Mogo Reports 346% increase in Q3 2020 Adjusted EBITDA and Accelerating Net Member Additions up 89% - Seite 2

Q3 2020 Financial Highlights

• Core revenue³ was $9.8 million, above our previously released guidance of $9.5 million to $9.7 million.
• Adjusted EBITDA¹ was $4.8 million (49% margin), above our previously released guidance of $3.8 million to $4.2 million, representing a 346% increase from $1.1 million (7% margin) in the third quarter of 2019. This increase is primarily attributable to record gross margin of 93% based on strong loan performance as well as a significant reduction in growth related operating expenses.
• Net cash provided by (used in) operating and investing activities² of $4.4 million (versus guidance of $4.0-$4.5 million), fueled by $3.3 million of positive cash flow excluding cash generated from the loan book (up from $1.9 million in Q2 2020).
• Adjusted cash net income (loss)¹ was $3.4 million for Q3 2020, compared to a loss of ($5.2) million in Q3 2019. The $8.6 million improvement is driven primarily by record gross margin, along with the reduction in operating expenses and reduced cash interest expense.
• Net income of $1.0 million in Q3 2020, a significant improvement compared with a net loss of ($6.0) million in Q3 2019.
• At September 30, 2020, the Company had $26.8 million in combined cash and investment portfolio ($9.9 million of cash and $16.9 million investment portfolio). Cash increased by $2.4 million over Q2 2020.
• Reduced credit facility in Q3 2020 to $37.2 million (down from $39.2 million at June 30, 2020 and $76.5 million at Dec 31, 2019).
• In September 2020, amended certain terms of our non-convertible debentures including a reduction in the average interest rate, from approximately 14% to approximately 7%.

Financial Outlook

In light of the uncertain economic environment in 2020, Mogo took a number of initiatives to support our customers, reduce expenses and more efficiently manage our capital resources over the past several quarters. These measures enabled the Company to significantly increase its cash from operations, adjusted EBITDA, and, in Q3 2020, report positive net income. These results highlight the underlying profitability of Mogo’s financial model. As we look toward 2021, with a favorable backdrop for fintech, including accelerating demand for digital financial health solutions, we expect to renew our growth investments to support higher revenue growth in 2021, including our planned launch of a P2P payment solution and other new products.