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Mogo Reports Third Quarter 2021 Financial Results, Q3 Revenue up 58% Year Over Year to $15.4 Million
Tuesday, November 23, 2021Company Profile | Follow Company
Vancouver, BC, November 23, 2021--(T-Net)--Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO), a financial technology, digital payments and crypto company, today announced its financial and operational results for the third quarter ended September 30, 2021.
Key Financial Highlights for Q3 2021
(All comparisons are relative to the three-month period ended September 30, 2020 unless otherwise stated)
David Feller, Founder, Chief Executive Officer, Chair, Director, Mogo Finance Technology Inc.
"We are very pleased with the performance in the third quarter, with revenue growth accelerating to 58% over last year, showcasing the strength and diversification of our core business and the power of our model," said David Feller, Mogo's Founder and CEO. "We are still in the very early days of fintech adoption as consumers look for solutions that are built for the modern world while also most importantly helping them achieve financial freedom in a way that existing solutions haven't delivered. With close to 1.8 million members, we have more ways to engage and support consumers on their journey to becoming financially fit. We are targeting a massive addressable market supported by long-term tailwinds, and we are investing heavily to build a next gen fintech platform that can capture more of this market. For example, we are quickly moving towards the launch of MogoTrade - our commission free stock trading solution and most significant product development to date. Through internal development, acquisitions, and partnerships, we are assembling all the pieces we need to deliver a best-in-class, mobile-first trading solution. This is a key part of our digital wealth platform and strategy to grow in the multi-trillion-dollar Canadian wealth market."
"Our third-quarter results were again highlighted by another quarter of accelerating growth in subscription and services revenue, which was driven by an increasingly diversified set of products and revenue streams," said Greg Feller, President and CFO of Mogo. "The expansion of our consumer-facing solutions and the addition of next-gen payment processing have greatly increased our addressable market and diversified our business to mitigate periods of volatility in any one area such as crypto trading. Given our strong momentum, we have again increased our guidance for Q4 2021, which puts us in a great position entering 2022 for continued strong growth which we believe will be accelerated with the launch of MogoTrade."
Business & Operations Highlights
Financial Outlook
Based upon the substantial growth opportunities we see across our core businesses, we expect to continue increasing our growth investments to drive accelerating member and revenue growth in 2021 and 2022. Specifically, we are revising our previously communicated financial outlook as follows:
About Mogo
Mogo is empowering its close to 1.8 million members with simple digital solutions to improve their finances. Through the free Mogo app, consumers can access a digital spending account with Mogo Visa* Platinum Prepaid Card, the only card of its kind in Canada. The MogoCard makes it easy to enjoy spending control while doing good for the planet by planting a tree for every purchase. The Mogo app also enables you to easily buy and sell bitcoin, get free monthly credit score monitoring and ID fraud protection, and access personal loans. Mogo's wholly-owned subsidiary, Carta Worldwide, also offers a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe, North America and APAC, while Mogo's wholly-owned subsidiary Moka is bringing automated, fully-managed flat-fee investing to Canadians from coast to coast to coast. To learn more, please visit mogo.ca or download the mobile app (iOS or Android).
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 September 30, 2021. For a Reconciliation of Adjusted Core Net Income/(Loss): Net Income/(Loss) of $9.1 million and $(9.8) million in Q2 2021 and Q3 2021 respectively with Depreciation & Amoritization of $3.0 million and $3.7 million respectively plus stock based compensation of $3.8 million and $2.7 million respectively plus Share of loss in investment accounted for using the equity method of $2.9 million and $2.5 million respectively plus Revaluation gain of $(24.9) million and $(5.4) million respectively plus Other non-operating expenses of $0.8 million and $0.4 million respectively plus Accretion related to debentures and convertible debentures of $0.3 million and $0.3 respectively, added back in resulting in a Core Net Loss of $5.1 million and $5.6 million in Q2 2021 and Q3 2021 respectively.
2 Includes the fair value of the warrants to acquire up to an additional 10% of the issued and outstanding Coinsquare shares.
3 Mogo's total assets under management ("AUM") is comprised of order execution only accounts, separately managed accounts for retail portfolio management clients that are managed on a discretionary basis and assets managed under investment fund or sub advisory mandates.
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 cash net loss and cash operating expenses, 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. Please see "Non-IFRS Financial Measures" in our Management's Discussion and Analysis for the quarter ended September 30, 2021 for a reconciliation of these non-IFRS financial measures to the nearest IFRS measures which is available at www.sedar.com and at www.sec.gov.
This news release may contain "forward-looking statements" within the meaning of applicable securities legislation, including statements regarding the completion of the launch and upside of MogoTrade and the continued increase of Mogo's growth investments to drive accelerating member and revenue growth. 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. [ MORE ] |
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