Katapult Holdings' Q4 2024: Discrepancies in Margin Outlook, Growth Projections, and Tariff Impacts

These are the key contradictions discussed in Katapult Holdings' latest 2024Q4 earnings call, specifically including: Gross Profit Margin Outlook, Gross Originations Growth Expectations, and Impact of Tariffs on Consumer Behavior:



Revenue and Gross Originations Growth:
- Katapult Holdings reported revenue of $63 million for Q4, marking a 9.4% year-over-year growth, with gross originations increasing by 11.3% to $75.2 million.
- The growth was driven by enhancements in the go-to-market strategy, operational improvements, and the success of the Katapult app marketplace.

App Marketplace and Customer Engagement:
- Gross originations starting in the app increased by 32% year-over-year, with nearly $46 million in total app originations for Q4.
- This growth was attributed to increased app functionality, strategic merchant engagement, and effective marketing campaigns that led to higher customer engagement and conversion rates.

Merchant Engagement Initiatives:
- Katapult's direct and waterfall gross originations grew approximately 44% year-over-year, excluding the home furnishings and mattress category.
- This was driven by successful co-marketing campaigns, partnerships, and the addition of new merchants to the platform, which expanded the variety and vibrancy of available products.

Positive Financial Performance:
- Katapult reported the first full-year of positive adjusted EBITDA since 2021, posting $4.8 million for 2024, a $6.7 million improvement over the previous year.
- This was a result of disciplined expense management, top-line growth, and strategic investments in technology and marketing to drive further growth.