Mogo Inc. (MOGO) Announces Preliminary Q2 Financial Results

Mogo Inc. (TSX: MOGO) (NASDAQ: MOGO) (“Mogo” or the “Company”), one of Canada’s leading financial technology companies, today provided a preliminary update on its financial results for the second quarter ended June 30, 2020.

Q2 2020 Financial Highlights

Mogo is expecting to report:

• Revenue of $10.3 million to $10.5 million;
• Adjusted EBITDA of $4.5 million to $5.0 million; and
• Positive operating cash flow net of investing activities of $6.5 million to $7.0 million

Management Commentary

“Given the continued uncertainty caused by COVID-19, we believe it is important to provide a preview of our Q2 results, which demonstrate the resiliency of our financial model, the impact of our actions to create a leaner, more efficient cost structure and the levers in our business we can manage to significantly increase operating cash flow,” said Greg Feller, President and CFO. “These steps helped drive a material and better-than-expected sequential improvement in net cash generated from operating and investing activities, as well as our highest-ever Adjusted EBITDA. Our loan portfolio continues to demonstrate resiliency in these challenging economic times. The record-low default rates we experienced in April and May, continued in June, giving us now several months of encouraging data on this diverse portfolio.”

“While we continue to navigate the current economic climate, we are moving forward with our strategies to enhance the product offering and value proposition to Mogo members, as well as the monetization of our more than 1 million members,” added David Feller, Mogo’s Founder and CEO. “In the very near term, we are broadly rolling out MogoSpend, our digital account that comes with a Mogo Visa* Platinum Prepaid Card, which includes a unique carbon offset feature that can help Canadians save money and the planet. Given everything that’s going on in the world, we believe consumers are looking for simple ways to not only manage their financial health but to become a more sustainable consumer. In addition, we continue to make progress on new referral partnerships initiatives which we discussed during our Q1 results.”

Q2 2020 Full Financial Results & Conference Call

Mogo will report its full second quarter 2020 results and provide additional updates on August 11, 2020. The Company will host a conference call at 5:00 p.m. EDT. The call will be hosted by David Feller, Founder and CEO, and Greg Feller, President and CFO. To participate in the call, dial (833) 968-2206 or (778) 560-2782 (International). The webcast can be accessed at http://investors.mogo.ca. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.

1Adjusted EBITDA is a non-IFRS financial measure that we calculate as net loss and comprehensive loss excluding depreciation and amortization, stock based compensation, credit facility interest expense, debenture and other financing expense, revaluation (gains) and losses, net, and other non-operating expenses.

You May Also Be Interested In

• Gap taps Coach architect Reed Krakoff for $29.95-$498 handbag line
• Take-Two Interactive (TTWO) Reiterated at Buy by StoneX Ahead of November GTA VI Launch
• Kustom Entertainment agrees to buy Tickets For Less operator TFL