to-date OEMs XXXX. certification program. banks new

credit During onboarded are partners. the as accounts quarter, behind we banks new sources now unions that XX over and have funding and refinance XX these acting channel

quarter was volume certs our nearly the third refinance in Our XX% total 'XX. of

XXX our the accommodated to from implemented our result that a our bottom XXX. these union refinance modify them As of our on consumers and refinance customer score had the their credit lower largest has flexible We their model, business existing credit challenging call by allowing terms lowering last during channel our mentioned program, times. recently payments to

to topic to both channel be grow which shortage, we're affordability this partnership in the headwinds is in As our offset to one minutes. of to going impacting is have due announce they by customers. happy are, is temporary this and few base help the This turn, values touch and to example success many chip been grow. on used way with a Again, a Xx able of Continuing car initiative the increased our how volume we'll cars and of be associated inflated continue sales, result used. to that Ross with new this huge and of can impactful has implementation, out one refinance a their

large once lenders calls names where billion two with the new fact they're that Many the the permissible, we CECL go program. signed with larger based into In XX that side, nearly prepare. accounts protection have we're with announce inbound in customers getting and to are as And and with customer of all in of four on underway. new to continued credit classified third quarter, also XXXX. X a the seven has XX that new online Momentum the assets we the new accounts cases, these year less unions they've related these from financial were On $X recent active of the and the webinar in these need to KPMG, implementations going signed all than Tier have comply billion. co-hosted over institutions $X to the fourth on certain over quarter we contracts will assets

that on this We will growth us important on next We're other for opportunity initiatives position long-term continue to growth. the three focused very focus months. also over XX

vehicle. explore know but this a I purchase sources capital call to permanent on what we've third-party previously, First, to touched we loans, funding we continue

initiative While we're loans. these progress platform by any will to third-party to lenders utilizing of decision sources. encouraged not young, institutions funding date in these the and the To funding ownership we have is our protection very clarify, legal underwrite

include of to products decisioning prime towards ensure to as ability to stages classes. asset as work ability are provide we the loans Second, the early better the well other on in additional

as partners, low charges. the insurance ROE for the generated high you value we provided to insurer are and of business due capital Third, to tremendous underwriting of know, profitability our in lines believe partnership relationships, we our other well expanding business and excess insurance carrier

help possibly discussions are even with capacity that will give a partners more verticals. our and into with us expand pleased, as well as in initiative other current few us very Our we're more to

bank are union the us in the unique through on event reminder, nature. had that Company. auto which car XXX October days clear for the our partnerships, Austin, executives lending here On value-added Texas, three our these of annual are XX for and joining We we exclusive absence conference was largest chips held partners executive roundtable. and in This XX, in new credit since new was It founding a and As inventory. over we've a portfolio indication hungry discussion. how attended their hosted grow roundtable are to lending of the ideas

well to Ross it points. I our business to Before a chain the semiconductor global our of supply as to remind impact like I OEM would turn few over business, review as to key everyone

for business on calls, inflated XX% market, of over used is qualify due values, a to say threshold based our making during payment a that, able with to our of of With you've heard experiences it that's I'd offer types couple XXX it's to target prior the to XXX cars. in be cycles. our With previous these loan to consumers us have on place. for to we used car scores of As insights difficult income like that increasingly typically

experience and years period recessionary market in that typically supply patterns market cycle Heading presented Conversely, starters, familiar on of with recessions, we a supply history. of into demand soften. demand conditions pandemic-induced as data For insufficient as trough, we're based excess see has the of returns. over this XX off we end

low are also Currently, levels inventory, up. see metrics at highest can instances, priced offered very being and credit of of a of some perspective. We and buyer selling specific the by MSRP that dealer are new In score inventories are from we quality experiencing used inflection car with dealers dealers the low incentives times point. levels over forecast transacting vehicles

point, increased challenging way turned consequently, we to the recovery pricing our period to plus to While run time frame, precisely of know inflection believe and have to of currently X we that estimated spans our well we do units that demand be the reached We It we corner, the months. it inevitably cycles, that are in moderates of notably. volumes capture share when Over that X a disciplined and prior the XX do can know in forecasted. positioned that to that be continue important will note excess million business. is we be

go others up we for appropriate to market steadfast in risk-adjusted over long-term remain to Ross. our on auto ahead and this that, going turn partners I'm portfolio. are While we in standards, And success relaxing by the position set returns their our that with loan want underwriting delivering to

Ross Jessup

John. Thanks,

As John auto to spend mentioned, a landscape. the lending minutes talk few to general want about I

are less new offered, to the less subvention the which units, time. unit on October to continues ago. vehicle low production will to a down is most near-term Average limited in being units. expensive obviously This chips Due this led allocating of First, approximately XXXX a OEMs business expected shortage, reach year decline also a impact opportunity from the to our chip inventory our is record affordable and down per long has profitable the XX% XXXX. offering. shortage $X,XXX, generally the incentives more This almost the in from for impacts which incentive of spending to October if for $X,XXX continues

However, there are should the few a in in are trough an may recovery and we be suggesting inventory coming stats we that that months. see that a

shortages, will America we our President have finish As of interest us an robust a Sales supply ongoing said recently the despite chip Vice Key chain supply that customer available issues year. example, for at and the Operations expect strong help and

the seen have In more largest on addition, OEMs of optimistic some supply.

recently increased Ford the that indication final Malibu volume chip GM months are the plans first resume stable of enough predicted time as to production its vehicles. of bank an the XXXX. February the lot an short-term its for partners, these excitement of XXXX to since in prospective priority we current conditions, unions similar the build OEM lowest with credit space. and a to and engagement even all of are Despite seeing still supplies

there benefits are many to them partner a reminder, to As with us.

payments comparable with captives, loans. to and default earnings credit to prime of ROAs greater First, net insurance performance

by revenues their existing Second, and they generate able low-risk infrastructure leveraging are to network.

the Third, buyers compared update XX% experienced In credit for increased grown their two, mentioned importantly, earlier vehicles year-to-date this standards, certification impacting With to to new backdrop, OEM we consumers the due one. shortage this earlier, year. of repeat they and third loss you customer of XXX% on the a release the number volume want and brief growth XXXX, ecosystem. was car the by approximately CECL of most combined one over keeping give volumes QX and increase as chip quarter new first I profitability captive XXXX, which experienced XX% in number is I have of under in to 'XX. OEM that

continues two, OEM QX in loan certified of 'XX. For number growth

returns due and is after chips a COVID-XX part two be we the normal as and of our impacting also OEM excited to reminder, our this affordability are chip a will October going online growth major in supply OEM, by working to of design The As with pandemic. shortage levels. and number just came the plan but it's back XXXX ramp, offline

in to the channels, XX% during XXXX. originations our as Fortunately, grow April of seen since this able months expanded their XX-month three OEM to continue have we've XX about represent and requested We which loans terms used volumes XXXX time. across the us our has allowed been of April growing by early business all

and through continue contractual implementation We work IT to workflows.

need will OEMs an these example, the clients include to We with other work and to of enhancements. our subvention for IT expand This SOW one ready. enable include, that are dealer-facing be entering to and whistles our to integration provider current into will bells their systems

keep We nearly our two to with IT make OEM, to SAR we'll our even good summary, continue is and In OEMs. the progress our you progress. on updated though year-over-year provider down the on continue light vehicle volumes existing we XX%, grow and

to the market. it I'll to We that when SAR based outlook are will detail. QX financials to positive we line, Chuck pent-up more optimistic benefit begin now build, in turn a returns to and in on the over trend discuss the our and inventories demand

Chuck Jehl

Ross. Thanks,

of with in 'XX, increase XX XX,XXX certified the XX,XXX we XXX% loans During certified facilitated loans executed new third a to contracts customers. compared We quarter year-over-year. of QX XXXX,

total next with implementations fees million. revenue quarter XX $XX.X we were were consisted as XXXX. Profit for addition, share active increased claims In $XX.X and quarter XX third go-live to of administration XX% million the to XX revenue, XXXX revenue $XX.X dates third million days. to compared nearly in of in $X.X program of Total million $XX.X million have fees

per Profit Now million quarter down million was further revenue $XX.X million of third associated originations in new as $XX.X recognized XXXX. or to $XXX per we'd share in in XXXX. the loan third certified with the $XXX in quarter quarter $XX.X the share or like profit the loan 'XX compared to of break third of certified

share XXXX, of loan. the changes of discount during April removed to implemented effect As increasing pandemic us established as vehicle part premiums and at value previously in insurance XX% of underwriting the certified of per had which by our the profit we disclosed, corresponding approximately the COVID-XX, onset

certified million loans included of in change pre-COVID certified our third estimated from standards, economics. are of underwriting in share in economics transitioning profit in back market. our in change profit $X.X normalized closure As volumes record to driven share comparable and average improved loan underwriting revenues originated competitive expanded pre-COVID our unit position the quarter the in Also was profit rates, to share periods. XXXX a has XXXX third in This revenue quarter result previous

portfolio than and we macroeconomic lower continued As a to expected performing overall result improved due and the conditions, of claims. defaults better

shares by and upfront profit monthly prepayments, is Lenders principal on loan in risk. profit to a underwriting profit share from of us Under As outstanding premium basis. carriers based Protection's loan we a with our XXX, associated ASC forecast the estimated on severity, by certified reminder, paid the loan month insurance recognized defaults, the the

assets performance Consistent prospective unit future change portfolio the last further share estimates that explain related down in revenue actual adjustments point share have turn, months, changes due XX% drove We changes, revenue with revenue assumptions contract Basically share we changes these quarters over due to We were on In in previous realized and flows. cash slides asset, our and website posted quarter, near-term claims past originated portfolio in positive of periods the like economic estimates from and would almost positive our during drives have and to a in for out losses the trends. slides changes periods historical increased our estimate prospective estimation to in to our profit and contract XX to last on of loans which our of periods. our performance. supplemental break contract to earnings we in in basis. assets, lower-than-projected profit profit revenues realized severity between

compared will share from and our changes quarter increase was XXXX. quarter additional of the near-term third result $XX.X compared of of million XXXX. in loans XX% margin third primarily flows. as the Continued quarter increase a 'XX revenues to the by third positive in cash profit in of in certified strong loan the of quarter assets third profit perspective contract the Gross nearly in driven Gross XXXX, performance risk quarter an in XX% XXXX was of third to XX%, in

year administrative general turn compensation share-based $XX.X internal benefits to to in million let's previous million to selling enhance compared The primarily Now increase quarter. reporting the $X.X of headcount employee and controls, and risk were related third quarter addition and to compensation expenses, compliance represents financial the which including XXXX in Net for million of in technology third Operating quarter public income $XX.X the third to a information in the XXXX third the of million third XXXX XXXX. quarter and to the of in million of in company. was $XX.X compared million XXXX. a loss $XX.X $XX.X quarter compared income quarter of net was functions,

we from to a of million were XXXX. to measures GAAP consideration that the quarter be milestones share of for associated on were which had supplemental $XXX in reminder, as posted of XX, in our debt. can reconciliation lays accounted share quarter a updated were our million website, liabilities, million We of All that the in the $XXX.X contingent presentation of net $XX.X million noncash release. which assets, at EBITDA liability had XXXX. financial of which with assets. in $XX.X $XXX.X slide count. We cash, that a combination, an $XX third includes quarter of quarter $XX.X contract compared earnings and shares, million third earn-out the million shares as quarter total $XXX.X We and the XXXX was in fair with out back was million our result which met of Investor to in tax business an September Adjusted of in was third change approximately had in found There's earn a in million $XX.X million exited outstanding as XXXX the outstanding assets XXX.X was in XXXX third the We unrestricted million a value deferred contingent Relations non-GAAP earnings charge awards. the third investor As current expenses for quarter total specifically out XXXX.

growth EBITDA within shortages. we Further, car XX%. predictability Total the quarter adjusted inflated the XXX to million into flow months the global to material $XXX Even networks $XXX,XXX narrowing previously streamlined I and between between be $XXX about turn used semiconductor it certified John, XX the of over to score and follows: disruption between adjusted and credit against to took OEMs our low $XXX between XXXX. semiconductor narrowing guidance despite guidance John? XXX to the just-in-time and are for have guidance $XXX their At demonstrates as Affordability for SAR we're contracted that is trends comments to excited total the before values, and few values and shortage, we car of a are supply a inventory. approximately chip be our operating cash in Based chain, having million $XXX,XXX. Index to which raw dealer target we toward to provided into Q&A. fourth our ranges midpoint, processes, be business previously million. With now shortages manufacturing our loans global resiliency revenue ranges, and the moving of of our levels Now factors continued the following our $XXX on and will closing still though over back model to chip $XXX and consideration. million of ago, backdrop the who million ranges business guidance, due will transportation that, million, be XX% moved moving results are make third inflated our that our quarter has announced narrowing and reported XXXX, we of guidance the

John Flynn

and We call. want remain to us. with I thoughts third XXXX. you, through opportunity We joining excited XXXX today navigated successfully you for about us the thank of couple of to leave COVID-XX in want first everyone here. for do phase Thank future a the ahead earnings quarter the Chuck. I our for

and We and will the of constraints. also continuing variant inventory to navigated grow the navigate through throughout delta business, affordability XXXX, our through surge the we

Our we subside. business resilient, are model has proven very these and that headwinds well positioned it's as

only As I $XXX for leads today, you. you which billion. wide TAM again We've over recall, is and to single-digit us. Thank joining everybody to low penetration opportunity. our want thank may have space significant more

Operator

do we ahead. with Instructions] [Operator question Caintic Please from Vincent And go have Stephens. a

open. Your line is

Vincent Caintic

just guess guidance what's and the I to touch on I the quarter. first, implied for fourth wanted

range wondering, for midpoint And the it's implies And and was I look about the adding it's when the start fourth into 'XX, to at just I'm when headwinds? -- those rate, look additions think example. volumes, we certification of fourth looking an is lenders, quarter these of just to a quarter, and wondering third you it quarter, enough that guidance if I So fourth quarter at the of some about offset non-OEM when certs. think been as the we good they when generate just X,XXX run down. the you've generate lenders about and industry

Chuck Jehl

Yes. mean our the Chuck. beginning fourth kind And we market quarter well on recent -- the late the target has is really really score I impact This as guidance time as saw of in our for frame chips the of months. the into over basically, affordability the our us here. XX September credit been impact FICO,

QX. off pent-up when out affordability and well we're -- inflated was we XXXX. came inventory. heading about -- that's restocked. that business guidance the really a narrow where more it's SAR bit from for well So of values, we correct and positioned demand as time the down We both really believe felt feel We used. the to things The basically there around it car it's new just a And strong. into lot record And that get just XX%, is guidance. is the XX-month-old a There's we're as inventories good

John Flynn

we group of one in we the you're number of are think looking That's a and to that opportunity to the live of to the refinance channel. refinance interest call had had lot Vince, up on. thing and refinance banks credit there's that, not ramp meeting, lot not -- a sign our we And going that there And I'd today. six-month These well, user the aware are with bring that as mentioned that channel get we to that a during up them I as add attendees us we're accounts see channel. them unions the and at for running of on

to think refinance. see going So you're good I to some tailwinds here

Chuck Jehl

are add these bit And time. a on believe headwinds, work this out and Yes. itself little over We more. will I'll temporary

of So through I XX-plus added last think ahead October, we've new customers year. full in already XXXX and year, that's

having in of continue So interest lot as new coming board, to customers John said. a

Vincent Caintic

appreciate Okay. Great. I Yes, that.

what the once XX-plus about opportunity? you when be I average take to long not that customers, for when customer it could them mature, about generate so an sure to I'm think guess, new and you how non-OEM And does think

John Flynn

producing we producing get Vincent, Four once them to with start where from as more up, or not six XX six ramp refi, live, a one can the as months first their it's five days -- refi program, is unless the out. cert we different time of up they again, have early that that's of them refinance channels loans we turnkey hook

Vincent Caintic

And I kind last me. OEM of high. one about for engagement talked you the know still is Okay.

becoming just thoughts pipeline. if you the can maybe on you can lender, lending OEM Just there's the updates partners in is pipeline? OEM And of any captive provide quarter, one we a saw the any your on provide

Ross Jessup

the Ross. discussions closing talking But with it's relationship separately. the have we are it. that in XX about and announcement We've Yes, captive months or party with about just week. to XX have great discussions. ready actually last been Vincent, you're with that those with for Yes, particular a excited deeper we We're

the with and that's I that, discussions us. direct are today will whenever about certainly be about is we all client those about for we we their big, but -- direct We are and and ready to let our certainly to have going have talk opportunity it But happy they excited that. success are deeper

work commitment IT ourselves work financially with citing our close for at As with is shows we very work that as of a going the exciting. our forward We're more it And certainly, ongoing excited with to And relates that partner, implementation-type to giving that statement opportunity, now, right we're meetings here. have -- through. of look can lots it as that on about we're evaluating we work, obligating to contractual that go And the yes, the we which is doing them, looking documents. extremely legal and this OEMs updates well. we're belief work other that

Operator

question is with Please Joseph next Our from Vafi Canaccord. ahead. go

open. line Your is

Joseph Vafi

to Nice growth headwinds. despite continued see the the

of about can following maybe other Vincent's it, internal Just legal. relative this is you talk is one you've -- follow-up and this for more OEM moving three to on question number there boxes OEM some with On Ross. that? is maybe signed the through kind do and extent as up OEMs their after is of this -- check and To it versus like there you're sounds forward, moving to the the IT

Ross Jessup

needed added on And early next to third piece of and will I to all. start certification launch work get with they building not the at have think we'll The there the We'll our here able with done the them. subvention. that it all level technology of party our integration that have be year, changed and that enthusiasm afterwards. we're be will side of has to current integration

use we're our time, management the gotten about at business it, where to we're same are the We've in working of So legal. going how program, buy we from in through this. side

date implementation definitely kind we when will that actually could forward certainly, And to look plan, which signing working XXXX. of we a affect And so through and we're share it.

Joseph Vafi

three guide you then you'll be you'll know guide maybe That's as I and think all we 'XX do point? is how hear, your maybe this closer, to to get some you; great and it 'XX goes that And decision able to at think describe -- if well, mean, Ross. make the on incorporate QX have OEM time -- that a probably on you provide you it? Or I game number numbers. of to Do a on

Ross Jessup

our part for our But sure, one think of And hopefully, another as I there's that's well. plan. that's certainly plan.

We haven't to part with development We're a like it. it sure of working it finished it, the yet. going but that's looks be of

Operator

Please We Peter with Instructions] Heckmann question have [Operator ahead. go a D.A. from Davidson.

open. is Your line

Peter Heckmann

for Continued of really union so strong just many I right, number how growth on have quarter? customers that FI side, and just at credit the have the end bank the the you bank

John Flynn

or can You sign the have at the during course. you end

Ross Jessup

You total have about XXX customers active approximately resigned, Peter, or total you're talking customers.

Peter Heckmann

more mean, it so little you me just tiers, do like you top of when bit, right have thousand. think customer, potentially characterized XXX institutions FI certs a color progression you little any had And kind right. those that in additional maybe thoughts. up All but discussions? larger but a sizing, some now, I the of how couple see to you're about looks a like you've customers could on you as relative doing about per talked mid-tier something talked And that XX the happening? generally, of these higher some Can give that us then past, do union, Okay. and I a you've credit into

Ross Jessup

two Sure. in billion. $X four, in mentioned last those that the we were signed ones And I and misleading Charles. This of of then of We smaller the account. your earlier, as too, of doing and $X X and over over assets might is an the think, institution Tier XXX to point, do average was accounts some some is they're and XXX billion that we've there that certs X,XXX shops kind good high XX to the a a of shops quarter, got as month

of of a a meeting. one had our be they which at year KPMG all light coming need in is with made at we group institutions it couple very of CECL ago. just into the think had weeks user to here lot And out. these as had the onslaught we clear by XXXX, that We actually I interest larger function of our a XXXX, that compliant presenters really

to the right advantage position take these ability of result as a that the to starting themselves ask questions, they're So all having reduction CECL insured. for of loans

So upper in our XXX than per certainly anticipating shops some more of signing on that are think those tiers. deals we're I month larger doing

Peter Heckmann

could really cash I be Somebody's one model how And about and that -- if how are repurchase, Okay. should net a are between That's my a you allocating allocation more. been according early forward? going then cash position capital just generating thoughts really do think what thinking do your flow there? year you about dividend, your to strong are helpful. about I mean out? And what M&A, potentially share in

Chuck Jehl

mean, and human think lot marketing and and enhancements invest Peter, continue business, investing white today think in technology focused we'll the just XXX, all this Yes. was unions space we the in of continue obviously, technology. it, talking a year, organic development capital credit first the penetrating lenders allocation invested we X,XXX-plus. out And in There's to M&A unions, resources, And and We there. call about and we're first TAM look time. Yes, so the think John sales, forward I as I and to our about, and large. on is going our the of it's folks XXX Chuck. great we foremost, past protection our a opportunity we at are as because credit about

participated stock then, for M&A shareholders and as done an in at balance opportunity and a on allocation we'd something that's you buybacks a of the priority share the and us. know, the secondaries. yes, We the the that opportunity, in definitely value of as -- story historically, we've our for and So couple the we've right created accretive believe and to look business. for And but sheet, be would course, definitely

those above of So not and the balance all are and a on all debt low leverage lot us. the for opportunities sheet, so of

Operator

go from with next Please Mike Grondahl question Northland Capital ahead. Our is Markets.

Your line is open.

Unidentified Analyst

to from bottom for large sort refi. credit their moving average mentioned XXX that's of first scores on bracket? Mike. for customer customer is move the Michael vary an Or does a union credit Maybe off, say Chuck, you that you across with bit Would base? XXX This one of that quite

Chuck Jehl

It's bag. a mixed

lot their some come a But they of those to doing and tiers. a generate think move what chutes all to institutions it's for shops to of whatever that But have significant that low, shop was their this get They to of big that have low go a $XXX, going XXX. volume the in be big We consider is cutoff now. pick some I triggers. out XXX to right go lower to we

Unidentified Analyst

just sort they're having a conference. of sort of their their interest it. of get you your with you then with And through customer Got mentioned customers? lot KPMG conversations Do inbound

Chuck Jehl

needs think I gotten call, the XX-minute a mentioned it presentation quite people we since from to They size between large in to that really live. and roundtable. our great events, shop, they out schedule any going now -- we've laid will, is comply of calls good of And but then, do. of And knowing with the happen a need We you even if -- presentation, what bit that. probably a at that

think of lot prompted shelves. lot a interest of our I in a it

Operator

Faucette from is question James go Morgan Please with Stanley. next Our ahead.

Your is line open.

James Faucette

seen seemed I share happening profit et you of conditions this down have it sure what's in want we've there economics, see but And as bit just terms on do per pure make like cetera. to just getting of ask and normalized, was cert modeling ticked maybe, tick we're correctly, where think that wanted puts to It that understand average settling? to -- we our a may bit down little just and settle out. the you -- trying Where it a takes revenue little

Chuck Jehl

this mean, value had impact, we is premium only discount on two the we talked about 'XX. 'XX, quarter. months and we vehicle had place our if increased that the profit COVID, of onset had removed 'XX a of bit we April will. share Chuck. of which in in we that last I and to What little into you on QX, James, Yes, In

share in just on full being there that slightly having for new down months in three in QX XXX profit that that originations based the came and removed. QX recognized on we So,

$XXX that like underwriting mix to and this a cert QX feel we the compare that about, had number good So model. to when XXX is search. quarter I'll is of we 'XX a back the I prior to came on were about changes COVID based think And we that

right level. we're in pre-COVID that So normalized

James Faucette

like one banks time, hopefully, is year. the And now, OEM benefit bottom and like different additional the That's I'm the mean, of a potential at like year market. and about, are of think back I on, the I right to all of that on when very to year next drivers. right next you're start But you size think, think detail. Really trying was just questions and the XXs you're the -- run the got to, your takes of -- we -- same as looking first in kind -- you've what perhaps going you're the this 'XX for that. coming the in appreciate get market of see a what sense then you ambitions obviously, going at are as your puts to is low what rate overall like or

John Flynn

No, that's a Yes. great question.

provide the thoughts on early call. next on and more on we'll 'XX 'XX Our quarter

reopens, be I direct fully economy beneficiary that. a the of to mean going pent-up there's demand. we're As

in supply significant comments, levels, inventory demand chain we'll We there's believe dynamics, And Ross's million growth we profile marketplace. of units the think as X shortages. return I there over to in pricing the out restocks. monitor inventory

current based pace growth to we to just can't as we're So reason back we significant we back and in beyond soon recovery, no that off believe a continue we Company that to trough. believe quarter close growth the at that levels. get record and to the have data We believe, of the And get continues. that QX a came our can on record

Operator

I'll And there turn further to no management. are call questions. back the

Chuck Jehl

We're open great. everybody can questions answer. and been else Anything the coming an we today here. Appreciate on book have

forward. So look with this continuing you forward and everybody. working moving Thanks, to

John Flynn

good Thanks night. for your time, and

Operator

today. you for We for you participation disconnect and lines. call the thank your concludes your That please ask