Mogo Finance Technology Inc. (MOGO) Reports Q2 Loss of $0.27

Mogo Finance Technology Inc. (NASDAQ: MOGO) reported Q2 EPS of ($0.27). Revenue for the quarter came in at $15.4 million.

"This was a milestone quarter for the company that clearly demonstrates the power of our platform and our ability to drive strong financial results," said David Feller, Mogo's Founder and CEO. "We now offer six financial products that tie together in one digital, mobile-first experience to help consumers get financially healthy, and we continue to introduce new features and functionality to enhance the value proposition of the Mogo platform to members. As we introduce new products, we increase our total addressable market and open up valuable new revenue streams. While these initiatives are still in the early stages, as the rapid growth in subscription and services revenue underscores, we are having early success in cross-selling new products and premium account features to our fast-growing member base."

"Our core revenue increased by 64% and showed accelerating growth for the fifth quarter in a row primarily driven by strong growth in our subscription and services revenue, which increased 105% from the prior year period as we continued to increase the penetration of our new products and premium account options within our member base," said Greg Feller, President & CFO. "We also reached a significant milestone this quarter, with subscription and services revenue now comprising 50% of our core revenue. Given the massive market opportunity in front of us and our leadership position, we will continue to invest in our platform as well as new features and products to drive continued strong growth over the long term."

Second-Quarter Financial Highlights

• Record total revenue of $15.4 million, up 34% from $11.5 million in the second quarter of 2017.
• Core revenue, which excludes loan fees related to the Company's legacy short-term loan product, increased by 64% to $11.6 million, up from $7.1 million in the comparable quarter in 2017, representing the fifth sequential quarter of accelerating core revenuegrowth.
• Subscription and services revenue grew by 105% in the second quarter of 2018 and now represents 50% of core revenue.
• Gross profit increased 29% to $9.9 million (64% of revenue), compared with $7.7 million (66% of revenue) in the second quarter of 2017.
• Adjusted EBITDA increased 255% to $0.7 million, versus the comparable period a year ago, representing the Company's eighth consecutive quarter of positive adjusted EBITDA.
• Adjusted net loss for the first quarter of 2018 was $5.2 million, compared with $4.3 million in the same quarter in 2017.
• Net loss for the second quarter of 2018 was $6.1 million, or $0.27 per share, compared with $5.3 million, or $0.29 per share, for the second quarter of 2017.
• At June 30, 2018, the Company had $30.6 million in cash and up to an additional $184 million, upon certain conditions, from undrawn facilities available to support future growth.

For earnings history and earnings-related data on Mogo Finance Technology Inc. (MOGO) click here.

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