LPRO stock soared 20% in after-hours trading on February 24, 2022, after the company reported very nice EPS and revenue beats.
Open Lending Reports Fourth Quarter and Fiscal Year 2021 Financial Results
On February 24, 2022, Open Lending Corporation (Nasdaq: LPRO), a leading provider of lending enablement and risk analytics solutions to financial institutions, reported financial results for its fourth quarter and fiscal year 2021. Open Lending reported Q4 EPS of 23c versus the consensus estimate of 15c. The company reported Q4 revenue of $51.63M versus the consensus estimate of $43.09M.
“We saw incredible growth in 2021, with an 82% increase in certified loan growth, 98% increase in revenue and a 123% increase in adjusted EBITDA for the full year 2021 compared to 2020,” said John Flynn, Chairman and CEO of Open Lending. “We also added 71 new customers in 2021, up from 55 new accounts in 2020, and the average size of our lenders signed in 2021 exceeded $1.2 billion in total assets.”
Three Months Ended December 31, 2021 Highlights
The Company facilitated 42,639 certified loans during the fourth quarter of 2021, compared to 26,822 certified loans in the fourth quarter of 2020
Total revenue was $51.6 million, compared to $39.6 million in the fourth quarter of 2020
Gross profit was $46.9 million, compared to $36.7 million in the fourth quarter of 2020
GAAP net income was $27.8 million, compared to $15.2 million in the fourth quarter of 2020
Adjusted EBITDA was $36.6 million, compared to $24.8 million in the fourth quarter of 2020
Twelve Months Ended December 31, 2021 Highlights
The Company facilitated 171,697 certified loans, compared to 94,226 certified loans in 2020
Total revenue was $215.7 million, compared to $108.9 million in 2020
Gross profit was $197.0 million, compared to $99.1 million in 2020
GAAP net income was $146.1 million, compared to GAAP net loss of $(97.6) million in 2020. The GAAP net loss was primarily attributable to $(131.9) million in change in estimated fair value of contingent consideration shares awarded as part of the business combination with Nebula Acquisition Corporation on June 10, 2020
Adjusted EBITDA was $155.0 million, compared to $69.5 million in 2020
📺 Open Lending
📉 LPRO Stock Technical Analysis
Both the long and short-term trends are negative. It is better to avoid buying stocks with negative trends. LPRO is one of the lesser performing stocks in the Capital Markets industry. 87% of 212 stocks in the same industry do better. LPRO is currently making a new 52 week low. This is a very bad signal. LPRO is lagging the S&P500 Index which is trading in the middle of its 52-week range. Prices have been falling strongly lately, it is better to avoid new long positions here.
There is a resistance zone ranging from 18.63 to 18.76. This zone is formed by a combination of multiple trend lines in multiple time frames. There is another resistance zone ranging from 19.90 to 20.09. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. Finally, there is resistance at 41.28 from a horizontal line in the weekly time frame.
The technical rating of LPRO is bad and it also does not present a quality setup at the moment. LPRO stock has a Setup Rating of 2 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when LPRO stock consolidates and has a Setup Rating of 8 or higher.