MoneyLion Announces First Quarter 2024 Results
Record Revenue of
Record GAAP Net Income of
Record Adjusted EBITDA of
“Our results in the first quarter of 2024 reflect MoneyLion’s continued momentum, demonstrating the strength of our business model and highlighting our ongoing commitment to investing in transformative technologies that redefine the way consumers buy financial products,” said
“MoneyLion is off to a great start to 2024. We generated record revenue, record Adjusted EBITDA, and record GAAP net income, and generated
Financial Results(1)
Three Months Ended |
||||||||
2024 |
|
2023 |
|
% Change |
||||
(in thousands) | (unaudited) | |||||||
Financial Metrics | ||||||||
Total revenues, net |
$ |
121,006 |
$ |
93,669 |
29% |
|||
Net income (loss) |
|
7,075 |
|
(9,217) |
— |
|||
Adjusted EBITDA |
|
23,485 |
|
7,296 |
222% |
|||
Adjusted EBITDA margin |
|
19.4% |
|
7.8% |
149% |
|||
(in millions) | ||||||||
Key Operating Metrics | ||||||||
Total Customers |
|
15.5 |
|
7.8 |
98% |
|||
Total Products |
|
25.3 |
|
14.7 |
73% |
|||
Total Originations |
$ |
717 |
$ |
506 |
42% |
Total revenues, net increased 29% to
Three Months Ended |
||||||
2024 |
|
2023 |
||||
(in thousands) | (unaudited) | |||||
Net income (loss) |
$ |
7,075 |
$ |
(9,217) |
||
Add back: | ||||||
Interest related to corporate debt |
|
2,795 |
|
3,560 |
||
Income tax benefit |
|
(389) |
|
(24) |
||
Depreciation and amortization expense |
|
6,212 |
|
6,184 |
||
Changes in fair value of warrant liability |
|
(81) |
|
149 |
||
Change in fair value of contingent consideration from mergers and acquisitions |
|
- |
|
(246) |
||
Stock-based compensation expense |
|
6,497 |
|
5,705 |
||
Other expenses |
|
1,376 |
|
1,185 |
||
Adjusted EBITDA |
$ |
23,485 |
$ |
7,296 |
||
Customer, Product and Origination Growth
Total Customers grew 98% year-over-year to 15.5 million in the first quarter of 2024. Total Products grew 73% year-over-year to 25.3 million in the first quarter of 2024. Total Originations grew 42% year-over-year to
Q2 2024 Financial Guidance:
For the second quarter of 2024,
-
Total revenues, net of
$125 to$130 million , reflecting 17 - 22% growth vs. Q2 2023 -
Adjusted EBITDA of
$17 to$20 million , reflecting 13.1 - 16.0% Adjusted EBITDA margin vs. 8.7% in Q2 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
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’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:
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) | |||||
Three Months Ended |
|||||
2024 |
2023 |
||||
Revenue | |||||
Service and subscription revenue |
$ |
118,073 |
$ |
90,741 |
|
Net interest income on loan receivables |
|
2,933 |
|
2,928 |
|
Total revenue, net |
|
121,006 |
|
93,669 |
|
Operating expenses | |||||
Provision for credit losses on consumer receivables |
|
20,230 |
|
16,511 |
|
Compensation and benefits |
|
24,786 |
|
24,408 |
|
Marketing |
|
10,866 |
|
6,392 |
|
Direct costs |
|
31,389 |
|
29,802 |
|
Professional services |
|
5,766 |
|
4,999 |
|
Technology-related costs |
|
6,586 |
|
6,038 |
|
Other operating expenses |
|
10,320 |
|
8,995 |
|
Total operating expenses |
|
109,943 |
|
97,145 |
|
Net income (loss) before other (expense) income and income taxes |
|
11,063 |
|
(3,476) |
|
Interest expense |
|
(6,817) |
|
(7,511) |
|
Change in fair value of warrant liability |
|
81 |
|
(149) |
|
Change in fair value of contingent consideration from mergers and acquisitions |
|
— |
|
246 |
|
Other income |
|
2,359 |
|
1,649 |
|
Net income (loss) before income taxes |
|
6,686 |
|
(9,241) |
|
Income tax benefit |
|
(389) |
|
(24) |
|
Net income (loss) |
|
7,075 |
|
(9,217) |
|
Accrual of dividends on preferred stock |
|
— |
|
(1,977) |
|
Net income (loss) attributable to common shareholders |
$ |
7,075 |
$ |
(11,194) |
|
Net income (loss) per share, basic |
$ |
0.67 |
$ |
(1.29) |
|
Net income (loss) per share, diluted |
$ |
0.60 |
$ |
(1.29) |
|
Weighted average shares used in computing net income (loss) per share, basic |
|
10,526,417 |
|
8,652,218 |
|
Weighted average shares used in computing net income (loss) per share, diluted |
|
11,810,917 |
|
8,652,218 |
|
|
||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(dollar amounts in thousands) | ||||||
|
|
|||||
2024 |
2023 |
|||||
Assets | ||||||
Cash |
$ |
93,177 |
$ |
92,195 |
||
Restricted cash, including amounts held by variable interest entities (VIEs) of |
|
8,725 |
|
2,284 |
||
Consumer receivables |
|
217,049 |
|
208,167 |
||
Allowance for credit losses on consumer receivables |
|
(34,303) |
|
(35,329) |
||
Consumer receivables, net, including amounts held by VIEs of |
|
182,746 |
|
172,838 |
||
Enterprise receivables, net |
|
17,518 |
|
15,978 |
||
Property and equipment, net |
|
1,975 |
|
1,864 |
||
Intangible assets, net |
|
172,375 |
|
176,541 |
||
Other assets |
|
61,404 |
|
53,559 |
||
Total assets |
$ |
537,920 |
$ |
515,259 |
||
Liabilities and Stockholders' Equity | ||||||
Liabilities: | ||||||
Secured loans, net |
$ |
64,408 |
$ |
64,334 |
||
Accounts payable and accrued liabilities |
|
50,043 |
|
52,396 |
||
Warrant liability |
|
729 |
|
810 |
||
Other debt, net, including amounts held by VIEs of |
|
129,675 |
|
125,419 |
||
Other liabilities |
|
22,607 |
|
15,077 |
||
Total liabilities |
|
267,462 |
|
258,036 |
||
Commitments and contingencies | ||||||
Stockholders' equity: | ||||||
Class A Common Stock, |
|
1 |
|
1 |
||
Additional paid-in capital |
|
975,801 |
|
969,641 |
||
Accumulated deficit |
|
(695,644) |
|
(702,719) |
||
|
|
(9,700) |
|
(9,700) |
||
Total stockholders' equity |
|
270,458 |
|
257,223 |
||
Total liabilities and stockholders' equity |
$ |
537,920 |
$ |
515,259 |
||
|
|||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(dollar amounts in thousands) | |||||
Three Months Ended |
|||||
2024 |
2023 |
||||
Cash flows from operating activities: | |||||
Net income (loss) |
$ |
7,075 |
$ |
(9,217) |
|
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||
Provision for losses on receivables |
|
20,230 |
|
16,511 |
|
Depreciation and amortization expense |
|
6,212 |
|
6,184 |
|
Change in deferred fees and costs, net |
|
356 |
|
616 |
|
Change in fair value of warrants |
|
(81) |
|
149 |
|
Change in fair value of contingent consideration from mergers and acquisitions |
|
— |
|
(246) |
|
Gain on foreign currency translation |
|
(97) |
|
(7) |
|
Stock compensation expense |
|
6,497 |
|
5,705 |
|
Deferred income taxes |
|
236 |
|
(93) |
|
Changes in assets and liabilities: | |||||
Accrued interest receivable |
|
(38) |
|
(27) |
|
Enterprise receivables, net |
|
(1,540) |
|
(4,130) |
|
Other assets |
|
(1,364) |
|
(1,250) |
|
Accounts payable and accrued liabilities |
|
(2,256) |
|
(9,805) |
|
Other liabilities |
|
(1,591) |
|
(1,710) |
|
Net cash provided by operating activities |
|
33,639 |
|
2,680 |
|
Cash flows from investing activities: | |||||
Net originations and collections of finance receivables |
|
(27,722) |
|
(19,647) |
|
Purchase of property and equipment and software development |
|
(2,157) |
|
(1,037) |
|
Settlement of contingent consideration related to mergers and acquisitions |
|
— |
|
(350) |
|
Net cash used in investing activities |
|
(29,879) |
|
(21,034) |
|
Cash flows from financing activities: | |||||
Net proceeds from (repayments to) special purpose vehicle credit facilities |
|
4,000 |
|
(24,000) |
|
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 |
|
(337) |
|
(599) |
|
Net cash provided by (used in) financing activities |
|
3,663 |
|
(24,599) |
|
Net change in cash and restricted cash |
|
7,423 |
|
(42,953) |
|
Cash and restricted cash, beginning of period |
|
94,479 |
|
153,709 |
|
Cash and restricted cash, end of period |
$ |
101,902 |
$ |
110,756 |
|
|
||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA | ||||||
(dollar amounts in thousands) | ||||||
Three Months Ended |
||||||
2024 |
2023 |
|||||
Net income (loss) |
$ |
7,075 |
$ |
(9,217) |
||
Add back: | ||||||
Interest related to corporate debt |
|
2,795 |
|
3,560 |
||
Income tax benefit |
|
(389) |
|
(24) |
||
Depreciation and amortization expense |
|
6,212 |
|
6,184 |
||
Changes in fair value of warrant liability |
|
(81) |
|
149 |
||
Change in fair value of contingent consideration from mergers and acquisitions |
|
- |
|
(246) |
||
Stock-based compensation expense |
|
6,497 |
|
5,705 |
||
Other expenses |
|
1,376 |
|
1,185 |
||
Adjusted EBITDA |
$ |
23,485 |
$ |
7,296 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506497949/en/
MoneyLion Investor Relations
ir@moneylion.com
pr@moneylion.com
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