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FinTech Company Mogo Reports Results for Q4 and Full Year 2022, 2022 Revenue Up 20% Year Over Year to $68.9 Million
Thursday, March 23, 2023Company Profile | Follow Company
FY 2022 Revenue up 20% year over year to $68.9 million
Q4 Adjusted EBITDA of $0.2 million, reaching positive Adjusted EBITDA one year ahead of previous guidance
Targeting FY 2023 Adjusted EBITDA of $6 to $8 million
Ended year with $30.8 million of cash and $37.5 million in total investments1
Mogo reports in Canadian dollars and in accordance with IFRS
Vancouver, BC, March 23, 2023--(T-Net)--Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO), one of Canada's leading financial technology companies, today announced its financial and operational results for the fourth quarter and fiscal year ended December 31, 2022.
"In the face of a highly challenging macroeconomic operating environment in 2022, we acted quickly to significantly accelerate our path to profitability, allowing us to reach positive Adjusted EBITDA in the fourth quarter," said David Feller, Mogo's Founder and CEO.
"Through this restructuring process, we have considerably narrowed our strategic focus to products where we see the greatest potential for profitable growth. Our digital wealth products, MogoTrade and Moka, will remain the focus of our development efforts and the key drivers going forward, in addition to our digital payments platform, Carta. We will emerge from this period a more profitable and efficient company with exposure to multiple large markets with long-term growth tailwinds."
Key Financial Highlights for Q4 & Full-Year 2022
"Mogo has a proven history of managing expenses and cash flow in a challenging environment, and the restructuring we initiated last year has quickly reduced our cost structure, with total operating expenses down 34% year over year in Q4," said Greg Feller, President & CFO.
"We also reached our positive Adjusted EBITDA target well ahead of schedule with additional savings to follow in the coming quarters. As part of narrowing our strategic focus, we eliminated crypto activities in our operating business. As a result, our remaining crypto investment is primarily our 34% ownership in Coinsquare, Canada's first IIROC registered crypto dealer. As we head into 2023, we remain in a solid financial position and are expecting to see accelerating Adjusted EBITDA growth this year, while we continue to invest prudently in our digital wealth solutions and our payments platform, which we believe will drive top-line expansion in 2024."
Business & Operations Highlights
Corporate Restructuring & Financial Outlook
During fiscal 2022, Mogo continued to focus on accelerating its path to profitability by placing an emphasis on cost efficiency and building financial resiliency in light of challenging financial market conditions. The following cost reduction initiatives were implemented in 2022
As a result of these initiatives, total operating expenses decreased by 37% in Q4 2022, compared to Q1 2022.
For fiscal 2023, the Company reiterates its previous guidance on cost reduction of 25-35% for operating expenses over the next several quarters, relative to our Q3 2022 operating expenses. In addition to the winddown of MogoCrypto and exit from Moka France in Q4 2022, Mogo plans to sunset its legacy MogoApp including MogoCard, as part of its goal to simplify to one app and eliminate unprofitable or subscale business segments. Consistent with its previous guidance, Mogo expects its quarterly revenue in the near term will be impacted by 10-15% as a result of these restructuring initiatives.
For fiscal 2023, the Company will continue to focus on accelerating its path to profitability with a specific focus on increasing its Adjusted EBITDA. Specifically, for 2023 Mogo is focused on achieving:
About Mogo
Mogo, one of Canada's leading digital finance companies, is empowering its members with simple digital solutions to help them build wealth and achieve financial freedom. Mogo's trade app, MogoTrade, 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 also offers digital loans and mortgages. Through Mogo's wholly-owned subsidiary, Carta Worldwide, we also offer a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe and Canada. To learn more, please visit mogo.ca or download the mobile app (iOS or Android).
1Includes combined cash and cash equivalents, restricted cash and investment portfolio of $43.4 million, along with a book value of investment in Coinsquare of $25.0 million.
2Non-IFRS measure. 2Non-IFRS measure.
The following tables present a reconciliation of each non-IFRS financial measure to the most comparable IFRS financial measure.
Forward-Looki
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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