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    Steven Kwok • Keefe, Bruyette & Woods, Inc.

    Steven Kwok's questions to Pagaya Technologies Ltd (PGY) leadership

    Steven Kwok's questions to Pagaya Technologies Ltd (PGY) leadership • Q3 2024

    Question

    Steven Kwok, on behalf of Sanjay Sakhrani, asked for clarification on the quarter's credit impairment, questioning what drove the charge given that underlying credit metrics appear stable. He specifically asked about the 2023 vintage and sought expectations for Q4 impairments.

    Answer

    CFO Evangelos Perros explained the impairment was not due to deteriorating credit performance but rather the structure of 2023 vintage ABS deals. These were created in a challenging funding environment, making them highly sensitive to even minor performance changes. He stated that today's structures have a much larger cushion. While declining to provide a specific Q4 forecast, he noted the remaining 2023 portfolio value is approximately $275 million and expects the majority of any remaining adjustments to be booked in Q4 2024.

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    Steven Kwok's questions to Avidxchange Holdings Inc (AVDX) leadership

    Steven Kwok's questions to Avidxchange Holdings Inc (AVDX) leadership • Q2 2024

    Question

    Steven Kwok of Keefe, Bruyette & Woods asked for more detail on the revenue slowdown, including sequential trends within Q2, the impact of discretionary spending, and the expected contribution from initiatives like Payment Accelerator and spend management.

    Answer

    CFO Joel Wilhite attributed the volume pressure to continued caution in discretionary spending areas like advertising, professional services, and capital projects. CEO Michael Praeger added that Payment Accelerator 2.0 is scaling prudently with a significant ramp expected in 2025, while the spend management product is about a year behind, targeting a late Q4 2024 initial customer introduction.

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