Mogo Inc. (MOGO) Reports Q4 Revenues of $15M

Mogo Inc. (NASDAQ: MOGO) reported Q4 revenue for the quarter came in at $15 million.

Fourth-Quarter 2019 Financial Highlights

• Total revenue1 increased 2% over the fourth quarter of 2018 to $15.0 million.
• Core revenue2 increased by 8% to $12.4 million, compared with $11.4 million in the same period in 2018.
• Gross profit was $9.9 million (65.9% of revenue), similar to the $10.0 million (68.3% of revenue) recorded in the fourth quarter of 2018.
• Adjusted EBITDA increased by 11% year over year to $2.3 million (15.3% of total revenue), compared with $2.1 million (14.1% of total revenue) in the fourth quarter of 2018.
• Cash flow from operations before investment in receivables increased by 49% to $2.2 million in the fourth quarter, compared to $1.5 million in the fourth quarter of 2018.
• Adjusted net loss was $5.2 million, compared with $4.7 million in the same period in 2018.
• Net loss of $6.2 million, compared with a net loss of $5.0 million in the fourth quarter of 2018.
• Renewed and expanded our Corporate credit facility which included increasing the facility to $60 million, reducing the interest rate by 400 basis points and extending the maturity to July 2022.
• At December 31, 2019, the Company had $31.2 million in combined cash and investment portfolio ($10.4 million of Cash and $20.8 million investment portfolio).

"Now more than ever, financial stress is a huge issue for Canadians, and in 2019 we made progress improving our technology platform, products and user experience to help our members improve their financial health," said David Feller, Mogo's Founder and CEO. "Our focus during these challenging times will be on leveraging our digital products and solutions to help minimize the impact to our members' financial lives, especially those who have been most affected. We believe that our products, including our new MogoSpend, will be instrumental in helping members manage their financial health during this time."

Greg Feller, President and CFO, added: "In 2019, we continued to fundamentally transition our business toward a capital-light model versus on balance sheet lending. We move forward with a stronger balance sheet following the recent $31.5 million sale of our MogoLiquid portfolio, which provided additional cash while significantly reducing our leverage and credit risk exposure. These steps, along with several immediate cost reduction initiatives we are implementing, will better position the company to manage through the current challenging environment."

Commentary on COVID-19 & 2020 Outlook

With its 2019 financial results, management also provided an update on the impact of the COVID-19 situation on its business and operations. Mogo operates a fully digital platform; its services and products are all accessed through its app or online, with no physical branches or consumer-facing offices. As a result, the Company has not experienced any material business interruption to date. While the degree of severity and length of an economic downturn is difficult to predict, Mogo believes that it is well positioned to navigate through this period.

Greg Feller added: "We will continue to support our existing loan customers through this challenging period while directing new originations to our lending partners, which will allow us to continue to monetize our digital lending platform. We have been transitioning our business to a capital-light model for some time and, in light of the economic volatility and uncertainty, we are accelerating this transition and taking immediate steps, which we expect will allow us to mitigate the potential impact to our business during these uncertain times and accelerate our path to cash flow positive once we return to a more stable environment."

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

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