FlexShopper, Inc. (NASDAQ:FPAY) Q4 2023 Earnings Call Transcript

Michael Diana: Okay. And the 1,600 is — I think improve pricing or something…

Russ Heiser: We already have a partner that has about 1,600 locations. This is where we’re working together with them to find a new improved process to increase the lease throughput. We’re running a pilot with them in the Tampa market at the moment in a number of locations there. And the lease throughput is up a little more than double what we experienced previously. So this is just a — an easier consumer experience tied in closer to the point-of-sale systems, et cetera. So we’re excited to continue to work and refine the technology there and then eventually essentially re-roll out into those — that partner 1,600 stores. Hopefully, achieving the same results we have in the pilot, which is a doubling of originations.

Michael Diana: Okay. And then when — like year-end 2024 as far as relative contribution goes between your flexshopper.com website, the retail, what would be the order of contribution among those strategies would you think?

Russ Heiser: Sure. So given what we’re seeing on the online site and the ability to increase marketing spend because we have this high margin on goods, and we’ve added these other payment providers, we expect marketing spend in that channel, which is offset by the wholesale margin, but we expect that to more than double by the end of the year on a cumulative basis, to the same extent we feel like, we call it, the non-marketplace, the retailer model given this extra store rollout, given some of these new initiatives, we’ll probably see similar impacts. Obviously, the repeat market dynamics are a little bit different. So from a new customer perspective, I expect it to be — new FlexShopper customer perspective, I expect it to be about 45% online and 55% retail. From a total customer perspective, as we mentioned before, the retailer customer doesn’t repeat quite as much, we expect it to be more two-thirds online, one-third retailer.

Michael Diana: Okay, great. That’s very helpful. Thanks a lot.

Russ Heiser: Thanks, Michael.

Operator: Thank you. We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Russ Heiser for closing remarks.

Russ Heiser: We appreciate everyone dialing in this morning. I want to thank the team here at FlexShopper for all their hard work over the past quarter, the results generated, and we look forward to another great quarter.

Operator: Thank you. That does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.