Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MoneyLion Inc (ML, Financial) achieved record quarterly revenue of $135 million, representing a 23% year-over-year growth.
- The company generated record adjusted EBITDA of $24 million, exceeding their guidance range and reflecting an 18% adjusted EBITDA margin.
- MoneyLion Inc (ML) ended the quarter with a cash balance of $112 million, up from $98 million at the end of the second quarter.
- The company reported a 54% year-over-year increase in total customers, reaching 18.7 million by the end of Q3 2024.
- MoneyLion Inc (ML) launched MoneyLion Checkout, an end-to-end solution aimed at unifying and simplifying the financial product shopping experience.
Negative Points
- Conversion rates for personal loans remained below historical levels, although they showed modest improvement.
- The company faces potential regulatory challenges, particularly concerning the CFPB's proposed interpretive rule on earned wage access.
- There is a wide EBITDA range for Q4, indicating uncertainty in financial projections.
- The macroeconomic environment, including interest rate fluctuations, continues to impact the company's enterprise business.
- MoneyLion Inc (ML) incurred higher than usual one-time legal expenses, affecting their financial adjustments.
Q & A Highlights
Q: Can you provide any color on conversion rates and expectations for the fourth quarter following the Fed's rate cut?
A: Diwakar Choubey, CEO, noted that conversion rates are improving modestly and are expected to improve more meaningfully in Q4 and into the first half of 2025. The company achieved record enterprise revenue of $45 million, up 18% quarter over quarter, and is diversifying capabilities to provide a differentiated value proposition to enterprise partners.
Q: How is MoneyLion preparing for potential regulatory changes, especially regarding earned wage access (EWA)?
A: Diwakar Choubey, CEO, stated that MoneyLion has been investing in regulatory and compliance infrastructure for the past 10 years. The company is pleased with state-level frameworks for EWA and is confident in continuing to offer its instant cash product in a compliant manner, even if federal regulations change.
Q: With a wide EBITDA range for Q4, how are you balancing growth opportunities with profitability?
A: Richard Correia, CFO, explained that the company is focusing on its 30/60/90 strategy and increasing brand and marketing spend to enhance consumer trust and conversion rates. This strategy is expected to drive growth and improve EBITDA margins.
Q: What is the expected impact of MoneyLion Checkout on your income statement?
A: Richard Correia, CFO, highlighted that MoneyLion Checkout is expected to increase conversions and pricing power by providing a seamless consumer experience. The initiative is already showing positive results in early pilots and is expected to contribute to growth acceleration in enterprise revenue.
Q: Can you provide insights into the new verticals like auto insurance and their potential impact?
A: Diwakar Choubey, CEO, mentioned that the strategy involves product and technology-led improvements in verticals like auto insurance, mortgages, and credit cards. These verticals are expected to support significant revenue growth as they mature, with a focus on delivering high-margin, high-payout products.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
