ML - Earnings call transcript Q1 2022

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Operator

Good day and welcome to MoneyLion Inc.’s First Quarter 2022 Earnings Conference Call.

Joining us today are Dee Choubey, CEO and Co-Founder; Rick Correia, Chief Financial Officer; and Sean Horgan, the company’s Head of Investor Relations. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note being recorded. Please

the go conference your over we company’s that Harbor meaning provides further, of regarding Reform he please I the turn Safe go of the within statements. to important like Statement Securities to XXXX presentation. the Litigation Act would reads Before Private forward-looking Mr. Sean, cautions as Horgan with ahead

Sean Horgan

March thank call the and everyone you XXXX. ending to first MoneyLion’s morning in conference for Good today’s for discuss results quarter XX, participating

Joining Officer. and Chief us Choubey, and Co-Founder; CEO today are Dee Rick Correia, Financial

remind Before webcast this I by an introduce investors.moneylion.com. call and you our in Dee, our that that subject in presentation at are earnings filings forward-looking I’d Safe in Today’s can like our made SEC also Statement view release. on found to on our is statements accompanied to you website Harbor any our commentary and press

over announcement. welcome as Thank turn with Choubey our to quarter’s all email the Dee I Sean appointed newly your feel our the Now to Relations. free Head of to earnings after everyone call. call to will Welcome Please Dee. first this Investor and MoneyLion questions Sean you team

of or team. however, more What will be discuss business the normalize the full macro I in We the year we financial and our oversold. opportunity irrational certainly MoneyLion is maybe time tech but and our and Markets of have to well indiscriminately predict as control and short-term will evolved, use The reiterate certainly proud global business the can’t markets We control guidance this XXXX updates as results. execution is can long-term. market they can’t them. out in the couldn’t

drive. in seeing and all confidence, capitalized our and scale, we fundamentals well are that gives We us business right the are

fintech. in most positioned categorically been strategy first in what made quarter. has execute have progress great to exciting believe is noise, the better the MoneyLion We Despite on the never we

influential together are positioned offers leader access to that in savings, the diverse aggregate loans, today and from feed through why personalized and customers and MoneyLion grow our unit diversifying and say so educate place more base. a customer market the the year customers rates we've bills, Our than the our lifestyle light power the to while and give and insurance content uniquely efficiently business become wireless it in with are built while in dollars lot near financial spending decreasing per continues market. showing we so that activated ago. serves to to creators of category growth a hundreds out We in acquisition landscape. We personal partners through the rewire hardworking can through costs growing That’s of at of of reduced doing year-over-year marketing did to that. content XXX% mind for set brought we distributed lower deals, our fintechs system we across shifting American completely any and a a been platform and revenue and car a Not mission dollars savings billions unlike less customers cost have platform.

Increasing as path Our to are them to products the economic mission our inflation, critical advice quarter the products. increasing these guidance year built ever than help environments consumer sets record cycle. of economic the has XXXX of and before inherent and we're lives our every their financial our MoneyLion in guidance. win to first our ability us navigate anti-spamming apart. savings More We contextualize impacts revenue reaffirming our exceeded by business full demand positively posted customers to continue been as changing we environments. in to

adds growth customer first we remains and quarter profitability. a our the marketing in while quarter path lower In resulting runway Our our through $XX to CAC from the record of first have substantially attractive ample MoneyLion exit always position XXX% in strong we we breakeven have We're the year territory. reducing quarter. XXXX growth of and adjusted fourth we adjusted to new the an cash spend continue has entered rate saw value projecting with investment been our in revenue EBITDA. XXXX but deep believe expect shares to in

real opportunity time nascent be disruptive with going fintech the growth are investor through of strategic consumer market when a represent chops seems investment still continued execution we've pocket. adoption is just as You plan. intelligence incredible playing and out a cycle, said looking always artificial thesis in at for a story learning machine we to air The with an our

see customer customers, existing to quarter. the able this and for expansion, from increase recurring nicely as us compounds describes revenue growth in that first seeing You'll we value we're lifetime are

of Our prior value time customer over customer revenue expansion gives multiple products is strategy per top and on as cohorts. well. builds as working margin Lifetime us well and all expansion it scale

and presentation on are by our based revenues categories; and products services network also enterprise entire the the consumer SaaS compounding offered. the a while technology market financial common our increasingly the synergies of of are of in and reduce The the portion acquisition two a We share mix. nature businesses to These us enterprise fee data of and through and consumer between benefits enterprise help our increase which costs American and the infrastructure. effects revenue understanding expanding retention significantly realigned with position our and and diversifying sharing financial synergies customer base. virtue just We revenue representing products mix provided of services larger and channels revenues total based content the impact by consumer to drive the

lifestyle and business that hyper large transactions fees from includes creators; produced in class is increasing and centered everyday of in athletes, consumer best a financial content in for app engaging network amount content products. around of Our the of as our personalized consumer course through our data financial celebrities,

in provide [indiscernible] which all investing, of times need. excess to times banking, automated of advice; in credit, as of well consumers of consumer awards serve suite Our our for products include superpowers

our our products integrated We we has we those a before, and roundups, more us income engagement and have these including consumers digital robust of saw continued and auto addition consumer value personal products, kit that their loans, spectrum those As affiliate the capabilities quarter options and business expand more moments saw broader full as tool in the homes. helped changes in a positioning Americans. of all modules, the capabilities. our we shop including of higher one insurance, first quarter a economic said profiles appealing Overall markets to to and experience. and our enterprise for broader own must that with Americans. with infrastructure educational investing cards, cycles. and money all mere of resources proposition crypto, a for seamlessly go segment suite in for refinance earning first is rich stop of all certainly suite allows to natively more products credit to banking The consumer This establish a target into In us

as products. enterprise embedded API's via represents own our enterprise finance financial to to website. or simple through center provide value native their consumers network extensive be facing providers. an or embedded widgets, matching application to our Our through an consumers allowing product us business partner CRM API allows any reached an marketplace that installed for clients page in them efficient significant integrations, business This distribution of and sit partners monetize by the at code, MoneyLion’s serves fully engine consumer integrations network can propositions to

is customers distribution meet offer embedded power or monetization market offerings financial their to financial finance with marketplace provides to to widest members to consumer needs. and place. the Our bank, website, these access immense. can products The access credit financial union range of Any our aggregator

right advice financial have XX% combination daily time. a with households can As destination moment enterprise in our theoretically become powerful America model our become of business a product MoneyLion engaging we in get in result, low are for significantly of to our The customers and MoneyLion. vantage point coupled to drives highly any cost, seeking of content the expanded. TAM asset the consumer new on

a cycle. enhances to Additional data value partners proposition creating virtuous our customers and enterprise further

detail better walled conversion for trust able this, disrupt Ads data of financial the limited for over allows in point for capabilities are and for and consumer ad gardens. fulfillment money and then and Consumer driving in matching for enterprises the and credit. of website allows preference Let's like the destinations clients. This with is able that within or products, advantage generators to an with advantage dominated Facebook, for consumer our right to right manner. are MoneyLion monetization offering data like expansive rates Google, extension better product products outcomes financial Apple, a solutions single to better the acquisition market walled marketplace With financial data seamless is or targeted are garden provide customers who opportunities Amazon, better substantial just for not we personalize aggressive by demand Facebook. in products us data and a but retention our customers. right app these MoneyLion the for gathering by capabilities to consumers others compete ad using AI cover with doesn't natural data unit, big advantages. Amazon Google, advice targeted More driven matching adjacent to banking consumers all our can with financial products much users the idea our MoneyLion becomes match embedded enterprise positive consumer MoneyLion’s happen and competitors. choose more discuss necessarily our Through we The meaning

an position annoying the matching CNBC's of enterprise financial the other targeted MoneyLion's allow while and recommendations additional market. to media an billion creator that. expansion of our mortgage as calculator embedded Our many ads business unlocks network like We additional estimate personal anywhere to and capabilities are connected examples can advice our us internet opposed addressable opportunity where $XX happen and revenue network like a API's in

the environment. continue to less. customers projected spending new at plant platform and network as quarter total the This the this rate customers converging to MoneyLion million while Growth our and customers, At we up adds total market media the is we at a our we capabilities. differentiator lever We are customer leveraged we our still to scaling key X.X users of that’s quarter at on in customers, durability of profitability. while significant across drive a in gives Moving XXX% first are scale business. end our Interestingly execute first year-over-year. we

are glad levers. We have to these very

in consumers MoneyLion’s business financial credit and personal opportunities insurance. In cards, growth as app expand asset drive channel has seen enterprise monetization we products, partners. product addition mortgages, to our millions loans, of multiple use product partners partners and that classes like Product

continues to sheet built of platform the to non-financial in our D&A translated through into Similarly, products over fourth Channel X.X% in grow. XXXX to receivables This and products exposure were is finance the which originated financial we from MoneyLion. products a value. provision were a credit in products. include from million consumed on facilities. X.X% credit of XXXX. growth can a classes of percentage capital a the X returning to end services partners a increase received. performance of and strong little quarter-over-quarter funnel to light for quarter we Asset as what no to model, the we of continues top decrease years the operate drive of strong saw quarter We've demonstrate meaning, offload and balance the first applications Over platform first always have warehouse investments continue originations customers quarter. Nevertheless, the crime proud in underwriting to as those been our the lifetime consumed by approach banking total help We in

advantage hard track these be risk. data expanding margins It while managing large a in to credit have where level decade for will This to shines. customer gain scale returning base. in is this record a We new near of entrants markets also

first the in continues performance record Our quarter.

revenue perform growth, efficiently growth, and margin, profit We continue we customer on balance importantly use our in very the cash sheet. gross to

continue to expect efficiently adding scale We throughout XXXX.

it off team financial an deliver Rick leverage that based significant I'd the XXXX. we to expect We expense have performance to to perspective, through in operating us our that throughout we CFO, from and to walk pass Correia like want detail. the With

Rick Correia

Thanks Dee. to Good morning everyone.

metrics sharing Looking about that key our forward our unit and details financial Dee record performance economics presented. to driven by

in referring going that the versus otherwise the we're XXXX. quarter first quarter XXXX quarter please be through the of to all adjusted stated will financials, references As period results note of first referred I to unless

and are enterprise to back our reconciliations release, financials have and appendix consumer Our GAAP our the and earnings financial today's consolidated acquisitions upcoming of statements today's businesses available reflect better our of QX filing. XX-Q realigned and Off in and our QX presentation, we the KPIs.

two their Let's deeper revenue look in of streams. a businesses at take these terms respective

recurring revenue. bulk the retention and includes consumer products Slide Credit cohort returning XX highly successful consumer base of customer This trends the on XX% as business fee approximately of based was Cash Insta represent These and Builder a Plus having by and XX% revenue. our Our our revenue of to presentation. driven revenue shown

a Our is lifetime and lower money customer critical account value while interchange extending fees. cardholder driver bank for generating

Crypto Investing transactions generate on and a revenue on monthly account per accounts. and MoneyLion Finally, crypto MoneyLion investment share fee

business enterprise Our includes revenue affiliate fees.

our million high of million, for was affiliate it you to business, note We enterprise. I enterprise this the of marketplace importantly, at in following our financial consumer marketplace expanded the growing generated. connecting moved our and consumers important providing revenue SaaS when its XXXX recall, where now contracts fastest and Even are XX revenue this channel is strategy in accounts from acquisition of of stream through enterprise highlight now If QX affiliate of fee included also for QX our XX infrastructure to stream that a specifically revenue this majority partners. was is earns institutions into as our from fees looking and the to XXXX into XXXX is offering. consumer revenue in marketplace QX the versus growth Financial accelerated MoneyLion significant consolidation

of Additionally, advertising to customers given understanding content generate interests offer our that transactions, deep offers we're and able targeted fees. our customers' and

of and established management revenue providing clients. through to Lastly, influencers acquisition Malka influencer media from creator benefit creators, division, This our important enterprise an which corporate generating is management, revenue. generates for content and Media, was our

by realize providing synergies customer also content consumer in We low and our cost business. acquisition

as to expected mix half rapidly more As synergies the we both and of look for This and significant economics. mentioned, ahead, become is near-term. business Dee revenue business success the rewiring diversification, both with even to customer scale in the unique overall creates enterprise This our in acquisition revenue model nearly the our system engagement our reflects unit financial business. consumer and powerful mix

are are CAC economics consumer and rising of adds. our aggressive of backdrop again conversion result a our unit of once another sub These in payback a powerful vast customer new rates. even six-month quarter other is for businesses. and finance Our more the high funnel customer evident ARPU, against period, record This CAC, outcome metrics top most

MoneyLion’s diversification strategy, plan synergies business acquisition growth Looking accelerates and and to de-risks profitability. represents our ahead, enterprise path additional and our revenue distinguish our that further customer

We with have consistently six-month sub acquired customers a payback period.

ability demonstrate Additionally, value. that our and extend power the is us generate the to customer historical of our these compelling customer tell platform revenue the lifetime another considerable are That XXX% revenue our cohorts cohorts recurring and MoneyLion XXXX as value growth us customer we year-over-year EBITDA. gives breakeven highly What towards at confidence exiting proposition is while efficiently. growing we year March in and

improve are with rapidly grow realizing, the are exit expected percentage we track also in revenue we a breakeven to XXXX of from XXX% on us line, top XQ to operating keeping as in Expenses XXX% XXXX XXXX, EBIDA. platform. from As our leverage XQ

we we the positive more expect runway have profitability through second year. believe of cash to and this be cash adequate Importantly, flow half operating in than

at record revenue million. year-over-year for quarter grew quarter first Looking adjusted to our performance, XX the XXX%

fifth Another record and XXX% plus our consecutive quarter for growth. a quarter year-over-year us with

XX XX XX revenue million, XXX revenue acceleration of our million XX% XXXX. a an XXX% of of continue first representing to is expect full increase. XXXX XXX% the QX representing year-over-year to growth, million remarkable our Off of year of revenue a our months to guidance with the of growth adjusted last quarter million trend adjusted XXX nearly back We adjusted from

gross a was versus increase realized gross profit, of year adjusted million revenue XXXX. XXX million, full over profit XXX momentum of we million of guidance million. adjusted increase an adjusted a midpoint are in strong gross our at gross generated is is which to margin of XXXX, at XX% the reaffirming QX XXXX XX% which The adjusted profit we QX XXXX In XXXX our higher XXX% over of QX, profit QX of XX guidance. our slightly XX Given our XXX%

quarter, slightly the it quarter given margin gross lower slightly However, lower of was business. enterprise the profit over

to reversion term profit we near continue on to we XX% a our a mid-XXs as synergies, gross expect a of expect to gross XX%. realize between margin QX and specifically and We basis profit in forward realize margin

Our XXXX intelligence strong artificial investments margin profit adjusted adjusted is gross This are to XX% processes our XX XX%. MoneyLion. profit performance. for months the representing our increase XX% translating gives technology, of last year to reaffirm XXX over into a differentiator platform, full million, confidence data, for That Historical and margin driven is in us a critical gross XXXX.

a to XXX%. a adjusted XX million our quarterly guidance. hundred, our XX taking This growth million. guidance X% XX% represents and of million revenue of we guided at look XX we In Now versus QX, to generated to

are adjusted of XXX% growth. year-over-year to XXXX, million XX XXX% We targeting XX million QX revenue representing to in

mentioned, related our adjusted we gross profit integration expect As historical realize reversion acquisition synergies. as margin back we to

guiding are We gross to profit adjusted to XX% XX% margin.

Our QX also a range and a at show of XX.X strong very million. continues loss was adjusted trend EBITDA to within

Given margin XX% to the XX improvement million this XX point XXXX guiding between improvement percentage EBITDA million trend, compared XX QX. we midpoint loss are and representing adjusted at a a quarter-over-quarter QX and

in guidance, any our we Looking economic at is to business full year our as cycle. stated, built win

margin, for the XX% XX represents As margin improvement. growth guidance, a This result, of full strong our and a year EBITDA. adjusted our point percentage revenue we revenue, hundred reaffirming are at XXXX improvement, profit year-over-year EBITDA gross and guidance percent midpoint a

all exit to In in the EBITDA and cash line a strategic to by leverage we importantly, story finance believe most exciting it that is team. with second management coupled with highly over With the closing top businesses leading synergistic market Dee the of in operating back half give XXXX be the XXXX. summary, most flow us MoneyLion material for proven target growth operating represents positioning the our to economics consistent and our to to the given consumer improvements on remarks. focus unique and reiterate positive unit enterprise with Our confidence turn I'll growth breakeven led

Dee Choubey

Thanks, Rick.

stakeholders. to the see, keeping every cycles, costs on item actively the QX, we execute current year fixed even ahead. and strengths payback continue fact leverage, fundamental line of industry and do is increased can our continues expanded you company's backdrop and plan We fiscal We've more periods. not opportunities market yield We're growth across our and finally and we XXXX we we durability or of XXXX. continue to continue promised to to The is our witnessing model, matter our beat As guidance. the SaaS reflective down reaffirming we're everything throughout we've revenues, operating our creating fee based manage expense best revenue to diversified strategic

than position profitability. buffer cash strong is to ample Very we the get more Our opportunities few have expect ours exist like to investment and in today. to markets

balance the near the site of of in profitability a revenue line With term. to growth the XXX% and

what can our We and tremendous execution value creation you will for resiliency will control much. on continue to believe very create and focus shareholders. we our Thank

Operator

[Operator Instructions].

Our first Fitzgerald. Cantor Josh with Siegler the of line question comes

You may questions. proceed with your

Josh Siegler

year? call. and expect improved normal morning. the new how of CAC Hi, to and do the Clearly of you Thanks company. true sort the is of trend for be point Should significantly for thinking about over we the $XX this taking rest differentiation good the the CAC as quarter my CAC

Dee Choubey

for question. Good the morning. Hey, Thanks Josh.

look this differentiator big the is for MoneyLion. So

conversations becomes we target that's mouth in brand And able to a product. the Our lot of also driving of the addressable owning of of money, our fee proliferation it adjacent market. well of daily is is We're MoneyLion strategy but destination lot We're organic, of that to by A what QX. expanded. for social culture funnel a the investments money as influencers, it as seeing by business. the the expand is and synergies top MoneyLion the the from is where [ph] in the the the saw enterprise creators word today of incredibly lot powered become

seeing addressable is our and market look If that hardworking now back for were at of credit in expect segments historically, target products more really consumers business with Americans. the to that's enterprise What our our appealing investing, CAC the as those it in banking, and down are we're what's do QX middle driving American well QX stable to stay levels. we you And class.

Josh Siegler

reduced levers in helpful. which appreciate cut very marketing adjusted I'd areas on plans there forward, or to on continue other you pull, spending plan it improve you, future? the to also to the EBITDA is coming primarily color some to Thank the moving are spend MoneyLion from

Dee Choubey

in can and start well. chime that as I'll you Rick,

we growth like perspective, that spend. is as on our So managing from same and expense the team XXXX the than have a that plans. incredibly feel we're to how we're perspective, we on made operating team good to always perspective, cost base We're management more in have. well We've a our the with efficient those make base, of optimizing this is leverage. team processing feel place. a expense investments QX From costs leverage of we very as Malaysia need And a Lumpur, fixed well. don't and half to At execute We as expenses we time, team our made a further We've out lot team a benefits of that our and some of variable QX we also we from is other investments. Kuala carefully in and that. our now get operating adjustments in

we very fixed good a from perspective. we about So the feel cost levers that have

incredible similar perspective, have intent, to the and that content cost than users on searching walled personal our other ability here network, customers expend means to just flywheel, idea account, that into idea And that's of of advice loops where require for creating a see or get then that those data our big capital less mortgage customer nominal MoneyLion variable well get built product. funnels the engagement for really any that one perspective, the big really to we marketing from retargeting work the our for that's peers. affiliate dollars the ways conversion new which into have in advantage less really or bank into those account, a the products marketing consumer our becoming of when an have, loan are to we've are garden, across we the On a we given into consumers is adds. own or that data our we financial And dollars loan some into that investment products, intensity and and

Rick Correia

been Yeah. And Josh. this what is for we've planning

be If presentation recurring you look recurring in at in revenue lot Page every quarter, and of to continuing the just continue been a gives this as said, to while scale our where course, I the leverage of to drive of the playing terms that we've cohort platform to line XX that we operating of nature we're what that getting our is for we've had that through point pre-XXXX as revenue. seeing confidence top a is as what us you're at

Josh Siegler

Very you helpful. much. very Thank

Operator

Our Craig Callum. from with George line comes of next Sutton the question

question. your with proceed may You

George Sutton

Dee mix that if and Very you. I'm don't just the from you of mention customers opportunity and about you're FICO income and wondering about give details intrigued customer I for benefit by good guys. your results us creates we or environment? detail how your inflationary was to Thank a expecting little that more the know could the you inflation given

Dee Choubey

for question. good George, the morning. Thanks Hey, Sure.

and what's a make way to regardless are income. $XX,XXX product, go historically, remember, we're through or it's between American consumers, is personal our mission of of time that always the said the base we've private household that recession. American $XXX,XXX we've a for households you So XXXX couple of that a middle if for defined happening the hardworking in a of time households. right. oscillating critical constructed that need. times We've the seeing Whether those or products always seen XXXX MoneyLion provides as And it's a excess market stock What bank year, this we've XXXX, always customer always class,

two three credit credit invest roundups, spending. to in in times, in you're and And credit or a invest XX you're you than then auto months your that those making where holistically good you those access able give wouldn't. you months provide good product, in more where behavior we're So invest to for need others

And great into now. demand credit and really QX percentage showing was taken a products in products in provision that as come working finance just our those synergy right be that actually right. receivables we for some kind come of So continue down, product customers of are have What high. that's last wouldn't our of year, our the products, getting we're to the really that saw

segments the the book continues risk be our strong. the to our products high. and look terms expect into of spectrum if for quality more be Those put on opportunity super it's that we books. So environments, to the like healthy and kind also really recessionary usually prime then get picky impacted. past demand in of consumers safe back haven And to really come the of products the you slightly to be prime we super of credit that ours incredibly And it gives an us more

to credit kind MoneyLion’s getting a from if product on platform, parts at get even other much can't perspective, credit just consumers the life. of and education content engage a So, with so building, from better from there's

no on there's Even the demand that side, seeing enterprise shortage connected we're holistic MoneyLion of So platform. to the from we're for the the now top bottom.

super or product to prime insurance super the personal well. an providers down emerging the near prime, as prime loan way all So providers

we see hedges a So demand perspective. inherent from that in built there's

cash management so of in it more, are makes from household the it product. having play As important people sort really a in to environments, we're the just household, flow spend American demand all seeing perspective. that out just curve And more relates inflationary of to the sort of all

George Sutton

and do a much more universal helping now And information through to updated have you but to better. I those and them target is can about content registered number, an concept can more much and of Perfect. how would didn't the How wanted broadly? more think provide users, I you you customers users that with more walk you're expanding certainly see understand your I around registered I target.

Dee Choubey

XX registered of plus ability to have. forward acceleration asset now able million of the it us bring one already XXX at we the reasons that those take plus the they the now XX million retargeting only of the that of the third of excited partners But retarget users. That's whether that which looking our new a range. users party product in that high a kind place our so fact quarterly neighborhood plus great products or we kind XXs from our question. first million funnel in market existing strategy to massive somewhere top leverage and marketplace and that at are registered not looking we in extending is It of importantly about on now that party And allows is into us us to the products of is that top increasing perspective expansion again are brings that

George Sutton

Beautiful, okay, thanks guys. Appreciate it.

Operator

have end back [Operator Sean I we call today's over Instructions]. session. to turn to question-and-answer the reached remarks. would gentlemen, this of like Ladies and for Mr. closing Horgan

Sean Horgan

I of to the coming this with look results. and questions found forward to reach results Please all contact Thank information any in weeks. press morning's quarter out free us on release. for feel our The you connecting you discuss be in with each our days follow-up joining today. to first can

Operator

This conference. concludes today's

Thank your You you disconnect time. Enjoy participation. this at your of rest your may lines for the day.

MoneyLion (ML) 12 May 222022 Q1 Earnings call transcript