Mogo Finance Technology Inc. (MOGO) Reports Q3 Revenues of $16.6M

Mogo Finance Technology Inc. (NASDAQ: MOGO) reported Q3 revenue for the quarter came in at $16.6 million, versus $14.6 million reported last year.

"It was a very active and productive quarter for Mogo as we continued to use technology to transform how Canadians manage their financial health and reduce financial stress," said David Feller, Mogo's Founder and CEO. "We continued building the leading mobile-first fintech platform, while also growing our member base to almost one million Canadians," said David Feller, Mogo's Founder and CEO. "Our recent agreement with goeasy represented a major milestone that will expand our ability to monetize our digital lending platform, and we expect to expand this new partner model with the addition of prime lenders to offer the best consumer loan rates across the entire credit spectrum. We also recently launched an entirely new marketing campaign called 'MoneyUp' along with a redesigned experience that makes it even easier for members to get in control of their financial health. This is a big development for Mogo as it brings our products and experience together into a holistic financial health solution, while leveraging performance and behavioral science to make it easier for our members to achieve their financial goals, including getting out of debt and saving and investing for the future."

"The third quarter signaled an important transition for Mogo to a more capital-light business model in which our growth going forward will now be driven by our high-margin subscription and services revenue," said Greg Feller, President and CFO. "As we ramp our partner lending platform and introduce new subscription-based products, we are positioned for accelerating revenue and EBITDA growth as well as expanding gross margins in 2020. This transition will allow us to scale our revenue while decreasing capital requirements, which will immediately reduce our cash usage and accelerate our path to cash flow positive."

Q3 2019 Financial Highlights

• Core revenue1 increased by 13% to $16.6 million, compared with $14.6 million in the same period in 2018.
• Subscription and services revenue totalled $7.8 million, which is an increase of 5% from the prior year period when adjusting for the exit of bitcoin mining.
• Gross profit increased 5% to $10.1 million (61% of revenue), compared with $9.6 million (62% of revenue) in the third quarter of 2018.
• Contribution for the third quarter of 2019 was $5.0 million, or 30% of revenue, which was consistent with the third quarter of 2018. Management views Contribution as a key measure of the core profitability of our business which helps fund the investment in Technology & Development, Marketing and corporate related expenses.
• Adjusted EBITDA increased by 3% year over year to $1.1 million (7% of total revenue), compared with $1.0 million in the third quarter of 2018.
• Cash flow from operations before investment in receivables and changes in working capital was $1.8 million in the current quarter, compared to $1.5 million in the third quarter of 2018.
• Adjusted net loss was $5.8 million, compared with $5.5 million in the same period in 2018.
• Net loss of $6.0 million, compared with a net loss of $7.0 million in the third quarter of 2018.
• Average core revenue per member ("Core ARPM") of $74 in the third quarter of 2019, was flat with the second quarter of 2019 and down compared to $86 in the same period last year.
• At September 30, 2019, the Company had $35.4 million in combined cash and investment portfolio.

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

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