Record Revenue of $107 Million, Up 22%
Year-over-Year
Net Loss Before Other Expense and Income Taxes
of $2 Million Compared to $27 Million in Q2 2022
Quarterly Net Loss of $28 Million and Record
Adjusted EBITDA of $9 Million
Gross Profit and Adjusted EBITDA Margin
Expansion in Q2 2023 Compared to Q1 2023
Near-Breakeven Cash Flows after Operating and
Investing Activities
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 second quarter ended June 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.
“Thanks to the hard work of our exceptional team, MoneyLion was
able to reach record revenue and its second consecutive quarter of
positive Adjusted EBITDA,” said Dee Choubey, MoneyLion’s co-founder
and Chief Executive Officer. “Performance in the second quarter was
driven by product diversification and margin expansion in our
Enterprise marketplace business and continued momentum and robust
credit performance in our Consumer business.”
Choubey continued, “The evolution of the MoneyLion ecosystem has
allowed us to deliver high incremental margin revenue growth. We
ended the quarter with nearly 10 million Total Customers, more than
twice as many compared to the second quarter of 2022. With this
platform strength, a robust balance sheet and our pipeline of
innovative product releases and features, MoneyLion is poised to
build on its momentum of scaling profitably.”
Financial Results(1)
Three Months Ended June 30, (in thousands)
2023
2022
% Change Financial Metrics Total revenues, net
$
106,541
$
87,340
22%
Gross profit
62,602
48,100
30%
Gross profit margin
59%
55%
7%
Net loss before other (expense) income and income taxes
(1,720)
(26,905)
—
Net loss
(27,723)
(23,065)
—
Adjusted EBITDA
9,233
(18,531)
—
Adjusted EBITDA margin
9%
(21%)
—
(in millions) Key Operating Metrics Total
Customers
9.9
4.6
114%
Total Products
17.3
10.1
71%
Total Originations
$
550
$
439
25%
“MoneyLion delivered revenue of $107 million and Adjusted EBITDA
of $9 million in the second quarter. Revenue, gross profit margin,
and Adjusted EBITDA all exceeded the high end of our guidance. For
the third quarter of 2023, we expect revenue of $110 to $115
million, gross profit margin of 55% to 60% and Adjusted EBITDA of
$6 to $10 million,” said Rick Correia, MoneyLion’s Chief Financial
Officer.
Total revenues, net increased 22% to $106.5 million for the
second quarter of 2023 compared to the second quarter of 2022.
Gross profit increased 30% to $62.6 million for the second
quarter of 2023 compared to the second quarter of 2022.
MoneyLion recorded a net loss before other expense and income
taxes of $1.7 million for the second quarter of 2023 versus a net
loss before other income and income taxes of $26.9 million in the
second quarter of 2022, and a net loss of $27.7 million for the
second quarter of 2023 versus a net loss of $23.1 million in the
second quarter of 2022. Adjusted EBITDA was $9.2 million for the
second quarter of 2023 versus ($18.5) million in the second quarter
of 2022, when adjusted for the following non-operating costs:
Three Months Ended June 30, (in thousands)
2023
2022
Net loss
$
(27,723)
$
(23,065)
Add back: Interest related to corporate debt
3,475
2,653
Income tax (benefit) expense
(262)
16
Depreciation and amortization expense
6,113
6,006
Changes in fair value of warrant liability
(162)
(2,951)
Change in fair value of contingent consideration from mergers and
acquisitions
(6,367)
(8,480)
Goodwill impairment loss
26,721
-
Stock-based compensation expense
5,250
5,248
One-time expenses
2,188
2,042
Adjusted EBITDA
$
9,233
$
(18,531)
Customer, Origination and Product Growth
Total Customers grew 114% year-over-year to 9.9 million for the
second quarter of 2023. Total Products of 17.3 million grew 71%
year-over-year for the second quarter of 2023. Total Originations
grew 25% year-over-year to $550 million for the second quarter of
2023.
Q3 2023 Financial Guidance:
For the third quarter of 2023, MoneyLion expects:
- Total revenues, net of approximately $110 to $115 million
- Gross profit margin of 55% to 60%
- Adjusted EBITDA of approximately $6 to $10 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 second 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 second
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 June 30, (in thousands)
2023
2022
Total revenue, net
$
106,541
$
87,340
Less: Cost of Sales Direct costs
(32,230)
(29,386)
Provision for credit losses on receivables - subscription
receivables
(1,189)
(1,221)
Provision for credit losses on receivables - fees receivables
(3,869)
(2,204)
Technology related costs
(3,006)
(2,525)
Professional services
(1,270)
(1,129)
Compensation and benefits
(2,283)
(2,657)
Other operating expenses
(92)
(118)
Gross profit
$
62,602
$
48,100
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 warrants, 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. Previously, Total Customers included
all customers that submitted for or clicked on an offer through our
marketplace but were not necessarily monetized, which we changed
beginning in the third quarter of 2022 in order to more accurately
reflect management’s view of our customers. Total Customers for all
prior periods have been recast to present the updated definition of
Total Customers.
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.
Previously, Total Products included all products for which our
Total Customers submitted or clicked on an offer but were not
necessarily monetized, which we changed beginning in the third
quarter of 2022 in order to more accurately reflect management’s
view of our products. Total Products for all prior periods have
been recast to present the updated definition of Total
Products.
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, except per share
amounts)
Three Months Ended June 30, Six Months Ended
June 30,
2023
2022
2023
2022
Revenue Service and subscription revenue
$
103,237
$
84,823
$
193,978
$
151,969
Net interest income on loan receivables
3,304
2,517
6,232
5,085
Total revenue, net
106,541
87,340
200,210
157,054
Operating expenses Provision for credit losses on consumer
receivables
25,562
26,981
42,073
50,025
Compensation and benefits
22,572
26,498
46,980
48,541
Marketing
6,549
9,477
12,941
20,893
Direct costs
32,230
29,386
62,032
50,590
Professional services
4,518
6,652
9,517
13,940
Technology-related costs
5,611
5,409
11,649
9,914
Other operating expenses
11,219
9,842
20,214
20,611
Total operating expenses
108,261
114,245
205,406
214,514
Net loss before other (expense) income and income taxes
(1,720)
(26,905)
(5,196)
(57,460)
Interest expense
(7,330)
(7,584)
(14,841)
(13,758)
Change in fair value of warrant liability
162
2,951
13
6,861
Change in fair value of contingent consideration from mergers and
acquisitions
6,367
8,480
6,613
3,820
Goodwill impairment loss
(26,721)
—
(26,721)
—
Other income (expense)
1,257
9
2,906
(907)
Net loss before income taxes
(27,985)
(23,049)
(37,226)
(61,444)
Income tax (benefit) expense
(262)
16
(286)
(28,401)
Net loss
(27,723)
(23,065)
(36,940)
(33,043)
Reversal of previously accrued / (accrued) dividends on preferred
stock
2,667
(2,176)
690
(3,204)
Net loss attributable to common shareholders
$
(25,056)
$
(25,241)
$
(36,250)
$
(36,247)
Net loss per share, basic and diluted
$
(2.71)
$
(3.20)
$
(4.05)
$
(4.66)
Weighted average shares used in computing net loss per share,
basic and diluted
9,234,238
7,877,106
8,944,836
7,784,688
MONEYLION INC. CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands, except per share amounts)
June
30, December 31,
2023
2022
Assets Cash
$
96,739
$
115,864
Restricted cash, including amounts held by variable interest
entities (VIEs) of $3,604 and $36,235
5,435
37,845
Consumer receivables
188,370
169,976
Allowance for credit losses on consumer receivables
(31,755)
(24,841)
Consumer receivables, net, including amounts held by VIEs of
$130,213 and $113,963
156,615
145,135
Enterprise receivables, net
21,253
19,017
Property and equipment, net
2,348
2,976
Intangible assets, net
185,253
194,247
Goodwill
—
26,600
Other assets
50,297
54,658
Total assets
$
517,940
$
596,342
Liabilities, Redeemable Convertible Preferred Stock and
Stockholders' Equity Liabilities: Secured loans, net
$
84,141
$
88,617
Accounts payable and accrued liabilities
42,810
58,129
Warrant liability
324
337
Other debt, net, including amounts held by VIEs of $119,906 and
$143,394
119,906
143,394
Other liabilities
17,094
33,496
Total liabilities
264,275
323,973
Commitments and contingencies Redeemable convertible preferred
stock (Series A), $0.0001 par value; 45,000,000 shares authorized
as of June 30, 2023 and December 31, 2022, 0 and 25,655,579 shares
issued and outstanding as of June 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 June 30, 2023 and December 31,
2022, 10,168,008 and 10,135,675 issued and outstanding,
respectively, as of June 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
957,778
766,839
Accumulated deficit
(694,414)
(657,979)
Treasury stock at cost, 32,333 shares at June 30, 2023 and December
31, 2022
(9,700)
(9,700)
Total stockholders' equity
253,665
99,161
Total liabilities, redeemable convertible preferred stock and
stockholders' equity
$
517,940
$
596,342
MONEYLION INC. CONSOLIDATED STATEMENTS OF
CASH FLOWS (dollar amounts in thousands)
Three Months Ended
June 30, Six Months Ended June 30,
2023
2022
2023
2022
Cash flows from operating activities: Net loss
$
(27,723)
$
(23,065)
$
(36,940)
$
(33,043)
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities: Provision for losses on receivables
25,562
26,981
42,073
50,025
Depreciation and amortization expense
6,113
6,006
12,297
9,427
Change in deferred fees and costs, net
782
446
1,398
705
Change in fair value of warrants
(162)
(2,951)
(13)
(6,861)
Change in fair value of contingent consideration from mergers and
acquisitions
(6,367)
(8,480)
(6,613)
(3,820)
Gains on foreign currency translation
(171)
(87)
(178)
(58)
Expenses related to debt modification and prepayments
—
—
—
730
Goodwill impairment loss
26,721
—
26,721
—
Stock compensation expense
5,250
5,248
10,955
8,516
Deferred income taxes
(400)
—
(493)
(28,442)
Changes in assets and liabilities, net of effects of business
combination: Accrued interest receivable
(211)
3
(238)
(31)
Enterprise receivables, net
1,708
(3,310)
(2,422)
(1,652)
Other assets
5,610
(3,686)
4,360
(3,020)
Accounts payable and accrued liabilities
1,156
3,193
(8,649)
843
Other liabilities
(2,505)
(1,157)
(4,215)
(2,829)
Net cash provided by (used in) operating activities
35,363
(859)
38,043
(9,510)
Cash flows from investing activities: Net originations and
collections of finance receivables
(33,185)
(29,075)
(52,832)
(51,947)
Purchase of property and equipment and software development
(1,638)
(2,189)
(2,675)
(3,012)
Acquisition of Engine, net of cash acquired
—
—
—
(18,584)
Settlement of contingent consideration related to mergers and
acquisitions
(766)
—
(1,116)
—
Net cash used in investing activities
(35,589)
(31,264)
(56,623)
(73,543)
Cash flows from financing activities: Repayments to secured/senior
lenders
(5,000)
—
(5,000)
(24,028)
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
(154)
—
(154)
(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)
—
(3,007)
—
(Payments) proceeds 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
(183)
356
(782)
777
Other
(12)
—
(12)
—
Net cash (used in) provided by financing activities
(8,356)
356
(32,955)
54,049
Net change in cash and restricted cash
(8,582)
(31,767)
(51,535)
(29,004)
Cash and restricted cash, beginning of period
110,756
248,987
153,709
246,224
Cash and restricted cash, end of period
$
102,174
$
217,220
$
102,174
$
217,220
MONEYLION INC. RECONCILIATION OF NET INCOME
(LOSS) TO ADJUSTED EBITDA (dollar amounts in thousands)
Three Months Ended June 30, Six Months Ended June 30,
2023
2022
2023
2022
Net loss
$
(27,723)
$
(23,065)
$
(36,940)
$
(33,043)
Add back: Interest related to corporate debt
3,475
2,653
7,035
4,040
Income tax (benefit) expense
(262)
16
(286)
(28,401)
Depreciation and amortization expense
6,113
6,006
12,297
9,427
Changes in fair value of warrant liability
(162)
(2,951)
(13)
(6,861)
Change in fair value of contingent consideration from mergers and
acquisitions
(6,367)
(8,480)
(6,613)
(3,820)
Goodwill impairment loss
26,721
-
26,721
-
Stock-based compensation expense
5,250
5,248
10,955
8,516
One-time expenses
2,188
2,042
3,373
6,819
Adjusted EBITDA
$
9,233
$
(18,531)
$
16,529
$
(43,322)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230807210239/en/
MoneyLion Investor Relations ir@moneylion.com
MoneyLion Communications pr@moneylion.com
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