Mogo Reports 346% increase in Q3 2020 Adjusted EBITDA and Accelerating Net Member Additions up 89%

Mogo Inc. (TSX:MOGO) (NASDAQ:MOGO) (“Mogo” or the “Company”), a financial technology company focused on empowering consumers with innovative digital financial solutions that help them get in control of their financial health, today announced its financial and operational results for the third quarter ended September 30, 2020.

“The adoption of digital banking, digital wallets, and financial health are all powerful long-term trends that have accelerated in 2020, and Mogo – with its unique multi-product financial health solution – is clearly benefiting from these trends,” said David Feller, Mogo’s Founder and CEO. “We continue to build our member base, and this quarter we saw increased growth driven by our recently launched free ID fraud protection product and our MogoCard, with its innovative carbon offsetting feature. We have also seen a big increase in bitcoin accounts, and our recently announced bitcoin rewards program should help to continue this growth as more and more Canadians look for exposure to this asset. As we look ahead to 2021, these enhanced products, along with our upcoming peer-to-peer payment solution, should position us to generate increased member engagement, monetization and top-line growth.”

“Our third-quarter results continue to underscore the core profitability and cash generation capability of our financial model. We met or exceeded our guidance on key measures, highlighted by another quarter of strong Adjusted EBITDA, record Adjusted EBITDA margins, positive net income of $1.0 million, and an increase in our cash balance,” said Greg Feller, President and CFO of Mogo. “As we transition back to growth mode heading into 2021, we are financially well positioned and have a growing number of paths to monetizing our more than one million members.”

Q3 2020 Business Highlights

• Net member additions accelerated by 89% in Q3 2020 over Q2 2020 with total member reaching 1,074,000, an increase of 16% year over year, driven partly by the launch of free ID fraud protection.
• Mogo bitcoin accounts increase 237% year over year.
• Launched a new automatic carbon offsetting feature with the Mogo Visa* Platinum Prepaid Card (“MogoCard”), designed to help Canadians improve their financial health and the health of the planet through better spending control and automatic carbon offsetting.
• With the introduction of the carbon offsetting program and other new features, average spend per card is up 66% from January 2020.
• Announced plans to launch a mobile peer-to-peer (“P2P”) payment solution that will enable users to quickly and easily make and share payments with friends and family through Mogo’s mobile app.
• Established referral agreements with EQ Bank for a high interest savings product and Lendful Financial for prime loan products.
• Subsequent to quarter end, announced that MogoCard now supports Apple Pay, Google Pay and Samsung Pay.