MoneyLion’s Q1 2023 Results Highlight Growth and Steady Path to Profitability
- MoneyLion reported a strong Q1 2023, with a 34% YoY increase in GAAP revenue and positive Adjusted EBITDA of $7 million. Total customers increased by 102% YoY to 7.8 million. MoneyLion expects continued growth in Q2 2023 with projected GAAP revenue of $95 to $100 million and Adjusted EBITDA of $1 to $8 million.
- None.
GAAP Revenue of
Reached Quarterly GAAP Net Loss of
Total Customer Adds of 1.3 Million in Q1 2023; Total Customers up
“I am extremely proud of our team’s strong performance in the first quarter, surpassing our own guidance,” said Dee Choubey, MoneyLion’s co-founder and Chief Executive Officer. “These results underscore our consistent progress towards profitability. Our Consumer business exceeded our expectations, demonstrating the incredible value of our products to our customers. We continue to leverage our platform of capabilities to drive low customer acquisition costs and our advanced AI and technology to manage risk, driving exceptionally strong credit performance. Our expansion into high-value third-party product verticals, including high-yield savings, CDs, safe driver tracking, and health, has significantly broadened our reach and bolstered our network of over 1,000 Enterprise Partners.”
Financial Results(1)* |
|||||||||||
Three Months Ended March 31, |
|||||||||||
| (in thousands) | 2023 |
2022 |
% Change |
||||||||
| GAAP | |||||||||||
| Total revenues, net | $ |
93,669 |
|
$ |
69,714 |
|
34 |
% |
|||
| Gross profit |
|
51,654 |
|
|
40,333 |
|
28 |
% |
|||
| Net loss |
|
(9,217 |
) |
|
(9,978 |
) |
— |
|
|||
| Non-GAAP | |||||||||||
| Adjusted Revenue | $ |
89,006 |
|
$ |
66,477 |
|
34 |
% |
|||
| Adjusted Gross Profit |
|
51,653 |
|
|
40,314 |
|
28 |
% |
|||
| Adjusted EBITDA |
|
7,296 |
|
|
(24,792 |
) |
— |
|
|||
| (in millions) | |||||||||||
| Key Operating Metrics | |||||||||||
| Total Customers |
|
7.8 |
|
|
3.9 |
|
102 |
% |
|||
| Total Products |
|
14.7 |
|
|
9.0 |
|
63 |
% |
|||
| Total Originations | $ |
506 |
|
$ |
408 |
|
24 |
% |
|||
Choubey continued, “Despite the recessionary backdrop and challenging economic climate, our Consumer business showed remarkable resilience due to the strong dynamics in the labor markets, and our Enterprise business persevered by diversifying our offer set with existing and new partners in the face of macro-economic headwinds impacting our network. Moving forward, we remain laser-focused on delivering growth by enhancing the overall customer experience to solidify our position as a leader in the industry, while striving towards steady profitability, creating value for all of MoneyLion’s stakeholders.”
“MoneyLion delivered GAAP revenue of
Total revenues, net increased
Gross profit increased
MoneyLion recorded a net loss of
Three Months Ended March 31, |
||||||||
2023 |
2022 |
|||||||
| Net loss | $ |
(9,217 |
) |
$ |
(9,978 |
) |
||
| Add back: | ||||||||
| Interest related to corporate debt |
|
3,560 |
|
|
1,387 |
|
||
| Income tax benefit |
|
(24 |
) |
|
(28,417 |
) |
||
| Depreciation and amortization expense |
|
6,184 |
|
|
3,421 |
|
||
| Changes in fair value of warrant liability |
|
149 |
|
|
(3,910 |
) |
||
| Change in fair value of contingent consideration from mergers and acquisitions |
|
(246 |
) |
|
4,660 |
|
||
| Stock-based compensation expense |
|
5,705 |
|
|
3,268 |
|
||
| One-time expenses |
|
1,185 |
|
|
4,777 |
|
||
| Adjusted EBITDA | $ |
7,296 |
|
$ |
(24,792 |
) |
||
Customer, Origination and Product Growth
Total Customers grew
Q2 2023 Financial Guidance:
For the second quarter of 2023, MoneyLion expects:
-
Total revenues, net of approximately
$95 $100 million -
Gross profit margin of
54% to58% -
Adjusted EBITDA of approximately
$1 $8 million
During the quarter, MoneyLion determined that Adjusted Revenue was no longer a key performance metric that it uses to measure revenue and evaluate its business performance and that Adjusted Gross Profit was no longer a key performance metric that it uses to measure profitability and evaluate its business performance. As a result, MoneyLion will no longer be presenting Adjusted Revenue or Adjusted Gross Profit for subsequent quarters and, accordingly, is no longer providing financial guidance with respect to Adjusted Revenue or Adjusted Gross Profit.
(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 MoneyLion as of the date of this release and subject to the completion of its quarterly closing procedures and review by MoneyLion’s independent registered public accounting firm.
Conference Call
MoneyLion will hold a conference call today at 10:00 a.m. ET to discuss its first 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 first 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 financial technology powering the next generation of personalized products and content, with a top consumer finance mobile 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.
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
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.
During the quarter, MoneyLion determined that Adjusted Revenue was no longer a key performance metric that it uses to measure revenue and evaluate its business performance and that Adjusted Gross Profit was no longer a key performance metric that it uses to measure profitability and evaluate its business performance. As a result, MoneyLion will no longer be presenting Adjusted Revenue or Adjusted Gross Profit for subsequent quarters.
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, 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, 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. 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 March 31, |
||||||||
2023 |
2022 |
|||||||
| Revenue | ||||||||
| Service and subscription revenue | $ |
90,741 |
|
$ |
67,146 |
|
||
| Net interest income on loan receivables |
|
2,928 |
|
|
2,568 |
|
||
| Total revenue, net |
|
93,669 |
|
|
69,714 |
|
||
| Operating expenses | ||||||||
| Provision for credit losses on consumer receivables |
|
16,511 |
|
|
23,044 |
|
||
| Compensation and benefits |
|
24,408 |
|
|
22,043 |
|
||
| Marketing |
|
6,392 |
|
|
11,416 |
|
||
| Direct costs |
|
29,802 |
|
|
21,204 |
|
||
| Professional services |
|
4,999 |
|
|
7,288 |
|
||
| Technology-related costs |
|
6,038 |
|
|
4,505 |
|
||
| Other operating expenses |
|
8,995 |
|
|
10,769 |
|
||
| Total operating expenses |
|
97,145 |
|
|
100,269 |
|
||
| Net loss before other (expense) income and income taxes |
|
(3,476 |
) |
|
(30,555 |
) |
||
| Interest expense |
|
(7,511 |
) |
|
(6,174 |
) |
||
| Change in fair value of warrant liability |
|
(149 |
) |
|
3,910 |
|
||
| Change in fair value of contingent consideration from mergers and acquisitions |
|
246 |
|
|
(4,660 |
) |
||
| Other income (expense) |
|
1,649 |
|
|
(916 |
) |
||
| Net loss before income taxes |
|
(9,241 |
) |
|
(38,395 |
) |
||
| Income tax benefit |
|
(24 |
) |
|
(28,417 |
) |
||
| Net loss | $ |
(9,217 |
) |
$ |
(9,978 |
) |
||
MONEYLION INC. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(dollar amounts in thousands, except per share amounts) |
||||||||
March 31, |
December 31, |
|||||||
2023 |
2022 |
|||||||
| Assets | ||||||||
| Cash | $ |
96,756 |
|
$ |
115,864 |
|
||
| Restricted cash, including amounts held by variable interest entities (VIEs) of |
|
14,000 |
|
|
37,845 |
|
||
| Consumer receivables |
|
176,211 |
|
|
169,976 |
|
||
| Allowance for credit losses on consumer receivables |
|
(27,473 |
) |
|
(24,841 |
) |
||
| Consumer receivables, net, including amounts held by VIEs of |
|
148,738 |
|
|
145,135 |
|
||
| Enterprise receivables, net |
|
22,961 |
|
|
19,017 |
|
||
| Property and equipment, net |
|
2,682 |
|
|
2,976 |
|
||
| Intangible assets, net |
|
189,394 |
|
|
194,247 |
|
||
| Goodwill |
|
26,721 |
|
|
26,600 |
|
||
| Other assets |
|
55,907 |
|
|
54,658 |
|
||
| Total assets | $ |
557,159 |
|
$ |
596,342 |
|
||
| Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity | ||||||||
| Liabilities: | ||||||||
| Secured loans | $ |
88,726 |
|
$ |
88,617 |
|
||
| Accounts payable and accrued liabilities |
|
50,294 |
|
|
58,129 |
|
||
| Warrant liability |
|
486 |
|
|
337 |
|
||
| Other debt, including amounts held by VIEs of |
|
119,650 |
|
|
143,394 |
|
||
| Other liabilities |
|
29,184 |
|
|
33,496 |
|
||
| Total liabilities |
|
288,340 |
|
|
323,973 |
|
||
| Commitments and contingencies | ||||||||
| Redeemable convertible preferred stock (Series A), |
|
173,328 |
|
|
173,208 |
|
||
| Stockholders' equity: | ||||||||
| Class A Common Stock, |
|
1 |
|
|
1 |
|
||
| Additional paid-in capital |
|
771,881 |
|
|
766,839 |
|
||
| Accumulated deficit |
|
(666,691 |
) |
|
(657,979 |
) |
||
| Treasury stock at cost, 32,333 shares at March 31, 2023 and December 31, 2022 |
|
(9,700 |
) |
|
(9,700 |
) |
||
| Total stockholders' equity |
|
95,491 |
|
|
99,161 |
|
||
| Total liabilities, redeemable convertible preferred stock and stockholders' equity | $ |
557,159 |
|
$ |
596,342 |
|
||
MONEYLION INC. |
||||||||
RECONCILIATION OF REVENUE TO ADJUSTED REVENUE |
||||||||
(dollar amounts in thousands) |
||||||||
Three Months Ended March 31, |
||||||||
2023 |
2022 |
|||||||
| Total revenues, net | $ |
93,669 |
|
$ |
69,714 |
|
||
| Add back: | ||||||||
| Amortization of loan origination costs |
|
248 |
|
|
324 |
|
||
| Less: | ||||||||
| Provision for credit losses on receivables - subscription receivables |
|
(736 |
) |
|
(1,541 |
) |
||
| Provision for credit losses on receivables - fees receivables |
|
(4,174 |
) |
|
(2,001 |
) |
||
| Revenue derived from products that have been phased out |
|
(1 |
) |
|
(20 |
) |
||
| Adjusted Revenue | $ |
89,006 |
|
$ |
66,477 |
|
||
MONEYLION INC. |
||||||||
RECONCILIATION OF REVENUE TO ADJUSTED GROSS PROFIT |
||||||||
(dollar amounts in thousands) |
||||||||
Three Months Ended March 31, |
||||||||
2023 |
2022 |
|||||||
| Total revenue, net | $ |
93,669 |
|
$ |
69,714 |
|
||
| Less: | ||||||||
| Cost of Sales | ||||||||
| Direct costs |
|
(29,802 |
) |
|
(21,204 |
) |
||
| Provision for credit losses on receivables - subscription receivables |
|
(736 |
) |
|
(1,541 |
) |
||
| Provision for credit losses on receivables - fees receivables |
|
(4,174 |
) |
|
(2,001 |
) |
||
| Technology related costs |
|
(3,274 |
) |
|
(2,461 |
) |
||
| Professional services |
|
(1,357 |
) |
|
(1,056 |
) |
||
| Compensation and benefits |
|
(2,542 |
) |
|
(1,014 |
) |
||
| Other operating expenses |
|
(130 |
) |
|
(104 |
) |
||
| Gross Profit | $ |
51,654 |
|
$ |
40,333 |
|
||
| Less: | ||||||||
| Revenue derived from products that have been phased out |
|
(1 |
) |
|
(20 |
) |
||
| Adjusted Gross Profit | $ |
51,653 |
|
$ |
40,314 |
|
||
MONEYLION INC. |
||||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA |
||||||||
(dollar amounts in thousands) |
||||||||
Three Months Ended March 31, |
||||||||
2023 |
2022 |
|||||||
| Net loss | $ |
(9,217 |
) |
$ |
(9,978 |
) |
||
| Add back: | ||||||||
| Interest related to corporate debt |
|
3,560 |
|
|
1,387 |
|
||
| Income tax benefit |
|
(24 |
) |
|
(28,417 |
) |
||
| Depreciation and amortization expense |
|
6,184 |
|
|
3,421 |
|
||
| Changes in fair value of warrant liability |
|
149 |
|
|
(3,910 |
) |
||
| Change in fair value of contingent consideration from mergers and acquisitions |
|
(246 |
) |
|
4,660 |
|
||
| Stock-based compensation expense |
|
5,705 |
|
|
3,268 |
|
||
| One-time expenses |
|
1,185 |
|
|
4,777 |
|
||
| Adjusted EBITDA | $ |
7,296 |
|
$ |
(24,792 |
) |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230508005786/en/
MoneyLion Investor Relations
ir@moneylion.com
MoneyLion Communications
pr@moneylion.com
Source: MoneyLion Inc.
FAQ
What were MoneyLion's Q1 2023 financial results?
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How much did total customers increase in Q1 2023?
What was the YoY growth in GAAP revenue for Q1 2023?
