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Mogo Announces Second Quarter 2016 Financial Results - Revenue Up 23%
Friday, August 19, 2016Company Profile | Follow Company
- Mogo Launches new digital platform & mobile app
- Member Base Increases 81% Yr/Yr to 225,000
- Third Quarter of Improved Adjusted EBITDA
Vancouver, BC, August 19, 2016--(T-Net)--Mogo Finance Technology Inc. (TSX: GO), a financial technology company, today announced its financial and operational results for the second quarter ended June 30, 2016.
The selected financial information included in this release is qualified in its entirety by, and should be read together with the Company's full financial statements and Management's Discussion and Analysis, which are available at www.sedar.com and http://investors.mogo.ca/.
“In the second quarter we continued to make great progress enhancing our technology platform, product and brand - the three key pillars to our plan of building a next-generation digital banking experience. The financial services industry is at the early stages of a fundamental transformation, and Mogo remains uniquely positioned to capitalize on this opportunity as the industry goes digital,” said David Feller, Mogo's Founder and CEO.
“From a technology perspective, one of our main milestones for 2016 is our new account platform and mobile app. These have been major projects for our technology group, and we were thrilled to introduce both recently. With the Mogo app we have set the standard for convenience and simplicity and developed what we believe will become the leading digital banking experience in Canada.”
Mr. Feller continued: “Year over year our membership base increased by approximately 81% to 225,000 at quarter end, and with the full launch of the app in the coming weeks - combined with the promotional support of Postmedia - we expect our member base to accelerate as we push toward our goal of one million members in the next three years. We are offering a compelling value proposition today, including the first free credit score in Canada, instant decisioning on credit and the near-term introduction of our Platinum Prepaid Visa card. These products, combined with our plans to launch a mortgage product, will give us several new fee-based products to further monetize our growing member base and, over time, increase our average revenue per member.”
Third consecutive improvement in Adjusted EBITDA
“We had our third consecutive improvement in adjusted EBITDA1 this quarter to ($0.5) million while cash flow from operations before investment in loans receivable was positive at $0.6 million. This improved financial performance reflects our continued focus on driving efficiencies through platform enhancements and strategic partnerships, and keeps us on our path to achieving our goal of positive adjusted EBITDA beginning in the fourth quarter of 2016,” said Greg Feller, Mogo's President and CFO.
“Our second quarter results show our continued financial discipline throughout the organization while maintaining our investment in our technology platform and new products. The launch of our new digital account and mobile app is a critical milestone on our path to introducing new fee-based products that give us more ways to monetize our growing member base. We believe this positions us for accelerated revenue growth in 2017 from a more diversified product portfolio.”
Second Quarter 2016 Financial Highlights
Second Quarter 2016 Business Highlights
Mogo Appoints New Chair
Mogo also announced today that David Feller, Founder, CEO and Director, will succeed Peter Brown in the role of Chair of the Board. Mr. Brown, who will remain a Director of Mogo and a member of the Audit Committee, wishes to hand over the reins of Chair in order to devote additional time to his other commitments, including charitable work.
“Peter is a highly valuable member of the Board and we would like to thank him for all his leadership, hard work and contributions as Chair over the past year during an important time in the development of the Company. I look forward to continuing to work with Peter as we execute on our strategy of building a digital banking experience,” said Mr. Feller.
Non-IFRS Measures
Gross loans receivable (short-term and long-term), contribution, contribution margin, adjusted EBITDA, adjusted net income (loss), charge-off rate, cash provided by (used in) operating activities before investment in gross loans receivable and average revenue per member are 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. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of 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 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. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on any non-IFRS measure and view it in conjunction with the most comparable IFRS financial measures. Readers are referred to our MD&A for the period ended June 30, 2016 which is available at www.sedar.com and http://investors.mogo.ca/ for more information regarding our use of these measures and a reconciliation to the most comparable IFRS measure.
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding Mogo's revenue, revenue growth and adjusted EBITDA, the future growth of Mogo's business, its intention to invest in its technology platform, to expand into other products and markets, Mogo's expectations regarding members, and Mogo's financial expectations and outlook for 2016. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. 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 invest in its platform and expand into new products and markets and its expectations for its financial performance for 2016 are subject to a number of conditions, many of which are outside of Mogo's control. For a description of the risks associated with Mogo's business please refer to the Company's Annual Financial Statements and also, MD&A for the period ended June 30, 2016, which are available at www.sedar.com. 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
(1) Contribution, adjusted EBITDA, adjusted net loss, net cash flow from operating activities before investment in loans receivable and gross loans receivable - long-term are non IFRS financial measures. For more information regarding our use of these measures see “Non-IFRS Financial Measures” and, where applicable, a reconciliation to the most comparable IFRS measure, see “Reconciliation of Non IFRS Financial Measures” in the MD&A for the period ended June 30, 2016.
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