Mogo Inc. Q1 FY2024 earnings call

• Wealth Products: Moka and Mogo are key wealth products. Moka is a managed investing app with a strong Net Promoter Score north of 40, and Mogo has launched Buffet Mode. Both focus on performance, behavioral elements, and engagement features like leaderboards. - Payments: Carta had solid volume growth with 18% YOY increase to $2.6 billion. - Crypto: WonderFi showed growth in AUM, trading volumes, and financial position. - Financials: Q1 revenue was a record $17.9M, up 13% YOY. Adjusted EBITDA was $1M, positive cash flow from operations before discretionary investment in loan book was $1.8M. New $15/month tiers for Moka and Mogo offer subscription-driven opportunities.

Mogo's Q1 2024 revenue was a quarterly record of $17.9 million. The wealth segment includes Moka and Mogo. The payments segment, Carta, had an 18% year-over-year increase in volume to $2.6 billion, putting it on an annual run rate north of $10 billion. The crypto segment includes investments in WonderFi, which had a 6% increase in assets under custody to $1.6 billion, record trading volumes of $1.1 billion, and ended the quarter with cash and digital assets of $54 million. Revenue contribution breakdown: Wealth, Payments, and Crypto are key pillars, with wealth being a focus area for growth.

• Target the Rule of 40 by focusing on increased revenue growth to offset margin decreases. - Expect mid-teens subscription services revenue growth for the full year. - Anticipate monetization of investments in marketable securities and private investments over the next 12 months.

• Market risks that could impact investment performance. - Regulatory uncertainties in the crypto sector. - Uncertainties in financial results due to factors like unemployment rates and seasonality affecting loan loss provisions.

Q: Hi guys. Thanks for taking my questions. I just wanted to ask, first, so it’s good to see the subscription line kind of return to growth this quarter. Can you give us a sense of which of the two products, whether it was wealth or – sorry, whether it’s Moka or whether it’s Mogo trade, that really kind of contributed to that growth, or was it something else?

A: It’s Dave. So, I would say at this stage, Moka is still the bigger product given its kind of longer history. So, I would say, at this stage, we are kind of further along with Moka. But we are also seeing some meaningful growth even on the Mogo side assets, assets on the platform up well over 100%, but also on a much smaller scale. We also effectively have done very little to no marketing on the Mogo product where we have actually done some on Moka. But think we are now at a place where we kind of feel both products are increasingly ready for prime time. So, I think kind of going forward, we expect to have more of a balance between both of those products in terms of what’s driving growth.

Q: Hi guys. Thanks for taking my questions. I just wanted to ask, first, so it’s good to see the subscription line kind of return to growth this quarter. Can you give us a sense of which of the two products, whether it was wealth or – sorry, whether it’s Moka or whether it’s Mogo trade, that really kind of contributed to that growth, or was it something else?

A: It’s Dave. So, I would say at this stage, Moka is still the bigger product given its kind of longer history. So, I would say, at this stage, we are kind of further along with Moka. But we are also seeing some meaningful growth even on the Mogo side assets, assets on the platform up well over 100%, but also on a much smaller scale. We also effectively have done very little to no marketing on the Mogo product where we have actually done some on Moka. But think we are now at a place where we kind of feel both products are increasingly ready for prime time. So, I think kind of going forward, we expect to have more of a balance between both of those products in terms of what’s driving growth.

Q: Hi guys. Thanks for taking my questions. I just wanted to ask, first, so it’s good to see the subscription line kind of return to growth this quarter. Can you give us a sense of which of the two products, whether it was wealth or – sorry, whether it’s Moka or whether it’s Mogo trade, that really kind of contributed to that growth, or was it something else?

A: It’s Dave. So, I would say at this stage, Moka is still the bigger product given its kind of longer history. So, I would say, at this stage, we are kind of further along with Moka. But we are also seeing some meaningful growth even on the Mogo side assets, assets on the platform up well over 100%, but also on a much smaller scale. We also effectively have done very little to no marketing on the Mogo product where we have actually done some on Moka. But think we are now at a place where we kind of feel both products are increasingly ready for prime time. So, I think kind of going forward, we expect to have more of a balance between both of those products in terms of what’s driving growth.