Record Revenue of $131 Million, Up 23%
Year-over-Year
GAAP Net Income of $3.1 Million; Diluted EPS of
$0.26
Adjusted EBITDA of $18.5 Million, Representing
14.2% Adjusted EBITDA Margin
Management Provides Q3 & FY 2024
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
second quarter ended June 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 second quarter 2024 results reflect MoneyLion’s leading
position as the first digital ecosystem for consumer finance and
continued progress towards becoming the number one destination for
Americans to make financial decisions,” said Dee Choubey,
MoneyLion’s Co-Founder and Chief Executive Officer.
Choubey continued, “We have all the ingredients needed to build
a digital ecosystem and disrupt consumer finance, and the success
of this approach is already reflected in our numbers. We are
putting our ecosystem approach into action through a number of
products, services, and technologies that serve our partners and
consumers alike, with features like AI-driven financial product
search, MoneyLion checkout, content-as-a-service, web services, and
much more.”
“While other business models are seeing weakness, we are
enjoying growth and profitability given our unique ecosystem
position. We expect to finish strong in each of the next two
quarters and create significant momentum going into 2025,” said
Rick Correia, MoneyLion’s Chief Financial Officer.
Correia continued, “We generated record revenue of $131 million
and Adjusted EBITDA of $18.5 million in the second quarter.
Importantly, our Q2 results met or exceeded our guidance across all
metrics. For the third quarter of 2024, we expect revenue of $133
to $138 million and Adjusted EBITDA of $18 to $21 million. For
full-year 2024, we expect revenue of $525 million to $535 million
and Adjusted EBITDA of $80 to $87 million.”
Financial Results(1)
Three Months Ended June 30,
2024
2023
% Change (in thousands) (unaudited)
Financial
Metrics Total revenues, net
$
130,846
$
106,541
23
%
Net income (loss)
3,137
(27,723
)
—
Adjusted EBITDA
18,518
9,233
101
%
Adjusted EBITDA margin
14.2
%
8.7
%
63
%
(in millions) Key Operating Metrics Total
Customers
17.0
9.9
73
%
Total Products
27.7
17.3
60
%
Total Originations
$
770
$
550
40
%
Total revenues, net increased 23% to $130.8 million for the
second quarter of 2024 compared to the second quarter of 2023.
MoneyLion recorded net income of $3.1 million for the second
quarter of 2024 versus a net loss of $27.7 million in the second
quarter of 2023. Adjusted EBITDA was $18.5 million for the second
quarter of 2024 versus $9.2 million in the second quarter of 2023,
when adjusted for the following non-operating costs:
Three Months Ended June 30,
2024
2023
(in thousands)
(unaudited)
Net income (loss)
$
3,137
$
(27,723
)
Add back: Interest related to corporate debt
2,576
3,475
Income tax benefit
(1,824
)
(262
)
Depreciation and amortization expense
6,331
6,113
Changes in fair value of warrant liability
81
(162
)
Change in fair value of contingent consideration from mergers and
acquisitions
—
(6,367
)
Goodwill impairment loss
—
26,721
Stock-based compensation expense
7,531
5,250
Other expenses
686
2,188
Adjusted EBITDA
$
18,518
$
9,233
Customer, Product and Origination Growth
Total Customers grew 73% year-over-year to 17.0 million in the
second quarter of 2024. Total Products grew 60% year-over-year to
27.7 million in the second quarter of 2024. Total Originations grew
40% year-over-year to $770 million for the second quarter of
2024.
Financial Guidance:
For the third quarter of 2024, MoneyLion expects:
- Total revenues, net of $133 to $138 million, reflecting 21% -
25% growth vs. Q3 2023
- Adjusted EBITDA of $18 to $21 million, reflecting 13.0% - 15.8%
Adjusted EBITDA margin vs. 12.1% in Q3 2023
For the full year of 2024, MoneyLion expects:
- Total revenues, net of $525 to $535 million, reflecting 24% -
26% growth vs. FY 2023
- Adjusted EBITDA of $80 to $87 million, reflecting 15.0% - 16.6%
Adjusted EBITDA margin vs. 11.0% in FY 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 second 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 second
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 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 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 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)
Three Months Ended June 30, Six Months Ended June 30,
2024
2023
2024
2023
Revenue Service and subscription revenue
$
127,890
$
103,237
$
245,963
$
193,978
Net interest income on loan receivables
2,956
3,304
5,889
6,232
Total revenue, net
130,846
106,541
251,852
200,210
Operating expenses Provision for credit losses on consumer
receivables
33,431
25,562
53,661
42,073
Compensation and benefits
24,852
22,572
49,638
46,980
Marketing
10,530
6,549
21,396
12,941
Direct costs
34,449
32,230
65,838
62,032
Professional services
11,007
4,518
16,773
9,517
Technology-related costs
6,512
5,611
13,098
11,649
Other operating expenses
4,338
11,219
14,658
20,214
Total operating expenses
125,119
108,261
235,062
205,406
Net income (loss) before other (expense) income and income
taxes
5,727
(1,720
)
16,790
(5,196
)
Interest expense
(6,714
)
(7,330
)
(13,531
)
(14,841
)
Change in fair value of warrant liability
(81
)
162
—
13
Change in fair value of contingent consideration from mergers and
acquisitions
—
6,367
—
6,613
Goodwill impairment loss
—
(26,721
)
—
(26,721
)
Other income
2,381
1,257
4,740
2,906
Net income (loss) before income taxes
1,313
(27,985
)
7,999
(37,226
)
Income tax benefit
(1,824
)
(262
)
(2,213
)
(286
)
Net income (loss)
3,137
(27,723
)
10,212
(36,940
)
Reversal of previously accrued dividends on preferred stock
—
2,667
—
690
Net income (loss) attributable to common shareholders
$
3,137
$
(25,056
)
$
10,212
$
(36,250
)
Net income (loss) per share, basic
$
0.29
$
(2.71
)
$
0.95
$
(4.05
)
Net income (loss) per share, diluted
$
0.26
$
(2.71
)
$
0.85
$
(4.05
)
Weighted average shares used in computing net income (loss) per
share, basic
10,862,853
9,234,238
10,694,635
8,944,836
Weighted average shares used in computing net income (loss) per
share, diluted
12,091,421
9,234,238
11,954,975
8,944,836
MONEYLION INC
CONSOLIDATED BALANCE
SHEETS
(dollar amounts in thousands,
except per share amounts)
June 30,
December 31,
2024
2023
Assets Cash
$
98,361
$
92,195
Restricted cash, including amounts held by variable interest
entities (VIEs) of $1,585 and $128
4,749
2,284
Consumer receivables
237,358
208,167
Allowance for credit losses on consumer receivables
(40,523
)
(35,329
)
Consumer receivables, net, including amounts held by VIEs of
$150,174 and $131,283
196,835
172,838
Enterprise receivables, net
23,045
15,978
Property and equipment, net
1,961
1,864
Intangible assets, net
168,302
176,541
Other assets
52,490
53,559
Total assets
$
545,743
$
515,259
Liabilities and Stockholders' Equity Liabilities: Secured
loans, net
$
64,482
$
64,334
Accounts payable and accrued liabilities
48,984
52,396
Warrant liability
810
810
Other debt, net, including amounts held by VIEs of $129,932 and
$125,419
129,932
125,419
Other liabilities
23,079
15,077
Total liabilities
267,287
258,036
Commitments and contingencies (Note 15) Stockholders' equity: Class
A Common Stock, $0.0001 par value; 66,666,666 shares authorized as
of June 30, 2024 and December 31, 2023, 10,977,991 and 10,945,658
issued and outstanding, respectively, as of June 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
980,662
969,641
Accumulated deficit
(692,507
)
(702,719
)
Treasury stock at cost, 32,333 shares as of June 30, 2024 and
December 31, 2023
(9,700
)
(9,700
)
Total stockholders' equity
278,456
257,223
Total liabilities and stockholders' equity
$
545,743
$
515,259
MONEYLION INC CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollar amounts in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Cash flows from operating activities: Net income (loss)
$
3,137
$
(27,723
)
$
10,212
$
(36,940
)
Adjustments to reconcile net income (loss) to net cash from
operating activities: Provision for losses on receivables
33,431
25,562
53,661
42,073
Depreciation and amortization expense
6,331
6,113
12,543
12,297
Change in deferred fees and costs, net
322
782
678
1,398
Change in fair value of warrants
81
(162
)
—
(13
)
Change in fair value of contingent consideration from mergers and
acquisitions
—
(6,367
)
—
(6,613
)
Loss (gain) on foreign currency translation
44
(171
)
(53
)
(178
)
Goodwill impairment loss
—
26,721
—
26,721
Stock compensation expense
7,531
5,250
14,028
10,955
Deferred income taxes
235
(400
)
471
(493
)
Changes in assets and liabilities: Accrued interest receivable
(38
)
(211
)
(76
)
(238
)
Enterprise receivables, net
(5,527
)
1,708
(7,067
)
(2,422
)
Other assets
3,117
5,610
1,753
4,360
Accounts payable and accrued liabilities
(1,103
)
1,156
(3,359
)
(8,649
)
Other liabilities
237
(2,505
)
(1,354
)
(4,215
)
Net cash provided by operating activities
47,798
35,363
81,437
38,043
Cash flows from investing activities: Net originations and
collections of finance receivables
(41,676
)
(33,185
)
(69,398
)
(52,832
)
Purchase of property and equipment and software development
(2,244
)
(1,638
)
(4,401
)
(2,675
)
Settlement of contingent consideration related to mergers and
acquisitions
—
(766
)
—
(1,116
)
Net cash used in investing activities
(43,920
)
(35,589
)
(73,799
)
(56,623
)
Cash flows from financing activities: Net proceeds from (repayments
to) special purpose vehicle credit facilities
—
—
4,000
(24,000
)
Repayments to secured/senior lenders
—
(5,000
)
—
(5,000
)
Payment of deferred financing costs
—
(154
)
—
(154
)
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
)
—
(3,007
)
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
(2,670
)
(183
)
(3,007
)
(782
)
Other
—
(12
)
—
(12
)
Net cash (used in) provided by financing activities
(2,670
)
(8,356
)
993
(32,955
)
Net change in cash and restricted cash
1,208
(8,582
)
8,631
(51,535
)
Cash and restricted cash, beginning of period
101,902
110,756
94,479
153,709
Cash and restricted cash, end of period
$
103,110
$
102,174
$
103,110
$
102,174
MONEYLION INC. RECONCILIATION OF NET INCOME
(LOSS) TO ADJUSTED EBITDA (dollar amounts in thousands)
Three Months Ended June 30, Six Months Ended June 30,
2024
2023
2024
2023
Net income (loss)
$
3,137
$
(27,723
)
$
10,212
$
(36,940
)
Add back: Interest related to corporate debt
2,576
3,475
5,371
7,035
Income tax benefit
(1,824
)
(262
)
(2,213
)
(286
)
Depreciation and amortization expense
6,331
6,113
12,543
12,297
Changes in fair value of warrant liability
81
(162
)
—
(13
)
Change in fair value of contingent consideration from mergers and
acquisitions
—
(6,367
)
—
(6,613
)
Goodwill impairment loss
—
26,721
—
26,721
Stock-based compensation expense
7,531
5,250
14,028
10,955
Other expenses
686
2,188
2,062
3,373
Adjusted EBITDA
$
18,518
$
9,233
$
42,003
$
16,529
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version on businesswire.com: https://www.businesswire.com/news/home/20240805746299/en/
MoneyLion Investor Relations ir@moneylion.com MoneyLion
Communications pr@moneylion.com
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