Record Revenue of $135 Million, Up 23%
Year-over-Year
Net Income before Income Taxes of $0.5 Million,
Net Loss of $2.8 Million
Adjusted EBITDA of $24 Million, Representing
18.0% Adjusted EBITDA Margin
Management Raises FY 2024 Revenue and Adjusted
EBITDA Guidance
MoneyLion Inc. (“MoneyLion”) (NYSE: ML), a digital ecosystem for
consumer finance that empowers everyone to make their best
financial decisions, today announced financial results for the
third quarter ended September 30, 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 record third-quarter results reflect MoneyLion’s ongoing
ability to grow rapidly and take market share through our
differentiated solutions for consumers and enterprises alike,” said
Dee Choubey, MoneyLion’s Co-Founder and Chief Executive
Officer.
Choubey continued, “Our land and expand strategy is working,
we’re scaling our customer base while maintaining profitability and
reinvesting in technology and revenue growth acceleration. The
launch of new products and partnerships, such as our new MoneyLion
Checkout offering and our new or expanded partnerships with Nova
Credit, TransUnion and Plaid, underscore that MoneyLion is in the
early innings of a new horizon in its evolution as a leading
digital ecosystem for consumer finance. Moreover, these
developments align with our growth pillars and position MoneyLion
for accelerating revenue growth.”
“MoneyLion generated record revenue of $135 million and Adjusted
EBITDA of $24 million in the third quarter. These results met or
exceeded our guidance across all metrics. Building on this
momentum, we are happy to announce we are raising our full-year
2024 guidance, which implies revenue growth acceleration exiting
the year. For full-year 2024, we now expect revenue of $536 million
to $541 million and Adjusted EBITDA of $88 to $93 million.
Accordingly, for the fourth quarter of 2024, we expect revenue of
$149 to $154 million and Adjusted EBITDA of $22 to $27 million.
This reflects revenue growth of 34% year-over-year at the midpoint,
a significant acceleration from 23% growth in Q3 2024,” said Rick
Correia, MoneyLion’s Chief Financial Officer.
Financial Results(1)
Three Months September 30,
2024
2023
% Change (in thousands) (unaudited)
Financial
Metrics Total revenue, net
$
135,466
$
110,258
23
%
Net income (loss) before income taxes
$
517
$
(3,710
)
—
Net loss
(2,792
)
(4,110
)
—
Adjusted EBITDA
24,402
13,352
83
%
Adjusted EBITDA margin
18.0
%
12.1
%
49
%
(in millions) Key Operating Metrics Total
Customers
18.7
12.1
54
%
Total Products
30.7
20.3
51
%
Total Originations
$
776
$
564
38
%
Total revenue, net increased 23% to $135.5 million for the third
quarter of 2024 compared to the third quarter of 2023.
MoneyLion recorded a net income before income taxes of $0.5
million for the third quarter of 2024 versus a net loss before
income taxes of $3.7 million for the third quarter of 2023.
MoneyLion recorded a net loss of $2.8 million for the third quarter
of 2024 versus a net loss of $4.1 million for the third quarter of
2023. Adjusted EBITDA was $24.4 million for the third quarter of
2024 versus $13.4 million in the third quarter of 2023, when
adjusted for the following non-operating costs:
Three Months Ended September 30,
2024
2023
(in thousands) (unaudited) Net loss
$
(2,792
)
$
(4,110
)
Add back: Interest related to corporate debt
2,469
3,191
Income tax expense
3,309
400
Depreciation and amortization expense
6,509
6,106
Changes in fair value of warrant liability
(405
)
81
Stock-based compensation expense
7,282
5,702
Other expenses
8,030
1,982
Adjusted EBITDA
$
24,402
$
13,352
Customer, Product and Origination Growth
Total Customers grew 54% year-over-year to 18.7 million in the
third quarter of 2024. Total Products grew 51% year-over-year to
30.7 million in the third quarter of 2024. Total Originations grew
38% year-over-year to $776 million for the third quarter of
2024.
Financial Guidance:
For the full year of 2024, MoneyLion expects:
- Total revenue, net of $536 to $541 million (revised upwards
from previous guidance of $525 to $535 million), reflecting 27% -
28% growth vs. FY 2023 (from 24% - 26%)
- Adjusted EBITDA of $88 to $93 million (revised upwards from $80
to $87 million), reflecting 16.3% - 17.4% Adjusted EBITDA margin
(from 15.0% - 16.6%)
This implies that for the fourth quarter of 2024, MoneyLion
expects:
- Total revenue, net of $149 to $154 million, reflecting 32% -
36% growth vs. Q4 2023
- Adjusted EBITDA of $22 to $27 million, reflecting 14.1% - 17.9%
Adjusted EBITDA margin
(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 third 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 third
quarter 2024 earnings call.
Toll-free dial-in number: 1-800-715-9871 International dial-in
number: 1-646-307-1963 Conference ID: 6861045
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 marketplace
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 1,200+ 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 (loss) income, 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 (loss) income 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 credit 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 credit 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) (Unaudited)
Three Months Ended September 30, Nine Months Ended
September 30,
2024
2023
2024
2023
Revenue Service and subscription revenue
$
132,098
$
107,000
$
378,061
$
300,978
Net interest income on loan receivables
3,368
3,258
9,257
9,490
Total revenue, net
135,466
110,258
387,318
310,468
Operating expenses Provision for credit losses on consumer
receivables
26,833
25,121
80,494
67,194
Loss on sale of consumer receivables
3,510
—
3,510
—
Compensation and benefits
25,820
23,511
75,458
70,491
Marketing
10,591
7,029
31,987
19,970
Direct costs
38,349
32,813
104,187
94,845
Professional services
10,820
4,968
27,593
14,485
Technology-related costs
7,323
5,891
20,421
17,540
Other operating expenses
8,217
9,824
22,875
30,038
Total operating expenses
131,463
109,157
366,525
314,563
Net income (loss) before other (expense) income and income
taxes
4,003
1,101
20,793
(4,095
)
Interest expense
(6,504
)
(7,088
)
(20,035
)
(21,929
)
Change in fair value of warrant liability
405
(81
)
405
(68
)
Change in fair value of contingent consideration from mergers and
acquisitions
—
—
—
6,613
Goodwill impairment loss
—
—
—
(26,721
)
Other income
2,613
2,358
7,353
5,264
Net income (loss) before income taxes
517
(3,710
)
8,516
(40,936
)
Income tax expense
3,309
400
1,096
114
Net (loss) income
(2,792
)
(4,110
)
7,420
(41,050
)
Reversal of previously accrued dividends on preferred stock
—
—
—
690
Net (loss) income attributable to common shareholders
$
(2,792
)
$
(4,110
)
$
7,420
$
(40,360
)
Net (loss) income per share, basic
$
(0.25
)
$
(0.40
)
$
0.69
$
(4.30
)
Net (loss) income per share, diluted
$
(0.25
)
$
(0.40
)
$
0.62
$
(4.30
)
Weighted average shares used in computing net (loss) income per
share, basic
11,089,933
10,221,956
10,827,363
9,375,221
Weighted average shares used in computing net (loss) income per
share, diluted
11,089,933
10,221,956
11,974,447
9,375,221
MONEYLION INC. CONSOLIDATED BALANCE SHEETS (dollar
amounts in thousands, except per share amounts) (Unaudited)
September 30, December 31,
2024
2023
Assets Cash
$
111,944
$
92,195
Restricted cash, including amounts held by variable interest
entities (VIEs) of $1,217 and $128
4,415
2,284
Consumer receivables
218,642
208,167
Allowance for credit losses on consumer receivables
(33,511
)
(35,329
)
Consumer receivables, net, including amounts held by VIEs of
$160,037 and $131,283
185,131
172,838
Consumer receivables held for sale
4,401
—
Enterprise receivables, net
24,279
15,978
Property and equipment, net
1,906
1,864
Intangible assets, net
165,380
176,541
Other assets
33,260
53,559
Total assets
$
530,716
$
515,259
Liabilities and Stockholders' Equity Liabilities: Secured
loans, net
$
64,497
$
64,334
Accounts payable and accrued liabilities
53,529
52,396
Warrant liability
405
810
Other debt, net, including amounts held by VIEs of $106,588 and
$125,419
106,588
125,419
Other liabilities
23,225
15,077
Total liabilities
248,244
258,036
Commitments and contingencies Stockholders' equity: Class A Common
Stock, $0.0001 par value; 66,666,666 shares authorized as of
September 30, 2024 and December 31, 2023, 11,162,735 and 11,105,735
issued and outstanding, respectively, as of September 30, 2024 and
10,444,627 and 10,412,294 issued and outstanding, respectively, as
of December 31, 2023
1
1
Additional paid-in capital
988,446
969,641
Accumulated deficit
(695,299
)
(702,719
)
Treasury stock at cost, 56,738 and 32,333 shares as of September
30, 2024 and December 31, 2023, respectively
(10,676
)
(9,700
)
Total stockholders' equity
282,472
257,223
Total liabilities and stockholders' equity
$
530,716
$
515,259
MONEYLION INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollar amounts in thousands) (Unaudited)
Three Months Ended
September 30, Nine Months Ended September 30,
2024
2023
2024
2023
Cash flows from operating activities: Net (loss) income
$
(2,792
)
$
(4,110
)
$
7,420
$
(41,050
)
Adjustments to reconcile net (loss) income to net cash from
operating activities: Provision for losses on receivables
26,833
25,121
80,494
67,194
Loss on sale of consumer receivables
3,271
—
3,271
—
Depreciation and amortization expense
6,509
6,106
19,052
18,403
Change in deferred fees and costs, net
314
380
992
1,778
Change in fair value of warrants
(405
)
81
(405
)
68
Change in fair value of contingent consideration from mergers and
acquisitions
—
—
—
(6,613
)
Loss (gain) on foreign currency translation
497
—
444
(178
)
Goodwill impairment loss
—
—
—
26,721
Stock compensation expense
7,282
5,702
21,310
16,657
Deferred income taxes
(131
)
(17
)
340
(510
)
Changes in assets and liabilities: Accrued interest receivable
(112
)
(166
)
(188
)
(404
)
Enterprise receivables, net
(1,234
)
2,144
(8,301
)
(278
)
Other assets
15,985
(733
)
17,738
3,627
Accounts payable and accrued liabilities
4,048
2,771
689
(5,878
)
Other liabilities
277
(1,207
)
(1,077
)
(5,422
)
Net cash provided by operating activities
60,342
36,072
141,779
74,115
Cash flows from investing activities: Net originations and
collections of finance receivables
(11,745
)
(26,448
)
(81,143
)
(79,280
)
Originations of finance receivables held for sale
(46,681
)
—
(46,681
)
-
Proceeds from the sale of consumer receivables
39,009
—
39,009
-
Purchase of property and equipment and software development
(3,388
)
(1,527
)
(7,789
)
(4,202
)
Settlement of contingent consideration related to mergers and
acquisitions
—
—
—
(1,116
)
Net cash used in investing activities
(22,805
)
(27,975
)
(96,604
)
(84,598
)
Cash flows from financing activities: Net repayments to special
purpose vehicle credit facilities
(23,600
)
—
(19,600
)
(24,000
)
Repayments to secured/senior lenders
—
(10,000
)
—
(15,000
)
Repurchases of Class A Common Stock
(976
)
—
(976
)
—
Payment of deferred financing costs
(70
)
—
(70
)
(132
)
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
358
723
(2,649
)
(59
)
Other
—
22
—
(12
)
Net cash used in financing activities
(24,288
)
(9,255
)
(23,295
)
(42,210
)
Net change in cash and restricted cash
13,249
(1,158
)
21,880
(52,693
)
Cash and restricted cash, beginning of period
103,110
102,174
94,479
153,709
Cash and restricted cash, end of period
$
116,359
$
101,016
$
116,359
$
101,016
MONEYLION INC. RECONCILIATION OF NET INCOME (LOSS) TO
ADJUSTED EBITDA (dollar amounts in thousands) (Unaudited)
Three Months Ended September 30, Nine Months Ended
September 30,
2024
2023
2024
2023
Net (loss) income
$
(2,792
)
$
(4,110
)
$
7,420
$
(41,050
)
Add back: Interest related to corporate debt
2,469
3,191
7,840
10,226
Income tax expense
3,309
400
1,096
114
Depreciation and amortization expense
6,509
6,106
19,052
18,403
Changes in fair value of warrant liability
(405
)
81
(405
)
68
Change in fair value of contingent consideration from mergers and
acquisitions
-
-
-
(6,613
)
Goodwill impairment loss
-
-
-
26,721
Stock-based compensation expense
7,282
5,702
21,310
16,657
Other expenses
8,030
1,982
10,092
5,355
Adjusted EBITDA
$
24,402
$
13,352
$
66,405
$
29,881
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106863416/en/
MoneyLion Investor Relations ir@moneylion.com
MoneyLion Communications pr@moneylion.com
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