PPDAI Group Inc. (PPDF) Tops Q2 EPS by 7c, Revenues Beat

PPDAI Group Inc. (NYSE: PPDF) reported Q2 EPS of $0.28, $0.07 better than the analyst estimate of $0.21. Revenue for the quarter came in at $160.16 million versus the consensus estimate of $158.17 million.

Mr. Jun Zhang, the Chairman and the Chief Executive Officer of PPDAI, commented, "We are pleased to have achieved further growth in loan origination volume quarter over quarter despite the recent market headwinds faced by the Company. The resilence of our core business has been demonstrated by our continued profitability and a further improvement in our delinquency rate in the quarter."

Mr. Zhang continued, "As we strive to invest in new engines of growth, we made positive progress in engaging a wide range of financial service providers with our \"technologies as a service" offerings. The external acceptance of our financial technologies reinforces our leading-edge innovation and core capabilities. As a pioneer and industry leader, we are very proud to be among the first to be aligned with Baihang Credit, which further recognizes our industry leadership position. We remain focused on capturing the tremendous long-term growth opportunities in our industry, while maintaining compliance with regulations as they evolve.

"The industry has lately been going through significant change. We believe a strengthened regulatory framework and industry consolidation will benefit the industry's long-term growth and sustainability. As an industry leader with the longest operating history and strong proprietary technologies and core capabilities, we are confident in our ability to meet upcoming P2P registration and well positioned for future growth," concluded Mr. Zhang.

Mr. Simon Ho, the Chief Financial Officer of PPDAI, added, "During the quarter, we continued to improve our operating leverage by increasing efficiencies and maintained non-GAAP operating margin at a healthy level of 46.0%. Regulatory uncertainty and the exit of smaller players has led investors to grow more cautious, which, in additional to delays in the registration process, has caused us to temper our outlook for loan origination volume for 2018. The fundamentals of our business model remain intact as clearly evidenced by our continued profitability and strong balance sheet. Notably, we had approximately RMB3.9 billion of cash and short-term liquidity, and our quality assurance fund remain sufficiently funded and the total balance of the fund is approximately RMB3.6 billion, equivalent to 17.8% of the total outstanding loans protected by the fund. We don\'t have concerns for liquidity on our plarform due to our unique funding structure and relatively short loan tenor."

For earnings history and earnings-related data on PPDAI Group Inc. (PPDF) click here.

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