FlexShopper, Inc. (NASDAQ:FPAY) Q2 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 10:30 am ET

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FlexShopper, Inc. (NASDAQ:FPAY) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. Ladies and gentlemen, at this time we will be conducting the question-and-answer session. [Operator Instructions] Our first question comes from Theodore O'Neill with Ascendiant Capital Markets. Please proceed with your question.

Analyst
Theodore O'Neill

Thank you. Congratulations on the good quarter and the raised guidance.

Executive
Brad Bernstein

Thank you, Theo.

Analyst
Theodore O'Neill

Just a quick question here. If I'm doing the math right, it looks like the cost of lease revenues went up slightly in the June 2019 compared to 2018. Is that a mix issue? Is that -- any highlight you can give us on that?

Executive
Russell Heiser

Sure, Theo. It's essentially as we moved through the 90-day same as cash from the prior holiday quarter, we see a change in bad debt expense.

Analyst
Theodore O'Neill

All right. Got it. Okay. Thanks very much. That's it for me.

Executive
Brad Bernstein

Thank you.

Operator
Operator

Thank you. [Operator Instructions] Our next question comes from Richard Deutsche with National Securities. Please proceed with your question.

Analyst
Richard Deutsche

Yes, thank you for taking my call and thank you for a great quarter. We really appreciate it. I have a question. Though your quarter has been accelerating through your vertical in business to business. After starting your business on retail customers, this part of your business is on fire right now. And I'd like to see if you can give us a little color about your pipeline of potential new business customers, your client acquisition costs are plunging, your margins are rising sharply. And I'd like to see if you can give us just a little bit of insight as to how you are marketing? And of course, success breeds success here, so I'd really like to see if you can give us a little look under the skirt here and tell us what you see going forward in business customer sign-ups?

Executive
Brad Bernstein

Yes. Thanks, Rick. Appreciate the question. So obviously, we're very bullish and confident about our retail pipeline. We don't disclose retailers, but we're very excited about building upon the momentum we have. I mean, look, we rolled out to another 560 locations in the second quarter. Our footprint's over 1,200 compared to 322 same time last year. And at the end of the day, our business development team is equally excited that they have a great product to sell, which is our lease-to-own mobile integrationless technology that pays the retailer at the point-of-sale.

I know I've said this many times, but I really want to get across that we really have broken down the barriers for the retail in terms of accepting lease-to-own in their store by not having to do an integration and by paying them immediately at the point-of-sale. And we believe that a lot of the success that we're having is the traction that we're getting with this product. And obviously, we're also moving this product into multiple verticals that include furniture, electronic, tires.

So to answer your question, I can't give you details, but I could say that we feel very strongly about the pipeline, and we're very confident in terms of building