Today's News |
Digital Wealth and Payments Business Mogo Reports Financial and Operating Results for Q4 & FY 2023, Payments Volume Up 36% YoY to $9.9 Billion
Tuesday, March 26, 2024Company Profile | Follow Company
Payments volume increased 36% year-over-year to $9.9 billion
Q4 Revenue of $17.2 million, up 6% sequentially
Q4 Adjusted EBITDA1 of $2.7 million (16% margin), up 1006% from the prior year; FY 2023 Adjusted EBITDA reaches $7.7 million
Ended year with $55.6 million of cash and total investments2, including $27.7 million crypto-related investments
Vancouver, BC, March 25, 2024--(T-Net)--Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO), a digital wealth and payments business, today announced its financial and operational results for the fourth quarter and fiscal year ended December 31, 2023.
"Our focus in 2023 was to build a more profitable and efficient company, while at the same time increasing product velocity and driving user experience improvements for our digital wealth platform," said David Feller, Mogo's Founder and CEO.
"We made excellent progress on both fronts, meaningfully improving both the value of our wealth products and our profitability. Following the recent relaunch of both Moka and Mogo, we are in a great position to accelerate our marketing efforts in 2024 to build our user base and advance our mission to help the next generation of Canadians get on a path to achieving financial freedom. The wealth industry in Canada needs to change - people are overpaying and underperforming, and the statistics show that most are not on a path to build the wealth they need to retire. We believe we have a disruptive value proposition and products that can change this outcome, helping the next generation achieve financial freedom."
Key Financial Highlights for Q4 & Full-Year 2023
"Our fourth-quarter results clearly demonstrate our success in returning the business to meaningful profitability during 2023 while at the same time resuming top-line growth," said Greg Feller, President & CFO.
"Revenue increased sequentially for the third quarter in a row and, importantly, increased year - over - year for the first time in 2023. At the same time, our Q4 Adjusted EBITDA reached $2.7 million - or 16% margin - bringing us to $7.7 million in Adjusted EBITDA for the year compared to a loss of $12.2 million in 2022. In 2024, we plan to increase our investments to accelerate top-line growth of our Subscription & Services revenue including our newly launched wealth products, along with continued growth of our Carta payments platform. We will also continue to focus on increasing our combined Subscription & Services revenue growth and Adjusted EBITDA margin toward our target Rule of 40."
Business & Operations Highlights
Financial Outlook
In 2023, Mogo focused on accelerating its path to profitability by placing an emphasis on cost efficiency and building financial resiliency in light of challenging financial market conditions. As a result of these initiatives, 2023 total operating expenses decreased by $29.3 million, or 37%, compared to 2022, and the Company reported a significant year-over-year increase in Adjusted EBITDA, which increased to $7.7 million in 2023, a $19.9 million year-over-year improvement from an Adjusted EBITDA loss of $12.2 million in 2022.
For fiscal 2024, Mogo expects to shift the balance toward accelerating revenue growth while at the same time continuing to generate positive Adjusted EBITDA3. The Company will increase investments in marketing 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 during the year with an overall Subscription & Services revenue growth rate in the mid-teens for the full year.
About Mogo
Mogo Inc. (NASDAQ:MOGO; TSX:MOGO) is a financial technology 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.
Mogotrade offers commission-free stock trading that helps users thoughtfully invest based on a Warren Buffett approach to long-term investing - and make a positive impact with every investment.
Moka offers Canadians a real alternative to mutual funds that overcharge and underperform with a passive investing solution based on a S&P 500 strategy 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.
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 December 31, 2023, 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.
1 Non-IFRS measure. 1 Non-IFRS measure.
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. [ MORE ] |
Other Recent Company News |
|||||||||||||||||||
|