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Mogo Reports Second Quarter 2022 Financial Results, Revenue Up 27% YoY to $17.3 Million (But Net Loss Soars to $51.9 Million)
Thursday, August 18, 2022Company Profile | Follow Company
Vancouver, BC, August 18, 2022--(T-Net)--Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO), a Vancouver-based financial technology company, today announced its financial and operational results for the three and six months ended June 30, 2022.
"During a period of exceptional financial market volatility, we surpassed the 2 million member milestone and delivered 27% revenue growth over the prior year," said David Feller, Mogo's Founder and CEO.
"We are being highly disciplined with our growth spending as our team continues building the leading next gen digital wealth platform, with a focus on new options for investing and trading. We continued advancing our commission-free stock trading product, MogoTrade, incorporating member feedback to enhance the user experience and features, with the goal of ultimately offering a best-in-class product to the Canadian market. We recently removed the waitlist and expect to ramp our marketing efforts later this year. In these uncertain economic times, financial well-being is as relevant as ever to Canadian consumers, and we want to bring them the best tools and products to help them save, invest and achieve financial freedom while also making a positive impact with their money."
Key Financial Highlights for Q2 2022
"Our Q2 results were solid despite our reduced spending on marketing and the macro environment headwinds, which further highlights the diversification and recurring nature of our revenue base. While our business has proved comparatively resilient through market cycles, we were not immune to the macroeconomic backdrop and have acted accordingly by reducing our expense base and increasing our focus on our path to profitability including shifting our investment spend to the most impactful areas such as MogoTrade and Moka." said Greg Feller, President & CFO.
Mr. Feller added: "We continue to carefully monitor a range of economic and market indicators to ensure we achieve the right balance between growth and operating profitability. Given the current economic uncertainty, we believe it is appropriate and prudent to assume these economic challenges will persist through 2023 and, as a result, we plan to continue to manage our growth investments more conservatively with a greater emphasis on driving towards profitability. Specifically, we are currently managing our growth investment spend assuming total revenue growth for 2023 in the range of 10-15%, with a goal of being Adjusted EBITDA positive by Q4 2023."
Additional Business & Operations Highlights
Financial Outlook
Mogo reiterated its fiscal year 2022 guidance, which was previously communicated on May 12, 2022:
1Non-IFRS measure. 1Non-IFRS measure.
About Mogo
Mogo Inc., one of Canada's leading financial technology companies, is empowering its more than 2 million members with simple digital solutions to help them get in control of their financial health while also making a positive impact with their money.
Through the free Mogo app, consumers can access a digital spending account with Mogo Visa* Platinum Prepaid Card featuring automatic carbon offsetting, easily buy and sell bitcoin, get free monthly credit score monitoring and ID fraud protection and access personal loans and mortgages.
Mogo's new MogoTrade app offers commission-free stock trading that helps users make a positive impact with every investment and together with Moka, Mogo's wholly-owned subsidiary bringing automated, fully-managed flat-fee investing to Canadians, forms the heart of Mogo's digital wealth platform.
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. To learn more, please visit mogo.ca or download the mobile app (iOS or Android ).
Forward-Looking Statements This news release may contain "forward-looking statements" within the meaning of applicable securities legislation, including statements regarding the growth potential of Mogo's portfolio companies. 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.sedar.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. [ MORE ] |
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