{"id":756555,"date":"2023-05-09T10:06:46","date_gmt":"2023-05-09T14:06:46","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/moneylions-q1-2023-results-highlight-growth-and-steady-path-to-profitability\/"},"modified":"2023-05-09T10:06:46","modified_gmt":"2023-05-09T14:06:46","slug":"moneylions-q1-2023-results-highlight-growth-and-steady-path-to-profitability","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/moneylions-q1-2023-results-highlight-growth-and-steady-path-to-profitability\/","title":{"rendered":"MoneyLion\u2019s Q1 2023 Results Highlight Growth and Steady Path to Profitability"},"content":{"rendered":"

<\/p>\n

MoneyLion\u2019s Q1 2023 Results Highlight Growth and Steady Path to Profitability<\/b><\/p>\n

GAAP Revenue of $94 million in the First Quarter of 2023, up 34% Year-over-Year<\/i><\/p>\n

Reached Quarterly GAAP Net Loss of $9 million and Positive Adjusted EBITDA of $7 million<\/i><\/p>\n

Total Customer Adds of 1.3 Million in Q1 2023; Total Customers up 102% Year-over-Year to 7.8 Million<\/i><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–
\nMoneyLion Inc. (\u201cMoneyLion\u201d) (NYSE: ML), a leader in financial technology powering the next generation of personalized products and content, today announced financial results for the first quarter ended March 31, 2023. MoneyLion will host a conference call and webcast at 10:00 a.m. ET today. An earnings presentation and link to the webcast are available at investors.moneylion.com<\/a>.<\/p>\n

\n\u201cI am extremely proud of our team\u2019s strong performance in the first quarter, surpassing our own guidance,\u201d said Dee Choubey, MoneyLion\u2019s co-founder and Chief Executive Officer. \u201cThese 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.\u201d<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Financial Results(1)*<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n

\n\n\n

Three Months Ended March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n

(in thousands)<\/b><\/td>\n\n\n

2023<\/b><\/p>\n<\/td>\n

\n\n

2022<\/b><\/p>\n<\/td>\n

\n\n

% Change<\/b><\/p>\n<\/td>\n<\/tr>\n

GAAP<\/b><\/td>\n\n\n\n\n\n<\/tr>\n
Total revenues, net<\/td>\n\n\n

\n$<\/p>\n<\/td>\n

\n

\n93,669<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n$<\/p>\n<\/td>\n

\n

\n69,714<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n34<\/p>\n<\/td>\n

\n

\n%<\/p>\n<\/td>\n<\/tr>\n

Gross profit<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n51,654<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n40,333<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n28<\/p>\n<\/td>\n

\n

\n%<\/p>\n<\/td>\n<\/tr>\n

Net loss<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(9,217<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(9,978<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n

\n\n

\n\u2014<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Non-GAAP<\/b><\/td>\n\n\n\n\n\n<\/tr>\n
Adjusted Revenue<\/td>\n\n\n

\n$<\/p>\n<\/td>\n

\n

\n89,006<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n$<\/p>\n<\/td>\n

\n

\n66,477<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n34<\/p>\n<\/td>\n

\n

\n%<\/p>\n<\/td>\n<\/tr>\n

Adjusted Gross Profit<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n51,653<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n40,314<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n28<\/p>\n<\/td>\n

\n

\n%<\/p>\n<\/td>\n<\/tr>\n

Adjusted EBITDA<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n7,296<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(24,792<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n

\n\n

\n\u2014<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
(in millions)<\/b><\/td>\n\n\n\n\n\n<\/tr>\n
Key Operating Metrics<\/b><\/td>\n\n\n\n\n\n<\/tr>\n
Total Customers<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n7.8<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n3.9<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n102<\/p>\n<\/td>\n

\n

\n%<\/p>\n<\/td>\n<\/tr>\n

Total Products<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n14.7<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n9.0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n63<\/p>\n<\/td>\n

\n

\n%<\/p>\n<\/td>\n<\/tr>\n

Total Originations<\/td>\n\n\n

\n$<\/p>\n<\/td>\n

\n

\n506<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n$<\/p>\n<\/td>\n

\n

\n408<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n24<\/p>\n<\/td>\n

\n

\n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nChoubey continued, \u201cDespite 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\u2019s stakeholders.\u201d<\/p>\n

\n\u201cMoneyLion delivered GAAP revenue of $94 million, Adjusted Revenue of $89 million and improved our Adjusted EBITDA to $7 million in the first quarter. For the first quarter of 2023, Adjusted Revenue grew 34% year-over-year and exceeded our guidance of $85 to $88 million, and Adjusted EBITDA also exceeded our guidance of negative $4 million to $0 million. For the second quarter of 2023, we expect GAAP revenue of $95 to $100 million and Adjusted EBITDA of $1 to $8 million,\u201d said Rick Correia, MoneyLion\u2019s Chief Financial Officer.<\/p>\n

\nTotal revenues, net increased 34% to $93.7 million for the first quarter of 2023 compared to the first quarter of 2022. Adjusted Revenue increased 34% to $89.0 million for the first quarter of 2023 compared to the first quarter of 2022.<\/p>\n

\nGross profit increased 28% to $51.7 million for the first quarter of 2023 compared to the first quarter of 2022. Adjusted Gross Profit increased 28% to $51.7 million for the first quarter of 2023 compared to the first quarter of 2022.<\/p>\n

\nMoneyLion recorded a net loss of $9.2 million for the first quarter of 2023 versus a net loss of $10.0 million in the first quarter of 2022. Adjusted EBITDA was $7.3 million for the first quarter of 2023 versus ($24.8) million in the first quarter of 2022, when adjusted for the following non-operating costs:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n\n\n

Three Months Ended March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n

\n\n\n

2023<\/b><\/p>\n<\/td>\n

\n\n

2022<\/b><\/p>\n<\/td>\n<\/tr>\n

Net loss<\/td>\n\n\n

\n$<\/p>\n<\/td>\n

\n

\n(9,217<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n

\n\n

\n$<\/p>\n<\/td>\n

\n

\n(9,978<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n<\/tr>\n

Add back:<\/td>\n\n\n\n<\/tr>\n
Interest related to corporate debt<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n3,560<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n1,387<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

Income tax benefit<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(24<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(28,417<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n<\/tr>\n

Depreciation and amortization expense<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n6,184<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n3,421<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

Changes in fair value of warrant liability<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n149<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(3,910<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n<\/tr>\n

Change in fair value of contingent consideration from mergers and acquisitions<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(246<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n4,660<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

Stock-based compensation expense<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n5,705<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n3,268<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

One-time expenses<\/td>\n\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n1,185<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n4,777<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

Adjusted EBITDA<\/td>\n\n\n

\n$<\/p>\n<\/td>\n

\n

\n7,296<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n$<\/p>\n<\/td>\n

\n

\n(24,792<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Customer, Origination and Product Growth<\/b><\/p>\n

\nTotal Customers grew 102% year-over-year to 7.8 million for the first quarter of 2023. Total Products of 14.7 million was up 63% year-over-year for the first quarter of 2023. Total Originations grew 24% year-over-year to $506 million for the first quarter of 2023.<\/p>\n

Q2 2023 Financial Guidance:<\/b><\/p>\n

\nFor the second quarter of 2023, MoneyLion expects:<\/p>\n