FY 2023 Record Revenue of $423.4 Million, Up
24% Year-over-Year
FY 2023 60% Gross Profit Margin, Compared to
57% in FY 2022
FY 2023 Net Loss of $45.2 Million and Q4 2023
Net Loss of $4.2 Million
FY 2023 Record Adjusted EBITDA of $46.4
Million; Q4 2023 Record Adjusted EBITDA of $16.5 Million
Management Expects Accelerating Revenue Growth
and First Positive GAAP EPS Quarter in 2024
MoneyLion Inc. (“MoneyLion”) (NYSE: ML), a leader in financial
technology powering the next generation of personalized products
and content, today announced financial results for the fourth
quarter and full year ended December 31, 2023. 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.
“MoneyLion had its strongest year ever in 2023,” said Dee
Choubey, MoneyLion’s co-founder and Chief Executive Officer. “Our
unique consumer and enterprise ecosystem supported our path to
profitability. We had record revenue, record total customer adds,
margin expansion and a $110 million improvement in Adjusted EBITDA
from the prior year. Not to mention, our consumer product with
pillars around guidance and community has never been better. We’re
now expanding the suite of offerings to our enterprise partners to
include insights, audience optimization tools and
content-as-a-service.”
Choubey continued, “We are positioned for accelerating growth in
2024 as we capitalize on the large opportunity in front of us. Our
structural advantages as a marketplace make us a must-have partner
for any financial services provider. We have enduring advantages on
customer acquisition costs, increasing data and technology moats
and expanding revenue generation opportunities. The work we did in
2023 positions us to lean into growth while remaining disciplined
and focused on profitability.”
“After a record-setting year across revenue and Adjusted EBITDA,
we are setting our sights on our first positive GAAP EPS quarter in
2024. Based on recent performance and management execution
capabilities, we say this with a high degree of confidence. Gross
profit margin and Adjusted EBITDA were above the high end of our
guidance, while revenue was in the middle of our range. For the
first quarter of 2024, we expect revenue of $115 to $118 million
and Adjusted EBITDA of $15 to $18 million,” said Rick Correia,
MoneyLion’s Chief Financial Officer.
Financial Results(1)
Three Months Ended December 31, Twelve Months
Ended December 31,
2023
2022
% Change
2023
2022
% Change (in thousands) (unaudited)
Financial
Metrics Total revenues, net
$
112,963
$
94,943
19%
$
423,431
$
340,745
24%
Gross profit
71,385
57,550
24%
252,350
195,109
29%
Gross profit margin
63
%
61
%
4%
60
%
57
%
4%
Net loss before other (expense) income and income taxes
(1,250
)
(17,045
)
—
(5,345
)
(98,677
)
—
Net loss*
(4,195
)
(135,006
)
—
(45,245
)
(189,066
)
—
Adjusted EBITDA
16,532
(5,628
)
—
46,413
(63,296
)
—
Adjusted EBITDA margin
14.6
%
(5.9
%)
—
11.0
%
(18.6
%)
—
(in millions) Key Operating Metrics Total
Customers
14.0
6.5
115%
14.0
6.5
115%
Total Products
23.1
12.9
79%
23.1
12.9
79%
Total Originations
$
644
$
496
30%
$
2,264
$
1,788
27%
* Net loss includes a non-cash goodwill impairment loss of $26.7
million in FY 2023 and $136.8 million in Q4 2022 and FY 2022
Total revenues, net increased 19% to $113.0 million for the
fourth quarter of 2023 compared to the fourth quarter of 2022 and
increased 24% to $423.4 million for the full year 2023 compared to
the full year 2022.
Gross profit increased 24% to $71.4 million for the fourth
quarter of 2023 compared to the fourth quarter of 2022 and
increased 29% to $252.3 million for the full year 2023 compared to
the full year 2022.
MoneyLion recorded a net loss before other expense and income
taxes of $1.3 million for the fourth quarter of 2023 versus a net
loss before other income and income taxes of $17.0 million in the
fourth quarter of 2022, and a net loss before other expense and
income taxes of $5.3 million for the full year 2023 versus a net
loss before other income and income taxes of $98.7 million in the
full year 2022. There was a net loss of $4.2 million for the fourth
quarter of 2023 versus a net loss of $135.0 million in the fourth
quarter of 2022 and a net loss of $45.2 million for the full year
2023 versus a net loss of $189.1 million in the full year 2022.
Adjusted EBITDA was $16.5 million for the fourth quarter of 2023
versus ($5.6) million in the fourth quarter of 2022 and was $46.4
million for the full year 2023 versus ($63.3) million in the full
year 2022, when adjusted for the following non-operating costs:
Three Months Ended December 31, Twelve Months
Ended December 31,
2023
2022
2023
2022
(in thousands) (unaudited) Net loss
$
(4,195
)
$
(135,006
)
$
(45,245
)
$
(189,066
)
Add back: Interest related to corporate debt
2,811
3,180
13,037
10,117
Income tax (benefit) expense
(1,190
)
2,714
(1,076
)
(25,634
)
Depreciation and amortization expense
6,423
6,089
24,826
21,673
Changes in fair value of warrant liability
405
(648
)
473
(7,923
)
Change in fair value of contingent consideration from mergers and
acquisitions
-
(27,220
)
(6,613
)
(41,254
)
Goodwill impairment loss
-
136,760
26,721
136,760
Stock-based compensation expense
6,239
5,960
22,896
19,603
Other expenses
6,039
2,544
11,394
12,432
Adjusted EBITDA
$
16,532
$
(5,628
)
$
46,413
$
(63,296
)
Customer, Origination and Product Growth
Total Customers grew 115% year-over-year to 14.0 million for the
full year 2023. Total Products grew 79% year-over-year to 23.1
million for the full year 2023. Total Originations grew 30%
year-over-year to $644 million for the fourth quarter of 2023 and
grew 27% year-over-year to $2.3 billion for the full year 2023.
Q1 2024 Financial Guidance:
For the first quarter of 2024, MoneyLion expects:
- Total revenues, net of $115 to $118 million, reflecting 23 -
26% growth vs. Q1 2023
- Adjusted EBITDA of $15 to $18 million, reflecting 13.0 - 15.3%
Adjusted EBITDA Margin vs. 7.8% in Q1 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 fourth quarter and full-year 2023 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 fourth
quarter 2023 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 and content, 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:
Gross Profit: Prepared in
accordance with U.S. GAAP and calculated as follows:
Three Months Ended December 31, Twelve Months
Ended December 31,
2023
2022
2023
2022
(in thousands) (unaudited) Total revenue, net
$
112,963
$
94,943
$
423,431
$
340,745
Less: Cost of Sales Direct costs
(31,516
)
(26,992
)
(126,361
)
(106,419
)
Provision for credit losses on receivables - subscription
receivables
(734
)
(1,214
)
(4,101
)
(5,231
)
Provision for credit losses on receivables - fees receivables
(2,317
)
(1,496
)
(12,988
)
(8,253
)
Technology related costs
(3,307
)
(3,050
)
(12,532
)
(10,447
)
Professional services
(1,472
)
(2,048
)
(5,501
)
(5,898
)
Compensation and benefits
(2,205
)
(2,499
)
(9,221
)
(8,951
)
Other operating expenses
(27
)
(95
)
(377
)
(438
)
Gross Profit
$
71,385
$
57,550
$
252,350
$
195,109
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)
Twelve Months Ended December 31,
2023
2022
Revenue Service and subscription revenue
$
411,238
$
330,598
Net interest income on loan receivables
12,193
10,147
Total revenue, net
423,431
340,745
Operating expenses Provision for credit losses on consumer
receivables
93,418
99,753
Compensation and benefits
93,895
99,603
Marketing
28,125
37,245
Direct costs
126,361
106,419
Professional services
19,105
32,650
Technology-related costs
24,056
21,536
Other operating expenses
43,816
42,216
Total operating expenses
428,776
439,422
Net income (loss) before other (expense) income and income
taxes
(5,345
)
(98,677
)
Interest expense
(28,663
)
(29,799
)
Change in fair value of warrant liability
(473
)
7,923
Change in fair value of contingent consideration from mergers and
acquisitions
6,613
41,254
Goodwill impairment loss
(26,721
)
(136,760
)
Other income
8,268
1,359
Net loss before income taxes
(46,321
)
(214,700
)
Income tax benefit
(1,076
)
(25,634
)
Net loss
(45,245
)
(189,066
)
Reversal of previously accrued / (accrued) dividends on preferred
stock
690
(6,880
)
Net loss attributable to common shareholders
$
(44,555
)
$
(195,946
)
Net loss per share, basic and diluted
$
(4.63
)
$
(24.32
)
Weighted average shares used in computing net loss per share,
basic and diluted
9,614,309
8,056,529
MONEYLION INC. CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands)
December 31, December
31,
2023
2022
Assets Cash
$
92,195
$
115,864
Restricted cash, including amounts held by variable interest
entities (VIEs) of $128 and $36,235
2,284
37,845
Consumer receivables
208,167
169,976
Allowance for credit losses on consumer receivables
(35,329
)
(24,841
)
Consumer receivables, net, including amounts held by VIEs of
$131,283 and $113,963
172,838
145,135
Enterprise receivables, net
15,978
19,017
Property and equipment, net
1,864
2,976
Intangible assets, net
176,541
194,247
Goodwill
—
26,600
Other assets
53,559
54,658
Total assets
$
515,259
$
596,342
Liabilities, Redeemable Convertible Preferred Stock and
Stockholders' Equity Liabilities: Secured loans, net
$
64,334
$
88,617
Accounts payable and accrued liabilities
52,396
58,129
Warrant liability
810
337
Other debt, net, including amounts held by VIEs of $125,419 and
$143,394
125,419
143,394
Other liabilities
15,077
33,496
Total liabilities
258,036
323,973
Commitments and contingencies Redeemable convertible preferred
stock (Series A), $0.0001 par value; 45,000,000 shares authorized
as of December 31, 2023 and December 31, 2022, 0 and 25,655,579
shares issued and outstanding as of December 31, 2023 and December
31, 2022, respectively
—
173,208
Stockholders' equity: Class A Common Stock, $0.0001 par value;
66,666,666 shares authorized as of December 31, 2023 and December
31, 2022, 10,444,627 and 10,412,294 issued and outstanding,
respectively, as of December 31, 2023 and 8,619,678 and 8,587,345
issued and outstanding, respectively, as of December 31, 2022
1
1
Additional paid-in capital
969,641
766,839
Accumulated deficit
(702,719
)
(657,979
)
Treasury stock at cost, 32,333 shares at December 31, 2023 and
December 31, 2022
(9,700
)
(9,700
)
Total stockholders' equity
257,223
99,161
Total liabilities, redeemable convertible preferred stock and
stockholders' equity
$
515,259
$
596,342
MONEYLION INC. CONSOLIDATED STATEMENTS OF CASH
FLOWS (dollar amounts in thousands)
Twelve Months
Ended December 31,
2023
2022
Cash flows from operating activities: Net loss
$
(45,245
)
$
(189,066
)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: Provision for losses on receivables
93,418
99,753
Depreciation and amortization expense
24,826
21,673
Change in deferred fees and costs, net
2,119
2,017
Change in fair value of warrants
473
(7,923
)
Change in fair value of contingent consideration from mergers and
acquisitions
(6,613
)
(41,254
)
Gain (loss) on foreign currency translation
(60
)
18
Expenses related to debt modification and prepayments
—
730
Goodwill impairment loss
26,721
136,760
Stock compensation expense
22,896
19,603
Deferred income taxes
(2,091
)
(26,020
)
Changes in assets and liabilities, net of effects of business
combination: Accrued interest receivable
(234
)
4
Enterprise receivables, net
2,853
(3,152
)
Other assets
1,098
(14,908
)
Accounts payable and accrued liabilities
819
5,059
Other liabilities
(4,634
)
67
Net cash provided by operating activities
116,346
3,361
Cash flows from investing activities: Net originations and
collections of finance receivables
(120,441
)
(114,072
)
Purchase of property and equipment and software development
(6,008
)
(8,890
)
Acquisition of Engine, net of cash acquired
—
(18,584
)
Settlement of contingent consideration related to mergers and
acquisitions
(1,116
)
—
Net cash used in investing activities
(127,565
)
(141,546
)
Cash flows from financing activities: Repayments to secured/senior
lenders
(25,000
)
(24,029
)
Fees related to debt prepayment
—
(375
)
Net repayments to special purpose vehicle credit facilities
(19,000
)
—
Borrowings from secured lenders
—
69,300
Payment of deferred financing costs
(132
)
(1,625
)
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
(860
)
2,399
Other
(12
)
—
Net cash (used in) provided by financing activities
(48,011
)
45,670
Net change in cash and restricted cash
(59,230
)
(92,515
)
Cash and restricted cash, beginning of period
153,709
246,224
Cash and restricted cash, end of period
$
94,479
$
153,709
MONEYLION INC. RECONCILIATION OF NET INCOME (LOSS)
TO ADJUSTED EBITDA (dollar amounts in thousands)
Three Months Ended December 31, Twelve Months Ended
December 31,
2023
2022
2023
2022
(unaudited) Net loss
$
(4,195
)
$
(135,006
)
$
(45,245
)
$
(189,066
)
Add back: Interest related to corporate debt
2,811
3,180
13,037
10,117
Income tax (benefit) expense
(1,190
)
2,714
(1,076
)
(25,634
)
Depreciation and amortization expense
6,423
6,089
24,826
21,673
Changes in fair value of warrant liability
405
(648
)
473
(7,923
)
Change in fair value of contingent consideration from mergers and
acquisitions
-
(27,220
)
(6,613
)
(41,254
)
Goodwill impairment loss
-
136,760
26,721
136,760
Stock-based compensation expense
6,239
5,960
22,896
19,603
Other expenses
6,039
2,544
11,394
12,432
Adjusted EBITDA
$
16,532
$
(5,628
)
$
46,413
$
(63,296
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240306852279/en/
MoneyLion Investor Relations ir@moneylion.com MoneyLion
Communications pr@moneylion.com
MoneyLion (NYSE:ML)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
MoneyLion (NYSE:ML)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024