ML - Earnings call 3 2023 | MoneyLion Inc.

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Operator

Greetings, and welcome to the MoneyLion Third Quarter 2023 Earnings Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Sean Horgan, Head of Investor Relations. Thank you.

You may begin.

Sean Horgan

operator. you, Thank Hi, everyone. our for quarter earnings us XXXX third call. joining conference for Thanks results to Correia. CEO, today me are discuss Rick With CFO, our MoneyLion's and Dee Choubey;

to can the harbor statements our With made on this earnings and Dee. commentary at accompanying in to the earnings call in in note Investor that, our our subject safe filings investors.moneylion.com. Please forward-looking Relations release. website found I'll You release any that over are find statement turn presentation press our our SEC

Diwakar Choubey

Good MoneyLion Sean. you QX, for would. we record executed you, to resilience thank Thank morning, quarter be pleased all I'm and in again joining we and like third of able our we XXXX quarter model. say our demonstrating strength said us had for the earnings business call. another to

demonstrate as navigate our sheet. The sustainable and to working, underscoring of ability a and the X-sided are generate and balance maintaining while drive ecosystem we continue durability We with business to focus profitability discipline. healthy benefits our of growth our

While things we'll That's that. challenges, in mutually our momentum businesses. and our and and DNA, in our building the waiting on forward, technology driving of for others are leaning of on we reinforcing face continue the back delivering in and are pulling optimizing

Now the the I'd like key to for third quarter. highlight investor takeaways

XX% quarter. record growth, prior up of we within year-over-year $XXX represents in revenue range quarterly the and year-over-year First, our from achieved million. This guidance was growth XX%

businesses enterprise and consumer record revenue. our achieved Importantly, quarterly both

Second, of million. we $XX record generated EBITDA quarterly adjusted

our the the up adjusted represents $X to and EBITDA margin, it positive consecutive XX% from on we it's $XX quarter are our third to cash quarter of focused been of EBITDA X% adjusted flow million quarters, exceeded and many for good a quarter. marks in we million to amounting year-to-date. As generation, prior million see $XX This has for guidance

self-funded growth. quarter. in in should excited marking for markers healthy as These activities, for that $X another our cash operating are after get generated the us progress we we important milestone million all position Last, flow investors and investing about

Finally, scaling the quarter for that is network. marketplace are rapidly takeaway the third we our

some QX XX alone. expansive our almost in products XX our up illustrate provide network from which inquiries XX billion me 'XX. is. in had $X over enterprise X,XXX is in total million financial quarter million metrics QX XXXX across customer of This roughly Let the to We QX million in translated third transacted network up and over partners how to

instantly enables set customers. consumers the works we meaning that we providers product enablement to the them. are product financial network We business, reach of that broadest the easily find that enable in the for potential to high-intent provide marketplace best correspondingly, And

sets. data for deliver partners data opportunities products. and time, advantage outcomes comes us creates all through data positions over Our better proprietary This our for and deliver from our us monetization for to improve to value our consumers more

customer to Total an area customers, the Over customers strength total $XX.X million be added third a our took marketplace. our offerings first our speaks product attract This platform. as ability third-party quarter the record million. XX% the our bringing X.X added competitive through to In we of a product quarter, for with third MoneyLion. in growth customers a of array customers their of continues to wide to on

which to long for on we focus growth ability opportunities scaling the provides underscores year-over-year rapidly Our generate our revenue consistently customers total run. significant in XXX% believe ecosystem, our

more update talk will about well. financial as our We this in

XX% products products the an consumed XX% of $X date, QX through from Over XXXX. were million up Turning third on XX% products as total the about platform as to of of QX XXXX consumed million third-party total from increase To our quarter, prior products. of XX and were quarter. the

deepen of to core constituents. the overall to This important provide continue up more products X of approach to strategy continues segments increasing mix to allow to offer to value make consumption us set our an Third-party product consumers. reflecting

our ways monetize on value insurance in for the and and their Number impressions like digital platform to consumers new large partners our by to seeking turn, them our to lenders having partners, a financial consumers in-market increased other Number their that high-intent to and own one, fintechs, they're to operated publishers channel like users sites. and product banks, sites provide providing two, drive companies, by providing that product. to

offers expect lives. money are digital now they content financial adjacent finally, education to of the same And accustomed and to that their and and who facets consumers personalized other

marked strong see KPIs these a performance, healthy result, quarter-over-quarter. expansion continue we growth combination and financial a margin to translate by As to revenue of

our businesses. provide model gives effect us Consumer I'll structural enterprise an both our I our and the flywheel continue about believe extensively that up We've the consumer of the update way Starting over we've Now peers. business with on in to and past, business. talked set marketplace progress fintech and the advantages

and is management growth a during robust management institutions. capabilities. audience post-pandemic This is we is set Our us and era, continued customers wage well. engaged of to personal network. primarily strong of average allow More the overall performing mass performance the This financial American financial to personal critical serve of employed our financial In suite deeper with the onboard our success the showed consumer first-party unemployment, with products growth real QX. low

exception. Our leverage risk and QX our was remain optimize making we continuously vast decision rails. proprietary our informs We best-in-class, that ingested risk our no models and management and improve set and practices payment data a of

delivered models modern, and adaptable more sources, while the show Put level risk than results. multiple million data our the more comfortable infrastructure up in QX MoneyLion's on more are point-in-time third simply, and outdated economic benefits $XXX The first-party signals we we're cycles. in We agile underwrite maintaining use and in therefore, can we a those across originations at compounding of better relying predictive that performance with. models. traditional very are quarter,

to product, and risk is welcome operational liquidity We again, product, Instacash. from the manage increased our our the the of levers originations came industry-leading. Most of popularity these ability and

Our and financial invest consumer-facing importantly, save, that number our of and taking personalized advice. with share help services a PFM borrow, products find platform spend, is growing customers and insights

to turn I'll the business embedded in resilience the business. for solutions financial a marketplace divisions. that with quarter second and MoneyLion our is finance demonstrating quarter, of In in Now our Remember, enterprise achieved marketplace enables in media the record revenue row, third institutions products, competes our not solution brands. the Enterprise

advertising delivered marketplace, spend higher enterprise our growth cost decreased slowing we the of In growth in despite driven industry-wide loan of of face capital. quarter another by

to significantly savings, success. high-yield areas We in into verticals, have which mix, our diversified like nonlending expanding been product critical has our

now our and QX in our into enterprise verticals credit the marketplace in QX as laying of to marketplace cards, revenue mix and QX we mortgage improve. demand products XX% for the into more to loan these In personal our continuing represents have from groundwork verticals for revenue diversifying enterprise and XX% QX, insurance expand been compared Revenue XXXX. future

Additionally, we show flow and X,XXX our advantage, cash new network we're our things over the streams lead have now underwriting leverage fraud like enterprise that data embedded quality consumer finding partners revenue signals that on and models. and finance insights

and data sets we ecosystem X proprietary outlined through marketplace. from our Our robust generated our constituents entire benefits core the

of network with high-intent component important at by an right financial product overall time. right consumers provide the the matching is the marketplace consumer product Our we our

And margin partners, high key our scale. revenue to that channel value the notably, we margin our untapped of services driver to portion revenue gross and throughout opportunities. division as to proposition is partners represent This expansion media of a network. business enterprise provide of several continue on most cross-selling course, drives our focused and, the Media to finally, product our areas existing we overall our that This consumers. enhances partners is

driving through list of continuing Our its quarter consumer to clients media businesses strong of the the consumer momentum growth profitability and as product with well expanding exited marketplace. remains enhance laser-focused value the in the and on as

last evolve rapidly intuitive with and we've products We've find need. calculators ecosystem added MoneyLion savings The for like update, easy our continues the it innovation they to Since that loan forward. data applications and make product habits future. users into drive to out them can are insights save our app, insights rolled search spending proprietary their our and better vast we the that for invest AI-powered providing within set, and customers leveraging budget, help

providing which provide institution to like behavioral behavior that offers with marketplace last technology insurance. monitoring looking driver build and personalized capabilities. their use We quarter, As are that offers credit helps insights insights match personalized auto financial this credit help customers improve for needs. related products score, financial find like driving and good previewed fit we score to our any We we their

social of community. Finally, engagement a features the in sense and drive that new we feed Discover unlocked

conversations starting users. polls are amongst with start prompts and and and their conversations money, We about

make and their in are product across of calculators to these their tools, helping These capabilities, network our partners decisions. customers are engaging product maximize enterprise and addition to about most distributable building enabling learn value products the In the the industry, our best anywhere our offerings. experiences we widgets

innovations we these effect building attracts structural advantage for growth the of our it driving our platform, been consumers will to more more products, partners to Because and which years is propel believe to model, we're the about, enterprise and network. deeper significantly makes and we've marketplace our This business our talking unique come. and differentiates flywheel our

and beyond they building. distance for So consumers waiting in gaining We're market. the that want, playing means marketplaces We're market what the We're between matter is products shortening as We're MoneyLion share, innovating. to and market other the executing shift? We're QX doing just no and the are momentum. taking offense.

walk Rick call turn in over to I'll financials to our Now through the detail.

Richard Correia

performance I morning our of will Thanks, to everyone. outlook for about forward financial and XX, third our also the Steve, September and year good full ending the sharing quarter I discuss XXXX. XXXX. look to guidance details for

in GAAP and which information, today's release please refer our are For available and to filing. non-GAAP statements financial reconciliations, earnings consolidated XX-Q our more

customer and cycle strategy. to acquisition our life Turning

drove customer QX customers, converted total QX X.X compared Our in roughly approximately record in roughly XX to million total XXXX. million million new inquiries, quarter from total consumed XXXX. from X.X the XXXX. These in a top Similarly, million during million X QX in $X.X into XX up of up customer resulted funnel products this million inquiries

lifetime of As Dee and value mentioned took only from product product our customers the of future third This the approach first third-party who economics scale in importance quarter attractive and potential. demonstrates added first-party us marketplace offer earlier, incredibly those as over to products their allows and with differentiates a unit XX% us approach.

highlight will at markers all To quarter, our the CAC in near economics profile customers tell third $XX. under the a we X.X million low us remains added in CAC our unit that continue these of And new term.

Importantly, our decline XXXX. quarter each year-to-date CAC seen in we've

continues to X months. $XX to the around $XX of compared be QX Our in ARPU quarter payback in period third XXXX. was

skewed number customers record calculation. ARPU a adding course, Of of the the over quarter

a on over have past focus said value, the result few larger working. a our and also quarters, we lifetime is TAM it's decision as strategic ARPU However, the and $XX of to

unit with profile. our to trends this our cohorts these are directional while with as margins, of expanding The economics monetizing see an financial Again, our mature provides you products. us second, margin aligned fourth attractive strategy from scale and to less opportunity their third cross-sell when need can today,

underpin and strong economics to deliberate bring people business unit ecosystem possible. our into many our equation Our our as as reflect decision

long-term growth. positions believe We MoneyLion sustainable this for

to third As ability lifetime and quarter, consumer and Starting revenue which cohorts our acquired of of our XX% we can majority consumer. our historical In our product illustrates we you revenue. our cohorts, consumption see repeat continue the historical and see, consumer from the with years, nature value came that cohorts generate the again demonstrate revenue. to once highly drive prior from of recurring in come revenue over

in business, We of invest to partner, efforts. new is encouragement prior XX% that high know of by we our a they onboarded lifetime year fact revenue partners what This most came to of enterprise marketplace enterprise years. a onboard enterprise for us when revenue from we gives have over the from value our sales our likely in are is virtue In today our prior that the Enterprise cohorts.

in $XXX seen originations. gears Total Shifting the total last we've $X over were to quarters, billion up XX% in million, originations. originations X year-over-year. And

second the of are expense, as which a primary Two quarter. flat compared is provision was percentage drivers X.X%, Our contributing performance. to our to originations,

continuously our optimize are to we changes performance. implementing One, credit

as enacted Instacash. Dee that have we've improvements our and the consumer most liquidity Specifically, also positive come in results of from supported product, operational our that seen. Two, XXXX mentioned, originations XXXX we've

macro with positive and away combination, customer environment. drives needs The abstract health helping the customers this the engaging meet these these product drivers liquidity performance. X us In is from of

Going manage confidence cash to high forward, and performance originations a with to have. flow we will credit given operational degree continue levers growth, the we of balance

by strength quarter another grew revenue. for was This marking million, entire our XX% to across Revenue $XXX the of quarter year-over-year driven record business.

revenue and EBITDA As gross we and divisions expansion. achieved profit both realizing Consumer while mentioned, in record margin adjusted Dee quarterly our Enterprise

of QX million our Turning to margin representing to the in third consecutive guidance gross XX% second marked XXXX gross to gross quarter, quarter margin $XX profit compared expansion. profit range XX% profit. of profit generated XX%. of our We gross a

from Our drive to gross gross higher margin our marketplace margin revenue. higher expansion enterprise consumer revenue margin we reflects continue the as

XXXX. of an on EBITDA to expansion. in our XXXX quarter adjusted Adjusted QX the of the quarter continued path million in and third quarter third EBITDA second quarter to positive XX% consecutive Now margin margin of of to quarter was profitability. EBITDA in million compared to compared $X our X% XXXX representing the in adjusted was $XX the third second

closed adjusted to QX, also million further with the unique generated $XX we've $X our of down paying of million validate cash significant million million scale. while working. down QX, debt, of of generated senior cash compared EBITDA debt $XX as we progress meaning business demonstrating We in paying in million $XX is before $XX model that quarter year-to-date Notably, we

million secured XXXX. balance loan we in comes to Importantly, which $XX paid October $XX due of down QX also debt bringing in of And senior of XXXX. our million, another

don't XXXX, the our reduce debt impact plan senior overall any making will interest with our full on forward, in expense lower March we our until payments on QX While debt beginning XXXX. of balance quarterly going

absence strategic us more will forward. to these allocate of invest to Similarly, going commitments the repayment organic allow growth in and investments cash

of our range of million within $XXX quarter, profit the Shifting guidance $XXX our guidance. our relative million. our $XX This to $XX EBITDA million high guidance a Gross And of margin adjusted the XX% adjusted a improvement of XX%. revenue exceeding was point to million, million, guidance. margin, was million. In the XX%, was to $XXX percentage of end the to guidance of XX% X gears third exceeding end high EBITDA midpoint $X to represents

revenue year million XX% between a XXXX, of million, growth. to expect to we full the representing For approximately XX% year-over-year $XXX $XXX

adjusted $XX profit We representing margin and XX% million EBITDA expect XX% gross of margins. EBITDA to adjusted and X% million, between XX% to $XX approximately

EBITDA in To perspective, loss improvement adjusted our year XXXX, XXXX, $XX in million adjusted at we represents of put the or of expect to of XX fiscal margin adjusted adjusted year EBITDA of guidance, into which an EBITDA to this fiscal XX% million an midpoint points. compared EBITDA $XX margin percentage

rule profile together this of is of a All that approaching XX. the reflects financial rapidly

believe full year approaching This guidance revenue year-over-year margin. of reflects XX% EBITDA Our and great XXXX XX% balance growth and the a is and adjusted are rapidly midpoint. we margin optimal at outcome, we growth the

we progress of remainder incredibly of well quarters and feel made the close we're out XXXX, to the the ahead. and years for As we've proud look positioned

closing With remarks. that, back Dee I'll it for turn to

Diwakar Choubey

Thanks, Rick.

itself, balance the and Our reflects speaks right for third to quarter our pull the performance ability and strike year-to-date profitability. levers of progress MoneyLion's to growth right

the We run. long and outside we're momentum for positioned are in growth gaining

in what with model margins said of business did nimble and high we an through many We quarter-over-quarter. reached as durable while would. order said, a uncertain million, navigate all-time adjusted macroeconomic We revenue quarterly expanded levers have environment. to $XXX We we to Rick EBITDA pull

past The our strength of concept. ecosystem of of point the proof is

We are expanding our footprint. now

product We we continue innovative that exist continue our set clients. compound, our our enterprise to to any own marketplace to PFM our release available embedded and and within datasets develop of innovate continue proprietary one features product technology, to and

some ahead leader. and become market, across And for survival All of rebound. positioning to are leaning the pack in the and for moment. areas We're a pipes our in of down this are we're the pull market is Strategy everything positioning laid into network. positioning the strength while

never do we've than felt we competitive today. closing, about better MoneyLion's position In

proven Our right marketplace strategy the has be one. to

capital-light have rely where We massive spend. having don't a model we marketing us have a on to

the see continue We our to our flywheel our to record PFM, marketplaces. due enterprise customer and consumer between capabilities adds

to lot execute. the Moreover, fruit, we we balance QX excited of and opportunities bearing into bets have strong are we're confidence incredibly a us XXXX a gives that of front going us. in sheet The made about strategic and

forward your all much and taking today, for you questions. look so we to joining Thank

Operator

question Our is Instructions] Hal [Operator first Goetsch B. with Riley. from

Harold Goetsch

question quarter. pipes the from down you Kind personal was of you and you XX% give you then that color on color comments, Do rebound, over might hoping that for you business suggests, just seen us more down loan year seen to said your XX%. you XX% the and just a you Great guys. have numbers might a or for laid could earlier in or all you I'm the are are more business hey, you've personal last -- I hoping loan the was your guys could declines the difficult seen the market year? that in over a this fighting give have just us pressure very to time stress in on

Diwakar Choubey

the Hal, question. thanks for

is our was a quarter, personal year of X from clarification. of that revenue marketplace not the that So so this were loans. It's declining. said business personal XX% ago, much We've personal the loan diversified from enterprise was XX% What loans. revenue we

So we're classes. asset that what is getting that more into means

really we've historically really, remember, strong. Now been

have APIs strong those been publishers personal financial incredibly And product. we've connect connecting historically that We institutions. to APIs that loan through

and to verticals. trying is we're more what get Now more do

What marketplace. progress of be can a be loans, making could could terms types of be between credit sides making cards, the of wellness the They really is financial connections both It seeing those builders. the team credit do be that's lot they could other And it that where it mean? of bundle. we're in

just super in allow uncertainty need cost to pulling them. have industry-wide will capital seeing Gap] doesn't markers -- soon So lenders around macro, as with [Audio of more on interest as rates, are that seeing it The times have look, to start us we where interest that multiple necessarily rate but back really rates. there's relationship go right? And the as it certainty environment, increasing, to relates really customer the in to are because serve the down is our lenders we

lifetime value, our increases number through life it product increases them our capabilities. cycle of have we can with It the conversations times and

more of how a into TAM of And So really can in ARPU. point. it's terms where it translates expansion that translate

bit if to want add So don't know Rick, I little you there.

Richard Correia

Yes.

So quarter unique and that given both were see, -- like our growth can this as we and greedy. business revenue was because interesting model you

million record CAC. X cash record We at while added we and sub-$XX profit, platform, record gross revenue, products X.X generating adjusted a so EBITDA And all over the of million in had some flows. customers record

I because important question so a And into PFM larger think most acquiring is your TAM experience and have then tap marketplace. customers, the the happens and breadth of this we full-featured we as after

So on we're coming customers question now yes, a cycle savings market historically your around customers we're are verticals, to coming product, life for the and them into and have able may from as to platform, who able and them. to expanding been loan, to acquire the they're we're but

And the in you continue to work see QX to forward. fueling to TAM, as it's we larger into can this our quarters It's more this guidance business expect add even from going that and momentum, gaining our past equation. tapping few verticals we continue

Operator

is Sutton Group. George question next Craig-Hallum from Our Capital with

George Sutton

EBITDA. Great

wondering providing a perspective leaning and for pulling back is you unique I market us quantify the So in from the be way pulling opportunities? you was rest how of that for was what talked the to about versus you if seeing you're there back.

Diwakar Choubey

seeing the ago outside George, other a loans quantification personal diversification I right, of personal as So quarter, the and similar has you Hal's that XXXX year continuing is verticals, from that trend shows the that enterprise in a that XX% it's verticals of mix think into really decreased QX into and think loan see was that question just the expansion we to that those and is from here, well. revenue into to other oriented, this XX% right? we're credit response I

Richard Correia

question Yes. finance we look about platform. embedded at And our is an business the this you interesting are thing model, if

give are of risk monetize we're alternative them strategy. kind able constraints, and And constraints products them they the to time. offset and to of enterprise at to because risk customers We're with that having help their so help pull that our can able credit back this completion

an given those And opportunity fact significant we're and conversations help happening. of engaging so We're that them that's are meaning there's was Gap] actually inbounds us. and so that to happening having a just more for conversations that more the the able same, clients amount more [Audio mentioning our because I we with can are enterprise

undertaking top on actually that, But sales around of an have those kind initial of once we conversations, integration. there's

partner convert, team us our So integrate our around conversations those is their and the clients have of team, kind help allow our team, the fruitful to then investment that sales base. inside will integration actually monetize customer solutions

you're continue where going that's focus. to so us to see And

lot You're the of that it, taking tech about, talked Dee in IP lot being also a seeing of of made we've investment a terms created.

full-featured the most the in that have exists app country. We

And and client enable taking that to retaining at them to customers so all and available of enterprise base. monetizing technology making it and IP we're successful our that more their be

Operator

Josh is Our Siegler next with Fitzgerald. question from Cantor

Joshua Siegler

Congratulations on EBITDA print. the strong

percentage So backdrop? that to amidst credit was if wondering continue, expect lower declining especially macro you as expenses originations. I you a consumer these continue provision to experience a of

Diwakar Choubey

on Josh, that with Instacash we if it's product, from think teachers, that you consumer placement, actually the a service a to I'll provide the workers, really But into products So kind and gig the first-party from the economy is start, firemens, we let the that technicals benefit again, of worker. continue about consumer, we basis right? it's union here. the of strong, the it's Rick liquidity the state feel go the I'll who

predict it flow when account comes is decays into leading, quickly industry the the cash bank right? how to and ability Our

XX last honing it This precise over we've years. is technology making of the piece that been very and the

right? from data we incredible ingest is this where third advantage data parties. an have And We here,

as own. well coming to that being creates paycheck this insights us our for We of lot data as network, is Consumer-facing a that's all ecosystem. the from into the exactly have incredible created know of on how products

right? the rails. right? There's excels. our backdrop, in again, really in is feel predict payments lot team innovation this payment world, of That to the QX the a happening American early We the This allows So is we and see always where make our strong. to improvements, of the talked excess firm. of about that that this the is DNA improving is next And part operational us deficit. year. a or And population moment segment ability of of despite a We having really into either continuing of macro our moment trend confident this

a -- know see an that next comfortable for our we impacts a terms have don't we're been to go-forward opportunity of make be of that we've such banks, period to these be at basis. deep Rick We these of with being don't on be said, and our macro consumer them auto But them be us companies, that And they whether precipice as network, lenders whether finally able they use, we ball any fraud whether quarters, to some of one into because institution for how anyone and take they the XXXX. insights, a our data forward of we risk proprietary as enterprise long of network, the ability just datasets financial they insights at are crystal going business scale expand honing our commercialize data in fintechs, on lot manage mortgage whether generated lenders, a that time. being now insights into very a right, the this opportunities at make to products, least on the X large to for feel is can

Joshua Siegler

starts balancing that then of the And you if ideal end that color. future. I in that Rick's an and I and level towards kind were Great. how us what reaching as wondering you mentioned, that we insight was beyond profitability could appreciate could growth and balancing again, mentioned of remarks, accelerating if the growth profitability some the envision macro year. you you give into this products start of you accelerating saw

was would a balance what like in look environment? more I wondering So that growth-oriented

Richard Correia

that course, for. because question, is this been of Yes. what planning we've We love

aware kind the I'm the saying space there we've from happening is of extract given amount macro. that I acutely that think is uncertainty. you've away what our able the something seen And headwinds I'm and been of of that business what within is unique, are that, to

But tells product. on to in is we're there's nimble liquidity seeing that able and going to during And us that your on that be macro. the these kind the of platform question change that that we're from of particularly benefit anything headwinds is nothing our our durable

of going that is to investments that guys as have forward, platform, continue. have that we basically, kind leverage witness to in going shift, to what terms past the a the expect over X we you see of we is quarters operating the In made been see the

scale. ready built for We the have platform. It is that

multiple seeing And so we're that EBITDA sit going we're to And to kind the be be of unfold. today. in the the of more and and we headwinds able cash as macro that a diminish, flow where extract significantly operating as leverage quarters we expect to actually

Operator

question-and-answer the session. conclude That will

will your participation. time, and at you your you may for disconnect thank lines the conference, -- and We this

MoneyLion (ML) 7 Nov 232023 Q3 Earnings call transcript