NEW YORK & TEL AVIV, Israel - Pagaya (NASDAQ:PGY) Technologies Ltd. (NASDAQ: PGY), an AI-driven financial technology firm, reported a robust finish to the year with its fourth quarter earnings surpassing analyst expectations. The company announced an adjusted EPS of $0.20, significantly outperforming the consensus estimate of ($0.01). This earnings beat prompted a 3% rise in the company's stock, indicating a positive investor response to the stronger-than-anticipated results.
The company's revenue for the quarter was $210.43 million, which, while falling slightly short of the analyst consensus of $220.39 million, still marked a 13% increase YoY. The growth was primarily driven by an 18% increase in revenue from fees. Pagaya's adjusted EBITDA for the fourth quarter reached a record $34 million, greatly exceeding the outlook of approximately $17 million to $27 million and reflecting a substantial improvement from the prior year.
CEO Gal Krubiner attributed the strong quarter to the company's expansion of its lending network and deeper monetization of its lending product. "We delivered record fourth quarter results, ending the year with network volume, total revenue and adjusted EBITDA far exceeding our outlook from the start of the year," Krubiner said. He emphasized the company's growth through new partnerships in the auto and real estate verticals and expressed confidence in Pagaya's momentum going into 2024.
Looking forward, Pagaya provided guidance for the first quarter of 2024 with expected revenue between $225 million and $240 million, which brackets the analyst consensus of $230.5 million. For the full year 2024, the company forecasts revenue to be in the range of $0.925 to $1.05 billion, slightly below the consensus estimate of $1.038 billion. The midpoint of the guidance range for the full year suggests a conservative stance compared to market expectations.
Pagaya's performance in the fourth quarter and the optimistic outlook for the coming year reflect the company's strategic initiatives and operational efficiency. The company's ability to exceed its own financial outlook and deliver positive adjusted net income for the third consecutive quarter demonstrates its strong position in the AI-driven financial ecosystem.
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