MoneyLion Reports Fourth Quarter and Full Year 2020 Results, Previews Preliminary First Quarter 2021 Results
MoneyLion Inc. reported strong preliminary fourth quarter and full year 2020 results, indicating substantial growth. Total customers surged 60% to 1.4 million. Fourth-quarter payment volume leaped 89% to $172 million, while originations skyrocketed 310% to $155 million. Adjusted revenue jumped 119% to $25.5 million. For 2020, adjusted revenue reached $76.1 million, a 90% increase. Despite a net loss of $32.3 million, it decreased from $79.1 million in 2019. Looking forward, preliminary Q1 2021 results suggest adjusted revenue will be around $31.5 million, marking a 118% growth.
- Total customers increased by 60% to 1.4 million in Q4 2020.
- Total payment volume surged 89% to $172 million in Q4 2020.
- Total originations grew 310% to $155 million in Q4 2020.
- Adjusted revenue increased 119% to $25.5 million in Q4 2020.
- For the full year 2020, adjusted revenue rose 90% to $76.1 million.
- Contribution profit reached $38.6 million in 2020, up from $1.6 million in 2019.
- Preliminary Q1 2021 adjusted revenue is expected to be $31.5 million, a 118% increase.
- Net loss for Q4 2020 increased to $17.2 million from $15.7 million in Q4 2019.
- Net loss for 2020, although decreased, stood at $32.3 million compared to $79.1 million in 2019.
NEW YORK, April 13, 2021 /PRNewswire/ -- MoneyLion Inc. ("MoneyLion"), an award-winning data-driven, digital financial platform, today announced preliminary fourth quarter and full year results for the period ended December 31, 2020. In addition, the company is providing selected preliminary first quarter 2021 results.
Fourth Quarter 2020 Highlights
- Total customers grew
60% to 1.4 million, compared to 894 thousand in Q4 2019 - Total payment volume grew
89% to$172 million , compared to$91 million in Q4 2019 - Total originations grew
310% to$155 million , compared to$38 million in Q4 2019 - Adjusted revenue1 increased
119% , reaching$25.5 million , compared to$11.6 million in Q4 2019, while revenue increased63% , reaching$22.5 million , compared to$13.8 million in Q4 2019 - Contribution profit2 increased to
$15.2 million , compared to loss of$1.8 million in Q4 2019, while net loss increased to$17.2 million , compared to$15.7 million in Q4 2019
Full Year 2020 Highlights
- Total customers grew
60% to 1.4 million users, compared to 894 thousand in 2019 - Total payment volume grew
84% to$510 million , compared to$277 million in 2019 - Total originations grew
242% to$410 million , compared to$120 million in 2019 - Adjusted revenue increased
90% , reaching$76.1 million , compared to$40.1 million in 2019, while revenue increased32% , reaching$79.4 million , compared to$60.4 million in 2019 - Contribution profit increased to
$38.6 million , compared to$1.6 million in 2019, while net loss decreased to$32.3 million , compared to$79.1 million in 2019
The results for the Fourth Quarter 2020, the Full Year 2020 and the First Quarter 2021 are preliminary, unaudited and subject to adjustment upon finalization of our financial statements for these periods. Any adjustments may be material.
Preliminary First Quarter 2021 Highlights
Based on preliminary information, MoneyLion expects to report adjusted revenue of approximately
"The digital financial solutions landscape changed significantly in the past year, and I'm proud of our team's ability to capitalize on market opportunities, deliver strong financial results and generate consistent, high-user growth and engagement on our platform," said Dee Choubey, MoneyLion co-founder and CEO. "As our preliminary first quarter results demonstrate, this momentum has strengthened due to the advancement of our product offerings and capabilities to help more customers take control of their financial future. In light of these results, we are confident in our ability to meet our financial outlook for the full year 2021."
Other Recent Updates and Business Highlights
As announced on February 12, 2021, MoneyLion entered into a definitive agreement with Fusion Acquisition Corp. (NYSE:FUSE), which would result in MoneyLion becoming a publicly listed company in the first half of 2021, subject to the satisfaction of customary closing conditions. MoneyLion expects to use the net proceeds raised from the transaction to support its working capital needs and scale its platform and suite of products.
On March 3, 2021, MoneyLion announced its acquisition of Wealth Technologies Inc. ("WTI"), an algorithmic financial planning technology, and the appointment of WTI co-founder Rohit D'Souza to MoneyLion's Board of Directors as Executive Chair. The acquisition and appointment were designed to add new capabilities to the platform and experience to the business.
On April 8, 2021, MoneyLion announced that it will introduce new capabilities enabling members to buy, sell and earn digital currencies. This includes a strategic investment in Zero Hash, the leading, regulated digital asset settlement provider. The strategic investment in Zero Hash provides MoneyLion the ability to power its cryptocurrency offering as part of its all-in-one digital financial platform and gives the company an ownership stake in the leading cryptocurrency liquidity and settlement infrastructure for digital and traditional banking and brokerage providers.
About MoneyLion
MoneyLion is a mobile banking and financial membership platform that empowers people to take control of their finances. Since its launch in 2013, MoneyLion has engaged with 7.5 million hard-working Americans and has earned its members' trust by building a full-service digital platform to deliver mobile banking, lending, and investment solutions. From a single app, members can get a 360-degree snapshot of their financial lives and have access to personalized tips and tools to build and improve their credit and achieve everyday savings. MoneyLion is headquartered in New York City, with offices in San Francisco, Salt Lake City, Sioux Falls, and Kuala Lumpur, Malaysia. MoneyLion has achieved various awards of recognition including the 2020 Forbes FinTech 50, Aite group best digital Wealth Management Multiproduct offering, Finovate Award for Best Digital Bank 2019, Benzinga FinTech Awards winner for Innovation in Personal Finance 2019 and the Webby Awards 2019 People's Voice Award.
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 estimates and forecasts of financial and performance metrics and expectations and timing related to potential benefits, terms and timing of the transaction. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of MoneyLion's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. 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. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; the inability of the parties to successfully or timely consummate the proposed business combination, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed business combination or that the approval of the shareholders of MoneyLion is not obtained; failure to realize the anticipated benefits of the proposed business combination; risks relating to the uncertainty of the projected financial information with respect to MoneyLion; future global, regional or local economic and market conditions; the development, effects and enforcement of laws and regulations; MoneyLion's ability to manage future growth; MoneyLion's ability to develop new products and solutions, bring them to market in a timely manner, and make enhancements to its platform; the effects of competition on MoneyLion's future business; or, the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. 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.
Additional Information About the Proposed Business Combination and Where to Find It
The proposed business combination will be submitted to shareholders of Fusion for their consideration. Fusion intends to file a registration statement on Form S-4 (the "Registration Statement") with the SEC which will include preliminary and definitive proxy statements to be distributed to Fusion's shareholders in connection with Fusion's solicitation for proxies for the vote by Fusion's shareholders in connection with the proposed business combination and other matters as described in the Registration Statement, as well as the prospectus relating to the offer of the securities to be issued to MoneyLion's shareholders in connection with the completion of the proposed business combination. After the Registration Statement has been filed and declared effective, Fusion will mail a definitive proxy statement and other relevant documents to its shareholders as of the record date established for voting on the proposed business combination. Fusion's shareholders and other interested persons are advised to read, once available, the preliminary proxy statement / prospectus and any amendments thereto and, once available, the definitive proxy statement / prospectus, in connection with Fusion's solicitation of proxies for its special meeting of shareholders to be held to approve, among other things, the proposed business combination, because these documents will contain important information about Fusion, MoneyLion and the proposed business combination. Shareholders may also obtain a copy of the preliminary or definitive proxy statement, once available, as well as other documents filed with the SEC regarding the proposed business combination and other documents filed with the SEC by Fusion, without charge, at the SEC's website located at www.sec.gov or by directing a request to Cody Slach and Matt Glover, (949) 574-3860, FUSE@gatewayir.com.
Participants in the Solicitation
Fusion, MoneyLion and certain of their respective directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitations of proxies from Fusion's shareholders in connection with the proposed business combination. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of Fusion's shareholders in connection with the proposed business combination will be set forth in Fusion's proxy statement / prospectus when it is filed with the SEC. You can find more information about Fusion's directors and executive officers in Fusion's final prospectus dated June 25, 2020, filed with the SEC on June 29, 2020. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests will be included in the proxy statement / prospectus when it becomes available. Shareholders, potential investors and other interested persons should read the proxy statement / prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from the sources indicated above.
No Offer or Solicitation
This press release shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the business combination. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of section 10 of the Securities Act.
Contacts
MoneyLion Communications
pr@moneylion.com
Cody Slach, Matt Glover
Gateway Investor Relations
949-574-3860
FUSE@gatewayir.com
Years Ended Devember 31, | 3 Months Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Total revenues, net (GAAP) | $ | 79,411 | $ | 60,384 | $ | 22,549 | $ | 13,793 | |||||||||||||||
Add back: | |||||||||||||||||||||||
Amortization of loan origination costs | 1,894 | 3,461 | 530 | 833 | |||||||||||||||||||
Less: | |||||||||||||||||||||||
Direct charge-offs | (3,212) | (6,740) | 2,133 | (18) | |||||||||||||||||||
Revenue derived from products | (1,926) | (16,133) | 240 | (2,813) | |||||||||||||||||||
Non-operating income | (113) | (915) | (2) | (178) | |||||||||||||||||||
Adjusted Revenue (non-GAAP) | $ | 76,054 | $ | 40,057 | $ | 25,450 | $ | 11,617 | |||||||||||||||
Years Ended Devember 31, | 3 Months Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Net loss (GAAP) | $ | (32,280) | $ | (79,137) | $ | (17,191) | $ | (15,706) | |||||||||||||||
Add back: | |||||||||||||||||||||||
Income taxloss/(benefit) | 6 | (8) | 19 | 15 | |||||||||||||||||||
Total operating expenses | 111,685 | 139,529 | 39,721 | 29,484 | |||||||||||||||||||
Less: | |||||||||||||||||||||||
Directly attributable operating expenses: | |||||||||||||||||||||||
Underwriting expenses | (6,242) | (14,130) | (1,689) | (6,093) | |||||||||||||||||||
Bank and payment processor fees | (13,737) | (7,098) | (4,751) | (2,416) | |||||||||||||||||||
Direct charge-offs | (3,212) | (6,740) | 2,133 | (18) | |||||||||||||||||||
Professional fees | (2,753) | (708) | (716) | (585) | |||||||||||||||||||
IT expenses | (5,280) | (4,032) | (488) | (885) | |||||||||||||||||||
Personnel expenses | (3,513) | (5,280) | (851) | (985) | |||||||||||||||||||
Other direct costs | (4,336) | (3,593) | (1,200) | (1,543) | |||||||||||||||||||
Other operating expenses | 282 | (157) | (55) | (53) | |||||||||||||||||||
Revenue derived from products | (1,926) | (16,133) | 240 | (2,813) | |||||||||||||||||||
Non-operating income | (133) | (915) | (2) | (178) | |||||||||||||||||||
Contribtution Profit (non-GAAP) | $ | 38,580 | $ | 1,599 | $ | 15,171 | $ | (1,775) | |||||||||||||||
1 Adjusted Revenue is a non-GAAP measure and is defined as total revenues, net plus amortization of loan origination costs less direct charge-offs and revenue derived from phased out products.
2 Contribution Profit is a non-GAAP measure and is defined as total revenues, net less directly attributable operating expenses, revenue derived from phased out products and non-operating income.
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SOURCE MoneyLion
