MoneyLion Announces Fourth Quarter and Full Year 2023 Results
FY 2023 Record Revenue of
FY 2023 60% Gross Profit Margin, Compared to 57% in FY 2022
FY 2023 Net Loss of
FY 2023 Record Adjusted EBITDA of
Management Expects Accelerating Revenue Growth and
“MoneyLion had its strongest year ever in 2023,” said
Choubey continued, “We are positioned for accelerating growth in 2024 as we capitalize on the large opportunity in front of us. Our structural advantages as a marketplace make us a must-have partner for any financial services provider. We have enduring advantages on customer acquisition costs, increasing data and technology moats and expanding revenue generation opportunities. The work we did in 2023 positions us to lean into growth while remaining disciplined and focused on profitability.”
“After a record-setting year across revenue and Adjusted EBITDA, we are setting our sights on our first positive GAAP EPS quarter in 2024. Based on recent performance and management execution capabilities, we say this with a high degree of confidence. Gross profit margin and Adjusted EBITDA were above the high end of our guidance, while revenue was in the middle of our range. For the first quarter of 2024, we expect revenue of
Financial Results(1)
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change | |||||||||||
(in thousands) | (unaudited) | ||||||||||||||||||||
Financial Metrics | |||||||||||||||||||||
Total revenues, net |
$ |
112,963 |
|
$ |
94,943 |
|
19% |
$ |
423,431 |
|
$ |
340,745 |
|
24% |
|||||||
Gross profit |
|
71,385 |
|
|
57,550 |
|
24% |
|
252,350 |
|
|
195,109 |
|
29% |
|||||||
Gross profit margin |
|
63 |
% |
|
61 |
% |
4% |
|
60 |
% |
|
57 |
% |
4% |
|||||||
Net loss before other (expense) income and income taxes |
|
(1,250 |
) |
|
(17,045 |
) |
— |
|
(5,345 |
) |
|
(98,677 |
) |
— |
|||||||
Net loss* |
|
(4,195 |
) |
|
(135,006 |
) |
— |
|
(45,245 |
) |
|
(189,066 |
) |
— |
|||||||
Adjusted EBITDA |
|
16,532 |
|
|
(5,628 |
) |
— |
|
46,413 |
|
|
(63,296 |
) |
— |
|||||||
Adjusted EBITDA margin |
|
14.6 |
% |
|
(5.9 |
%) |
— |
|
11.0 |
% |
|
(18.6 |
%) |
— |
|||||||
(in millions) | |||||||||||||||||||||
Key Operating Metrics | |||||||||||||||||||||
Total Customers |
|
14.0 |
|
|
6.5 |
|
115% |
|
14.0 |
|
|
6.5 |
|
115% |
|||||||
Total Products |
|
23.1 |
|
|
12.9 |
|
79% |
|
23.1 |
|
|
12.9 |
|
79% |
|||||||
Total Originations |
$ |
644 |
|
$ |
496 |
|
30% |
$ |
2,264 |
|
$ |
1,788 |
|
27% |
* Net loss includes a non-cash goodwill impairment loss of
Total revenues, net increased 19% to
Gross profit increased 24% to
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
||
(in thousands) | (unaudited) | |||||||||||||||
Net loss |
$ |
(4,195 |
) |
$ |
(135,006 |
) |
$ |
(45,245 |
) |
$ |
(189,066 |
) |
||||
Add back: | ||||||||||||||||
Interest related to corporate debt |
|
2,811 |
|
|
3,180 |
|
|
13,037 |
|
|
10,117 |
|
||||
Income tax (benefit) expense |
|
(1,190 |
) |
|
2,714 |
|
|
(1,076 |
) |
|
(25,634 |
) |
||||
Depreciation and amortization expense |
|
6,423 |
|
|
6,089 |
|
|
24,826 |
|
|
21,673 |
|
||||
Changes in fair value of warrant liability |
|
405 |
|
|
(648 |
) |
|
473 |
|
|
(7,923 |
) |
||||
Change in fair value of contingent consideration from mergers and acquisitions |
|
- |
|
|
(27,220 |
) |
|
(6,613 |
) |
|
(41,254 |
) |
||||
|
|
- |
|
|
136,760 |
|
|
26,721 |
|
|
136,760 |
|
||||
Stock-based compensation expense |
|
6,239 |
|
|
5,960 |
|
|
22,896 |
|
|
19,603 |
|
||||
Other expenses |
|
6,039 |
|
|
2,544 |
|
|
11,394 |
|
|
12,432 |
|
||||
Adjusted EBITDA |
$ |
16,532 |
|
$ |
(5,628 |
) |
$ |
46,413 |
|
$ |
(63,296 |
) |
||||
Customer, Origination and Product Growth
Total Customers grew 115% year-over-year to 14.0 million for the full year 2023. Total Products grew 79% year-over-year to 23.1 million for the full year 2023. Total Originations grew 30% year-over-year to
Q1 2024 Financial Guidance:
For the first quarter of 2024,
-
Total revenues, net of
$115 to$118 million , reflecting 23 - 26% growth vs. Q1 2023 -
Adjusted EBITDA of
$15 to$18 million , reflecting 13.0 - 15.3% Adjusted EBITDA Margin vs. 7.8% in Q1 2023
(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
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International dial-in number: 1-201-689-8875
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About
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,
For more information about
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
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
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.
Financial Information; Non-GAAP Financial Measures
Adjusted EBITDA has not been prepared in accordance with
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
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
||
(in thousands) | (unaudited) | |||||||||||||||
Total revenue, net |
$ |
112,963 |
|
$ |
94,943 |
|
$ |
423,431 |
|
$ |
340,745 |
|
||||
Less: | ||||||||||||||||
Cost of Sales | ||||||||||||||||
Direct costs |
|
(31,516 |
) |
|
(26,992 |
) |
|
(126,361 |
) |
|
(106,419 |
) |
||||
Provision for credit losses on receivables - subscription receivables |
|
(734 |
) |
|
(1,214 |
) |
|
(4,101 |
) |
|
(5,231 |
) |
||||
Provision for credit losses on receivables - fees receivables |
|
(2,317 |
) |
|
(1,496 |
) |
|
(12,988 |
) |
|
(8,253 |
) |
||||
Technology related costs |
|
(3,307 |
) |
|
(3,050 |
) |
|
(12,532 |
) |
|
(10,447 |
) |
||||
Professional services |
|
(1,472 |
) |
|
(2,048 |
) |
|
(5,501 |
) |
|
(5,898 |
) |
||||
Compensation and benefits |
|
(2,205 |
) |
|
(2,499 |
) |
|
(9,221 |
) |
|
(8,951 |
) |
||||
Other operating expenses |
|
(27 |
) |
|
(95 |
) |
|
(377 |
) |
|
(438 |
) |
||||
Gross Profit |
$ |
71,385 |
|
$ |
57,550 |
|
$ |
252,350 |
|
$ |
195,109 |
|
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 warrant liability, change in fair value of contingent consideration from mergers and acquisitions, goodwill impairment loss, stock-based compensation and certain other expenses that management does not consider in measuring performance.
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.
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.
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
|
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(dollar amounts in thousands, except per share amounts) | |||||||
Twelve Months Ended |
|||||||
|
2023 |
|
|
2022 |
|
||
Revenue | |||||||
Service and subscription revenue |
$ |
411,238 |
|
$ |
330,598 |
|
|
Net interest income on loan receivables |
|
12,193 |
|
|
10,147 |
|
|
Total revenue, net |
|
423,431 |
|
|
340,745 |
|
|
Operating expenses | |||||||
Provision for credit losses on consumer receivables |
|
93,418 |
|
|
99,753 |
|
|
Compensation and benefits |
|
93,895 |
|
|
99,603 |
|
|
Marketing |
|
28,125 |
|
|
37,245 |
|
|
Direct costs |
|
126,361 |
|
|
106,419 |
|
|
Professional services |
|
19,105 |
|
|
32,650 |
|
|
Technology-related costs |
|
24,056 |
|
|
21,536 |
|
|
Other operating expenses |
|
43,816 |
|
|
42,216 |
|
|
Total operating expenses |
|
428,776 |
|
|
439,422 |
|
|
Net income (loss) before other (expense) income and income taxes |
|
(5,345 |
) |
|
(98,677 |
) |
|
Interest expense |
|
(28,663 |
) |
|
(29,799 |
) |
|
Change in fair value of warrant liability |
|
(473 |
) |
|
7,923 |
|
|
Change in fair value of contingent consideration from mergers and acquisitions |
|
6,613 |
|
|
41,254 |
|
|
|
|
(26,721 |
) |
|
(136,760 |
) |
|
Other income |
|
8,268 |
|
|
1,359 |
|
|
Net loss before income taxes |
|
(46,321 |
) |
|
(214,700 |
) |
|
Income tax benefit |
|
(1,076 |
) |
|
(25,634 |
) |
|
Net loss |
|
(45,245 |
) |
|
(189,066 |
) |
|
Reversal of previously accrued / (accrued) dividends on preferred stock |
|
690 |
|
|
(6,880 |
) |
|
Net loss attributable to common shareholders |
$ |
(44,555 |
) |
$ |
(195,946 |
) |
|
Net loss per share, basic and diluted |
$ |
(4.63 |
) |
$ |
(24.32 |
) |
|
Weighted average shares used in computing net loss per share, basic and diluted |
|
9,614,309 |
|
|
8,056,529 |
|
|
|
||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(dollar amounts in thousands) | ||||||||
|
|
|||||||
|
2023 |
|
|
2022 |
|
|||
Assets | ||||||||
Cash |
$ |
92,195 |
|
$ |
115,864 |
|
||
Restricted cash, including amounts held by variable interest entities (VIEs) of |
|
2,284 |
|
|
37,845 |
|
||
Consumer receivables |
|
208,167 |
|
|
169,976 |
|
||
Allowance for credit losses on consumer receivables |
|
(35,329 |
) |
|
(24,841 |
) |
||
Consumer receivables, net, including amounts held by VIEs of |
|
172,838 |
|
|
145,135 |
|
||
Enterprise receivables, net |
|
15,978 |
|
|
19,017 |
|
||
Property and equipment, net |
|
1,864 |
|
|
2,976 |
|
||
Intangible assets, net |
|
176,541 |
|
|
194,247 |
|
||
|
|
— |
|
|
26,600 |
|
||
Other assets |
|
53,559 |
|
|
54,658 |
|
||
Total assets |
$ |
515,259 |
|
$ |
596,342 |
|
||
Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity | ||||||||
Liabilities: | ||||||||
Secured loans, net |
$ |
64,334 |
|
$ |
88,617 |
|
||
Accounts payable and accrued liabilities |
|
52,396 |
|
|
58,129 |
|
||
Warrant liability |
|
810 |
|
|
337 |
|
||
Other debt, net, including amounts held by VIEs of |
|
125,419 |
|
|
143,394 |
|
||
Other liabilities |
|
15,077 |
|
|
33,496 |
|
||
Total liabilities |
|
258,036 |
|
|
323,973 |
|
||
Commitments and contingencies | ||||||||
Redeemable convertible preferred stock (Series A), |
|
— |
|
|
173,208 |
|
||
Stockholders' equity: | ||||||||
Class A Common Stock, |
|
1 |
|
|
1 |
|
||
Additional paid-in capital |
|
969,641 |
|
|
766,839 |
|
||
Accumulated deficit |
|
(702,719 |
) |
|
(657,979 |
) |
||
|
|
(9,700 |
) |
|
(9,700 |
) |
||
Total stockholders' equity |
|
257,223 |
|
|
99,161 |
|
||
Total liabilities, redeemable convertible preferred stock and stockholders' equity |
$ |
515,259 |
|
$ |
596,342 |
|
||
|
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(dollar amounts in thousands) | |||||||
Twelve Months Ended |
|||||||
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities: | |||||||
Net loss |
$ |
(45,245 |
) |
$ |
(189,066 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Provision for losses on receivables |
|
93,418 |
|
|
99,753 |
|
|
Depreciation and amortization expense |
|
24,826 |
|
|
21,673 |
|
|
Change in deferred fees and costs, net |
|
2,119 |
|
|
2,017 |
|
|
Change in fair value of warrants |
|
473 |
|
|
(7,923 |
) |
|
Change in fair value of contingent consideration from mergers and acquisitions |
|
(6,613 |
) |
|
(41,254 |
) |
|
Gain (loss) on foreign currency translation |
|
(60 |
) |
|
18 |
|
|
Expenses related to debt modification and prepayments |
|
— |
|
|
730 |
|
|
|
|
26,721 |
|
|
136,760 |
|
|
Stock compensation expense |
|
22,896 |
|
|
19,603 |
|
|
Deferred income taxes |
|
(2,091 |
) |
|
(26,020 |
) |
|
Changes in assets and liabilities, net of effects of business combination: | |||||||
Accrued interest receivable |
|
(234 |
) |
|
4 |
|
|
Enterprise receivables, net |
|
2,853 |
|
|
(3,152 |
) |
|
Other assets |
|
1,098 |
|
|
(14,908 |
) |
|
Accounts payable and accrued liabilities |
|
819 |
|
|
5,059 |
|
|
Other liabilities |
|
(4,634 |
) |
|
67 |
|
|
Net cash provided by operating activities |
|
116,346 |
|
|
3,361 |
|
|
Cash flows from investing activities: | |||||||
Net originations and collections of finance receivables |
|
(120,441 |
) |
|
(114,072 |
) |
|
Purchase of property and equipment and software development |
|
(6,008 |
) |
|
(8,890 |
) |
|
Acquisition of Engine, net of cash acquired |
|
— |
|
|
(18,584 |
) |
|
Settlement of contingent consideration related to mergers and acquisitions |
|
(1,116 |
) |
|
— |
|
|
Net cash used in investing activities |
|
(127,565 |
) |
|
(141,546 |
) |
|
Cash flows from financing activities: | |||||||
Repayments to secured/senior lenders |
|
(25,000 |
) |
|
(24,029 |
) |
|
Fees related to debt prepayment |
|
— |
|
|
(375 |
) |
|
Net repayments to special purpose vehicle credit facilities |
|
(19,000 |
) |
|
— |
|
|
Borrowings from secured lenders |
|
— |
|
|
69,300 |
|
|
Payment of deferred financing costs |
|
(132 |
) |
|
(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 |
) |
|
— |
|
|
Proceeds (payments) 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 |
|
(860 |
) |
|
2,399 |
|
|
Other |
|
(12 |
) |
|
— |
|
|
Net cash (used in) provided by financing activities |
|
(48,011 |
) |
|
45,670 |
|
|
Net change in cash and restricted cash |
|
(59,230 |
) |
|
(92,515 |
) |
|
Cash and restricted cash, beginning of period |
|
153,709 |
|
|
246,224 |
|
|
Cash and restricted cash, end of period |
$ |
94,479 |
|
$ |
153,709 |
|
|
|
||||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA | ||||||||||||||||
(dollar amounts in thousands) | ||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
||
(unaudited) | ||||||||||||||||
Net loss |
$ |
(4,195 |
) |
$ |
(135,006 |
) |
$ |
(45,245 |
) |
$ |
(189,066 |
) |
||||
Add back: | ||||||||||||||||
Interest related to corporate debt |
|
2,811 |
|
|
3,180 |
|
|
13,037 |
|
|
10,117 |
|
||||
Income tax (benefit) expense |
|
(1,190 |
) |
|
2,714 |
|
|
(1,076 |
) |
|
(25,634 |
) |
||||
Depreciation and amortization expense |
|
6,423 |
|
|
6,089 |
|
|
24,826 |
|
|
21,673 |
|
||||
Changes in fair value of warrant liability |
|
405 |
|
|
(648 |
) |
|
473 |
|
|
(7,923 |
) |
||||
Change in fair value of contingent consideration from mergers and acquisitions |
|
- |
|
|
(27,220 |
) |
|
(6,613 |
) |
|
(41,254 |
) |
||||
|
|
- |
|
|
136,760 |
|
|
26,721 |
|
|
136,760 |
|
||||
Stock-based compensation expense |
|
6,239 |
|
|
5,960 |
|
|
22,896 |
|
|
19,603 |
|
||||
Other expenses |
|
6,039 |
|
|
2,544 |
|
|
11,394 |
|
|
12,432 |
|
||||
Adjusted EBITDA |
$ |
16,532 |
|
$ |
(5,628 |
) |
$ |
46,413 |
|
$ |
(63,296 |
) |
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