FlexShopper , Inc. ( FPAY )
Alert Price: $1.73
Price Target: $3.50
Company Website | Recent News
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Act fast, and add FPAY ( FlexShopper Inc .) to the top of your watchlist.
FPAY is our top trade idea in the retail sector at the moment.
The Company is coming off an record breaking quarter that had Net Revenues of $22.3 million, up 52.4%, with Adjusted EBITDA of $3.2 Million, and Record Net Income of $1.4 Million!
The Company Also Updated Its Guidance To Account For An Increase In Gross Revenue & Profit!
FlexShopper , Inc. is a financial and technology company that provides brand name electronics, home furnishings and other durable goods to consumers on a lease-to-own ( LTO ) basis through its e-commerce marketplace (www. FlexShopper .com) as well as its patented and patent pending systems. FlexShopper also provides LTO technology platforms to retailers and e-retailers to facilitate transactions with consumers that want to acquire their products, but do not have sufficient cash or credit. FlexShopper approves consumers utilizing its proprietary consumer screening model, collects from consumers under an LTO contract and funds the LTO transactions by paying merchants for the goods.
FlexShopper ( FPAY ) is a mix between an ecommerce website like Amazon ( AMZN ) and short term, high interest loans. They use a lease to own model and sell a wide range of goods. Customers make payments over about one year. Recently, FPAY partnered with brick and mortar stores selling products like tires. This strategy coincides with improved .
Online spending this holiday season is set to hit a record $143.7 billion
If digital spending during November and December reaches $143.7 billion that would be a 14.1% rise from a year ago.
Cyber Monday sales are expected to hit $9.4 billion, up nearly 19% from last year, Adobe Analytics says.
Retailers are making every day count because of the shorter holiday season this year.
It might come as no surprise: This holiday shopping season is slated to be another record-breaking one online.
Digital spending during November and December is expected to reach $143.7 billion, up 14.1% from a year ago, according to a study by Adobe Analytics, which tracks transactions for 80 of the top 100 U.S. internet retailers including Walmart and Amazon.
Cyber Monday sales are expected to hit $9.4 billion, up nearly 19% from last year, Adobe said. Black Friday sales online are expected to be $7.5 billion, up 20.3%. Thanksgiving Day sales on the internet are forecast to surge 19.5%, to $4.4 billion, it said.
For the first time, the research firm is calling for online sales to surpass $1 billion each day in November and December, because of the pinch for time.
The National Retail Federation has forecast total holiday retail sales will grow by 3.8% to 4.2% this year, excluding automobiles, gasoline and restaurants. That equates to sales of between $727.9 billion and $730.7 billion.
A perfect storm of retail spending appears to be upon us...
Trump said in a Tuesday, ahead of his speech, in a tweet that the U.S. economy is "booming."
The Nasdaq secured a fresh record while the Dow Jones Industrial Average and the S&P 500 closed just shy of one after President Trump touted the benefits that his pro-American policies have had on the U.S. economy.
Trump, speaking at the Economic Club of New York , said: “We have ended the war on American workers, we have stopped the assault on American industry, and we have launched an economic boom the likes of which we have never seen before" while also noting the record run the U.S. stock market is having.
FlexShopper Reports 2019 Third Quarter Financial Results; Net Revenues of $22.3 million, up 52.4%, with Adjusted EBITDA of $3.2 Million and Record Net Income of $1.4 Million
Gross Margin Expands to 37% Compared With 30% in the Prior Year Quarter
Last week, the Company announced its financial results for both the third quarter and first nine months of 2019, highlighted by continued growth in originations, revenues and profitability. Improved lease portfolio performance enabled gross margin expansion, driving significant growth in Net Income and Adjusted EBITDA.
Results for the Quarter Ended September 30, 2019 vs. Quarter Ended September 30, 20181:
Net lease revenues and fees1 increased 52.4% to $22.3 million from $14.6 million.
Gross lease originations increased $4.7 million, an increase of 37.9%, to $17.1 million from $12.4 million.
Lease originations increased to 36,531, up 25.2% from 29,185.
The average origination value increased to $468 from $424.
Net income was $1.4 million compared to a net loss of $(2.7) million.
Net income attributable to common stockholders was $0.8 million, or $0.04 per diluted share, compared to $(3.3) million, or $(0.56) per diluted share.
Gross Profit increased 84.4% to $8.2 million from $4.5 million.
Adjusted EBITDA2 increased to $3.2 million compared to ($1.0) million.
Results for the Nine Months Ended September 30, 2019 vs. Nine Months Ended September 30, 20181:
Net lease revenues and fees rose 52.7% to $64 million from $41.9 million.
Gross lease originations increased $13.9 million, an increase of 45.0%, to $44.7 million from $30.8 million.
Lease originations increased to 95,731, an increase of 28.2% from 74,684.
The average origination value increased to $466 versus $412.
Net income was $1.6 million compared to a net loss of $(7.0) million.
Net loss attributable to common shareholders was $(0.02) million or $(0. 01 ) per diluted share, compared to $(8.8) million, or $(1.59) per diluted share.
Gross Profit increased 64.5% to $21 million from $12.8 million.
Adjusted EBITDA2 increased to $7.2 million compared to $(2.3) million.
Q3 2019 Highlights and Recent Developments
Continued growth in originations. FlexShopper originated gross leases valued at $17.1 million in Q3 2019, which was an improvement of 37.9% from the prior year quarter. The increase was driven by the combination of increased gross lease count and average lease value. For the third quarter of 2019, FlexShopper originated a total of 36,531 gross leases, representing an increase of 25.2% compared with the prior year period, while the average lease value of $468 was up from $424 in the prior year period. Growth continued to be driven by the combination of repeat customer activity, along with strong growth in the Company’s B2B channel.
The Company’s B2B channel, consisting primarily of lease originations through third-party retail stores, continued to account for an increasing proportion of total originations. Through the first nine months of 2019, retail store lease originations were 30% of total gross lease origination dollars and delivered 18,307 new customers compared with 3,163 in the same period last year.
The Company’s average cost to acquire a new customer of $67 in Q3 2019 continued to decrease on a year over year basis, compared to $133 for the same period in 2018. As planned, marketing expense increased to $0.9 million in Q3 2019 from $0.3 million in Q2 2019 as the Company increased its marketing activity during the back to school shopping season. Q3 2019 marketing expense compared favorably with $1.6 million in the year-ago period. The Company continues to expect a sequential increase in marketing expense supporting B2C originations in Q4 2019.
Improved lease portfolio performance resulting from B2B retail channel growth. Leases originated in the Company’s B2B retail channel historically experience lower delinquency rates than the B2C channel. This positively impacted Gross Profit which increased approximately 700 basis points during Q3 2019 to 37% compared with the same period last year.
Rich House, CEO , commented, “I am delighted to have joined FlexShopper at such an exciting time. Brad has set a high bar in growing the company from its inception five years ago to where it is today. 2019 has been an inflection year for the company and I look forward to continuing that momentum. We have expanded our retail channel significantly and that has translated into a substantial increase in margins and bottom line results. We see ample avenues to continue our growth as we look forward to closing out the year with what has historically been our busiest quarter in terms of originations.”
The Company Also Updated Its Guidance To Account For An Increase In Gross Revenue & Profit!
Heavy Insider Buying In 2019
Over the past two months insiders have purchased nearly $1M worth of FPAY shares.
In the same time frame insiders sold ZERO shares.
Howard Dvorkin specializes in consumer debt. At the end of last year he saw promise in Flexshopper .
Mr. Dvorkin bought a large stake and became chairman of the board. An expert in consumer debt joining this company is a strong, positive signal. He might also contribute good ideas.
Heavy insider ownership demonstrates that management really believes in the company's growth potential. They also remained positive after share price collapsed last year and actually followed through with improved .
FlexShopper ( FPAY ) PT Raised to $3.50 at Maxim Group
Maxim Group analyst Michael Diana raised the price target on FlexShopper (NASDAQ: FPAY ) to $3.50 (from $3.00) while maintaining a Buy rating.
Q3 big beat on strong B2B channel
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