Open Lending Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Open Lending Corp. has filed its 2023 10-K, providing a comprehensive overview of its financial performance and position for the fiscal year ending December 31, 2023.</b>

AI Summary

Open Lending Corp (LPRO) filed a Annual Report (10-K) with the SEC on February 28, 2024. Open Lending Corp. filed its 2023 Form 10-K on February 28, 2024, reporting on the fiscal year ending December 31, 2023. The company's principal business is within Personal Credit Institutions (SIC 6141). The filing details financial data for the fiscal years 2021, 2022, and 2023. Key financial components such as common stock, additional paid-in capital, retained earnings, and treasury stock are reported as of December 31 for 2020 through 2023. The report includes data on Program Fee and Profit Share revenue streams for the years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking Open Lending Corp, this filing contains several important signals. This 10-K filing provides investors with the most up-to-date and detailed financial information, including revenue breakdowns and balance sheet figures, essential for evaluating the company's performance and future prospects. The detailed reporting on various financial components and revenue streams allows for a thorough analysis of Open Lending's business model and its operational success in the personal credit sector.

Risk Assessment

Risk Level: medium — Open Lending Corp shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not inherently signal immediate positive or negative developments beyond the company's reported performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to assess Open Lending Corp.'s financial health and strategic direction.

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period.)
• 2024-02-28 — Filing Date (The date the 10-K was filed.)
• 6141 — SIC Code (Standard Industrial Classification for Personal Credit Institutions.)

Key Players & Entities

• Open Lending Corp. (company) — Filer of the 10-K report.
• Nebula Parent Corp. (company) — Former name of Open Lending Corp.
• 2023-12-31 (date) — Fiscal year end date for the reported period.
• 2024-02-28 (date) — Filing date of the 10-K.
• 1501 S. MOPAC EXPRESSWAY SUITE #450 (address) — Business and mailing address of Open Lending Corp.
• AUSTIN, TX (address) — City and State of Open Lending Corp.'s address.

FAQ

Industry Context

Open Lending Corp. operates within the Personal Credit Institutions sector, providing services related to personal credit.

Regulatory Implications

The company is subject to regulations governing financial institutions and credit providers in the United States.

What Investors Should Do

1. Review the consolidated financial statements for detailed revenue, net income, and balance sheet information.
2. Analyze the Management's Discussion and Analysis of Financial Condition and Results of Operations section for insights into business performance drivers.
3. Examine the Risk Factors section to understand potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-28: 10-K Filing Date — Date Open Lending Corp. submitted its annual report.

Year-Over-Year Comparison

This filing represents the company's annual report for the fiscal year 2023, providing a year-over-year comparison of financial data against previous periods.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share LPRO The Nasdaq Stock Market
• $10.51 — 30, 2023, based on the closing price of $10.51 for shares of the Registrant's common s
• $21.9 billion — ption in 2000, we have facilitated over $21.9 billion in automotive loans, accumulated more t
• $527 — ercentage of the loan amount, averaging $527 per loan in 2023, and are recognized up
• $538 — an. In 2023, LPP generated, on average, $538 in profit share revenue per loan, which
• $270 billion — large, underserved sector, estimated at $270 billion annually. We currently serve approximat
• $40 billion — -prime automotive loans is estimated at $40 billion annually. Our Ecosystem LPP enables t

Filing Documents

• lpro-20231231.htm (10-K) — 1428KB
• lpro-20231231ex1015.htm (EX-10.15) — 19KB
• lpro-20231231ex211.htm (EX-21.1) — 6KB
• lpro-20231231ex231.htm (EX-23.1) — 2KB
• lpro-20231231ex311.htm (EX-31.1) — 9KB
• lpro-20231231ex312.htm (EX-31.2) — 9KB
• lpro-20231231ex321.htm (EX-32.1) — 5KB
• lpro-20231231ex322.htm (EX-32.2) — 5KB
• lpro-20231231ex971.htm (EX-97.1) — 36KB
• lpro-20231231_g1.jpg (GRAPHIC) — 38KB
• lpro-20231231_g2.jpg (GRAPHIC) — 146KB
• 0001806201-24-000036.txt (&nbsp;) — 7758KB
• lpro-20231231.xsd (EX-101.SCH) — 43KB
• lpro-20231231_cal.xml (EX-101.CAL) — 80KB
• lpro-20231231_def.xml (EX-101.DEF) — 211KB
• lpro-20231231_lab.xml (EX-101.LAB) — 690KB
• lpro-20231231_pre.xml (EX-101.PRE) — 446KB
• lpro-20231231_htm.xml (XML) — 948KB

Risk Factors

Item 1A. Risk Factors 10

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

C . Cybersecurity

Item 1 C . Cybersecurity 29

Properties

Item 2. Properties 31

Legal Proceedings

Item 3. Legal Proceedings 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31 Part II 32

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32

[Reserved ]

Item 6. [Reserved ] 34

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 47

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 48

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 48

Controls and Procedures

Item 9A. Controls and Procedures 48

Other Information

Item 9B. Other Information 49

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 49 Part III 50

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 50

Executive Compensation

Item 11. Executive Compensation 50

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 50

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 50

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 50 Part IV 51

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 51

Form 10-K Summary

Item 16. Form 10-K Summary 54

Signatures

Signatures 55 PART I CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("Annual Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "appears," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Annual Report include, but are not limited to, statements about: our financial performance; changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; the impact of the relative strength of the overall economy, including its effect on unemployment, consumer spending and consumer demand for automotive products; the turnover in automotive lenders, as well as varying activation rates and volatility in usage of our Lenders Protection TM platform by automotive lenders; the growth in loan volume from our top ten automotive lenders relative to that of other automotive lenders and associated concentration of risks; the costs of services in absolute dollars and as a percentage of revenue; general and administrative expenses, selling and marketing expenses and research and development expenses in absolute dollars and as a percentage of revenue; the impact of projected operating cash flows and available cash on hand on our bu

Business

Item 1. Business. Unless the context otherwise requires, "we," "us," "our," "Open Lending," and the "Company" refers to Open Lending Corporation, the combined company and its subsidiaries. Open Lending, LLC and Lenders Protection, LLC are wholly owned subsidiaries of Open Lending Corporation. Company Overview We are a leading provider of lending enablement and risk analytics to credit unions, regional banks, finance companies and the captive finance companies of automakers. Our customers, collectively referred to herein as automotive lenders, make automotive consumer loans to underserved near-prime and non-prime borrowers by harnessing our risk-based interest rate pricing models, powered by our proprietary data and real-time underwriting of automotive loan default insurance coverage from insurers. Since our inception in 2000, we have facilitated over $21.9 billion in automotive loans, accumulated more than 20 years of proprietary data and developed over two million unique risk profiles. We currently serve 454 active lenders. Lenders Protection Platform Our flagship product, the Lenders Protection TM platform ("LPP"), is a cloud-based automotive lending platform. LPP supports loans made to near-prime and non-prime borrowers and is designed to underwrite default insurance by linking automotive lenders to insurance companies. The platform uses risk-based pricing models which enable automotive lenders to assess the credit risk of a potential borrower using data driven analysis. Our proprietary risk models project loan performance, including expected losses and prepayments, in arriving at the optimal rate. With five-second decisioning, LPP recommends a risk-based, all-inclusive interest rate for a loan that is customized to each automotive lender, reflecting cost of capital, loan servicing and acquisition costs, expected recovery rates and target return on assets. LPP risk models use a proprietary score in assessing and pricing risk on automotive loan applications.

View Full Filing

View this 10-K filing on SEC EDGAR