Mogo Reports First Quarter 2021 Financial Results
Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) (“Mogo” or the “Company”), a digital payments and financial technology company, today announced its financial and operational results for the first quarter ended March 31, 2021.
“The first quarter was among the most active and strategically important periods in Mogo’s history. We are building the most comprehensive digital wallet to address the needs of Canadian consumers, and the transactions we completed in the first quarter – both strategic and financial – accelerate our growth plans and vision significantly,” said David Feller, Mogo’s Founder and CEO. “In addition to the acquisition of Carta, our B2B payments business, subsequent to quarter end we expanded our product capabilities and addressable market in the $4+ trillion wealth management industry with the acquisition of Moka. We are seeing momentum across multiple areas of the business and, with the upcoming addition of new investing and saving options, a free stock trading solution and P2P payments in 2021, we will give Canadian consumers even more reasons to make Mogo an important part of their financial lives.”
“Our financial position has never been stronger, with over $120 million in cash and investments at quarter end, in addition to a growing crypto investment portfolio,” said Greg Feller, President and CFO of Mogo. “With the Coinsquare follow-on investment we announced today, we will also own 37% of Canada’s leading crypto trading platform. Crypto is the fastest-growing asset class, and this is fueling rapid growth at Coinsquare, highlighted by a 500%+ year-over-year increase in revenue in Q1 2021.
Mr. Feller added: “Our subscription and services revenue is showing increased growth, led by strong gains from MogoCrypto and higher transaction activity from MogoSpend. This organic growth momentum, combined with the acquisitions of Carta and Moka, which have also added scale and diversification to our revenue base, position us for accelerating revenue growth in 2021. With a favourable backdrop for fintech and an improved balance sheet, we are renewing our growth investments to take full advantage of industry tailwinds.”
- Accelerating subscription and services revenue of $6.0 million (53% of total revenue) in Q1 2021, up 32% sequentially from $4.6 million (46% of total revenue) in Q4 2020, driven by increased revenue from MogoCard and MogoCrypto as well as recognition of revenue related to payments processing.
- Q1 2021 revenue was $11.4 million, compared with $10.0 million in Q4 2020 and $13.9 million in Q1 2020. The sequential revenue growth was driven by increased subscription and services revenue while the year-over-year decrease resulted primarily from the strategic sale of a portion of our loan book in Q1 2020.
- Strong gross profit margin of 83.0% in Q1 2021, up from 60.4% in Q1 2020.
- Adjusted EBITDA was a loss of $1.1 million in Q1 2021, compared to Adjusted EBITDA of positive $0.5 million in the same period last year. The decrease in Adjusted EBITDA was driven primarily by an increase in product and technology investment as well as increased marketing spend.
- Q1 2021 net loss of $2.8 million, compared with net loss of $2.8 million in Q4 2020 and $10.1 million in Q1 2020. The reduction in net loss year-over-year was driven by a $5.8 million gain in our investment portfolio which was primarily attributable to the gain on our investment in Vena Solutions which was sold subsequent to quarter end.
Balance Sheet Highlights