Mogo Announces Fourth Quarter & Full-Year 2019 Financial Results & Provides Update Related to COVID-19

Following the sale of the majority of its MogoLiquid portfolio, Mogo’s remaining on balance sheet gross loan balance was reduced to approximately $72 million. The Company believes the risk to this portfolio in the current environment is mitigated by a number of factors:  

  • 100% of our loans are set up for digital payments and approximately 88% of these loans are set up with multiple payments per month that more closely coincide with our customers’ pay cycle.
  • Mogo’s consumer lending portfolio is primarily composed of small-dollar lines of credit, with an average balance of approximately $1,500 per loan and average payments of approximately $50, across more than 45,000 customers.
  • Approximately 55% of Mogo’s customers have optional loan protection insurance, which covers their loan payments for a period of up to 6 consecutive months in the event of unemployment.
  • Based on the income profile of our typical customer, we believe the majority of affected customers would be eligible for government relief measures and/or employment insurance protection. We believe this would significantly lessen the financial impact for these customers. 
  • Mogo is one of the most experienced online lenders in Canada, with deep expertise in underwriting and collections. The Company is working closely with members to support them through this changing environment. Where required, the Company will provide more flexible options, including extended payment terms, payment deferrals and interest relief.

Based on the significant recent changes to the economic backdrop, and the changes Mogo is implementing to its business, the Company is not providing a more detailed financial outlook in the near-term and is withdrawing the previous targets communicated with its Q3 2019 financial results. 

Financial Review

Fourth-Quarter 2019 Financial Highlights

  • Total revenue1 increased 2% over the fourth quarter of 2018 to $15.0 million.
  • Core revenue2 increased by 8% to $12.4 million, compared with $11.4 million in the same period in 2018. 
  • Gross profit was $9.9 million (65.9% of revenue), similar to the $10.0 million (68.3% of revenue) recorded in the fourth quarter of 2018.
  • Adjusted EBITDA increased by 11% year over year to $2.3 million (15.3% of total revenue), compared with $2.1 million (14.1% of total revenue) in the fourth quarter of 2018.
  • Cash flow from operations before investment in receivables increased by 49% to $2.2 million in the fourth quarter, compared to $1.5 million in the fourth quarter of 2018.
  • Adjusted net loss was $5.2 million, compared with $4.7 million in the same period in 2018.
  • Net loss of $6.2 million, compared with a net loss of $5.0 million in the fourth quarter of 2018.
  • Renewed and expanded our Corporate credit facility which included increasing the facility to $60 million, reducing the interest rate by 400 basis points and extending the maturity to July 2022.
  • At December 31, 2019, the Company had $31.2 million in combined cash and investment portfolio ($10.4 million of Cash and $20.8 million investment portfolio).

Full-Year 2019 Financial Highlights

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