MoneyLion Reports Record Third Quarter 2022 Results
MoneyLion Inc. (NYSE: ML) reported record financial results for Q3 2022, with GAAP revenue increasing by 101% year-over-year to $88.7 million and adjusted revenue rising 103% to $85.3 million. The company achieved 780K new customer additions, totaling 5.4 million customers, a 101% increase. Despite a net loss of $21.0 million, the loss narrowed from $24.6 million in Q3 2021. MoneyLion aims for full-year 2022 adjusted revenue of $320-$330 million and adjusted EBITDA of ($70)-($65 million.)
- GAAP revenue increased 101% YoY to $88.7 million.
- Adjusted revenue rose 103% YoY to $85.3 million.
- New customer additions reached 780K, totaling 5.4 million customers, a growth of 101% YoY.
- Adjusted EBITDA improved to ($14.3) million, a decrease in losses from ($20.5) million YoY.
- Achieved $15 million in annualized run-rate fixed cost savings.
- Net loss of $21.0 million in Q3 2022, though improved from $24.6 million in Q3 2021.
- Revised full-year guidance indicates lower revenue expectations of $320-$330 million and adjusted EBITDA losses of ($70)-($65) million.
Record GAAP and Adjusted Revenue for Third Quarter 2022; Continued Progress Towards Profitability
Quarterly GAAP Revenue up
Net Loss of
New Customer Adds of 780K; Total Customers Grew
Actioning Approximately
“In the third quarter, we delivered another quarter of record results,” said
Choubey continued, "In a challenging and complex macroeconomic environment, we continue to execute quarter after quarter, demonstrating the durability of our business model. We remain focused on optimizing our cost structure and focusing our investments on high-quality areas of our business that position us to take market share for the long run. As we look ahead, the resiliency of our business and our visibility into our path to profitability gives us confidence in our ability to position the company for profitable growth in 2023."
“Our record third quarter Adjusted Revenue was in line with our guidance. While macroeconomic conditions have led to an increase in consumer demand for financial products, it has also led to a reduction in advertising spend across the industry in which our Enterprise customers operate. As a result, we are revising our full-year 2022 guidance and the timing of our Adjusted EBITDA breakeven target. We now expect full-year 2022 Adjusted Revenue of
Financial Results (1)*
Three Months Ended |
|||||||||||
| (in thousands) | 2022 |
|
2021 |
|
% Change |
||||||
| GAAP | |||||||||||
| Total revenues, net | $ |
88,748 |
|
$ |
44,217 |
|
101 |
% |
|||
| Gross profit |
|
49,126 |
|
|
26,957 |
|
82 |
% |
|||
| Net income (loss) |
|
(21,017 |
) |
|
(24,645 |
) |
— |
|
|||
| Non-GAAP | |||||||||||
| Adjusted Revenue | $ |
85,275 |
|
$ |
41,978 |
|
103 |
% |
|||
| Adjusted Gross Profit |
|
49,126 |
|
|
26,951 |
|
82 |
% |
|||
| Adjusted EBITDA |
|
(14,346 |
) |
|
(20,474 |
) |
— |
|
|||
| (in millions) | |||||||||||
| Key Operating Metrics | |||||||||||
| Total Customers |
|
5.4 |
|
|
2.7 |
|
101 |
% |
|||
| Total Products |
|
11.3 |
|
|
6.9 |
|
63 |
% |
|||
| Total Originations | $ |
446 |
|
$ |
274 |
|
63 |
% |
|||
Total revenues, net increased
Gross profit increased
Three Months Ended |
||||||||
2022 |
|
2021 |
||||||
| (in thousands) | ||||||||
| Net income (loss) | $ |
(21,017 |
) |
$ |
(24,645 |
) |
||
| Add back: | ||||||||
| Interest related to corporate debt |
|
2,896 |
|
|
1,627 |
|
||
| Income tax expense (benefit) |
|
53 |
|
|
(1 |
) |
||
| Depreciation and amortization expense |
|
6,157 |
|
|
486 |
|
||
| Changes in fair value of warrant liability |
|
(414 |
) |
|
5,495 |
|
||
| Changes in fair value of subordinated convertible notes |
|
- |
|
|
(7,684 |
) |
||
| Change in fair value of contingent consideration from mergers and acquisitions |
|
(10,214 |
) |
|
- |
|
||
| Stock-based compensation expense |
|
5,127 |
|
|
586 |
|
||
| One-time expenses |
|
3,068 |
|
|
7,183 |
|
||
| Less: | ||||||||
| Origination financing cost of capital |
|
- |
|
|
(3,520 |
) |
||
| Adjusted EBITDA | $ |
(14,346 |
) |
$ |
(20,474 |
) |
||
Customer, Origination and Product Growth
Total Customers grew
2022 Financial Guidance:
For the full year 2022,
-
Adjusted Revenue of approximately
$320 $330 million -
Adjusted Gross Profit margin of
55% to60% -
Adjusted EBITDA of approximately (
$70 ( $65) million
(1) Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA are non-GAAP measures. Refer to the definitions in the discussion of non-GAAP financial measures and the accompanying reconciliations below.
* Based on information available to
Conference 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
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
Financial Information; Non-GAAP Financial Measures
Some of the financial information and data contained in this press release, such as Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA, have not been prepared in accordance with
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure are 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:
Adjusted Revenue: A non-GAAP measure, defined as total revenues, net plus amortization of loan origination costs less provision for loss on subscription receivables, provision for loss on fees receivables and revenue derived from phased out products.
Adjusted Gross Profit: A non-GAAP measure, defined as gross profit less revenue derived from phased out products.
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, 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, cash 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, cash 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 cash 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 cash advances funded within the stated period.
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (dollar amounts in thousands) | |||||||||||||||
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
| Revenue | |||||||||||||||
| Service and subscription revenue | $ |
86,397 |
|
$ |
41,923 |
|
$ |
238,366 |
|
$ |
109,810 |
|
|||
| Net interest income on loan receivables |
|
2,351 |
|
|
2,294 |
|
|
7,436 |
|
|
5,717 |
|
|||
| Total revenue, net |
|
88,748 |
|
|
44,217 |
|
|
245,802 |
|
|
115,527 |
|
|||
| Operating expenses | |||||||||||||||
| Provision for credit losses on consumer receivables |
|
27,428 |
|
|
15,238 |
|
|
77,453 |
|
|
36,644 |
|
|||
| Compensation and benefits |
|
25,619 |
|
|
15,471 |
|
|
74,160 |
|
|
30,700 |
|
|||
| Marketing |
|
6,954 |
|
|
13,531 |
|
|
27,847 |
|
|
27,060 |
|
|||
| Direct costs |
|
28,837 |
|
|
10,885 |
|
|
79,427 |
|
|
31,331 |
|
|||
| Professional services |
|
7,546 |
|
|
4,678 |
|
|
21,486 |
|
|
12,715 |
|
|||
| Technology-related costs |
|
5,327 |
|
|
1,498 |
|
|
15,241 |
|
|
5,954 |
|
|||
| Other operating expenses |
|
11,209 |
|
|
8,261 |
|
|
31,820 |
|
|
10,618 |
|
|||
| Total operating expenses |
|
112,920 |
|
|
69,562 |
|
|
327,434 |
|
|
155,022 |
|
|||
| Net loss before other (expense) income and income taxes |
|
(24,172 |
) |
|
(25,345 |
) |
|
(81,632 |
) |
|
(39,495 |
) |
|||
| Interest expense |
|
(7,880 |
) |
|
(1,627 |
) |
|
(21,638 |
) |
|
(4,947 |
) |
|||
| Change in fair value of warrant liability |
|
414 |
|
|
(5,495 |
) |
|
7,275 |
|
|
(54,285 |
) |
|||
| Change in fair value of subordinated convertible notes |
|
— |
|
|
7,684 |
|
|
— |
|
|
(41,877 |
) |
|||
| Change in fair value of contingent consideration from mergers and acquisitions |
|
10,214 |
|
|
— |
|
|
14,034 |
|
|
— |
|
|||
| Other income (expense) |
|
460 |
|
|
137 |
|
|
(447 |
) |
|
3,405 |
|
|||
| Net loss before income taxes |
|
(20,964 |
) |
|
(24,646 |
) |
|
(82,408 |
) |
|
(137,199 |
) |
|||
| Income tax expense (benefit) |
|
53 |
|
|
(1 |
) |
|
(28,348 |
) |
|
41 |
|
|||
| Net loss | $ |
(21,017 |
) |
$ |
(24,645 |
) |
$ |
(54,060 |
) |
$ |
(137,240 |
) |
|||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (dollar amounts in thousands) | ||||||||
|
|
|
||||||
|
2022 |
|
|
2021 |
|
|||
| Assets | ||||||||
| Cash | $ |
126,369 |
|
$ |
201,763 |
|
||
| Restricted cash, including amounts held by variable interest entities (VIEs) of |
|
62,840 |
|
|
44,461 |
|
||
| Consumer receivables |
|
152,718 |
|
|
153,741 |
|
||
| Allowance for credit losses on consumer receivables |
|
(22,633 |
) |
|
(22,323 |
) |
||
| Consumer receivables, net, including amounts held by VIEs of |
|
130,085 |
|
|
131,418 |
|
||
| Enterprise receivables |
|
20,825 |
|
|
6,002 |
|
||
| Property and equipment, net |
|
2,896 |
|
|
1,801 |
|
||
| Intangible assets, net |
|
205,670 |
|
|
25,124 |
|
||
|
161,261 |
|
|
52,541 |
|
|||
| Other assets |
|
48,854 |
|
|
28,428 |
|
||
| Total assets | $ |
758,800 |
|
$ |
491,538 |
|
||
| Liabilities and Stockholders' Equity | ||||||||
| Liabilities: | ||||||||
| Secured loans | $ |
88,508 |
|
$ |
43,591 |
|
||
| Accounts payable and accrued liabilities |
|
54,049 |
|
|
36,868 |
|
||
| Warrant liability |
|
985 |
|
|
8,260 |
|
||
| Other debt, including amounts held by VIEs of |
|
153,137 |
|
|
143,000 |
|
||
| Other liabilities |
|
60,051 |
|
|
38,135 |
|
||
| Total liabilities |
|
356,730 |
|
|
269,854 |
|
||
| Commitments and contingencies (Note 16) | ||||||||
| Redeemable convertible preferred stock (Series A), |
|
173,142 |
|
|
— |
|
||
| Stockholders' equity: | ||||||||
| Class A Common Stock, |
|
25 |
|
|
23 |
|
||
| Additional paid-in capital |
|
761,576 |
|
|
701,234 |
|
||
| Accumulated deficit |
|
(522,973 |
) |
|
(469,873 |
) |
||
|
(9,700 |
) |
|
(9,700 |
) |
|||
| Total stockholders' equity |
|
228,928 |
|
|
221,684 |
|
||
| Total liabilities, redeemable convertible preferred stock and stockholders' equity | $ |
758,800 |
|
$ |
491,538 |
|
||
| RECONCILIATION OF REVENUE TO ADJUSTED REVENUE | ||||||||||||||||
| (dollar amounts in thousands) | ||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Total revenues, net | $ |
88,748 |
|
$ |
44,217 |
|
$ |
245,802 |
|
$ |
115,527 |
|
||||
| Add back: | ||||||||||||||||
| Amortization of loan origination costs |
|
335 |
|
|
464 |
|
|
802 |
|
|
1,039 |
|
||||
| Less: | ||||||||||||||||
| Provision for credit losses on receivables - subscription receivables |
|
(1,256 |
) |
|
(1,025 |
) |
|
(4,018 |
) |
|
(2,204 |
) |
||||
| Provision for credit losses on receivables - fees receivables |
|
(2,553 |
) |
|
(1,671 |
) |
|
(6,758 |
) |
|
(3,563 |
) |
||||
| Revenue derived from products that have been phased out |
|
(0 |
) |
|
(6 |
) |
|
(21 |
) |
|
119 |
|
||||
| Adjusted Revenue | $ |
85,275 |
|
$ |
41,978 |
|
$ |
235,808 |
|
$ |
110,917 |
|
||||
| RECONCILIATION OF REVENUE TO ADJUSTED GROSS PROFIT | ||||||||||||||||
| (dollar amounts in thousands) | ||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Total revenue, net | $ |
88,748 |
|
$ |
44,217 |
|
$ |
245,802 |
|
$ |
115,527 |
|
||||
| Less: | ||||||||||||||||
| Cost of Sales | ||||||||||||||||
| Direct costs |
|
(28,837 |
) |
|
(10,885 |
) |
|
(79,427 |
) |
|
(31,331 |
) |
||||
| Provision for credit losses on receivables - subscription receivables |
|
(1,256 |
) |
|
(1,025 |
) |
|
(4,018 |
) |
|
(2,204 |
) |
||||
| Provision for credit losses on receivables - fees receivables |
|
(2,553 |
) |
|
(1,671 |
) |
|
(6,758 |
) |
|
(3,563 |
) |
||||
| Technology related costs |
|
(2,410 |
) |
|
(1,633 |
) |
|
(7,396 |
) |
|
(4,493 |
) |
||||
| Professional services |
|
(1,665 |
) |
|
(978 |
) |
|
(3,850 |
) |
|
(2,460 |
) |
||||
| Compensation and benefits |
|
(2,780 |
) |
|
(1,015 |
) |
|
(6,451 |
) |
|
(2,805 |
) |
||||
| Other operating expenses |
|
(121 |
) |
|
(54 |
) |
|
(344 |
) |
|
(163 |
) |
||||
| Gross Profit | $ |
49,126 |
|
$ |
26,957 |
|
$ |
137,559 |
|
$ |
68,506 |
|
||||
| Less: | ||||||||||||||||
| Revenue derived from products that have been phased out |
|
(0 |
) |
|
(6 |
) |
|
(21 |
) |
|
119 |
|
||||
| Adjusted Gross Profit | $ |
49,126 |
|
$ |
26,951 |
|
$ |
137,538 |
|
$ |
68,625 |
|
||||
|
||||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA |
||||||||||||||||
(dollar amounts in thousands) |
||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Net income (loss) | $ |
(21,017 |
) |
$ |
(24,645 |
) |
$ |
(54,060 |
) |
$ |
(137,240 |
) |
||||
| Add back: | ||||||||||||||||
| Interest related to corporate debt |
|
2,896 |
|
|
1,627 |
|
|
6,937 |
|
|
4,947 |
|
||||
| Income tax expense (benefit) |
|
53 |
|
|
(1 |
) |
|
(28,348 |
) |
|
41 |
|
||||
| Depreciation and amortization expense |
|
6,157 |
|
|
486 |
|
|
15,584 |
|
|
1,502 |
|
||||
| Changes in fair value of warrant liability |
|
(414 |
) |
|
5,495 |
|
|
(7,275 |
) |
|
54,285 |
|
||||
| Changes in fair value of subordinated convertible notes |
|
- |
|
|
(7,684 |
) |
|
- |
|
|
41,877 |
|
||||
| Change in fair value of contingent consideration from mergers and acquisitions |
|
(10,214 |
) |
|
- |
|
|
(14,034 |
) |
|
- |
|
||||
| Stock-based compensation expense |
|
5,127 |
|
|
586 |
|
|
13,643 |
|
|
2,425 |
|
||||
| One-time expenses |
|
3,068 |
|
|
7,183 |
|
|
9,887 |
|
|
6,247 |
|
||||
| Less: | ||||||||||||||||
| Origination financing cost of capital |
|
- |
|
|
(3,520 |
) |
|
- |
|
|
(9,364 |
) |
||||
| Adjusted EBITDA | $ |
(14,346 |
) |
$ |
(20,474 |
) |
$ |
(57,669 |
) |
$ |
(35,280 |
) |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20221109006122/en/
Head of Investor Relations,
O: (332) 258-7621
shorgan@moneylion.com
pr@moneylion.com
Source:
FAQ
What were MoneyLion's Q3 2022 revenue figures?
How many new customers did MoneyLion add in Q3 2022?
What is MoneyLion's adjusted EBITDA for Q3 2022?
How is MoneyLion's financial guidance for 2022 affected?
What is the significance of MoneyLion's adjusted revenue growth?
