On May 13, 2024, Abacus Life Inc (ABL, Financial), a leading alternative asset manager specializing in longevity and actuarial technology, unveiled its financial results for the first quarter ended March 31, 2024. The company reported a significant year-over-year revenue increase, driven primarily by its Direct-to-Consumer division. Despite this, ABL experienced a net loss due to increased expenses. The detailed earnings can be explored through Abacus Life Inc's 8-K filing.
Financial Performance Highlights
Abacus Life reported that its total revenue for Q1 2024 more than doubled to $21.5 million from $10.3 million in the same period last year. This growth was largely fueled by a 59% increase in the Direct-to-Consumer division. Despite the impressive revenue growth, the company posted a GAAP net loss of $1.3 million, a stark contrast to the $8.1 million net income in Q1 2023. The loss was attributed to higher interest expenses and significant non-cash charges, including a $5.8 million expense related to employee stock compensation.
Adjusted net income was $6.7 million, down slightly from $7.6 million in the prior year. Adjusted EBITDA saw a 38.1% increase to $11.6 million, although the adjusted EBITDA margin decreased from 81.4% to 53.9%, reflecting higher operational costs.
Strategic Developments and Operational Metrics
During the quarter, Abacus Life launched its technology subdivision ABL Tech, raised $25 million through Fixed Rate Senior Notes, and continued its share repurchase program, buying back shares worth approximately $11 million. The company's balance sheet remains robust with $65.4 million in cash and equivalents and $126.9 million in policy assets.
Abacus Life also reported a slight decrease in capital deployment for originations, totaling $33.3 million compared to $34.4 million in the previous year, with a 6% increase in the number of policy originations.
Financial Health and Investor Insights
Abacus Life's liquidity position is strong, with substantial cash reserves and controlled long-term debt levels, which stood at $131.4 million. The company's strategic maneuvers, including the expansion of its tech and wealth management divisions, signal a forward-thinking approach aimed at diversifying revenue streams and enhancing shareholder value.
Key performance metrics such as Annualized Return on Invested Capital (ROIC) and Return on Equity (ROE) stood at 15% and 16% respectively, indicating efficient use of capital and robust equity returns.
Looking Ahead
Despite the quarterly net loss, Abacus Life's substantial revenue growth and strategic expansions provide a positive outlook. The company's focus on leveraging technology and data to drive performance is expected to play a crucial role in its future growth trajectory. Investors and stakeholders may look forward to potential benefits from the company's diversified business model and robust operational strategies.
For more detailed information and future updates, stakeholders are encouraged to follow the upcoming webcasts and financial disclosures on Abacus Life's investor relations website.
Explore the complete 8-K earnings release (here) from Abacus Life Inc for further details.
