Record quarterly revenue of $17.9 million,
up 13% year-over-year, accelerating for second consecutive
quarter
Total AUM increased 22% year-over-year to
over $400 million (MogoTrade Assets up 150%
year-over-year)
Quarterly payments volume increased 18%
year-over-year to $2.6 billion
Ended Q1 with $53.4 million of cash,
marketable securities & investments2
Mogo reports in Canadian dollars and in accordance with IFRS
Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) (“Mogo” or the “Company”), a
digital wealth and payments business, today announced its financial
and operational results for the first quarter ended March 31,
2024.
“As we focused on increasing the profitability and efficiency of
the business last year, we were also hard at work driving
improvements to our digital wealth platform which resulted in the
relaunch of the Moka and Mogo apps during the first quarter.” said
David Feller, Mogo’s Founder and CEO. “The vast majority of
Canadians are nowhere close to being on a path to retirement, and a
lot of this is due to investing products that are designed
primarily to drive revenue for the companies and not to optimize
returns for investors. Our products are designed to help the next
generation of investors dramatically improve their performance
through discipline, patience and smart investing, rather than trade
excessively or speculate on high-risk stocks. We have started to
ramp up our marketing and are seeing good early results which is
contributing to our accelerated revenue growth in the quarter.”
Key Financial Highlights for Q1 2024
- Revenue increased in Q1 2024 to a record $17.9 million,
up 13% over the prior year and by 4% sequentially, reflecting an
acceleration of growth in the Company’s core products including
wealth and payments.
- Subscription & Services revenue grew 13% over the
prior year to $10.7 million in Q1 2024.
- Gross profit was $11.6 million in Q1 2024, versus $11.9
million in Q1 2023.
- Operating expenses for Q1 2024 decreased to $13.4
million, compared to $13.5 million in Q1 2023, reflecting the
Company’s continued efficiency efforts which also resulted in a
significant improvement in revenue per employee of 23% during the
same period.
- Cash flow from operating activities before investment in
gross loans receivable1 was positive for the sixth consecutive
quarter, reaching $1.8 million in Q1 2024, a 2,609% increase over
Q1 2023.
- Adjusted EBITDA1 was $1.0 million in Q1 2024 (5.8%
margin), compared with $1.0 million (6.4% margin) in Q1 2023.
- Net loss improved to $3.6 million in Q1 2024, compared
with net loss of $6.9 million in Q1 2023.
- Adjusted net loss1 was $4.0 million in Q1 2024 compared
with adjusted net loss of $3.9 million in Q1 2023.
- Cash, Marketable Securities & Investments totaled
$53.4 million as of March 31, 2024, versus $55.6 million at the end
of 2023. This included combined cash and restricted cash of $13.8
million, marketable securities of $28 million and investment
portfolio of $11.6 million.
- Total share buybacks in Q1 2024 were 17,093. Since 2022,
under its share buyback program on NASDAQ and its normal course
issuer bid on the Toronto Stock Exchange, Mogo has repurchased
1,091,446 common shares, representing 4.5% of the Company’s current
outstanding common shares.
- Bitcoin & Bitcoin ETFs were added to Mogo’s treasury
management strategy during the quarter with an authorization for an
initial investment of up to $5.0 million. During the quarter, the
Company invested less than $1.0 million in Bitcoin ETFs.
“It was a solid start to 2024 as we generated record quarterly
revenue, including a 13% increase in our Subscription &
Services revenue, driven by growth in our wealth and payments
businesses,” said Greg Feller, President & CFO. “The
Subscription & Services revenue growth, along with our 6%
Adjusted EBITDA margin resulted in the second consecutive increase
in our Subscription & Services Rule of 40 to 19% (up from 14.5%
in Q4 2023). We also ended the quarter with a strong balance sheet
including marketable securities and investment portfolio of roughly
$40 million, from which we expect to see monetization opportunities
over the next 12 months.”
Business & Operations Highlights
- Continued growth in payments volume - Mogo’s digital
payment solutions business, Carta Worldwide, processed over $2.6
billion of payment volume in Q1 2024, an increase of 18% compared
to Q1 2023.
- Assets under management exceed $400 million - Assets
under management in the Company’s Wealth businesses increased 22%
year-over-year to $403 million, with assets within our MogoTrade
product up 150% year over year.
- Mogo members increased to 2.1 million at quarter end, up
5% from Q1 2023.
- Mogo announces the launch of Moka.ai - In March 2024,
the Company announced the launch of Moka.ai, the next generation of
its wealth-building app with significant updates and enhancements
designed to help the next generation of Canadians get on a real
path to becoming millionaires and achieving financial
freedom.4
- Mogo launches “Buffett Mode” - Mogo launched its
redesigned and enhanced self-directed investing app, Mogo, which is
built to help the next generation of Canadians approach investing
with the discipline, patience and approach of Warren Buffett.
Financial Outlook
The outlook that follows supersedes all prior financial outlook
statements made by Mogo, constitutes forward-looking information
within the meaning of applicable securities laws, and is based on a
number of assumptions and subject to a number of risks. Actual
results could vary materially as a result of numerous factors,
including certain risk factors, many of which are beyond Mogo’s
control. Please see "Forward-looking Statements" below for more
information.
Coming out of a period where the Company successfully
accelerated its path to profitability, in fiscal 2024 Mogo is
shifting the balance toward accelerating revenue growth while at
the same time continuing to generate positive Adjusted EBITDA3. The
Company will increase growth investments to drive acceleration in
Subscription & Services revenue growth from its Wealth and
Payments businesses where it sees significant opportunity for
expansion.
Specifically, for 2024 Mogo expects accelerating Subscription
& Services revenue growth with an overall Subscription &
Services revenue growth rate in the mid-teens for the full
year.
1 Non-IFRS measure. For more information regarding our use of
these non-IFRS measures and, where applicable, a reconciliation to
the most comparable IFRS measure, see “Non-IFRS Financial Measures”
in the Company’s MD&A for the period ended March 31, 2024.
2 Includes combined cash and restricted cash of $13.8 million,
marketable securities of $28.0 million, and investment portfolio of
$11.6 million.
3 Adjusted EBITDA is a non-IFRS measure. Management has not
reconciled this forward-looking non-IFRS measure to its most
directly comparable IFRS measure, net loss before tax. This is
because the Company cannot predict with reasonable certainty and
without unreasonable efforts the ultimate outcome of certain IFRS
components of such reconciliations due to market-related
assumptions that are not within our control as well as certain
legal or advisory costs, tax costs or other costs that may arise.
For these reasons, management is unable to assess the probable
significance of the unavailable information, which could materially
impact the amount of the future directly comparable IFRS
measures.
4 This projection is based on the Moka Equity Growth investment
model, which is 100% invested in the S&P 500. It assumes a 10%
rate of annual return, based on the S&P 500’s average return
since its inception over the past 65 years, with dividends
reinvested. Investing $20 per week for 50 years based on these
assumptions would result in an investment of $1.25M. Investing $100
per week would put an investor on track for over $1M in 35 years
through the power of compounding interest. Past performance is no
guarantee of future results. The actual returns may vary.
Conference Call & Webcast
Mogo will host a conference call to discuss its Q1 2024
financial results at 2:00 p.m. ET on May 9, 2024. The call will be
hosted by David Feller, Founder and CEO, and Greg Feller, President
and CFO. To participate in the call, dial (416) 764-8658 or (888)
886-7786 (International) using conference ID: 41948978. 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.
Non-IFRS Financial Measures
This press release makes reference to certain non‑IFRS financial
measures. These measures are not recognized measures under IFRS, do
not have a standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented
by other companies. These measures are provided as additional
information to complement the IFRS financial measures contained
herein by providing further metrics to understand the Company’s
results of operations from management’s perspective. Accordingly,
they should not be considered in isolation nor as a substitute for
analysis of our financial information reported under IFRS. We use
non‑IFRS financial measures, including Adjusted EBITDA, Adjusted
net loss and Cash provided by (used in) operating activities before
investment in gross loans receivable, to provide investors with
supplemental measures of our operating performance and thus
highlight trends in our core business that may not otherwise be
apparent when relying solely on IFRS financial measures. Our
management also uses non‑IFRS financial measures in order to
facilitate operating performance comparisons from period to period,
prepare annual operating budgets and assess our ability to meet our
capital expenditure and working capital requirements. For more
information, please see “Non-IFRS Financial Measures” in our
Management’s Discussion and Analysis for the period ended March 31,
2024, which is available at www.sedarplus.com and at
www.sec.gov.
The following tables present a reconciliation of each non-IFRS
financial measure to the most comparable IFRS financial
measure.
Adjusted EBITDA
($000s)
Three months ended
March 31, 2024
March 31, 2023
Net loss before tax
$
(3,695
)
$
(7,051
)
Depreciation and amortization
2,376
2,373
Stock-based compensation
561
293
Credit facility interest expense
1,656
1,454
Debenture and other financing expense
806
778
Accretion related to debentures
178
272
Share of loss in investment accounted for
using the equity method
—
3,178
Revaluation gain
(1,088
)
(1,253
)
Other non-operating expense
254
975
Adjusted EBITDA
1,048
1,019
Adjusted Net Loss
($000s)
Three months ended
March 31, 2024
March 31, 2023
Net loss before tax
$
(3,695
)
$
(7,051
)
Stock-based compensation
561
293
Share of loss in investment accounted for
using the equity method
—
3,178
Revaluation gain
(1,088
)
(1,253
)
Other non-operating expense
254
975
Adjusted net loss
(3,968
)
(3,858
)
Cash Provided by (used in) Operations before Investment in
Gross Loans Receivable
($000s)
Three months ended
March 31, 2024
March 31, 2023
Net cash used in operating activities
$
(3,866
)
$
(1,001
)
Net issuance of loans receivable
(5,681
)
(1,068
)
Cash provided by operations before
investment in gross loans receivable
1,815
67
Forward-Looking Statements
This news release may contain “forward-looking statements”
within the meaning of applicable securities legislation, including
statements regarding the Company’s plan for accelerating revenue
growth in 2024, monetization opportunities in the next 12 months,
the Company’s treasury management strategy and the Company’s
financial outlook for 2024. Forward-looking statements are
typically identified by words such as "may", "will", "could",
"would", "anticipate", "believe", "expect", "intend", "potential",
"estimate", "budget", "scheduled", "plans", "planned", "forecasts",
"goals" and similar expressions. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management at the time of
preparation, are inherently subject to significant business,
economic and competitive uncertainties and contingencies, and may
prove to be incorrect. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause
actual financial results, performance or achievements to be
materially different from the estimated future results, performance
or achievements expressed or implied by those forward-looking
statements and the forward-looking statements are not guarantees of
future performance. Mogo's growth, its ability to expand into new
products and markets and its expectations for its future financial
performance are subject to a number of conditions, many of which
are outside of Mogo's control, including the receipt of any
required regulatory approval. For a description of the risks
associated with Mogo's business please refer to the “Risk Factors”
section of Mogo’s current annual information form, which is
available at www.sedarplus.com and www.sec.gov. Except as required
by law, Mogo disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
events or otherwise.
About Mogo
Mogo Inc. (NASDAQ:MOGO; TSX:MOGO) is a digital wealth and
payments company headquartered in Vancouver, Canada with more than
2 million members, $9.9B in annual payments volume and a ~13%
equity stake in Canada’s leading Crypto Exchange WonderFi
(TSX:WNDR). Mogo offers simple digital solutions to help its
members dramatically improve their path to wealth-creation and
financial freedom. MOGO offers commission-free stock trading that
helps users thoughtfully invest based on a Warren Buffett approach
to long-term investing – while also making a positive impact with
every investment. Moka offers Canadians a real alternative to
mutual funds and wealth managers that overcharge and underperform
with a fully managed investing solution based on the proven
outperformance of an S&P 500 strategy, and at a fraction of the
cost. Through its wholly owned digital payments subsidiary, Carta
Worldwide, Mogo also offers a low-cost payments platform that
powers next-generation card programs for companies across Europe
and Canada. The Company, which was founded in 2003, has
approximately 200 employees across its offices in Vancouver,
Toronto, London & Casablanca.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509824782/en/
Craig Armitage Investor Relations investors@mogo.ca (416)
347-8954 US Investor Relations Contact Lytham Partners, LLC Ben
Shamsian New York | Phoenix shamsian@lythampartners.com (646)
829-9701
Mogo (NASDAQ:MOGO)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Mogo (NASDAQ:MOGO)
Gráfica de Acción Histórica
De May 2023 a May 2024