Mogo Announces Fourth Quarter & Full-Year 2016 Financial Results

  • Member base grows 87% Year on Year
  • Full-Year Revenue increases 15% with Loan Interest & Other Revenue up 82%
  • Fourth-Quarter Adjusted EBITDA increases over 100% from the third-quarter to $1.1 million

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  • Company reduced its total use of cash by more than 69% to $13.1 million during 2016. At December 31, 2016, Mogo had $18.6 million in cash and cash equivalents.
  • Gross loans receivable were $69.2 million as at December 31, 2016, representing a 1% increase compared to $68.3 million as at December 31, 2015, in line with the Company’s 2016 plan to limit loan portfolio growth as it invested in its platform and new products. Gross loans receivable – long-term1represented 83% of the total gross loans receivable, compared to 75% of the total gross loans receivable as at December 31, 2015.
  • Net loss for 2016 was $17.1 million, a 20% improvement as compared to the net loss of $21.3 million in 2015.

Fourth Quarter 2016 Financial Highlights

  • Revenue for the fourth quarter of 2016 was $11.8 million, a 5% decrease from the same period last year. This decrease was partially offset by 28% growth in loan interest and other revenue to $6.2 million from $4.8 million in the fourth quarter of 2015.
  • Gross profit was $7.8 million, the same as in the fourth quarter of 2015. Gross profit margin increased to 66% of revenue compared with 62% in the fourth quarter of 2015.
  • Achieved record positive adjusted EBITDA1 of $1.1 million in the fourth quarter of 2016 representing a 173% improvement in adjusted EBITDA compared to the fourth quarter of 2015. This is the second consecutive quarter of positive adjusted EBITDA, and fifth consecutive improvement in quarterly adjusted EBITDA.
  • Net cash flow from operating activities before investment in loans receivable1 had its fourth consecutive positive cash inflow in the fourth quarter of $1.1 million.
  • Net loss for the quarter was $3.2 million, a 42% improvement compared to the net loss of $5.6 million during same period last year.

Fourth-Quarter and Full-Year Business Highlights

  • The Company added approximately 56,000 new members in the fourth quarter and 162,000 during the full year of 2016. We had approximately 348,000 members as at December 31, 2016, an 87% increase compared to approximately 186,000 as at December 31, 2015.
  • Launched Mogo’s new digital platform including the MogoAccount and iOS app enabling Mogo to continue to build Canada’s leading digital banking experience.
  • Launched free monthly credit score monitoring.
  • Beta launched MogoMortgage, Canada’s first digital mortgage solution, in preparation for the official product launch in January 2017.
  • Beta launched the digital Mogo Spending Account with Platinum Prepaid Visa Card, in preparation for the full product launch in February 2017.
  • Announced $50 million strategic marketing collaboration agreement with Postmedia

SOURCE Mogo Finance Technology Inc