PR Newswire
VANCOUVER, March 12, 2019
Fourth Quarter Core Revenue up 75% year over year to $16.1 Million
Subscription & Services Revenue grows 100% for the Fourth Quarter and 106% for the Year
Fourth Quarter Adjusted EBITDA Increases 107% year over year to a Record $2.1 Million
Mogo reports in Canadian dollars and in accordance with IFRS
VANCOUVER, March 12, 2019 /PRNewswire/ - Mogo Finance Technology Inc. (TSX:MOGO) (NASDAQ:MOGO) ("Mogo" or the "Company"), a digital challenger to Canada's banks, today announced its financial and operational results for the fourth quarter and full-year ended December 31, 2018.
"In 2018, we made significant progress enhancing our platform and expanding our ecosystem of products to provide Canadians with a range of financial solutions that help them get in control of their financial health, all in one app," said David Feller, Mogo's Founder and CEO. "Our record revenue performance, particularly the doubling of our subscription and services revenue, clearly demonstrates the power of our platform and revenue model. The easier we make it for our members to improve their financial health, the more they engage with our products which in turn drives revenue growth. Our strategic priorities for 2019 include the continued expansion of our product offering with the addition of MogoWealth, along with roll out of our new cash back feature for the MogoCard. Related to this, we also plan on continuing to expand our partner ecosystem, as we identify best-in-class product partners to bring to our growing member base."
"A record fourth quarter closed out a successful year for Mogo, which saw us transform the revenue base of the Company to more than 50% high-margin subscription and services revenue, as well as exit our short-term lending business," said Greg Feller, President and CFO. "In the fourth quarter, our core revenue increased by 75%, subscription and services revenue grew 100%, the fourth quarter in a row of 100% or greater growth. In addition, our Adjusted EBITDA continues to improve, reaching a quarterly record of $2.1 million in the fourth quarter or 13% of revenue. In 2019, while we will continue to invest in product development, we expect to see continued benefits from operating leverage that will drive increasing cash flow from operations before investment in our loan book."
Fourth-Quarter Financial Highlights
Full-Year 2018 Financial Highlights
Fourth-Quarter and Full-Year Business Highlights
Conference Call & Webcast
Mogo will host a conference call to discuss its Q4 and full-year 2018 financial results at 5:00 p.m. EDT on March 12, 2019. The call will be hosted by David Feller, Founder and CEO, and Greg Feller, President and CFO. To participate in the call, dial (416) 764-8688 or (888) 390-0546 using the conference ID 06624020. The webcast can be accessed at https://bit.ly/2SDCkFb or http://investors.mogo.ca. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected. A copy of the presentation will be available at http://investors.mogo.ca.
1) Non-IFRS Financial Measures
This press release makes reference to certain non‑IFRS financial measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as additional information to complement the IFRS financial measures contained herein by providing further metrics to understand the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non‑IFRS financial measures, including core revenue (total revenue excluding loan fees), contribution, contribution margin, adjusted EBITDA, adjusted net income (loss), cash provided by (used in) operating activities before investment in loans receivable, charge-off rate, average revenue per member (ARPM), core ARPM, and Mogo members, to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. Our management also uses non‑IFRS financial measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Please see "Non-IFRS Financial Measures" in our Management's Discussion and Analysis for the Fourth Quarter and Year Ended December 31, 2018 for a reconciliation of these non-IFRS financial measures to the nearest IFRS measures which is available at www.sedar.com and at www.sec.gov.
Forward-Looking Statements
This news release may contain "forward-looking statements" within the meaning of applicable securities legislation, including statements regarding Mogo's strategic priorities and expectations for 2019. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo's growth, its ability to expand into new products and markets and its expectations for its financial performance for 2019 are subject to a number of conditions, many of which are outside of Mogo's control. For a description of the risks associated with Mogo's business please refer to the "Risk Factors" section of Mogo's current annual information form, which is available at www.sedar.com and www.sec.gov. Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
About Mogo
Mogo (TSX: MOGO; NASDAQ: MOGO) — a financial technology company — is a digital challenger to the banks in Canada, empowering consumers with simple solutions to help them manage and control their finances. Users can sign up for a free MogoAccount in only three minutes and get access to six products including free credit score monitoring, identity fraud protection, digital spending account with Platinum Prepaid Visa® Card, digital mortgage experience, the MogoCrypto account, the first product within MogoWealth, which enables the buying and selling of bitcoin, and access to smart consumer credit products through MogoMoney. The platform has been engineered to deliver a best-in-class digital experience, with best-in-class financial products all through one account. With more than 750,000 members and a marketing partnership with Canada's largest news media company, Mogo continues to execute on its vision of becoming the go-to financial app for the next generation of Canadians. To learn more, please visit mogo.ca or download the mobile app (iOS or Android).
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SOURCE Mogo Finance Technology Inc