NASDAQ:FPAY FlexShopper Q1 2024 Earnings Report $1.32 -0.06 (-3.99%) Closing price 05/7/2025 03:58 PM EasternExtended Trading$1.36 +0.04 (+2.94%) As of 05/7/2025 07:11 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast FlexShopper EPS ResultsActual EPS-$0.03Consensus EPS -$0.05Beat/MissBeat by +$0.02One Year Ago EPSN/AFlexShopper Revenue ResultsActual Revenue$33.95 millionExpected Revenue$29.30 millionBeat/MissBeat by +$4.65 millionYoY Revenue GrowthN/AFlexShopper Announcement DetailsQuarterQ1 2024Date5/13/2024TimeN/AConference Call DateTuesday, May 14, 2024Conference Call Time8:00AM ETUpcoming EarningsFlexShopper's Q1 2025 earnings is scheduled for Monday, May 12, 2025, with a conference call scheduled on Tuesday, May 13, 2025 at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by FlexShopper Q1 2024 Earnings Call TranscriptProvided by QuartrMay 14, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Greetings and welcome to the FlexShopper First Quarter Financial Results Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce Carlos Sanchez, Investor Relations. Thank you. You may begin. Speaker 100:00:28Thank you, and good morning. Welcome to FlexShopper's Q1 2024 financial results conference call. With me today are Russ Heiser, our Chief Executive Officer and John Davis, our Chief Operating Officer. We issued earnings release yesterday, which we'll be referencing during today's call. Our earnings release and SEC filings can be found on our Investor Relations section of our website. Speaker 100:00:53We will be available for Q and A following today's prepared remarks. Before we begin, I would like to remind everyone that this call will contain forward looking statements regarding future events and financial performance, including statements regarding our market opportunity, the impact of our growth initiatives and future financial performance. These should be considered in conjunction with statements contained in our earnings release and the company's most recent periodic SEC reports, including our annual report and quarterly report 10 Q for the quarter ending March 31, 2024. These statements reflect management's current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially from those statements. Except as required by law, we undertake no obligation to publicly update or revise any of these statements, whether as a result of any new information, future events or otherwise. Speaker 100:01:53During today's discussion of our financial performance, we will provide certain financial information that contains non GAAP financial measures under SEC rules. These include measures such as EBITDA, net income and adjusted net income. These non GAAP financial measures should not be considered replacements and should be read together with our GAAP results. Reconciliation to these GAAP measurements and certain additional information are also included in today's earnings release, which is also available on the Investors section of our website. This call is being recorded and a webcast will be available for replay on our Investor Relations section of our website. Speaker 100:02:31I will now turn the call over to our CEO, Russ Heiser. Speaker 200:02:36Thank you, Carlos, and thanks to everyone joining us this morning. We'll discuss our Q1 performance and provide some insights into the Q1 of 2024 and some of the and the rest of the year. Overall, the Q1 continued the financial progress from prior periods. Comparing the Q1 of 2024 versus the Q1 of the prior year, total revenue increased 10%, gross profit increased 31%, free marketing EBITDA was up 25% and core earnings, a representation of recurring earnings outlined in our press release, was up 65%. As previewed on our last call, there are 2 new lines on the income statement, retail revenue and cost of retail revenue. Speaker 200:03:15These two lines represent transactions on our flexhopper.com website that are not settled with FlexShopper leases, but are settled with other funding options chosen by the consumer. We expect retail revenue to grow over the coming quarters. First, these additional funding options were only active for a portion of the Q1. 2nd, we expect to add other funding options to the site this year that will broaden the offerings to appeal to prime and non prime consumers. As mentioned previously, we want to provide monetization options for all of the visitors to our sites channel the margins back into marketing. Speaker 200:03:47As you can see in our financials, marketing spend was up 60% versus the same quarter in 2023. As we continue to ramp marketing spend, we continue to grow total FlexShopper fundings as well as retail revenue. The other initiatives mentioned last quarter continue to progress. We continue to add more SKUs to the site to gain a larger share of our customer spending and launched a microsite focused on electronics with many additional sites in the works in order to have a greater reach than the single flexhopper.com marketplace site. Our non prime consumer continues to face headwinds from the macroeconomic environment. Speaker 200:04:20There's been increased focus on enhancements to our risk based pricing to balance the cost of the consumer versus optimizing consumer engagement. This has required significant enhancements to fraud algorithms in order to grow a portfolio that produces the correct level of asset returns. On the retail front, we plan to retail expansion of around 580 doors by mid May. I'm pleased to report that expansion was achieved by the end of April. We continue to have a robust pipeline of retailer opportunities both in brick and mortar stores and on other retailers' websites. Speaker 200:04:51In addition, we'll be offering our leases in Spanish in the second quarter in some verticals that have expressed an interest based upon their consumer base. Finally, we have added one other patent to our portfolio of issued and pending patents focused on providing lease to own options on online retailers websites. And I'll hand the call over to John Davis to dive into the company's Q1 performance. Speaker 300:05:12Thanks, Russ. If you recall from previous conference calls, our long term plan for our lease business consisted of 3 key items. First, we wanted to improve overall asset quality from the more challenging time periods where a removal of government stimulus and higher consumer price inflation caused deterioration in payment performance. 2nd, we wanted to continue to roll out our online retail strategy where we realized product margin revenue on products we sell on our flexshopper.com marketplace. 3rd, we wanted to take these quality originations and grow them. Speaker 300:05:46We continue to make good progress on each of these key initiatives. On asset quality, the provision for doubtful accounts as a percentage of gross lease billings and fees was 26.9% in Q1 of 2024. This compares to 32.8% in Q1 of 2023, which is approximately a 5.90 basis point improvement or an 18% reduction year over year. This is a $1,750,000 benefit in 2024 versus 2023. New originations continue to demonstrate favorable early payments versus the same period last year, which suggests that provision level should continue its year over year favorability absent any unforeseen short term macroeconomic impacts. Speaker 300:06:31Regarding our online retail strategy, we continue to see benefits of introducing product margin to our business enabled by our flex shopper.com marketplace. Our depreciation and impairment of lease merchandise costs as a percentage of gross lease billings and fees was 41 point 6% in Q1 of 2024 compared to 44.8% in the same quarter last year. This was approximately a $1,000 benefit year over year. This is being driven by product margin on bids sold that is recognized over the term of the lease. In addition, we launched a partnership with an additional payment solution partner in Q1 that provides funding solutions for customers that FlockShopper cannot serve through our lease offering. Speaker 300:07:16This resulted in an additional approximately $800,000 in revenue for the quarter and represents incremental conversions of traffic to our site that would otherwise have been lost. As we advance through the year, we intend to expand the payment options available on our marketplace to continue to increase website conversion and grow sales. Lastly, we are looking to grow the business with these improved underlying economics. I mentioned in our last conference call that we had higher year over year dollar originations for the first time since 2022. I am pleased to see that revenue grew year over year for both leases as well as loans and excludes the impact of additional sales the additional payment provider that we added as I mentioned earlier. Speaker 300:08:01As lease revenue is recognized over the life of the lease, growth in originations will have a lagged effect on revenue, which we are starting to see now. FlexShopper lease origination dollars grew again year over year in Q1, which is driven both by expanded marketing activity on our marketplace, as well as growth within our partnership point of sale channel. We launched a new partnership in Q1 within the tire space and this rollout is running ahead of our expectations. We have a growing pipeline of new potential partnerships and expect that this is an additional tailwind for originations growth. Net revenue for our state licensed loan business grew 19% versus last year. Speaker 300:08:42Additionally, we have seen better than expected collections on our bank partner loan portfolio, which resulted in 21% higher net loan revenue from an increased fair value assumption. We stopped originating new loans into this portfolio last year since our bank partner chose to exit the high APR business. However, we are actively pursuing a new bank partner to bring this back to our list of options to better serve our retail partners and customers. The combined result of these activities is an 18% year over year increase in adjusted EBITDA of $7,600,000 for this quarter. Our strategic plan remains in place, which is to continue to grow our lease and loan business with favorable asset performance that we are seeing and expand on the online retail opportunity that is in front of us. Speaker 300:09:31We will remain vigilant in regards signs of any potential future economic slowdown, but we continue to see customer interest in shopping within our channels with continued job growth and low unemployment rates, as well as stabilizing consumer prices. I want to thank our team for the hard work and results and look forward to what we can achieve through 2024. With that, let me turn the call over to our operator for any questions that we may have. Operator00:09:59Thank you. We will now be conducting a question and answer session. Our first questions come from the line of Scott Buck with H. C. Wainwright. Operator00:10:25Please proceed with your questions. Speaker 400:10:27Hi, good morning guys. Thanks for taking my questions. Russ, I was hoping you could give Operator00:10:31us a little color now Speaker 400:10:32that we're halfway through the Q2 on whether or not the traditional seasonal patterns that kind of held here in terms of originations going from Q1 to Q2? Speaker 200:10:46We continue to see similar patterns where we have a significantly much larger Q4 that's then tempered by a bit slower Q1. We see a good number of early payoffs coming out of the tax refunds. What we've tried to do though by having these additional funding options is try to mitigate some of that seasonality that we've experienced in the past and also by adding additional SKUs to the site by not being so But the same cycle still persists. I think we'll continue to see it for a good while now until we've continued to transition away from consumer electronics as being a large portion of the goods on our site. But still the same dynamics remain. Operator00:11:41Perfect. That's helpful. And then I'm curious, when in Speaker 400:11:44the quarter did you guys start collecting the retail revenue or revenue from additional payment options? You said it was a partial quarter, so just trying to understand. Speaker 200:11:55Right. Sure. Late February is when we kicked it off. Speaker 400:11:59Okay, okay. Perfect. And then last one, I want to ask about marketing OpEx. It seems like you have an opportunity here to really drive some new volumes by ramping that up a bit. What are kind of the thoughts here for the remainder of 2024 in terms of how we should be modeling marketing line in the P and L? Speaker 200:12:25So as we continue to add new financing options to the site, the expectation is and thus monetize more consumers, the expectation is that we'll continue to grow marketing spend. It's really going to be dependent upon when other funders join and how successful they are. But as we've mentioned in the past, we want to stay at that spot where margin both on the FlexShopper goods and on the other funders goods equals our online marketing spend. So as we continue to so it should be symbiotic as we continue to grow. Hopefully, it will we'll continue to grow the margins to offset that enhanced marketing cost. Speaker 200:13:08Obviously, there are some limits as to how much you can grow marketing without having some inefficiencies. So we'll continue to scale as it makes sense as we bring on new funders, especially funders that are more in the prime ish category. We expect that that'll give us more runway to grow marketing. But sort of in whole, the expectation is to continue to grow it about 20% per quarter, but we'll continue to monitor it based upon what we actually are seeing occurring on the site and with our consumers. Speaker 400:13:46Great. That's helpful. I appreciate the time guys. Thank you. Speaker 200:13:50Thanks. Operator00:13:52Thank you. We have reached the end of our question and answer session. I'll now like to turn the floor back over to Russ Heizer for closing remarks. Speaker 200:14:00Sure. Thanks for joining us today. We look forward to updating you with next quarter results. I want to express how much the team has been doing here at FlexShopper and thank them for all that they've done over this past quarter and continue to do this year. Thanks again. Operator00:14:22Thank you. This does conclude today's teleconference.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallFlexShopper Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) FlexShopper Earnings HeadlinesFY2025 EPS Estimates for FlexShopper Raised by HC WainwrightApril 29, 2025 | americanbankingnews.comAnalysts’ Opinions Are Mixed on These Industrial Goods Stocks: FlexShopper (FPAY) and RELX plc (OtherRLXXF)April 26, 2025 | markets.businessinsider.comBuffett’s favorite chart just hit 209% – here’s what that means for goldA Historic Gold Announcement Is About to Rock Wall Street For months, sharp-eyed analysts have watched the quiet buildup behind the scenes. Now, in just days, the floodgates are set to open. The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent — and four tiny miners could be your ticket to 100X gains.May 8, 2025 | Golden Portfolio (Ad)FlexShopper, Inc. Reports 2024 Fourth-Quarter and Year-End Financial ResultsApril 23, 2025 | globenewswire.comFlexShopper Delays Yearly Report FilingApril 1, 2025 | tipranks.comFlexShopper Insider Buyers See Boost After Market Cap Rose US$5.2mFebruary 16, 2025 | finance.yahoo.comSee More FlexShopper Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like FlexShopper? Sign up for Earnings360's daily newsletter to receive timely earnings updates on FlexShopper and other key companies, straight to your email. Email Address About FlexShopperFlexShopper (NASDAQ:FPAY), a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, such as tablets and wearables; smartphones; tires; and jewelry and furniture, including accessories. It also provides payment options to consumers. The company offers its products under the LG, Samsung, Sony, TCL, Frigidaire, General Electric, Whirlpool, Apple, Asus, Dell, Hewlett Packard, Toshiba, Resident, Sealy, and Ashley brands. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is headquartered in Boca Raton, Florida.View FlexShopper ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Disney Stock Jumps on Earnings—Is the Magic Sustainable?Archer Stock Eyes Q1 Earnings After UAE UpdatesFord Motor Stock Rises After Earnings, But Momentum May Not Last Broadcom Stock Gets a Lift on Hyperscaler Earnings & CapEx BoostPalantir Stock Drops Despite Stellar Earnings: What's Next?Is Eli Lilly a Buy After Weak Earnings and CVS-Novo Partnership?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release? Upcoming Earnings Enbridge (5/9/2025)Petróleo Brasileiro S.A. - Petrobras (5/12/2025)Simon Property Group (5/12/2025)JD.com (5/13/2025)NU (5/13/2025)Sony Group (5/13/2025)SEA (5/13/2025)Cisco Systems (5/14/2025)Toyota Motor (5/14/2025)NetEase (5/15/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 5 speakers on the call. Operator00:00:00Greetings and welcome to the FlexShopper First Quarter Financial Results Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce Carlos Sanchez, Investor Relations. Thank you. You may begin. Speaker 100:00:28Thank you, and good morning. Welcome to FlexShopper's Q1 2024 financial results conference call. With me today are Russ Heiser, our Chief Executive Officer and John Davis, our Chief Operating Officer. We issued earnings release yesterday, which we'll be referencing during today's call. Our earnings release and SEC filings can be found on our Investor Relations section of our website. Speaker 100:00:53We will be available for Q and A following today's prepared remarks. Before we begin, I would like to remind everyone that this call will contain forward looking statements regarding future events and financial performance, including statements regarding our market opportunity, the impact of our growth initiatives and future financial performance. These should be considered in conjunction with statements contained in our earnings release and the company's most recent periodic SEC reports, including our annual report and quarterly report 10 Q for the quarter ending March 31, 2024. These statements reflect management's current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially from those statements. Except as required by law, we undertake no obligation to publicly update or revise any of these statements, whether as a result of any new information, future events or otherwise. Speaker 100:01:53During today's discussion of our financial performance, we will provide certain financial information that contains non GAAP financial measures under SEC rules. These include measures such as EBITDA, net income and adjusted net income. These non GAAP financial measures should not be considered replacements and should be read together with our GAAP results. Reconciliation to these GAAP measurements and certain additional information are also included in today's earnings release, which is also available on the Investors section of our website. This call is being recorded and a webcast will be available for replay on our Investor Relations section of our website. Speaker 100:02:31I will now turn the call over to our CEO, Russ Heiser. Speaker 200:02:36Thank you, Carlos, and thanks to everyone joining us this morning. We'll discuss our Q1 performance and provide some insights into the Q1 of 2024 and some of the and the rest of the year. Overall, the Q1 continued the financial progress from prior periods. Comparing the Q1 of 2024 versus the Q1 of the prior year, total revenue increased 10%, gross profit increased 31%, free marketing EBITDA was up 25% and core earnings, a representation of recurring earnings outlined in our press release, was up 65%. As previewed on our last call, there are 2 new lines on the income statement, retail revenue and cost of retail revenue. Speaker 200:03:15These two lines represent transactions on our flexhopper.com website that are not settled with FlexShopper leases, but are settled with other funding options chosen by the consumer. We expect retail revenue to grow over the coming quarters. First, these additional funding options were only active for a portion of the Q1. 2nd, we expect to add other funding options to the site this year that will broaden the offerings to appeal to prime and non prime consumers. As mentioned previously, we want to provide monetization options for all of the visitors to our sites channel the margins back into marketing. Speaker 200:03:47As you can see in our financials, marketing spend was up 60% versus the same quarter in 2023. As we continue to ramp marketing spend, we continue to grow total FlexShopper fundings as well as retail revenue. The other initiatives mentioned last quarter continue to progress. We continue to add more SKUs to the site to gain a larger share of our customer spending and launched a microsite focused on electronics with many additional sites in the works in order to have a greater reach than the single flexhopper.com marketplace site. Our non prime consumer continues to face headwinds from the macroeconomic environment. Speaker 200:04:20There's been increased focus on enhancements to our risk based pricing to balance the cost of the consumer versus optimizing consumer engagement. This has required significant enhancements to fraud algorithms in order to grow a portfolio that produces the correct level of asset returns. On the retail front, we plan to retail expansion of around 580 doors by mid May. I'm pleased to report that expansion was achieved by the end of April. We continue to have a robust pipeline of retailer opportunities both in brick and mortar stores and on other retailers' websites. Speaker 200:04:51In addition, we'll be offering our leases in Spanish in the second quarter in some verticals that have expressed an interest based upon their consumer base. Finally, we have added one other patent to our portfolio of issued and pending patents focused on providing lease to own options on online retailers websites. And I'll hand the call over to John Davis to dive into the company's Q1 performance. Speaker 300:05:12Thanks, Russ. If you recall from previous conference calls, our long term plan for our lease business consisted of 3 key items. First, we wanted to improve overall asset quality from the more challenging time periods where a removal of government stimulus and higher consumer price inflation caused deterioration in payment performance. 2nd, we wanted to continue to roll out our online retail strategy where we realized product margin revenue on products we sell on our flexshopper.com marketplace. 3rd, we wanted to take these quality originations and grow them. Speaker 300:05:46We continue to make good progress on each of these key initiatives. On asset quality, the provision for doubtful accounts as a percentage of gross lease billings and fees was 26.9% in Q1 of 2024. This compares to 32.8% in Q1 of 2023, which is approximately a 5.90 basis point improvement or an 18% reduction year over year. This is a $1,750,000 benefit in 2024 versus 2023. New originations continue to demonstrate favorable early payments versus the same period last year, which suggests that provision level should continue its year over year favorability absent any unforeseen short term macroeconomic impacts. Speaker 300:06:31Regarding our online retail strategy, we continue to see benefits of introducing product margin to our business enabled by our flex shopper.com marketplace. Our depreciation and impairment of lease merchandise costs as a percentage of gross lease billings and fees was 41 point 6% in Q1 of 2024 compared to 44.8% in the same quarter last year. This was approximately a $1,000 benefit year over year. This is being driven by product margin on bids sold that is recognized over the term of the lease. In addition, we launched a partnership with an additional payment solution partner in Q1 that provides funding solutions for customers that FlockShopper cannot serve through our lease offering. Speaker 300:07:16This resulted in an additional approximately $800,000 in revenue for the quarter and represents incremental conversions of traffic to our site that would otherwise have been lost. As we advance through the year, we intend to expand the payment options available on our marketplace to continue to increase website conversion and grow sales. Lastly, we are looking to grow the business with these improved underlying economics. I mentioned in our last conference call that we had higher year over year dollar originations for the first time since 2022. I am pleased to see that revenue grew year over year for both leases as well as loans and excludes the impact of additional sales the additional payment provider that we added as I mentioned earlier. Speaker 300:08:01As lease revenue is recognized over the life of the lease, growth in originations will have a lagged effect on revenue, which we are starting to see now. FlexShopper lease origination dollars grew again year over year in Q1, which is driven both by expanded marketing activity on our marketplace, as well as growth within our partnership point of sale channel. We launched a new partnership in Q1 within the tire space and this rollout is running ahead of our expectations. We have a growing pipeline of new potential partnerships and expect that this is an additional tailwind for originations growth. Net revenue for our state licensed loan business grew 19% versus last year. Speaker 300:08:42Additionally, we have seen better than expected collections on our bank partner loan portfolio, which resulted in 21% higher net loan revenue from an increased fair value assumption. We stopped originating new loans into this portfolio last year since our bank partner chose to exit the high APR business. However, we are actively pursuing a new bank partner to bring this back to our list of options to better serve our retail partners and customers. The combined result of these activities is an 18% year over year increase in adjusted EBITDA of $7,600,000 for this quarter. Our strategic plan remains in place, which is to continue to grow our lease and loan business with favorable asset performance that we are seeing and expand on the online retail opportunity that is in front of us. Speaker 300:09:31We will remain vigilant in regards signs of any potential future economic slowdown, but we continue to see customer interest in shopping within our channels with continued job growth and low unemployment rates, as well as stabilizing consumer prices. I want to thank our team for the hard work and results and look forward to what we can achieve through 2024. With that, let me turn the call over to our operator for any questions that we may have. Operator00:09:59Thank you. We will now be conducting a question and answer session. Our first questions come from the line of Scott Buck with H. C. Wainwright. Operator00:10:25Please proceed with your questions. Speaker 400:10:27Hi, good morning guys. Thanks for taking my questions. Russ, I was hoping you could give Operator00:10:31us a little color now Speaker 400:10:32that we're halfway through the Q2 on whether or not the traditional seasonal patterns that kind of held here in terms of originations going from Q1 to Q2? Speaker 200:10:46We continue to see similar patterns where we have a significantly much larger Q4 that's then tempered by a bit slower Q1. We see a good number of early payoffs coming out of the tax refunds. What we've tried to do though by having these additional funding options is try to mitigate some of that seasonality that we've experienced in the past and also by adding additional SKUs to the site by not being so But the same cycle still persists. I think we'll continue to see it for a good while now until we've continued to transition away from consumer electronics as being a large portion of the goods on our site. But still the same dynamics remain. Operator00:11:41Perfect. That's helpful. And then I'm curious, when in Speaker 400:11:44the quarter did you guys start collecting the retail revenue or revenue from additional payment options? You said it was a partial quarter, so just trying to understand. Speaker 200:11:55Right. Sure. Late February is when we kicked it off. Speaker 400:11:59Okay, okay. Perfect. And then last one, I want to ask about marketing OpEx. It seems like you have an opportunity here to really drive some new volumes by ramping that up a bit. What are kind of the thoughts here for the remainder of 2024 in terms of how we should be modeling marketing line in the P and L? Speaker 200:12:25So as we continue to add new financing options to the site, the expectation is and thus monetize more consumers, the expectation is that we'll continue to grow marketing spend. It's really going to be dependent upon when other funders join and how successful they are. But as we've mentioned in the past, we want to stay at that spot where margin both on the FlexShopper goods and on the other funders goods equals our online marketing spend. So as we continue to so it should be symbiotic as we continue to grow. Hopefully, it will we'll continue to grow the margins to offset that enhanced marketing cost. Speaker 200:13:08Obviously, there are some limits as to how much you can grow marketing without having some inefficiencies. So we'll continue to scale as it makes sense as we bring on new funders, especially funders that are more in the prime ish category. We expect that that'll give us more runway to grow marketing. But sort of in whole, the expectation is to continue to grow it about 20% per quarter, but we'll continue to monitor it based upon what we actually are seeing occurring on the site and with our consumers. Speaker 400:13:46Great. That's helpful. I appreciate the time guys. Thank you. Speaker 200:13:50Thanks. Operator00:13:52Thank you. We have reached the end of our question and answer session. I'll now like to turn the floor back over to Russ Heizer for closing remarks. Speaker 200:14:00Sure. Thanks for joining us today. We look forward to updating you with next quarter results. I want to express how much the team has been doing here at FlexShopper and thank them for all that they've done over this past quarter and continue to do this year. Thanks again. Operator00:14:22Thank you. This does conclude today's teleconference.Read morePowered by