Mogo(US:MOGO)2019-08-15 03:08Financial Data and Key Metrics Changes - Core revenue increased by 41% year-over-year to CAD 16.4 million, with subscription services revenue growing by 42% [42][45] - Adjusted EBITDA rose by 116% year-over-year to CAD 1.6 million [43][49] - The company ended the period with CAD 42 million in cash and investments [44][60] Business Line Data and Key Metrics Changes - Mogo's member base grew to 865,000, reflecting a 32% increase year-over-year [63] - Monthly member engagement increased by 60% year-over-year [12] - The number of revenue-driving products expanded from one to six, with loans currently providing the highest revenue [13][45] Market Data and Key Metrics Changes - The company noted a significant shift towards digitalization in the financial services industry, which is driving growth and member engagement [6][10] - The exit from small-scale bitcoin mining, which represented about 5% of total revenue, was completed, allowing focus on core revenue streams [46] Company Strategy and Development Direction - Mogo aims to create a holistic financial health solution, moving from individual products to an integrated platform [33][34] - The company is focusing on partner lending to scale its loan business without capital constraints, leveraging its existing member base [30][31] - New product initiatives, including a revamped app experience and cashback offerings, are designed to enhance user engagement and drive monetization [33][108] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing financial stress faced by Canadians and the opportunity for Mogo to provide solutions that improve financial health [7][17] - The company expects to see meaningful volume from partner lending within the next year, indicating a positive outlook for growth [72][73] Other Important Information - The company is investing in R&D to enhance its platform and product offerings, with a focus on maintaining a competitive advantage [38][39] - MogoProtect and premium account products were significant contributors to revenue growth [45] Q&A Session Summary Question: Evolution of the credit business and partner lending - Management confirmed that the initial partner loans will be similar to non-prime unsecured consumer installment loans, with plans to expand offerings across the credit spectrum [67][68] Question: Timeline for meaningful scale in partner lending - The first partner is expected to be announced this year, with meaningful volume anticipated next year [72] Question: Revenue reporting for partner lending - Revenue from partner lending will initially be included under Subscription & Services, with potential for separate reporting as scale increases [81][82] Question: Cashback program and Visa Direct - Visa Direct is set to go live for beta users next week, with broader product launch expected in Q4 [103][104] Question: Margins on cashback product - The cashback program is designed to drive user engagement rather than serve as a profit driver, with a focus on increasing overall monetization opportunities [110][111]