CORRECTING and REPLACING Aspiration Reports Fourth Quarter and Full Year 2021 Results
– Fourth Quarter 2021 Revenue of
– Generated Gross Profit of
– Full Year 2021 Revenue of
– Full Year 2021 Gross Profit of
The updated release reads:
ASPIRATION REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS
– Fourth Quarter 2021 Revenue of
– Generated Gross Profit of
– Full Year 2021 Revenue of
– Full Year 2021 Gross Profit of
“Our results for the fourth quarter and full year of 2021 demonstrate Aspiration’s key role at the forefront of driving the sustainability revolution,” stated
Fourth Quarter 2021 Financial Highlights (Unaudited)
Financial Overview |
Three Months Ended |
Twelve Months Ended |
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$ in Millions |
2021 |
2020 |
% Change |
2021 |
2020 |
% Change |
Revenue |
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|
|
|
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Gross Profit |
|
|
|
|
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1, |
Adjusted EBITDA1 |
( |
( |
NM |
( |
( |
NM |
-
Total revenues were
, up$38.5 million 604% from in the fourth quarter of 2020, and up$5.5 million 41% compared to in the prior quarter driven by growth in funded accounts and Sustainability Services.$27.3 million -
From a mix perspective,
27% of total revenues were generated from Consumer Finance,14% from Consumer Sustainability Services, with the remaining60% from Enterprise Sustainability Services. -
Gross profit was
, up$31.7 million 977% from in the fourth quarter of 2020, and up$2.9 million 47% from in the prior quarter. The gross margin expanded to$21.5 million 82% from54% for the year-ago quarter reflecting enhanced scale and ongoing operating leverage. -
Advertising expense totaled
, up from$41.0 million in the prior-year quarter, reflecting ongoing initiatives to expand members and funded accounts across products.$12.4 million
1 Adjusted EBITDA is not a measure defined under generally accepted accounting principles in |
Full Year 2021 Financial Highlights (Unaudited)
-
Total revenues were
, up$100.6 million 584% from in 2020, driven by an increase in total funded accounts and introduction of new products including Enterprise Sustainability services.$14.7 million -
Overall,
29% of total revenues were generated from theConsumer Financial Services segment,14% from Consumer Sustainability Services and the remaining56% from Enterprise Sustainability Services. -
Gross profit was
, translating into a$79.4 million 79% margin, versus , representing a$5.7 million 39% margin, for 2020. Margin expansion was primarily driven by the introduction of new products and efficiencies gained in the existing product lines. -
Adjusted EBITDA before marketing expense totaled
compared to a loss of$2.0 million in 2020.$38.5 million -
Marketing expenditure increased from
in 2020 to$22.1 million in 2021 driving strong growth in total members and funded accounts.$122.4 million -
Adjusted EBITDA was
( compared to$120.4) million ( in 2020. The increase in losses was driven by growth in marketing expenditure as well as investments in resources.$60.6) million
Recent Business Developments
-
December 2021 – Aspiration secured of incremental equity financings from funds managed by$315 million Oaktree Capital Management, L.P. , a leading global alternative investment management firm, and investment affiliates of businessman and investorSteve Ballmer . The financing included in proceeds from the issuance of non-convertible perpetual preferred stock, paying an$250 million 8% dividend and redeemable by investors after 9 years, of investment in the form of mandatorily convertible pre-merger securities of Aspiration purchased at a SPAC equivalent price of$50 million per share and$11 of investment in the form of an IPVF common stock PIPE priced at$15 million per share closing concurrently with the business combination.$11 -
December 2021 – Aspiration announced a multi-year partnership setting the stage forAthletes Unlimited to run the firstU.S. -based carbon neutral professional sports league. -
January 2022 – Aspiration announced the acquisition of Carbon Insights, a leader in climate tech whose proprietary algorithm translates spending behavior and transactions into carbon footprints. Carbon Insights’ technology will be integrated into Aspiration’s existing offerings, with the transaction solidifying Aspiration as a leading carbon scoring technology solution on the market with a competitive set of ESG and carbon transactional tracking capabilities.
Financial Outlook
The following table summarizes Aspiration’s anticipated financial outlook for the full year 2022 period:
$ in Millions |
2022 |
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Revenue |
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Adjusted EBITDA (non-GAAP)1 |
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Revenue Growth vs. 2021 |
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Non-GAAP Financial Measures
This press release discusses Adjusted EBITDA which is a measure that is not prepared and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss), adjusted to exclude (i) interest expenses relating to credit facilities and convertible notes, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization and (iv) stock-based compensation expense. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We believe that the use of Adjusted EBITDA provides useful information to investors and others in understanding and evaluating Aspiration’s results of operations, as well as providing a useful measure for period-to-period comparisons of Aspiration’s business performance. Adjusted EBITDA should not be considered a substitute for or superior to financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies. The following table presents a reconciliation of net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA.
Reconciliation of Net Income (Loss) to Adjusted EBITDA1 (in millions): (unaudited) |
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Three Months Ended
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Twelve Months Ended
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2021 |
2020 |
2021 |
2020 |
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Net income (loss) |
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Add: |
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Interest expense |
1.4 |
0.2 |
8.7 |
0.9 |
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Provision for (benefit from) income taxes |
- |
- |
- |
- |
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Depreciation and amortization |
1.9 |
0.8 |
4.8 |
2.8 |
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EBITDA (non-GAAP) |
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Share-based compensation |
0.7 |
2.1 |
43.1 |
2.9 |
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Other (income) expense |
(0.2) |
(0.3) |
31.3 |
(1.2) |
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Adjusted EBITDA (non-GAAP) |
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1 Adjusted EBITDA is not a measure defined under generally accepted accounting principles in |
Reconciliation of Net Income (Loss) to Adjusted EBITDA1 Reconciliation (in millions): |
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Twelve Months Ended
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|
2022 |
Net income (loss) |
|
Add: |
|
Interest expense |
6 |
Provision for (benefit from) income taxes |
- |
Depreciation and amortization |
21 |
EBITDA (non-GAAP) |
|
Share-based compensation |
6 |
Other (income) expense |
12 |
Adjusted EBITDA (non-GAAP) |
|
1 Adjusted EBITDA is not a measure defined under generally accepted accounting principles in |
About
Aspiration is a leading platform to help people and businesses put automated sustainable impact into their hands and integrate it into their daily lives. Aspiration has earned the trust of its more than 6 million members by helping them spend, save, shop, and invest to both "Do Well" and "Do Good."
About
Additional Information and Where to Find It
In connection with the proposed transaction (the “Proposed Transaction”) involving
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and shall not constitute a proxy statement or the solicitation of a proxy, consent or authorization with respect to any securities in respect of the Proposed Transaction and shall not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities or a solicitation of any vote of approval, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Participants in Solicitation
This communication is not a solicitation of a proxy from any investor or security holder. However, InterPrivate III, Aspiration, and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies in connection with the Proposed Transaction under the rules of the
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This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, including the information under the heading “Financial Outlook,” our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, statements regarding Aspiration’s industry and market sizes, future opportunities for InterPrivate III, Aspiration and the combined company, InterPrivate III’s and Aspiration’s estimated future results and the Proposed Transaction, including the implied equity value, the expected transaction and ownership structure and the likelihood and ability of the parties to successfully consummate the Proposed Transaction. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.
In addition to factors previously disclosed or that will be disclosed in InterPrivate III’s reports filed with the
Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof in the case of information about InterPrivate III and Aspiration or the date of such information in the case of information from persons other than InterPrivate III or Aspiration, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding Aspiration’s industry and end markets are based on sources we believe to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
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