ML - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the MoneyLion's Q2 2024 Earnings Call. [Operator Instructions] A reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sean Horgan, Head of Investor Relations. Thank you.

You may begin.

Sean Horgan

Thank you, operator. you earnings joining conference thank second for and XXXX quarter call. morning, all us for our Good With me today CFO, Rick our MoneyLion CEO, to our Dee discuss results. Correia, Choubey, and

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

call the turn I'll to Dee. that, With over

Diwakar Choubey

growth Thank call. as at you, guides execution thank our in march year, all another disciplined pillars of of the Sean. offense $XX.X of out decision-making with this Good ambitious approach. morning, for of Together, you of This second the quarter EBITDA revenue we million. tactical for and beginning we result our laid focused coupled for and performance #X $XXX quarter the joining adjusted our destination the with becoming million financial QX, toward strong MoneyLion decisions. us achieving record goal strategic XXXX and against earnings our delivered is the

Now key of the takeaways second turning XXXX. quarter for the to

quarterly growth. achieved revenue million. we XX% $XXX year-over-year record First, represents This of

Importantly, compared quarter point, of revenue reached XXXX. increasing our enterprise to an inflection has XX% the first

$XXX In exceeded quarter our the to revenue $XXX addition, million million. second guidance our high end of of

million. an adjusted the our range adjusted expansion of quarter adjusted of margin of guidance, exactly the margin EBITDA this $XX.X to EBITDA $XX generated was million in second we reflects representing for EBITDA our Second, to $XX of points our XXX million XX.X%, Relative year-over-year. of middle basis quarter,

diluted net $X.X share generated income of of earnings $X.XX. generated $XX.X for we and half of quarter, GAAP Third, And of income in EPS $X.XX. million second first we the per million diluted the XXXX, of net and

how our look the we've business, to arc been evolution. is a you clear building at If there

done over the foundational work is on expanding we've years. last technology Our the XX

we pole the impact. pieces to their in Americans the are decisions. be deliver place even make strategic in right for have to an position to greater financial best destination We perspective, From a #X

is consumer are and elements business finance, all successful for of the ecosystem. have commerce, of typical MoneyLion elements developer a services, digital first and These kits. the ecosystem we content

we disrupted As ecosystems all digital have consumer many know, industries.

Amazon, strength For Those across of companies ecosystems example, industries. share and their leading level like dominated Expedia, and these Apple dimensions. some disrupted all

until However, consumer finance ecosystem has a lacked now. digital true

this. We have spent for the building decade last

and offer equation, digital implemented what consumer in ecosystem Despite already We that will and success no ecosystem in market parts with of the numbers. in are business is many entity the kits for more the our has MoneyLion with single this of finance. labs, more MoneyLion in playing discuss services, for. first developer development services strategy. This other presence And in which successfully we're across is commerce, of I is moment. a approach products the content the reflected complete a already

outcome total this one, is growth an customer For of strategy.

were seen X.X Similarly, By million end consumption customers, quarter customers the of to XXXX, million and This represents total quarter. new prior XX% the with second ended products. QX total marketplace year-over-year. platform. robust million We first-party compared also third-party on we've XX XX.X the across up our products product consumed

the providing going X.X best X.X finance across highlights or alone, quarter the forward, in the million Of second MoneyLion's consumer third from XX% consumed quarter a third-party party, were Importantly, third-party products consumed up the for of first- the and life-to-date positioning marketplace products through products. products of XXXX. million XX% verticals. This second

of to continues MoneyLion's be leading our a strength. pillar in key ecosystem Growth marketplace financial

revenue This bolsters across mentioned point. be multiple revenue in our further for diversify strong Enterprise before, inflection grew part revenue consumer is And continue QX positioning us. a growth Enterprise XX% and of has an quarter-over-quarter been verticals. reached marketplace of enterprise I will our financial to importantly, XXXX. our As to has which business our area

consumers direct-to-consumer and helping ways engage money product with for There and great introduced are scale showing The ecosystem. MoneyLion's is search get topics. to consumers multiple to learn,

carte we've the personalized part fees then of as situation our this never exactly best-in-class or well in reduce our a take financial access financial by their our for As on financial the our any WOW basis. Users promise other programs. products. data-driven can can said, of membership, they commerce system strategy as with is accessing la can for way, marketplace an solution features building first-party of best financial overpay Consumers a a operating further through

build global As multiple products delivery as methods. adapt the new see, Innovation and you can stack products and and leading data innovators mission, us consumer engineers, liquidity to team technology our existing scientists our continue necessary. and PFM in deliver across we'll to nimble industry's allow DNA, product products of and and aligned our builders with is

All continued In as quarter, growth XX% the consumer this into culminates year-over-year. second increased we revenue even scale.

believe industry. we we and most innovative just full-featured have PFM continue to the we As mentioned, in the

a PFM this via online app transaction our and at world-class is mobile and a caliber tool the this moneylion.com. available is Importantly, difference a PFM of Having technology between relationship.

other that a plagues marketplaces. critical is This problem

value from access show mission, up this products PFM talk data. with Aligned does. in financial literacy, no the financial our our to our about marketplace as later, benefits we'll best MoneyLion content As around much provides the cohort and

pleased continue agreement we're we to that our another bank our PFM, our As we've extended with partner best-in-class XXXX. for Pathward years enhancing X

Pathward partnership X-year banking tech with infrastructure capabilities of innovative the We've of forward already had millions OCC MoneyLion's delivering American consumers. to expertise the successful chartered powerful of with Pathward, combination a

Money that be innovative XX will program years. features bringing In features addition user overdraft and our help for digital flagship This to with bank quickly in future, our our our of War the overdrafts liquidity meet product, sizable protection in extending to done to we Pathward, needs new adding past customers. provide we'll account to of looking capabilities to the base example yet the we've as another team is our ways be

the providing and role network it well. network optimizing important capabilities enterprise financial as by enhance in important in experience, our companion The benefits an conversions an plays in buying our in product PFM

now I'll enterprise a business. our quick provide update on

in to with our noted personal over Particularly alone. of partners to million in to network underwriting continues enterprise as were call the quarter earnings over total that respect it X,XXX seeing Our second on relates With XX grow normalize. May, loans began rates environment. customer in macroeconomic inquiries environment, the as we to stabilization the we last

to our see this we credit stabilization in personal to consistently we strong, products other Consumer and quarter, second overall to meet vertical. an new remain partners and spectrum the interest across our In continued added lending loans improvement products demand. and in substitution platform the

Additionally, non-lending and enterprise insurance access cards, by second to new grow, products This more quarter for verticals to expanded continue consumer have our marketplace auto and we with inquiries consumers coverage credit provide our for contributed business. to mortgages. revenue to best

the we're further and this continuation underwriting in trend continued of quarter, far stabilization a growth with seeing So third the environment. in

idiosyncratic conditions our in partner-driven partnership managing base macroeconomic and diversity The a key is fluctuations. lever of

and our partner grow. diversity As QX and and win multiple platform guidance, to ways drives you'll full-year in see

is senior Managing We The added that, more prior of strength dynamically. and previously in vertical of team a the Sales Services of VP with these the to Financial MoneyLion and hiring this CRO levers quarter heft National Kaplan, of at even is of Pinterest, managing Google. Director who Jon the

Turning specific to product updates. enterprise

of our technology, new marketplace new release consumers credit-based personalized more to making we methods on continue our our enhance a approval hosted we're experience friction which strategic to new checkout and In within enterprise capabilities continue relative improvement. to environment showing reduce solutions. short, is These and building We remarketing. In end-to-end these engine connected will of the make towards products progress updates, rates, will user and moment. distributing initiatives launch include decision our that we touch underwriting of between relevant the product business in intelligent filters a on signs

something today. like share all to you we're with turn to I'd Now excited to

always now will innovating later more R&D been drivers. But scaled MoneyLion and DNA we our consumer of first had unveiling the what's finance. this reimagining team that but projects into The of with founding, future as investors became give now our labs. how in crystallized can continue We've visibility since labs, revenue

As four commerce, elements are key services, ecosystem the the believe earlier, business I digital of kits. we content, mentioned and developer

core are while our building drive We look more scaled businesses on we and as a this in base beyond. XXXX executing towards to approach revenue

MoneyLion to talk First, starting offers. brings receive money, with our receive AI-driven assets, insights to commerce, product new users and together allowing their unique search financial unique Gen personalized our technology, AI

is for with their new ambition engage which factor become users form the to decisions. financial through AI Our MoneyLion

and our web as as Importantly, an we embeddable can it partners enterprise that mobile AI for live so well. on offer bar their MoneyLion search properties

reduces experience the relates a seamless our conversions. and Second, end-to-end to ability services, experience as MoneyLion businesses it to checkout that drives give friction offer higher business more will customer

flow, We Checkout using their risk, the a will For be behavioral reach like are exact able consumers products customer DMV find or to product passed with to financial desk from and one out financial criteria on precisely third-party first to cash empower intend place. buying take a one journeys in another. for, fix credit, services data. to financial time, that. the providers all history search product Currently, other will being

store data reporting, fronts programmatic and In checkout, products, addition more. capabilities MoneyLion and compliance services to include much our business for analytics third-party

content. is to example we great a we're on A This strategy investments in this life the of element how space. builds Service the our The is made solution. third as Content bringing have

relevant. Separately, features, library partners a this of and providing fourth and developer labs, life embeddable and audience recommendations finally, which capabilities which the unlock services, of to to executing. builder, action, allows content marketing related offers, also and financial engagement both personalized the are predefined and Our with next customers include relevant social calculators. with content MoneyLion addition kits, developer the Through web we're MoneyLion includes robust targeted and full bringing where through best products which is see potential kits. you'll is engage financial a compliance by commenting, their to consistently MoneyLion lot like performance, personalized that community offers more. And widgets that literacy enterprise APIs our to other timely to things content element ability and strategies improves in

is possible vision provide a with have. And economics for bold that, and the offense as to I'll over because our technology advantages of Rick with and detailed finance, the setting for to discipline future unit digital we the update. turn that first a the more financial ecosystem now role acquisition, call data customer consumer are We and

Richard Correia

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

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

Turning over customer customer XX and in to drove from our total and X.X converted continues customers life we X.X during strategy, of quarter the productive million to second up of quarter our acquisition quarter. that inquiries XX funnel the in saw total the were million XXXX, into second XXXX. about These total inquiries over be new cycle the million highly and of top million products consumed

in platform a consumer Our enhance and that ecosystem. It's on data we pillar continuously key our rates. substantial top down optimize of keeps the funnel gift funnel conversion giving is as finance our

that XX Now power to relates XX, illustrates integrated journey customer consumer contribution to with the the margin enterprise concept our that and the It business like in model. progression to it. XX, I'd a goes turn of

Starting become the customer we product, on giving ecosystem generating us part through partner, of product average consumers ecosystem personalization converts with to our to partners channel ability affiliate future our XX-XX-XX channel contribution contribution journey. drive a and away an into When us dynamic a pay offers on and margin the and margin. BXB XX% pay product a the XX% fee the XX. enters Those

Next, XX.

improving we our For contribution decade, financial data important get future generate delivered that approximately stack. monetize cycle to consistently have life added and a we solutions inflection to platform points look continuously margin. customer a These marketing our to over product using at first-party also XX% customers customers

offer of catalog products vast which ecosystem, Finally, and represent XX. the to cycle We our signals life our to CAC leverage zero marketing monetization consumers third-party in opportunities.

on customers CAC fees Given we COGS, we over affiliate earn XX% contribution minimis and generate de margin. with that

initiatives our data customers of of cohort to margin unique As in the of strategic MoneyLion growing expansion. shifting deep towards of ecosystem is to our contribute this contributes Further, part and and more advantage, result fastest XX of business margin XX previewed and many our contribution mix product the profile. a a labs

million X.X last the XX unit we customers. total XXXX, In QX Turning months economics. to ending our added

Our under customer $XX. acquisition cost, or CAC, remains

have months, Our to was as X that first $XX. product remember growth we and payback important consumption. mix drive optimal we rapid period of It's an around customer focused was towards on our third-party ARPU deliberately and around

we are and XX% margin to they are and mentioned, contribution business equation take function As a of profile. increasing These our share rapidly expanding unit cohorts reflect total market strong our efficiently. of by strategy adding our and margin economics mix customers our

MoneyLion and build towards opportunistic awareness. This building holistic product investment, medium the of term. to expect shift national give brand believe our investments and in right XX% in is contribution the accelerate in be second XXXX the to profile invest half an to will these margin but We reach mix our will we this time offerings broader XX% the in

from over products XXXX, came Now our XX% revenue first-party cohorts turn of and to from In our direct-to-consumer of QX recurring revenue marketplace, our let historical customers. consumer me our trends.

our second were needs increase quarter continued XXXX, originations the perform products seeing hard-working $XXX are Americans. an products serve of In total We These products. year-over-year. they strength these incredibly million, of representing XX% first-party the well, liquidity of and for in

performance Credit in QX XXXX. stable remained trends

expense provision X.X% of a XXXX. total in receivables QX percentage as was finance originations Our

from benefits As typical seasonal received related from last tax quarter, the cash we to performance QX refunds. noted customers

As in historical deep to managing in expected, reflecting we experience reverted levels, second our performance the quality. the credit credit quarter saw

our our forward our nonrecourse comprised partners. a to credit liquidity new agreement risk receivables. sell short-term products. to flow advance announced As originations sold reminder, a recently facilities, We receivables are Originations Instacash shifting are credit building to and warehouse for our of financing

is stated agreement As sheet cash balance efficient, more forward interest receivables off no variable the last and or entity flow quarter, treatment. moves with VIE

and flow in the associated We realize of third are fourth and currently arrangement benefits the forward transitioning XXXX. to we'll quarters the

model over our last environments in where capabilities of these over ecosystem shines The our is resilience been tested business the have multiple Importantly, holistic macro macro volatility moments increasing. decade. and

our Notably, we generated of as months This $XXX some quarter. of and Now XX key the of other revenue of over XXXX. MoneyLion last financial metrics. growth growth. turning revenue the QX year-over-year second XX% to in quarter-over-quarter $XXX million represented generated X% million

path our to to on profitability. Now

of XX months million the adjusted XXXX. has MoneyLion expansion Similarly, $XX.X EBITDA in in basis to an generated it $XX second As the or EBITDA. quarter, of margin of relates from margin XXX points generated MoneyLion adjusted EBITDA This XX.X% XXXX. represents QX million adjusted QX last ending

In continuously from at our to quarter generated of capital half $XX.X in and consistently EPS strong the MoneyLion of up intend positive MoneyLion the of the GAAP XXXX. We net Dee $XX generating to and performance. million of takeaways addition, key quarter mentioned as flow income million investor second $XX million is the now, with XXXX. in diluted $X.XX with cash, first in of first the optimize of align we cash our cost end ended

the growth $XXX of Now turning exceeded second million, metrics. XXXX, representing of guidance. was all $XX above Adjusted Revenue was quarter-over-quarter in of our year-over-year the guidance or our $XXX million range XX% million quarter growth. $XXX we EBITDA representing X% of across XXX to guidance year-over-year end $XX range and million, high basis expansion. million million the guidance margin adjusted revenue our of In EBITDA to $XX.X met middle to points of revenue

outlook. our to Turning

third quarter. We a strong are positioned for

XX% of X% to $XXX the For XX% XX% year-over-year between revenue representing million, quarter-over-quarter. million QX $XXX we XXXX, revenue midpoint, to expect this represents growth and At growth. year-over-year

$XX of expect midpoint, adjusted At representing approximately million the XX.X%. EBITDA We of adjusted this represents XX% $XX also XX.X% EBITDA to EBITDA margin adjusted to million, margin.

our confidence XXXX. second performance full year We XXXX, half the for the reflecting also are our in of of guiding to

$XXX midpoint, expect million, year-over-year revenue XXXX. This At $XXX revenue to between XX% XX% full X% year-over-year also implied XX% of year-over-year million and and to midpoint year year represents the XX% of QX the representing of this for full we For the growth. XXXX, growth the quarter-over-quarter. growth represented

midpoint. adjusted approximately also of We margin EBITDA million, of XX% XX.X%. representing represents adjusted QX to EBITDA adjusted the XX.X% $XX At at expect an margin midpoint, EBITDA margin. the this implied an $XX to XX.X% million EBITDA represents This of

seeing growth we profitability are our ecosystem models given While weakness, other are position. enjoying unique business and

in next momentum into to really each looking the significant quarters strong are We and two XXXX. of finish create

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

Diwakar Choubey

Despite out continue for volatility global our control, XXXX. the Thank the and Rick. to of macro out the uniquely we winning MoneyLion and the of the market for of you, positioned share laid year, in events half is year. At gaining the pillars second beginning

is plan forward, carrying continue our out look winning we our As strategy. to

worth Our focus is consumer. to in as continued a growth execute. These firm are continue pillars to restating,

driving total through growth performance total business will expanded origination strong increased capabilities, risk responsible, membership consumer with management credit We drive broader PFM tight and our efficient volume, adoption. in payment volume,

funnel relentless optimization. Second,

will AI enterprise much, through We funnel data optimizations remarketing and our and capabilities to optimize latest machine more. learning consumer continued experiences, techniques enhanced improved products, much

vertical expansion, product cards, This deliver our enhances and insurance Third, partners. our our our to and enterprise in mortgages. to products like users key presence we will auto deepen ability credit verticals

Fourth, expanded distribution.

will supply distribution our We expand through partnerships. new

EY partnerships, AI. And including initiatives. ecosystem New form factors MoneyLion finally, and like longer-term new

as a at today, pillars the service As product we that of in these products, Checkout, mentioned a growth longer-term of we MoneyLion we to serve and services. number the content introduced believe provided will addition new beginning including as growth We have web drivers search, year. the financial

all summary, playbook void to digital MoneyLion other discipline. up first disrupted industries. with the of and the to myriad the MoneyLion ingredients that In finance, the continues consumer for have under same the guiding is operate ecosystem fill with a principle, has offense we

those on For vision for the our be can deliver financial confident to destination we're ambitious we reasons, decisions. #X

call us operator joining for for today, over all you thank to turn like and the the Q&A. I'd to that, back With I'll

Operator

comes Craig-Hallum. first Our Sutton question George from Instructions] with [Operator

George Sutton

results. Nice

if come that impacts the to the can starts through sense could So what assumed the give guidance? you've I you of walk wondered down, And sense any if of rates if might be? in model you in any the us

Richard Correia

the for question. thanks George,

go we with the of rate answer have second cuts the I'll So our guidance. which within your is part not assumed question, of kind

financial reminder, as in of of mix credit. it the terms kind our credit. One, so lives the on And of our they're helps making couple because consumer outside their revenue has of that works, our spent really how from diversifying years past that of in a side model, the the decisions customers of within away enterprise terms various business

So when revenue most kind ago, consumer perspective and for the around years couple what concentration XX% of down was in in we credit a a of XX% went from lending recent to quarter.

the that, of is have a of So course, we diversified that benefit stream. revenue very

of was saw benefit other would as that the we is we back, tailwind. last expect come can from product extending that we partners what that in a a an moving said terms in posture. move to thought see basically credit We rates do you partners bottom quarter see The of and to posture away results. channel our from defensive that offensive And or

in. did So partners our stepping our enterprise business kind back enjoy, product of

And And have is what of benefit business. all second our within verticals what the quarter that's that of drove ever we best our enjoying so now growth. our enterprise

George Sutton

Great. relative And checkout to end-to-end the experience. then

experience. us have had So sense funnel, the come give into the million a how that you checkout Can change? you would X.X you in had million might this products mentioned sense numbers of you those end-to-end XX you

Diwakar Choubey

for question. Dee. it's George, the Thanks

on consumer processes been it through application and one put security passing form from gets state number of of Oftentimes, one and instead in to into we're the all the the we've us of unfortunately all where finance. our That's that still just PII is do allows checkout consumer website experience where So passed another. of to broadly, XX% and social other.

is where underwriting we and hosting these can talk publishers of the Now become other where able models. one have common market, of permissioning consents of course, of decision-making we consumer now lenders that lenders through with, the their past a side been side consumer have for on engine to to are the significant language the market do on lot of what our to a

or lenders a like a lot models secure ecosystem. hosting these with their criteria hosted inside underwriting of now Just MoneyLion of their knockout websites of companies of lot these think Internet waterfalls or AWS,

XX% as consumer and HELOC we they That here's So market. an card a or not XX% the able we're insurance right? a to expect existing without that can they're anywhere have bring or we to now a us mortgage funnel, a buying, the we tell can then that to conversion doubt, the or that that to on qualified guidance, list a for they baked be a changer right? So personal game from into and is credit be believe product a it for announced that loan,

George Sutton

to And lastly, when to bring to able be do you market? plan that

Diwakar Choubey

not So It's transitioning live. a in market. now. we're dream. It's pipe It's clients over

said team. partner So lot to of a solutions as process, we've team, into made past, again, that's in we've our our the investments a sales

folks You we head on so senior forth. and so more saw that revenue of hired as and

next where So of that in throughout becomes be term not a more ecosystem. couple quarters, will we term, but be medium the the to long the the it process that over checkout do anticipate proliferated experience

the in on most institutions most said some we've the the as remember, of the enterprise in side are past, financial world. our sophisticated, Now compliance-focused clients

that So to we that of enterprise all into all the inverting them the levers that assured, through cybersecurity, side walk of hard the you the But process, checkout review rest time-consuming. see InfoSec, work experience. compliance at on ecosystem the is our are process, the

Operator

from Our Riley B. Hal next with Securities. comes question Goetsch

Harold Goetsch

where us at Question the terms verticals, in are part is insurance. returning feel revenue, loans give mortgages, you for or you or the stable to mix the side. other stabilizing. there a you it year-over-year of and on us for you side, partners the if you any and they're personal -- in BXB color emerging new flat you that? just could? traction Where market with a on us Could Can loan of auto growth. your And on give the more feel just and enterprise verticals, said can personal Is like give as other cards guys are credit

Diwakar Choubey

chime and it of kick said then question. vertical. over rates and a ago, on on we're the years of enterprise over revenue the over, derivatives loans. couple that philosophically, some the growth in off, first this for second can the and kind seeing of I'll loan XX% our But personal personal in was of Rick Thanks we've

significantly We that. have now diversified

verticals one loans, inside the is we provide capabilities even to across stable But in we've the reasons credit not able of keep to the personal We've So growth different cards, been we've go got aside into of been deeper secured financial wellness we've credit. because into the into spectrum. to like credit go personal right? and just able spectrum, growing loans, loans if from able the credit $XX,XXX rate been types personal of personal loans to one $XX,XXX

vertical, the as well. rate interest haven't So that our minutes really driving the baked trough our back are ago then conversion the substitution coming again, a guidance. And saw growth we in Rick in from said said, we that's right? a in we We're perspective effect rates loans few those all in reduction as -- the really personal just as also, of

purchasing. years from about months, think a substitution X.X consumer, sticker perspective, you a of the the of they because expensive from shock, the just that the first was rates if delaying principles were last that what we But were it the weren't over the too last it used product the effect XX but they a taking lot where they to over to available way and were saw lot

come to vertical. that inside rates loan naturally $XX,XXX little as should So improve conversion that personal $XX,XXX rate core now of is down, that we a see bit what

So that's one point.

We The point talked second decisioning. checkout. we talked is, about about

in part top the we funnel, on the do the where how Number point change stack talked about bringing inherently to we've with there are way modern we the of a We right? even we into very So credit credit advantages. capabilities, out a it So world, card? right? have of consideration thinking, are a are consumers at there. this building interact past, our card The want card I media as should lot own credit comparison marketplaces imagining have competitive of one, the technology

American Most to credit have six households four cards.

we XX or purchase it's that through growth more getting onto the mortgages credit supplier go. off in of that is probably But And ways have stack. issuers really still last whether XXXX, homes we we've significant well. you where and through the to about card of more the year We're lots for a ready is large and kind the It's dynamics, there's early, platform. Mortgages but think that was we inside of tech just as our well. mobile really into first super terms content, work we in drive new year, the think to through lowest seen us last there's will as a pleased area poll seeing it's This go enterprise years. we're area app, started some recovery. be So revenue Credit it's become more growth issuers. We that can seeing whether of do we're companion with the going whether funnel, that, ], [ a cards to then process. if

behind we've take well we in and the the a work So tech technology stack compounded that's but how a done us share. really market lot the take stack of positions that to tech portfolio approach, the

Richard Correia

quarter-over-quarter revenue products because kind is how of that because the It that look we've how on at our platform overall this to add about expansion, strategically focus of was enterprise it enterprise. talking in part your by been bring accident. And I'll is. doesn't I the XX% happen of what to and And more Yes. being the appreciate if you able important into And ecosystem. us our happens more

and gives full we've look when QX in confidence confidence confidence so then us gives year. what And -- the gives at and the us growth, for growth the it's to us guidance, guided quarter so have to the third our XX% what quarter-over-quarter you it have you'll year-over-year see X%

of what So because implies X% quarter-over-quarter or business. into the year-over-year even momentum we're QX. And of a for quarters entering that a fourth kind given QX then and expecting growth the enterprise that's we're third XX% that with that in is the

journey XX% offerings give to one XX%, them when able ability be existing to of this from to see take card that that product The the base you'll expand spectrum about that catalog go XX%, talk us existing able that's happens base. And and to focus our verticals. on full to through. products customer us so is customers consumer that margin an within give customers And the only full contribution been and things I of we've being able to for continue of our because

So again, appreciate I the question.

to the margin revenue the going kind that's that expansion, EBITDA on year in see year. side of expansion us you'll of into our of half second through and both the And the terms end carry the of

Harold Goetsch

follow-up. on ask on There customer you acquisition others. comment could help recall and guys an Antitrust. has or saying on Antitrust you And early, I And Google alternative was Google, news kind this could MoneyLion the but that of to potential service one some I on that Facebook become it might hurt If based and one recent recent you of news.

Diwakar Choubey

of of think just quarter, operate degrees inquiries it from garden model, million kind of the to increasing us our freedom. gives our that business over in own QX. consumer a said I in million Look, last just from It a XX-plus we've relates we always XX as Yes. measured walled by as lot

see acquisition web lot of can some list. our We a financial digital about provide We partner a And companies, sophisticated client most channel that you for capabilities. services in and are leading we the must-have talked of services. and

walled So how MoneyLion's garden. navigate do you

build Google web or of they services a even optimize right, algorithms. of like Meta to optimize network your you You build engine kind of the they to using content, to audiences, now like optimize your on the really to are would their just have you inside your just on MoneyLion to capabilities operate clients lot these have ads, to to right would algorithms, have

ecosystem navigate are the as our or there what of tools vetted we market as consumers that publishing We're of our as that alternative a in the lot absolutely are really in a ecosystem, well to continue acquire financial building to very think we're ecosystem us well, a the we I that for right? So financial partners not offer and differentiates And that, that marketplace. precision. similarities, a have And high in a just lot to are to very this credible we're fintech with we're right? product. And are take that's and that, going intention

Operator

Needham question Peterson next & Kyle comes The Company. from with

Kyle Peterson

Great.

Just wanted know half I two customer half. in the dynamics in we between guide, think pieces and ARPU. How there's about on moving of the back the terms been what's assumed adds in particularly those in year touch should the of guide? to back the

Richard Correia

question. for the Thanks

I around, which think focused is it's important we've what really when larger about a we talk TAM. significantly been strategically

in to terms help make be helping And able And products it us authentic goal to allows of to in America terms and right importantly, customers. person be customers. financial sandbox so gives to to has to us kind That of our first bringing decision. enormous third-party an both in play the every been our of

And the consumption and third-party products. so more is adding see quarters, of been in you'll more what few past we've

marketplace help So the we're really a for to get customers. is, becoming benefit that And we this again, our of business. as

able also are to revenue. drive We to use that record

allowed revenue. us actually growth is you'll our see faster has so down a it's And ARPU significantly slightly, to have that rate around while what come

The XX, to the talked it journey customer us is do we allows take that XX, on other thing about, it that that XX churn. us to allows

channels, We are being able in now not be customers marketing able journey. to BXB cycle through our heavily to investing customers we're stack a multiyear focused those our bring marketplace along really tech on help life into the of to kind but only

that's that, value see our or you'll lifetime expanding our driving value. So lifetime also

higher those I And contribution or margin also that mentioned, consumers. as journey us, margin revenue as we're driving down with customers importantly, with now that go higher

And for mix expected kind profile. towards quarters also to trade-off slightly level expanding margin of the more overall terms profile next so the record the two ARPU of and XX% the of we're revenue that margin contribution while of XX% increasing in kind comfortable making over lower

Kyle Peterson

Okay. sense. bit more That makes the as And flow forward I That's on wanted really transition follow-up, the just helpful. the to through a just walk warehouse. to a

have economics unit neutral you the historically, the on that, On to guys relatively it's P&L. said

is forth forward? be historically, quarter. So OpEx the time exact occur kind transition and you of is in the so third that line for could And how clarify kind proxy just think fast moving guess, of a provision of what kind timing that I the decent guess, loss should flow the I on that sale of will expense -- and will the, the we

Richard Correia

Yes.

take I'll forward in around kind order. underway. is flow. So currently the it reverse it's question of timing The

announced beginning and process quarter, of last about So the right July, the very at it in now. we was we talked it of are transitioning

summarized is cash it's you more the benefit As efficient.

We also are balance able off to move sheet. our receivables

so partners. from And that to a our credit we're risk shift perspective, to financing going

terms relentless of as in unit forward, In you we continuously of the economics. go are optimizing see, terms can

terms our this ways from look relatively perspective. We P&L specific for of yes, And optimize neutral is continuously underwriting. our arrangement flow so in forward processing of a overall terms in to while

we expect improve economics. continue over to unit to would so And time

the of cash continue continued And so and improve of we being from to our more cash flow in to things kind two kind be efficient us arrangement even to improve just generate which will will flow, the you'll flow those if overall forward most able our for unit economics and be cash cash see, operations. in positive we terms separate, recent hold of quarter, the

Kyle Peterson

confirm, least -- historical just term, over be that somewhat I near there the assume to a And and the it's to guess, will Okay. replacement then item, to upside... line OpEx provision reasonable at for should the of kind be similar in

Richard Correia

had levels. any seasonal see headwinds in back historical of terms that performance typical book. Yes, our quarter the our first had We We we of benefit. consumer reversion obviously don't to

any so there And be to change expect wouldn't that. forward, we going to

we in way the our kind of way our balance kind customers manage which the sheet. and unique we manage of Given

Operator

with Jacob The Capital. Lake next question Stephan Street comes from

Jacob Stephan

between calls Jumping morning. this

you cost coming overall just there apologies what election I acquisition you here? spend -- are that touch marketing something customer with on the the is marketing seeing of So elevated I spend any environment? up, in the terms if But double may mean, cover could affect guys maybe guys here.

Diwakar Choubey

Well, acquisition that year. the going I ecosystem. then think perform second the on to clients And of of into there's third-party -- the -- half is are is there MoneyLion for the that your question -- that, right? way I still enterprise all, costs couple There's the customer a spend MoneyLion first of there really elements is the

at first our of LTVs the the to the take the to half levels to impact me CAC maintain we're second year. guiding right? that let one, we and no So in see ability So

a LTV. reminder, and we manage As multiple to have here CAC levers

our We customer capabilities. traditional as organic garden on have base performance channel across the well. perspective, operating MoneyLion what a from got its we own well strong brand walled drives as levers ability, of We've and to the margin returning very that's is really as a have media use spending course, as then well. And

some in to second for see we half the brand arise. strategic year invest the Now we take opportunities may initiatives in sure, as the of those

seen flows ability in really multiple responsive from again, we're the seen built guiding, this be have. and to levers we've really, And we've But there where the and before, to our We've that marketing environment no navigate really should we our ebbs that. be impact to in apparatus before.

financial financial for are seeing On our But the just marketplace. market, big are as we a increased got said you've channel those walled consideration, to second products. very garden, of the we And point, walled in in We've as MoneyLion that's encouraging. not consumers spend services garden. got yet. vetted garden, actually Google's walled the got course, important on highly Clearly, you've look, that, for engine we're Apple get Meta you've clients

year, inside going trends institutions, some by just we mentioned. must-have you and of actually these for into that accelerating that see the CMO the a the becoming financial We're half some second large driven of of the

Jacob Stephan

And you Okay. update on I'm helpful. EY not an would call, be but on guys just the nexus. any about Got if maybe it. talked update helpful. that sure That's

Diwakar Choubey

Yes, sure.

co-build EY, build marketplace believe financial is So you to really to develop sophisticated really business. And these progress. in all with increase to, checkout, web are using That's doing from if the and then allows continuing we a we continue partnership on cycles. of it's technology embedded that modular that. capabilities if But and around for our medium, embedded their right? So That's have a will about to continuing be compounding channels engage really sales financial in late side capabilities, blocks in MoneyLion perspective. lot have small co-distribute again, banks, partner will, what the you XXXX. and of where and those are EY us that these to to we services of a we into and around early we're regional are the EY going institutions it enterprise long plan, to think services contribution highly that the building doing great exactly with impactful partners again, XXXX, the

Jacob Stephan

just that last out us then your put -- you product? moving your me. And one of helpful. morning kind Maybe this a kind guys if earnings Instacash framework could is of overdraft That's Okay. towards help that you for release. understand, X-K wasn't for bank just the The

Diwakar Choubey

this extension. relationship. extension So put bank. very the to X-K always is we that ways We're our of partner was our Pathward, our millions a long out innovative of an consumers. products This an liquidity fruitful relationship morning to provide at It's with just X-year looking

money -- we're add overdraft fill complement will to first-party multiple feature the to that digital already our a we to existing with did ways capabilities win, to Pathward So capability we this we and providing. or the added provide bank have protection account. be consumer And

Operator

this At you. time, this teleconference. Thank concludes today's

a participation, for have disconnect time. this your at You Thank lines great may and day. your you

MoneyLion (ML) 6 Aug 242024 Q2 Earnings call transcript