Record Revenue of $110 Million, Up 24%
Year-over-Year
Net Income Before Other Expense and Income
Taxes of $1 Million Compared to ($24) Million in Q3 2022
Quarterly Net Loss of $4 Million and Record
Adjusted EBITDA of $13 Million
Cash Flow After Operating and Investing
Activities of $8 Million for Q3 2023
MoneyLion Inc. (“MoneyLion”) (NYSE: ML), a leader in consumer
and enterprise financial technology powering the next generation of
personalized products, embedded finance and content, today
announced financial results for the third quarter ended September
30, 2023. MoneyLion will host a conference call and webcast at 8:30
a.m. ET today. An earnings presentation and link to the webcast are
available at investors.moneylion.com.
“MoneyLion had another record quarter in Q3 2023, demonstrating
the strength and resilience of our business model,” said Dee
Choubey, MoneyLion’s co-founder and Chief Executive Officer. “We
continue to leverage our compounding proprietary data sets through
various customer insights, and we continue to innovate our
technology by developing and releasing new product features that
exist within our consumer-facing Personal Financial Management
product set and are also available to our 1,100+ Enterprise
Partners.”
Choubey continued, “We are proud of our financial performance in
the third quarter, which is supported by our deeper mission and
vision to give everyone the power to make their best financial
decisions. We are leaning in and driving forward, optimizing our
technology and building on the momentum of our mutually reinforcing
businesses.”
Financial Results(1)
Three Months Ended September 30, (in thousands)
2023
2022
% Change
Financial Metrics Total revenues, net
$
110,258
$
88,748
24%
Gross profit
66,709
49,126
36%
Gross profit margin
61%
55%
9%
Net loss before other (expense) income and income taxes
1,101
(24,172)
—
Net loss
(4,110)
(21,017)
—
Adjusted EBITDA
13,352
(14,346)
—
Adjusted EBITDA margin
12%
(16%)
—
(in millions) Key Operating Metrics Total
Customers
12.1
5.4
124%
Total Products
20.3
11.3
80%
Total Originations
$
564
$
446
26%
“MoneyLion delivered record revenue of $110 million and Adjusted
EBITDA of $13 million in the third quarter. For the full year of
2023, we expect revenue of $420 to $425 million, gross profit
margin of 58% to 59% and Adjusted EBITDA of $39 to $45 million,”
said Rick Correia, MoneyLion’s Chief Financial Officer.
Total revenues, net increased 24% to $110.3 million for the
third quarter of 2023 compared to the third quarter of 2022.
Gross profit increased 36% to $66.7 million for the third
quarter of 2023 compared to the third quarter of 2022.
MoneyLion recorded a net income before other expense and income
taxes of $1.1 million for the third quarter of 2023 versus a net
loss before other income and income taxes of $24.2 million in the
third quarter of 2022, and a net loss of $4.1 million for the third
quarter of 2023 versus a net loss of $21.0 million in the third
quarter of 2022. Adjusted EBITDA was $13.4 million for the third
quarter of 2023 versus ($14.3) million in the third quarter of
2022, when adjusted for the following non-operating costs:
Three Months Ended September 30, (in thousands)
2023
2022
Net loss
$
(4,110)
$
(21,017)
Add back: Interest related to corporate debt
3,191
2,896
Income tax (benefit) expense
400
53
Depreciation and amortization expense
6,106
6,157
Changes in fair value of warrant liability
81
(414)
Change in fair value of contingent consideration from mergers and
acquisitions
-
(10,214)
Stock-based compensation expense
5,702
5,127
One-time expenses
1,982
3,068
Adjusted EBITDA
$
13,352
$
(14,346)
Customer, Origination and Product Growth
Total Customers grew 124% year-over-year to 12.1 million for the
third quarter of 2023. Total Products grew 80% year-over-year to
20.3 million for the third quarter of 2023. Total Originations grew
26% year-over-year to $564 million for the third quarter of
2023.
FY 2023 Financial Guidance:
For the full year of 2023, MoneyLion expects:
- Total revenues, net of approximately $420 to $425 million
- Gross profit margin of 58% to 59%
- Adjusted EBITDA of approximately $39 to $45 million
(1) Adjusted EBITDA is a non-GAAP measure. Refer to the
definition of Adjusted EBITDA in the discussion of non-GAAP
financial measures and the accompanying reconciliation below.
Conference Call
MoneyLion will hold a conference call today at 8:30 a.m. ET to
discuss its third quarter 2023 results. A live webcast will be
available on MoneyLion’s Investor Relations website at
investors.moneylion.com. Please dial into the conference 5-10
minutes prior to the start time and ask for the MoneyLion third
quarter 2023 earnings call.
Toll-free dial-in number: 1-877-502-7184 International dial-in
number: 1-201-689-8875
Following the call, a replay and transcript will be available on
the same website.
About MoneyLion
MoneyLion is a leader in consumer and enterprise financial
technology powering the next generation of personalized products
and content, with a top consumer finance app, a premier embedded
finance platform for enterprise businesses and a world-class media
arm. MoneyLion’s mission is to positively change people’s financial
path by rewiring the financial system and empowering them with
greater financial literacy and access. In our go-to money app for
consumers, we deliver curated content on finance and related
topics, through a tailored feed that engages people to learn and
share. People take control of their money life with our innovative
financial products and marketplace - including our full-fledged
suite of features to save and invest - seamlessly bringing together
the best offers and content from MoneyLion and our 1,000+
enterprise partner network, together in one experience. MoneyLion’s
enterprise technology provides the definitive search engine and
marketplace for financial products, enabling any company to add
embedded finance to their business, with advanced AI-backed data
and tools through our platform and API. Established in 2013,
MoneyLion connects millions of people with the financial products
and content they need, when and where they need it. MoneyLion was
recently named a CNBC top global fintech company of 2023.
For more information about the company, visit www.moneylion.com.
For investor information and updates, visit investors.moneylion.com
and follow @MoneyLionIR on Twitter.
Forward-Looking Statements
The information in this press release includes “forward-looking
statements” within the meaning of the “safe harbor” provisions of
the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words
such as “estimate,” “plan,” “project,” “forecast,” “intend,”
“will,” “expect,” “anticipate,” “believe,” “seek,” “target” or
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding, among other things, MoneyLion’s financial
position, results of operations, cash flows, prospects and growth
strategies. These statements are based on various assumptions,
whether or not identified in this press release, and on the current
expectations of MoneyLion’s management, are subject to a number of
risks and uncertainties and are not predictions of actual
performance. Actual events and circumstances are difficult or
impossible to predict and will differ from assumptions. Many actual
events and circumstances are beyond the control of MoneyLion.
Factors that could cause actual results and outcomes to differ
from those reflected in forward-looking statements include, among
other things: factors relating to the business, operations and
financial performance of MoneyLion, including market conditions and
global and economic factors beyond MoneyLion’s control; MoneyLion's
ability to acquire, engage and retain customers and clients and
sell or develop additional functionality, products and services to
them on the MoneyLion platform; MoneyLion’s reliance on third-party
partners, service providers and vendors, including its ability to
comply with applicable requirements of such third parties; demand
for and consumer confidence in MoneyLion’s products and services,
including as a result of any adverse publicity concerning
MoneyLion; any inaccurate or fraudulent information provided to
MoneyLion by customers or other third parties; MoneyLion’s ability
to realize strategic objectives and avoid difficulties and risks of
any acquisitions, strategic investments, entries into new
businesses, joint ventures, divestitures and other transactions;
MoneyLion’s success in attracting, retaining and motivating its
senior management and other key personnel; MoneyLion’s ability to
renew or replace its existing funding arrangements and raise
financing in the future, to comply with restrictive covenants
related to its long-term indebtedness and to manage the effects of
changes in the cost of capital; MoneyLion's ability to achieve or
maintain profitability in the future; intense and increasing
competition in the industries in which MoneyLion and its
subsidiaries operate; risks related to the proper functioning of
MoneyLion’s information technology systems and data storage,
including as a result of cyberattacks, data security breaches or
other similar incidents or disruptions suffered by MoneyLion or
third parties upon which it relies; MoneyLion’s ability to protect
its intellectual property and other proprietary rights and its
ability to obtain or maintain intellectual property, proprietary
rights and technology licensed from third parties; MoneyLion’s
ability to comply with extensive and evolving laws and regulations
applicable to its business and the outcome of any legal or
governmental proceedings that may be instituted against MoneyLion;
MoneyLion's ability to establish and maintain an effective system
of internal controls over financial reporting; MoneyLion’s ability
to maintain the listing of MoneyLion’s Class A common stock and of
MoneyLion’s publicly traded warrants to purchase MoneyLion Class A
common stock on the New York Stock Exchange and any volatility in
the market price of MoneyLion’s securities; and factors discussed
in MoneyLion’s filings with the Securities and Exchange Commission.
There may be additional risks that MoneyLion presently knows or
that MoneyLion currently believes are immaterial that could also
cause actual results to differ from those contained in the
forward-looking statements.
In addition, forward-looking statements reflect MoneyLion’s
expectations, plans or forecasts of future events and views as of
the date of this press release. MoneyLion anticipates that
subsequent events and developments will cause its assessments to
change. However, while MoneyLion may elect to update these
forward-looking statements at some point in the future, MoneyLion
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing MoneyLion’s assessments as of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon the forward-looking statements.
Financial Information; Non-GAAP Financial Measures
Adjusted EBITDA has not been prepared in accordance with United
States generally accepted accounting principles (“GAAP”). MoneyLion
management historically used and uses Adjusted EBITDA for various
purposes, including as measures of performance and as a basis for
strategic planning and forecasting. MoneyLion believes presenting
Adjusted EBITDA provides relevant and useful information to
management and investors regarding certain financial and business
trends relating to MoneyLion’s results of operations. MoneyLion’s
method of calculating Adjusted EBITDA may be different from other
companies’ methods and, therefore, may not be comparable to those
used by other companies and MoneyLion does not recommend the sole
use of Adjusted EBITDA to assess its financial performance.
MoneyLion management does not consider Adjusted EBITDA in isolation
or as an alternative to financial measures determined in accordance
with GAAP. The principal limitation of non-GAAP financial measures
is that they exclude significant expenses and income that are
required by GAAP to be recorded in MoneyLion’s financial
statements. In addition, they are subject to inherent limitations
as they reflect the exercise of judgments by management about which
expense and income are excluded or included in determining non-GAAP
financial measures. In order to compensate for these limitations,
management presents Adjusted EBITDA in connection with MoneyLion’s
GAAP results. You should review MoneyLion’s financial statements,
which are included in MoneyLion’s filings with the U.S. Securities
and Exchange Commission, and not rely on any single financial
measure to evaluate MoneyLion’s business.
A reconciliation of Adjusted EBITDA to net income (loss), the
most directly comparable GAAP measure, is set forth below. To the
extent that forward-looking non-GAAP financial measures are
provided, they are presented on a non-GAAP basis without
reconciliations of such forward-looking non-GAAP measures, due to
the inherent difficulty in forecasting and quantifying certain
amounts that are necessary for such reconciliation, which could be
material based on historical adjustments. Accordingly, a
reconciliation is not available without unreasonable effort.
Definitions:
Gross Profit: Prepared in
accordance with U.S. GAAP and calculated as follows:
Three Months Ended September 30, (in thousands)
2023
2022
Total revenue, net
$
110,258
$
88,748
Less: Cost of Sales Direct costs
(32,813)
(28,837)
Provision for credit losses on receivables - subscription
receivables
(1,442)
(1,256)
Provision for credit losses on receivables - fees receivables
(2,628)
(2,553)
Technology related costs
(2,945)
(2,410)
Professional services
(1,402)
(1,665)
Compensation and benefits
(2,191)
(2,780)
Other operating expenses
(128)
(121)
Gross Profit
$
66,709
$
49,126
Adjusted EBITDA: A non-GAAP
measure, defined as net income (loss) plus interest expense related
to corporate debt, income tax expense (benefit), depreciation and
amortization expense, change in fair value of warrant liability,
change in fair value of subordinated convertible notes, change in
fair value of contingent consideration from mergers and
acquisitions, goodwill impairment loss, stock-based compensation
and one-time expenses less origination financing cost of
capital.
Total Customers: Defined as the
cumulative number of customers that have opened at least one
account, including banking, membership subscription, secured
personal loan, Instacash advance, managed investment account,
cryptocurrency account and customers that are monetized through our
marketplace and affiliate products. Total Customers also include
customers that have submitted for, received or clicked on at least
one marketplace loan offer.
Total Products: Defined as the
total number of products that our Total Customers have opened,
including banking, membership subscription, secured personal loan,
Instacash advance, managed investment account, cryptocurrency
account and monetized marketplace and affiliate products, as well
as customers who signed up for our financial tracking services
(with either credit tracking enabled or external linked accounts),
whether or not the customer is still registered for the product.
Total Products also include marketplace loan offers that our Total
Customers have submitted for, received or clicked on through our
marketplace. If a customer has funded multiple secured personal
loans or Instacash advances or opened multiple products through our
marketplace, it is only counted once for each product type.
Total Originations: Defined as the
dollar volume of the secured personal loans originated and
Instacash advances funded within the stated period. All
originations were originated directly by MoneyLion.
Enterprise Partners: Composed of
Product Partners and Channel Partners. Product Partners are the
providers of the financial and non-financial products and services
that we offer in our marketplaces, including financial
institutions, financial service providers and other affiliate
partners. Channel Partners are organizations that allow us to reach
a wide base of consumers, including but not limited to news sites,
content publishers, product comparison sites and financial
institutions.
MONEYLION INC. CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts in thousands)
Three Months Ended September
30, Nine Months Ended September 30,
2023
2022
2023
2022
Revenue Service and subscription revenue
$
107,000
$
86,397
$
300,978
$
238,366
Net interest income on loan receivables
3,258
2,351
9,490
7,436
Total revenue, net
110,258
88,748
310,468
245,802
Operating expenses Provision for credit losses on consumer
receivables
25,121
27,428
67,194
77,453
Compensation and benefits
23,511
25,619
70,491
74,160
Marketing
7,029
6,954
19,970
27,847
Direct costs
32,813
28,837
94,845
79,427
Professional services
4,968
7,546
14,485
21,486
Technology-related costs
5,891
5,327
17,540
15,241
Other operating expenses
9,824
11,209
30,038
31,820
Total operating expenses
109,157
112,920
314,563
327,434
Net income (loss) before other expense (income) and income
taxes
1,101
(24,172)
(4,095)
(81,632)
Interest expense
(7,088)
(7,880)
(21,929)
(21,638)
Change in fair value of warrant liability
(81)
414
(68)
7,275
Change in fair value of contingent consideration from mergers and
acquisitions
—
10,214
6,613
14,034
Goodwill impairment loss
—
—
(26,721)
—
Other income (expense)
2,358
460
5,264
(447)
Net loss before income taxes
(3,710)
(20,964)
(40,936)
(82,408)
Income tax expense (benefit)
400
53
114
(28,348)
Net loss
$
(4,110)
$
(21,017)
$
(41,050)
$
(54,060)
MONEYLION INC.
CONSOLIDATED BALANCE
SHEETS
(dollar amounts in thousands)
September 30,
December 31,
2023
2022
Assets Cash
$
94,266
$
115,864
Restricted cash, including amounts held by variable interest
entities (VIEs) of $4,095 and $36,235
6,750
37,845
Consumer receivables
190,152
169,976
Allowance for credit losses on consumer receivables
(32,073)
(24,841)
Consumer receivables, net, including amounts held by VIEs of
$124,924 and $113,963
158,079
145,135
Enterprise receivables, net
19,109
19,017
Property and equipment, net
2,111
2,976
Intangible assets, net
180,911
194,247
Goodwill
—
26,600
Other assets
51,030
54,658
Total assets
$
512,256
$
596,342
Liabilities, Redeemable Convertible Preferred Stock and
Stockholders' Equity Liabilities: Secured loans, net
$
74,257
$
88,617
Accounts payable and accrued liabilities
45,581
58,129
Warrant liability
405
337
Other debt, net, including amounts held by VIEs of $120,163 and
$143,394
120,163
143,394
Other liabilities
15,870
33,496
Total liabilities
256,276
323,973
Commitments and contingencies Redeemable convertible preferred
stock (Series A), $0.0001 par value; 45,000,000 shares authorized
as of September 30, 2023 and December 31, 2022, 0 and 25,655,579
shares issued and outstanding as of September 30, 2023 and December
31, 2022, respectively
—
173,208
Stockholders' equity: Class A Common Stock, $0.0001 par value;
66,666,666 shares authorized as of September 30, 2023 and December
31, 2022, 10,314,235 and 10,281,902 issued and outstanding,
respectively, as of September 30, 2023 and 8,619,678 and 8,587,345
issued and outstanding, respectively, as of December 31, 2022
1
1
Additional paid-in capital
964,203
766,839
Accumulated deficit
(698,524)
(657,979)
Treasury stock at cost, 32,333 shares at September 30, 2023 and
December 31, 2022
(9,700)
(9,700)
Total stockholders' equity
255,980
99,161
Total liabilities, redeemable convertible preferred stock and
stockholders' equity
$
512,256
$
596,342
MONEYLION, INC AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(dollar amounts in thousands)
Three Months Ended September 30, Nine Months Ended
September 30,
2023
2022
2023
2022
Cash flows from operating activities: Net loss
$
(4,110)
$
(21,017)
$
(41,050)
$
(54,060)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: Provision for losses on receivables
25,121
27,428
67,194
77,453
Depreciation and amortization expense
6,106
6,157
18,403
15,584
Change in deferred fees and costs, net
380
700
1,778
1,405
Change in fair value of warrants
81
(414)
68
(7,275)
Change in fair value of contingent consideration from mergers and
acquisitions
—
(10,214)
(6,613)
(14,034)
Gains on foreign currency translation
—
(151)
(178)
(209)
Expenses related to debt modification and prepayments
—
—
—
730
Goodwill impairment loss
—
—
26,721
—
Stock compensation expense
5,702
5,127
16,657
13,643
Deferred income taxes
(17)
—
(510)
(28,442)
Changes in assets and liabilities, net of effects of business
combination: Accrued interest receivable
(166)
118
(404)
87
Enterprise receivables, net
2,144
(3,308)
(278)
(4,960)
Other assets
(733)
(6,084)
3,627
(9,104)
Accounts payable and accrued liabilities
2,771
2,270
(5,878)
3,113
Other liabilities
(1,207)
(998)
(5,422)
(3,827)
Net cash provided by (used in) operating activities
36,072
(386)
74,115
(9,896)
Cash flows from investing activities: Net originations and
collections of finance receivables
(26,448)
(24,612)
(79,280)
(76,559)
Purchase of property and equipment and software development
(1,527)
(3,452)
(4,202)
(6,464)
Acquisition of Engine, net of cash acquired
—
—
—
(18,584)
Settlement of contingent consideration related to mergers and
acquisitions
—
—
(1,116)
—
Net cash used in investing activities
(27,975)
(28,064)
(84,598)
(101,607)
Cash flows from financing activities: Repayments to secured/senior
lenders
(10,000)
(1)
(15,000)
(24,029)
Fees related to debt prepayment
—
—
—
(375)
Net (repayments to) proceeds from special purpose vehicle credit
facilities
—
—
(24,000)
10,000
Borrowings from secured lenders
—
—
—
69,300
Payment of deferred financing costs
—
—
(132)
(1,625)
Payments related to the automatic conversion of redeemable
convertible preferred stock (Series A) in lieu of fractional shares
of common stock and dividends on preferred stock
—
—
(3,007)
—
Proceeds (payments) related to issuance of common stock related to
exercise of stock options and warrants, net of tax withholdings
related to vesting of stock-based compensation
723
440
(59)
1,217
Other
22
—
(12)
—
Net cash (used in) provided by financing activities
(9,255)
439
(42,210)
54,488
Net change in cash and restricted cash
(1,158)
(28,011)
(52,693)
(57,015)
Cash and restricted cash, beginning of period
102,174
217,220
153,709
246,224
Cash and restricted cash, end of period
$
101,016
$
189,209
$
101,016
$
189,209
MONEYLION INC. RECONCILIATION OF NET INCOME (LOSS) TO
ADJUSTED EBITDA (dollar amounts in thousands)
Three Months
Ended September 30, Nine Months Ended September 30,
2023
2022
2023
2022
Net loss
$
(4,110)
$
(21,017)
$
(41,050)
$
(54,060)
Add back: Interest related to corporate debt
3,191
2,896
10,226
6,937
Income tax (benefit) expense
400
53
114
(28,348)
Depreciation and amortization expense
6,106
6,157
18,403
15,584
Changes in fair value of warrant liability
81
(414)
68
(7,275)
Change in fair value of contingent consideration from mergers and
acquisitions
-
(10,214)
(6,613)
(14,034)
Goodwill impairment loss
-
-
26,721
-
Stock-based compensation expense
5,702
5,127
16,657
13,643
One-time expenses
1,982
3,068
5,355
9,887
Adjusted EBITDA
$
13,352
$
(14,346)
$
29,881
$
(57,669)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106204752/en/
MoneyLion Investor Relations ir@moneylion.com
MoneyLion Communications pr@moneylion.com
Grafico Azioni MoneyLion (NYSE:ML)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni MoneyLion (NYSE:ML)
Storico
Da Giu 2023 a Giu 2024