Mission Statement, Vision, & Core Values (2024) of Katapult Holdings, Inc. (KPLT)

An Overview of Katapult Holdings, Inc. (KPLT)

General Summary of Katapult Holdings, Inc. (KPLT)

Katapult Holdings, Inc. (KPLT) specializes in providing lease-purchase options for consumers. Founded in 2014, Katapult has evolved its business model to include a mobile application, Katapult Pay, launched in Q3 2022, enhancing its customer engagement and origination processes. As of 2024, the company focuses on facilitating lease-to-own agreements for various consumer products, primarily in the electronics, furniture, and appliances sectors.

As of 2024, Katapult reported a total sales revenue of $184.2 million for the nine months ended September 30, 2024, reflecting a year-over-year increase of 12.3% from $164.0 million in the same period of 2023. This growth is attributed to efficient gross origination growth and effective collection efforts.

Company's Financial Performance in the Latest Financial Reports

In the most recent financial report for the nine months ended September 30, 2024, Katapult reported:

• Total revenue: $184.2 million
• Rental revenue: $181.9 million
• Other revenue: $2.3 million
• Cost of revenue: $145.9 million
• Gross profit: $38.4 million
• Operating expenses: $41.6 million
• Net loss: $(16.3) million
• Net loss per common share: $(3.81)

The company experienced a gross profit margin of approximately 20.8% for the nine months ended September 30, 2024, compared to 20.0% in 2023. Notably, Katapult's write-offs as a percentage of total revenue remained stable at 9.1%, within the target range of 8% to 10%. The company also reported a significant increase in operating expenses, primarily due to litigation settlement costs of $3.4 million during the nine months ended September 30, 2024.

Introduction to Katapult as a Leader in the Industry

Katapult Holdings, Inc. stands out as a leader in the lease-purchase industry, leveraging technology to streamline the consumer leasing process. The company's innovative approach, including the introduction of Katapult Pay, has significantly enhanced its market position and operational efficiency. As of September 30, 2024, Katapult had approximately $30.3 million in cash and cash equivalents, demonstrating a stable liquidity position, essential for sustaining operations and growth.

The company continues to abide by its financial covenants and is actively seeking to refinance its debt obligations, which total approximately $98.6 million related to the revolving line of credit (RLOC) and term loan. Katapult's focus on enhancing customer experience and expanding its market reach positions it for continued success in the competitive landscape of consumer finance.

Mission Statement of Katapult Holdings, Inc. (KPLT)

Mission Statement Overview

Katapult Holdings, Inc. (KPLT) is committed to providing flexible payment solutions that empower consumers to purchase the products they need without the burden of high upfront costs. The company's mission statement is designed to encapsulate its dedication to customer service, innovation, and accessibility. This statement serves as a guiding light for the company's strategic initiatives and long-term goals, ensuring alignment across various departments and stakeholders.

Core Component 1: Customer Empowerment

At the heart of Katapult's mission is the concept of customer empowerment. The company aims to revolutionize the way customers access products through innovative lease-purchase agreements. As of September 30, 2024, Katapult reported total revenue of $184.2 million, reflecting a 12.3% increase from the previous year, driven by strong customer demand and effective marketing strategies.

Core Component 2: Innovative Solutions

Katapult emphasizes innovation in its product offerings. The launch of the Katapult Pay app in 2022 has significantly contributed to gross origination growth, with gross originations reaching $162.2 million for the nine months ending September 30, 2024, compared to $159.0 million in the same period of 2023. This indicates the effectiveness of Katapult's innovative approach in enhancing customer experience and expanding market reach.

Core Component 3: Accessibility

The company prioritizes accessibility in its mission. By providing flexible payment options, Katapult ensures that a broader range of consumers can afford the products they desire. As of September 30, 2024, Katapult's write-offs as a percentage of total revenue were maintained within the target range of 8% to 10%, with a reported figure of 9.1%. This demonstrates the company's commitment to responsible lending practices while still making products accessible to all customers.

Katapult Holdings, Inc. continues to align its mission statement with its operational strategies, ensuring that the focus remains on customer empowerment, innovative solutions, and accessibility as it navigates the competitive landscape of the lease-purchase market.

Vision Statement of Katapult Holdings, Inc. (KPLT)

Vision Statement of Katapult Holdings, Inc. (KPLT)

The vision statement of Katapult Holdings, Inc. emphasizes their commitment to revolutionizing the e-commerce landscape by providing innovative payment solutions that empower consumers to acquire products through flexible lease-to-own options. This vision is underpinned by specific components that drive the company's strategic direction in 2024.

Empowering Consumers

Katapult aims to empower consumers by offering accessible financing solutions that enhance their purchasing power. The company's mobile application, featuring Katapult Pay, has significantly contributed to this goal, with gross originations representing 31% of the total during the third quarter of 2024, compared to 17% in the same quarter of 2023.

Innovation in Payment Solutions

Katapult's vision includes a strong focus on innovation, particularly in payment technologies. The introduction of Katapult Pay has led to a 12.3% increase in total revenue, reaching $184.2 million for the nine months ended September 30, 2024. This innovative approach not only enhances customer experience but also drives the company's growth trajectory.

Commitment to Financial Inclusion

The company is dedicated to financial inclusion, ensuring that consumers from various backgrounds can access its services. This commitment is reflected in the company's write-off rates, which have remained stable at approximately 9.1% to 9.5%, indicating effective risk management and support for consumers.

Strategic Partnerships and Growth

Katapult's vision is also supported by strategic partnerships, particularly with major retailers such as Wayfair, which accounted for 42% of gross originations in the third quarter of 2024. Such collaborations are essential for expanding market reach and enhancing service offerings.

Financial Performance Overview

In 2024, Katapult has shown promising financial performance, with a total revenue increase of $20.2 million or 12.3% compared to the previous year. Below is a detailed financial performance summary:

This financial data illustrates Katapult's operational efficiency and growth potential as it continues to innovate and expand its market presence.

Focus on Customer Experience

Katapult recognizes the importance of customer experience in achieving its vision. By continuously refining its platform and service offerings, the company aims to create a seamless and user-friendly experience for its customers, further solidifying its position in the market.

Long-term Sustainability

Finally, Katapult's vision includes a commitment to long-term sustainability and responsible business practices. This includes maintaining a strong balance sheet and actively managing its debt, with total outstanding principal under the revolving line of credit (RLOC) reaching $67.3 million as of September 30, 2024.

Core Values of Katapult Holdings, Inc. (KPLT)

Integrity

Integrity is a fundamental value at Katapult Holdings, Inc. (KPLT), emphasizing the importance of honesty and transparency in all business dealings. This value is crucial for building trust with customers, partners, and stakeholders.

In 2024, Katapult demonstrated its commitment to integrity through its compliance with regulatory standards and its transparent communication regarding financial performance. The company reported a net loss of $16.3 million for the nine months ended September 30, 2024, which was a decrease from the net loss of $22 million in the same period in 2023. This transparency in reporting reflects the company's dedication to honest evaluations of its financial health.

Customer Centricity

Customer centricity is central to Katapult's operations, focusing on enhancing customer experiences and meeting their needs effectively. In 2024, Katapult launched several initiatives aimed at improving customer engagement and satisfaction.

The introduction of the Katapult Pay mobile app has been a significant step forward, contributing to a 10% increase in total revenue, which reached $60.3 million in Q3 2024 compared to $54.8 million in Q3 2023. This app allows customers to access flexible payment options, showcasing Katapult's commitment to serving its customer base efficiently.

Innovation

Innovation is a core value that drives Katapult's growth strategy, enabling the company to adapt to market changes and enhance its service offerings. In 2024, Katapult focused on technological advancements to streamline operations and improve customer service.

The company's investment in technology is evident from the gross originations, which rose to $162.2 million for the nine months ended September 30, 2024, marking a 2% increase from $159 million in the same period of 2023. This growth highlights the effectiveness of Katapult's innovative strategies and their impact on revenue generation.

Accountability

Accountability at Katapult involves taking responsibility for actions and decisions made within the company. This value is reflected in its financial management practices and operational strategies.

In 2024, Katapult reported a significant increase in operating expenses, amounting to $41.6 million for the nine months ended September 30, 2024, compared to $40.9 million in 2023. This increase is attributed to litigation settlement costs, which totaled $3.4 million. The company's acknowledgment of these costs demonstrates its commitment to accountability and transparency in financial reporting.

Collaboration

Collaboration is essential for fostering a team-oriented environment that drives success at Katapult. The company prioritizes teamwork and partnerships to achieve its business objectives.

In 2024, Katapult's partnerships with various e-commerce platforms have been instrumental in enhancing its service offerings. The company reported that Wayfair accounted for 42% of gross originations during Q3 2024. This collaboration with key merchants illustrates Katapult's strategy of leveraging partnerships to expand its market presence and improve customer access to products.

Updated on 16 Nov 2024

Resources:

1. Katapult Holdings, Inc. (KPLT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Katapult Holdings, Inc. (KPLT)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Katapult Holdings, Inc. (KPLT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.