Record Revenue of $121 Million, Up 29%
Year-over-Year
Record GAAP Net Income of $7 Million; Diluted
EPS of $0.60
Record Adjusted EBITDA of $23 Million,
Representing a 19.4% Adjusted EBITDA Margin
MoneyLion Inc. (“MoneyLion”) (NYSE: ML), a leader in financial
technology powering the next generation of personalized products,
content and marketplace technology, today announced financial
results for the first quarter ended March 31, 2024. MoneyLion will
host a conference call and webcast at 8:30 a.m. ET today. An
earnings presentation and link to the webcast are available at
investors.moneylion.com.
“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 Dee Choubey, MoneyLion’s co-founder and
Chief Executive Officer. “As we continue to execute on our growth
pillars in 2024, we have a lot of exciting opportunities in front
of us as we optimize conversion in our massive top-of-funnel. We
continue to build towards becoming the ultimate destination for
matching consumer needs with the right financial products. We are
leading the way with our AI-powered financial product search
capabilities, deepening our presence in product verticals in our
marketplace, building intuitive developer tools for our enterprise
partners and expanding our distribution through strategic
partnerships.”
“MoneyLion is off to a great start to 2024. We generated record
revenue, record Adjusted EBITDA, and record GAAP net income, and
generated $0.60 of diluted EPS, a significant profitability
milestone for MoneyLion as we continue to scale. Moreover, our Q1
results exceeded the high end of our guidance range across all
metrics. For the second quarter of 2024, we expect revenue of $125
to $130 million and Adjusted EBITDA of $17 to $20 million,” said
Rick Correia, MoneyLion’s Chief Financial Officer.
Financial Results(1)
Three Months Ended March 31,
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 $121.0 million for the
first quarter of 2024 compared to the first quarter of 2023.
MoneyLion recorded net income of $7.1 million for the first
quarter of 2024 versus a net loss of $9.2 million in the first
quarter of 2023. Adjusted EBITDA was $23.5 million for the first
quarter of 2024 versus $7.3 million in the first quarter of 2023,
when adjusted for the following non-operating costs:
Three Months Ended March 31,
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 $717 million for the first quarter of
2024.
Q2 2024 Financial Guidance:
For the second quarter of 2024, MoneyLion expects:
- 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
MoneyLion will hold a conference call today at 8:30 a.m. ET to
discuss its first quarter 2024 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 2024 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, content and marketing
technology, with a top consumer finance super app, a premier
embedded finance platform for enterprise businesses and a
world-class media arm. MoneyLion’s mission is to give everyone the
power to make their best financial decisions. We pride ourselves on
serving the many, not the few; providing confidence through
guidance, choice, and personalization; and shortening the distance
to an informed action. 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 finances with our innovative financial products
and marketplace - including our full-fledged suite of features to
save, borrow, spend, and invest - seamlessly bringing together the
best offers and content from MoneyLion and our 1,100+ 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 MoneyLion, please visit
www.moneylion.com. For information about Engine by MoneyLion for
enterprise businesses, please visit www.engine.tech. For investor
information and updates, visit investors.moneylion.com and follow
@MoneyLionIR on X.
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 its
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
Adjusted EBITDA has not been prepared in accordance with United
States generally accepted accounting principles (“GAAP”). MoneyLion
management historically used and uses Adjusted EBITDA for various
purposes, including as measures of performance and as a basis for
strategic planning and forecasting. MoneyLion believes presenting
Adjusted EBITDA provides relevant and useful information to
management and investors regarding certain financial and business
trends relating to MoneyLion’s results of operations. MoneyLion’s
method of calculating Adjusted EBITDA may be different from other
companies’ methods and, therefore, may not be comparable to those
used by other companies and MoneyLion does not recommend the sole
use of Adjusted EBITDA to assess its financial performance.
MoneyLion management does not consider Adjusted EBITDA in isolation
or as an alternative to financial measures determined in accordance
with GAAP. The principal limitation of non-GAAP financial measures
is that they exclude significant expenses and income that are
required by GAAP to be recorded in MoneyLion’s financial
statements. In addition, they are subject to inherent limitations
as they reflect the exercise of judgments by management about which
expense and income are excluded or included in determining non-GAAP
financial measures. In order to compensate for these limitations,
management presents Adjusted EBITDA in connection with MoneyLion’s
GAAP results. You should review MoneyLion’s financial statements,
which are included in MoneyLion’s filings with the U.S. Securities
and Exchange Commission, and not rely on any single financial
measure to evaluate MoneyLion’s business.
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 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, except per share
amounts)
Three Months Ended March 31,
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
MONEYLION INC. CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands)
March 31, December 31,
2024
2023
Assets Cash
$
93,177
$
92,195
Restricted cash, including amounts held by variable interest
entities (VIEs) of $5,724 and $128
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
$138,185 and $131,283
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 and
$125,419
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, $0.0001 par value; 66,666,666 shares authorized as of March
31, 2024 and December 31, 2023, 10,820,256 and 10,787,923 issued
and outstanding, respectively, as of March 31, 2024 and 10,444,627
and 10,412,294 issued and outstanding, respectively, as of December
31, 2023
1
1
Additional paid-in capital
975,801
969,641
Accumulated deficit
(695,644)
(702,719)
Treasury stock at cost, 32,333 shares at March 31, 2024 and
December 31, 2023
(9,700)
(9,700)
Total stockholders' equity
270,458
257,223
Total liabilities and stockholders' equity
$
537,920
$
515,259
MONEYLION INC. CONSOLIDATED STATEMENTS OF CASH
FLOWS (dollar amounts in thousands)
Three Months Ended March
31,
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
MONEYLION INC. RECONCILIATION OF NET INCOME (LOSS)
TO ADJUSTED EBITDA (dollar amounts in thousands)
Three
Months Ended March 31,
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
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Communications pr@moneylion.com
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