ML - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. My name is Mandeep, and I'll be your operator today. At this time, I'd like to welcome to MoneyLion's Q3 2024 earnings call. [Operator Instructions] Thank you. We'd now like to turn the call over to Sean Horgan, Head of Investor Relations.

begin. may You

Sean Horgan

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

website the Relations investors.moneylion.com. can our find press on accompanying presentation You earnings our release Investor at

filings press Please any forward-looking be are safe our to which note statements can commentary earnings that harbor in found and SEC our subject release. made in our statement, this

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

Diwakar Choubey

performance third Thank becoming you continuing you, we in that Sean. third we we all see for for Good of accelerating XXXX fourth and morning, #X the and with the joining QX thank us this earnings decisions. steps In for XXXX, quarter record took vision quarter, momentum growth financial decisive quarter. delivered in quarter, Last call. revenue the towards destination outcome. introduced our our We

turn And confidence our reflects This quarter. the let's in key our vision. takeaways for third now to achieving the

million, to quarterly achieved guidance this on from represented This year-over-year XX% our we $XXX to million. million revenue Building First, we're million $XXX $XXX year $XXX XXXX growth. raising to $XXX full revenue million. quarter, of up record

quarter. from guidance, increase on the the of $XXX comparable midpoint. in year-over-year Based million new we significant the XX% our in at growth, year-over-year This revenue expect fourth third the a quarter represents growth XX%

reflects up range $XX adjusted in EBITDA range of adjusted XXXX above This at EBITDA end of adjusted million. $XX million year range our $XX an XX.X% record the million This adjusted guidance margin guidance $XX XX%, of to of of million which full XX% expect of margin prior We our Second. to our midpoint. of high EBITDA to EBITDA new of million. the XX.X%. the guidance the an million from $XX to generated now $XX for quarter, $XX exceeded We million, reflects

$XX during flow the ended quarter. the a end cash of quarter positive with balance generated again at once cash the from we of quarter, we Importantly, million up the and million, second $XXX

generated XX% Third. quarter-over-quarter grew quarter. revenue in of This to on heels quarter-over-quarter the Enterprise revenue We quarter. prior reflects growth record continued $XX the the XX% Enterprise momentum million. in

Lastly, improving we are This fit and launch is our fueling unify growth solution, for financial initiatives our metrics believe end-to-end of industry. the travel across will online that strategic product by conversion Checkout, by same marketplaces highlighted our the simplify that marketplace. way experience MoneyLion in shopping the the online

MoneyLion year. position growth the that drivers accelerating for crucial exiting are These

this expect XX% continue revenue Enterprise to above with We momentum growth quarter-over-quarter QX. in

customer growth. to increase have QX. more on To importantly, We we're total our since consumed grown with XXXX. X.Xx with Turning new year-over-year happy and platform. put perspective, this the growth, quarter third million XX% total increasing customers, customers million compared X.X ended of about And marking QX into a products we're customers to XX.X this the but

platform. XX.X the million products of been our XXXX, QX on consumed By end have total

of success million $X.X Importantly, we QX. land million our product QX underscores in to expand the increased This $X our from and consumption in strategy.

proof X.X platform, a personal industry-leading to offers. point with customers tools customer added and financial target we strategy target management, alongside time monetize expanding PFM, and we our first-party the to financial add million and million a target products, ability these in MoneyLion X.X base. addressable customer We market an cross-sell. our products diverse the third-party Every or to have We a

relevant which all for platform, scale our American. marketplace-first demonstrates as more of make help time, we best can product made every This financial their MoneyLion Over Americans more the decisions. its have increasing a and

partners, consumers operating our And is leverage. in both for working. fueling outcomes better drives a machinery revenue word, and technology and Our enterprise growth

able to and customer higher product This we're financial ultimate leads and marketplace. nurture acquisition over the financial then ARPUs we and MoneyLion points. is enjoy value. is engagement inflection consumers lifetime journeys advantage, low-cost as buying This to strategic their our

integration It marketplace the the the key bears also repeating which within one business consumer MoneyLion enterprise because when app, the is we the talking enterprise of growth, talk of components about we're of equation. about

Enterprise to with QX quarter-over-quarter in XX% growth growth XX% continues in momentum in expected QX. further acceleration followed QX and gain by is

business, high fastest-growing Our parts one consumer contribution us that generate margin is it's an marketplace revenue. of and helps the of lever important our

of customers, suite to largely returning business Our first-party recurring consumer year-over-year products large drive is continue in base highly of high our Instantcash in our capabilities with and contribution our consumer like growth banking margins. revenue investing Because of full and profit nature.

levers We a customers profitably well. gives of advantage. acquire control using flywheel our new of as here to cohorts This lot us growth the confidence

digital is and the landscape, content. advice, consumer important and as that insights full-featured guidance insights finance customers for most This platform MoneyLion and personal the the now Across in because provides platform tools returning to financial renowned our valuable is it industry. keep

as for are our marketplace decisions. Further, increasing financial repeatedly conversions customers to consumer ecosystem turn

Our digital built inflection products engage across with guidance points. web financial to and mobile are consumers

few, features and insights commenting. to user-generated buying to like we've built product calculators content name and a inform Just decisions; community

provides a a marketplace financial decisions. of real with cash and consumer and broad have course, our membership, set products premium We WOW, back third-party of offers, which on

Enterprise. turn So to now let's

fundamental business Enterprise across both thriving and macroeconomic factors. is Our

services highly provider becoming acquire the to financial any consumers. industry in-market in for vetted looking the are facto We de ecosystem

enterprise in customer XX Our total network the quarter, almost million partners expanded increase. to driving third over X,XXX

business. environment it with I'll start macroeconomic as So enterprise our relates to the

the rates, improved applications, the vertical, credit bottomed we loans, earnings the still In below remained QX. or levels. modestly historical approved X quarter, our at the in likely Conversion current personal percentage largest our that of last but in QX, of third noted end within cycle calls

partners And conversions in half upside of revenue loan the marketplace efforts. expect loan We was quarter, of interest revenue, third nonpersonal success the rates added the our new We've diversification as in decrease. across verticals. underscoring about

So far positively. we've in seen the trend conversion fourth quarter, rates

lower half environment. year of next strategies their first as the interest well in rate revisit through lenders stabilization continued expect as We a acquisition

revenue enterprise our believe software on and increased providing all tools edge and even opportunities our more in marketplace. business intelligence in optimizing remains analytics to We focus to diversification conversion partners. revenue capabilities, and software for participants optimization leads funnel development Our our our

in fruit, Deepening to verticals our This is we is these beginning believe we're of grow but verticals. bear marketplace. value strategy in another early our the to penetrating key of presence innings only the

The cards, we're credit on key insurance. verticals include and focused mortgages auto

our these personalized credit touch me our to on the we're each deliver cards, In Let of prequalified issuers models offers of users. decisioning to hosting partner briefly.

are sources leveraging personalized we conversions. data backed new optimize by addition, to In cycle life campaigns

efforts with and many to line credits more In launch making mortgage-related go-to-market the on We're mortgage and the ecosystem. capabilities our the features equity for we progress like across -- MoneyLion months, pricing come. in contents widgets products to month displays, real-time plan home of coming

customer In segments saw for we vast of offers our in grow the continue and This auto substantial as the growth third insurance, product capabilities. we refining right by will right quarter the base. calibrating the

these similar goal verticals enjoy to today a Our we as in loans. grow what is personal scale to

diversification revenue cycles. efforts enterprise our and hedged revenue, across expand naturally These opportunity strengthening business smooth our our macroeconomic out

facets unit the that friction the MoneyLion for Checkout. brings super bear platform industry X the of significant consumer. excited multiple our This improving experience disrupting consumer economics. development transforms technology about reduces are while our to into It We

and When finance, consumer I another customer is must-have why. this that MoneyLion reason is say the for acquisition yet partner

search, compare to Amazon visit to consumers When be X explain. shop, in they expect redirected complete all don't their buy something me sneakers, finish place. expect like to nike.com transaction. and They to Let to purchase the

without MoneyLion the checkout leaving MoneyLion platform. Checkout. lacked of experience until seamless has lets of this kind financial with complete now finance Consumer in hundreds transactions real-time across providers consumers MoneyLion

consumer for offers, up conversions MoneyLion's categories other starting a expedite or a the among entire transaction integrating loan, the is signing product complete consumer product third-party for dozens By credit can onboarding, providers card, MoneyLion's borrowing data and a savings of marketplace. these can whether directly borrowing consumer and they within dynamic a MoneyLion with account partners, choosing increase

So already how great partners? does results. translate seeing outcomes enterprise for this we're positive Well, to our

leveraging increase MoneyLion and in revenue. increase improvement have rate, Our Checkout XX%-or-more across conversions XX% click-through such a metrics seen a pilot increases in X.Xx as partners a key in

to better enterprise for So out MoneyLion driving we're and outcomes excited and partners. consumers checkout rolling network across our continue both

over more update our turn Rick detailed on financials. I'll that, call a to with So to provide the

Richard Correia

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

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

First.

into customer strategy cycle acquisition continues strong customer product and Our to life adds. translate and

million new quarter, in total Our in into up the customers top to quarter. X from up and These inquiries $X.X from converted during products million XX total expanded X.X the funnel quarter products 'XX, of QX. third in inquiries million consumed million almost the prior of $XX million total customer

significant massive funnel This QX. working. from demonstrates machinery of is our top growth demonstrated already Our base an that in

data marketing cycle deliver and engine. recommendations we our scale As life we more consumers, personalized our offers to platform, leveraging enhance and customer

vision this data and becoming time, formidable ultimately Over destination financial the for advantage compounds of our manifest #X decisions.

the enables channels enter is to to a to mix revenue. XX, concept customers XX-XX-XX demonstrates XX that MoneyLion approximate industry. margin different the scale with our On way the is MoneyLion's our in of represent understand XX-XX-XX and can contribution which business margin channel. and ecosystem that contribution The as in This unrivaled framework incredibly it strategy. important XX associated through

the different our points journey. is match This our products Importantly, represents along of these not to with linear. customer Internet. we us They network have that customers broad BXB channel the their allows acquisition across journey across [indiscernible] entry XX partners, engine customer distribution and is point channels the are financial channel. are

an backbone our our of acquisition contribution we customer is funnel margin. and our and pays This customer approximately advantage. product of XX% this affiliate creates partner in a converts the us When fee realize massive an channel, top

this [indiscernible] represents advantage. and someone fertile to MoneyLion this cycle base, first-party products. one takes life channel remarket propensity we their provides of funnel earn products, MoneyLion into XX When later financial With our along In their our typically gives margin. the a This a financial the products. app fuels downloads XX% including inquiries, of insights and first-party various deep contribution profiles, for at massive basket addition, point quarterly a million around user journey. XX consumer channel our

WOW our Money innovate including and membership by new Card. and features We continue to products, Black launched recently the first-party developing

customer XX of from represents our marketplace. an our ecosystem. in This third-party catalog extensive converts consumer products

It our typically marketplace equation. key fastest-growing margin. As is business our component that and the consumer our of around contribution revenue has a Dee a XX% business is one represents of mentioned, of parts

revenue channels. other would through As contribution profit dollars stream, we otherwise scale will it drive more incremental revenue this to our continue than

our shift revenue investments share brand over of our direct-to-consumer a large of time. pool are Our mix market part take to a and strategy fee high-priority

progressive In approach destination high the our sum, over accelerates revenue margin financial #X ultimately our driving mix of margin and decisions contribution for time. to being enterprise expansion

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

acquisition strategy coincides with our XX-XX-XX industry. under customer to strategy. mix or relative be The the revenue to quarter-over-quarter to slight Our increase accelerate contribution outcome great cost, margin $XX. This related high is continues CAC, a of the our to the enterprise

was our customers quarter ARPU X million in $XX. the scaling the payback years ago. in and Next, million from total quarter strategy, our same to period our success underscore unit TAM third months These our economics was X.X X expansion approximately XX.X in around

million million as in mentioned, $X Dee consumption also QX. is QX strategy in working, product expand our and we As to $X.X land from increased

mentioned, enables base to As incremental a monetize margins. our high customer at large technology us

of excited direct-to-consumer are the investments. unlock our to We our through entire ecosystem value

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

the year-over-year. of XX% seeing increase consistent products continued We are trends Credit 'XX. an In originations products. our third for were million, first-party remained XXX performance strength total in XXXX, QX representing in these quarter of

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

actively performance first originations. outcome have predictable going Excluding to manage provision do our high healthy a This we our of forward. one, a degree one ability in of as so great and quarter seasonality, expense in range a is for a credit percentage our best-performing quarters and of to continue confidence QX a was be as to

quarter we the originations reminder, a experienced benefit of first in year. a expense every as percentage seasonal As historically in a of provision

into we arrangement, no this variance. originations consumer we'll longer transition a we how seasonal forward As finance see flow into

a healthy within We expect loss to rates remain range.

Now of key a In our record turning third XX% MoneyLion generated a other growth. the of to quarter, revenue, $XXX X% some quarter-over-quarter metrics. financial year-over-year representing million and

as million, growth to we the to by our implied upwardly 'XX year-over-year In guidance. XX% full expect accelerate this quarter, to revised the fourth $XXX of midpoint year

profitability. update Now for on an

represents of $XX to adjusted million As quarter, third margin EBITDA. This generated MoneyLion EBITDA an in adjusted it the relates XX%.

EBITDA. last represents XX the over months million QX this 'XX, adjusted Additionally, $XX of ending

time, We are in share. taking positive At reinvesting cash flow. generating market and growth we consistently the same are

we quarter with end the million of at Accordingly, million cash, second ended third $XXX quarter $XX 'XX. from the of in up the

As to expect XXXX. we initiatives, margin we invest growth EBITDA XX% adjusted in QX in XX% between

can back margin expansion, now throttle drive is the not While we near-term growth to time.

is in opportunity The are too market to increasing drive focused of front and share. importantly, Instead, marketing us big. acquisition on we take

$XX million quarter our million, Now or range million, of range $XXX our million. exceeded all representing XXXX, $XX of million turning to XX% met growth. within $XXX above to guidance our metrics. $XX guidance a year-over-year third to Revenue was end of high results guidance. In guidance Adjusted the million $XXX the of EBITDA across was

our Turning to outlook.

in We quarter. accelerating fourth are positioned growth the for

'XX, $XXX year full guidance, year-over-year At growth we million, between $XXX from XX% year-over-year, up midpoint, QX in of million revenue to the growth. represents based XX% QX growth XX% XX% 'XX. on to representing expect our For this

of $XX EBITDA EBITDA of to million, adjusted to margin XX.X%. also $XX XX.X% million between expect We adjusted representing

full $XXX growth midpoint, the year-over-year the For between XX% XX% we year At represents year-over-year revenue for of representing guidance. year growth to XX% to to XXXX, XX% million prior now our expect of the $XXX full compared in XXXX growth. this million,

represents to an representing EBITDA of margin. XX.X% EBITDA XX.X%. to our We prior the adjusted up this XX.X%, of approximately million from At margin adjusted midpoint, $XX expect guidance of EBITDA adjusted $XX XX.X% million,

that, return call remarks. the Dee his With closing I'll to for

Diwakar Choubey

Rick. you, Thank

business ending As up first the on we We've position year-over-year. year-over-year around the generated continued look focused has $XXX ahead consumer as the in This consumer last growth our taking over share and to margins. third contribution the of future, we're given high quarter, our the months expanding our finance digital market seen million scope ecosystem, with business opportunity. XX XX%

last broad despite below credit insurance, of incredibly credit grown $X mortgage our averaging auto ourselves across we and economic cards rates managed quarters. verticals. billion serviceable continue the We'll concerns, We'll more revenue up X X Moreover, revenue. open the of which with over and we've believe loss pools, deepen represent to well, or to presence X.X% all annual

to this forward. capitalize these serve opportunity well, and We have the markets we technology to intend going on

financial experience. even Checkout minimizes We're personalized As experience mentioned earlier, our it through journey new shopping by us MoneyLion partnerships, data end-to-end incorporating offering sources more the friction new an in offers. enabling product strategic deliver to recommendations

and We experience our consumer value key to is enables the This strategy strategy product business XX-XX-XX equation. improves our in detail it be today increase because of This properties. We'll to our as adds consumers driving marketing revenue. our mix going cover partners. shift to soon and us with XXXX, MoneyLion's direct-to-consumer operated contribution directly QX XX% margin investments owned to as brand mix

both our expansion guidance, growth us. revenue for XXXX us. QX our healthy such, raised implying we will drive incredibly fourth in Together, revenue There, of revenue. initiatives growth contribution and results and with margins them as the and growth for proud of margin can We're and in we've front engage quarter. high earn accelerating these the And directly 'XX margin

is the lean growth, Now for to decisions enter enhance all to and we leverage time our markets new financial Americans. technology, as into

decisions financial To MoneyLion within of as so, horizon our the vision destination playing on do offensive we're discipline its to X enables become #X evolution. for technology next the Our years. marks

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

Operator

with from the Our of comes Kyle Instructions] [Operator Peterson Needham. line first question

Kyle Peterson

start any seen the color just rates for any kind the pretty either rates quarter-on-quarter that as I cut of since trends or have to up the you provide if and for the of quarter. guys see off commentary to to back month Fed wanted fourth the what guys the quarter? October Appreciate fourth conversion some you last robust I on expectations outlook on results. Nice could wanted Enterprise. Great.

Diwakar Choubey

the the earnings improve cycle, approved as in calls bottom our from modestly. Thanks we've we've continuing conversion it Look, percentage to are Kyle, credit like what the current for measured seems noted it's We're in the seeing by we right? question. past rates reached of Dee. see, that applications

think right? they the as half XXXX, going well $XX as We more we enterprise QX that quarter-over-quarter. into So record saw first -- And up that meaningfully, up shows will million, even into of forward XX% improve of and numbers. our in revenue

strategy our value doing differentiated from macro, give at the always way we're is to disambiguating look you proposition trying if our been And diversify of to enterprise the a we're to just the kind set. it capability has partners. And

kind of them tooling. giving really the instrumentation, Instead just our of we're network, on being the

talk innovative providers, lenders, banks You can as that see heard sea-change credit embed really their Checkout, the technology about really decisioning environment. MoneyLion us institutions, a do on financial card where we MoneyLion-hosted

us to allows So do we very That we credit rate But excited strong that know That what very in lots will in in a can loans. tailwinds. interest environment funnel we're in clearly products, decreasing across the are really be you see deep cards. personal right? also about of multiple

Same It's available the the from an really insurance, the finance thing technology the auto perspective. with embedded mortgages. industry thing that's changed same name terms in game with of in of

will doubt, it be a approach. portfolio So we are that as no and the we provide favorable tailwinds. But in see environment will now

Kyle Peterson

a pretty you on have compliance kind but stuff some know of have and made and taken of I in of headlines Got been kind oversight access, proposal then from That's to guys investments CFPB wage this there question seriously. ask I switch of lot earned a it. maybe was there's regulation. know And on some gears topical a want really helpful. I and

to potential kind are you regulation you in higher investing are the space or kind views compliance of guys in any how preparing you So in space? just guys if us for see and viewing changing of level the could potential on fees initiatives give how guys wanted

Diwakar Choubey

Sure.

the right? that's well, stating have decisive We're no an I'll impact by a X So obvious, on start these look, election of questions. some doubt going days after to

under we competition. look different So for continuing -- promote services new of to forward expect a policies to advocate look And regulation will that innovation, financial administration. we looking and

operator. EWA, more you We're consumer. across well because landscape given It's consumer like EWA, is remember areas the always really not network mentioned, are as just for we as in as in the choice services a financial that to you to have it's how choice

case, the great with years. found last spot we just we've regulatory regime XX in making a and XX one any We've in investments we're been not regulatory our the But compliance to another. It's made woke investments to and years the over last we up for going infrastructure.

its own applying as EWA, operate and but marketplace, really have Instacash a the frameworks product respect for very XX-year-old with bespoke we a So its new category own laws an XX- we've over a with innovative products. past licensing to fintech codifying our because year-plus framework number pleased been access product, of of or first-party instead increasing that to states own created framework also

of we we're regulatory to ability safety product treat this also while nationwide American to net that expect product to developments proposed our for interpretive that product, federal important impair and see recent the glad workers. well. product the do proposed so respect form, in credit would With really with And not to this continue current rule, providing would the to bureau's millions proposed the even we millions CFPB's if approach disagree financial a framework finalized create its as rule, category like a

came able tailwinds this importance out our the manner of than all important products work that Instacash the XXXX And we're effective compliant, unit So delivery a confident into economics. that we've methods how multiple super that. point right? invested while growth fact, really we that's believe continue to in of we'll the and see rule that commercially in maintaining offering be And Americans, so much an hard of that our actually to the in product, codifies in really we

different technology. remember operating partnerships successfully engaged the relevant third and before, This be already the you we've really operated just administration this under. changes, have on XX in in the as that been already built state we'll right? again, we've as And again, we've multiple regulatory administration product the place important And ways, federal compliant environments, years, out to offer between the we're to We jurisdiction, will. that with is and the said So for the if seamlessly how plays right?

Operator

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

George Sutton

growth I'm wanted really question pretty into excited this I A QX. wide to range put to accelerating hear EBITDA And into my for context. the about QX.

As how both relative you're sort and branding-type in for or largely the term? growth the it's I'm end for of of 'XX sense is investments, term we're end thinking your and opportunities, prepping high just coming looking to in your curious control. low long My short

Richard Correia

question. so on look kind been XX XX, if with happening of business, been of Great XX, our we've focusing the Yes, what's course, at you really strategy.

XX-XX-XX And coming so while down, is the enterprise favorable the much point, we strategy. the what to in business, is for given rates do macro very your control,

what consumer. been in ability we've to in of been investments the to number partners increasing partners, market, be increasing go And been the addition we've our direct the continuing we've terms to demand channel of direct that to to and to making doing

continue that finding our see channel as and provide that us partners that, brand our X some to of marketplace. just to as air they Internet conversions the us brand consumers through on One And in mean things. do trusted marketing increase cover a help and to is the spend to we increasing to by to are helping

is million that, our We top last what increase to So $XX quarter of strong very from inquiries million $XX course, this of went quarter. funnel. increases

that we conversions the kind expecting continues see it the to fuel are It business. that. of continues fuel So within to to increased

shift. that a EBITDA and to that course, expansion. mix our lastly, then of margin our has So And

to of go journey. consumers are marketing in to brand as of going these consumer kind initiatives, the shift new to direct we're that with kind XX% we that So the be starting able consumer and accelerate to

George Sutton

you. Got

some solution, sounded powerful I like, the to income plays we checkout it this as think -- statement your the ran through timing through on wanted should metrics. then How impact the you and ultimate very, on Okay. And through?

Richard Correia

Yes.

what's where one proud we are within finance marketplace. consumer that's of happening So entire been the disrupting of kind incredibly

being go current Dee it, a sneakers. for people So you the pioneer kind those where and can of you're talked you're whatever of can to pair is able buy kind which the experience that you check way looking sneakers, about can to market. out if and in you of search, buying within marketplace evaluate

MoneyLion, consumer course, just experience, Of that finance. doesn't exist until within

what a better So going we're just the have to around a have doing and couple be able strong consumer conversions is will So less benefits. we're experience. expecting of increased have be that right? to to to is going One we're consumers leakage

to have finance be kind The other for kind pricing of ourselves. partner start is the we're where you the power, to customers positioning critical acquiring ability is more right? more consumer So in and of

so And those of manifest will kind start to themselves.

strategic We seeing been kind only of XXXX. isn't initiative at Checkout over on it of kind we've already working the pilots. early started

consumer enterprise we and consumer we're that, seen finance any call of that that continue in to And you're the in see through quarter-over-quarter you've the enterprise XX% a growth anticipates last The the numbers. XX% with growth for market that premium means so headwinds first on quarter of because kind focus having starting don't see -- along It's to that being out to acceleration the kind growth enterprise. marketplace. come management us time going to in it's

Operator

line question the from Our with Oppenheimer. of Kumar next Rayna comes

Rayna Kumar

well The our in as EBITDA Street's. as to good coming ahead adjusted of forecast see It's

below Just wondering is any drivers if that EBITDA to that in there's there your expectations? any cost exceeding? And came

Richard Correia

think Initiate terms we've appreciate EBITDA. in This to the party. question Ryna, which now, making been the was I you being quarter. -- that is positioning see and It to platform. welcome of last great I the is, years Oppenheimer a initiate for that

seeing getting so with is operating you're And now of and we're consistently what of means kind kind it quarter-over-quarter. pretty leverage that that

our quarters stand-out a And in mentioned One, as one kind about provision we best of for so performance and X.X then -- kind of a had the when call, had of it items. of comes originations. kind couple our Dee as we mentioned, originations, of of I percentage to

a we've we of And certainly said, is kind so for And that as that. factor. solve

strong to performance. sequentially up was we'll so as continue expect XX%. And And mentioned, I enterprise

so of our XX, ending be and success kind around are driver, And lot as XX%, of importantly, of customers. the customer in seeing of XX. something a important mentioned, up continues XX, cycle we're journeys life now as more that an I that that kind for our to more kind kind That's and of of

We is product of talking And about massive that top other keep keep have a about everyone to we the thinking it. funnel. number encourage We consumption.

you're we're on to And so platform, second product. once in the successful and really getting customers derivative third that see

showed was million quarter that where that this up consumed X.X And the and on had X up million platform, from we products last quarter.

as as well. I things And so shift mix kind XX% helps but said, that those towards kind of drive, of of course,

Rayna Kumar

And of MoneyLion early indications but the on been a uptake couple Checkout? of weeks, it's only I know Great. any

Diwakar Choubey

seeing existing sort the it's the in Look, week Yes. and the Rayna, we're conference excitement Dee. at just Las of Really, is Vegas from MoneyXX/XX partners last base the client palpable. exchange, the MoneyLion converting and that to going our will, taking the customers, we were you that into them adoption to checkout if integrated are right? through already in checkout API be is an

we've So conversions of clients seeing improvements using institutions the we're a there. of XX%, over great for improvement per very said CTR already as we almost already large handful on really XX%-plus our revenue have lead before, checkout X.Xx

existing name studies. from have to with kind rest the the of integration they of onto to really game of as them that client The go the is take case them engage So integration. the those the base converted and checkout we to get

Operator

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

Harold Goetsch

that Rick, companies auto some upswing new the loans a of insurance I in overpriced you on other lot for acquisition in There's probably give there. customer color from is can auto also are us industry. a big of the verticals? any know out

So auto down. pent-up X demand loan rates next in potential refi or seems to that as year for be the a come lot of

to adjustments wondered on give You us could to on And Was a something was that EBITDA? the it little $X quarter, have could more just the third color on but is, Let million. us like a some few know. that? I that? question you related expenses, a bit other give you the or little expenses color agreement this usually forward-flow if

Richard Correia

Hal. the line to and that kind other it expenses. comes to was onetime I'll but entertaining then legal the adjustments. the more take Dee tied of this one, Thanks, to the the it EBITDA vertical was increase just than give with When a I'll question. I that, primarily drove adjustments, wish little was EBITDA easy what

Diwakar Choubey

your I'll look, $X new these our if that support over each you billion vertical right? marketplaces, in can revenue, public expansion right? you'll see at at verticals, year look these a So of take in peers, the question, look you operate these -- if

So product quite decisioning really are auto we right? our currently are addressable of market, testament entire -- Nova the the to checkout with markets improvement mortgages, the and all product- for sort course insurance doing exists the credit and decisioning between the being engine that consumer sitting in you with cards provider. of that a data see So and large in this been and of announced the this really strategy world's, us, quarter So the and we're what really year technology-led again, factor form deals for Credit, the TransUnions us the each Plaid, for has right? on and the

higher deep auto in approach that market, insurance actually into strategy that the we to can deliver is taking So our consumer and that's perspective, market. vetted into qualified, side, the right? auto funnel, So mortgages slightly the different highly we personal on a we lead we're believe replicate the higher insurers And really from want cards. to them consideration, seeing payouts, going all get in from it's that margins, the things credit a in product differentiated to ultimately, so that we're to in and what's insurance, loan

the a we overall where imbalance on of -- we've personal is priced a as X over lot personal some mean as in loans now back in pent-up products with demand are couple find all doubt fin but new verticals hand want the this of going before, substitution of right? the there supply demand, verticals as the But of for loan said and both bit no of those typing of a years, tailwinds we've between in at to change consumers verticals the I are consumer environment, because operating just of a the and demand, see our expect been sort little we'll and with for level terms don't those well sentiment, loans to products. the last transact,

Harold Goetsch

corporate debt, cash interest ask any to rate All and you The X that build. balance now on right. Can us balance grow? you continues I Can do its your follow-up? cash your can what give thoughts continues to

Richard Correia

Yes. Absolutely, Hal.

are kind of proud kind flow continue quarter-over-quarter. We kind of of free cash that to build we the

we healthy debt, In the our of senior when company, profile financial of terms yes, look, now our can have think about with so that we you many metrics you. share

we're XXX XXX. the kind company to you debt would of like And senior Xx high ZIP of SOFR a today, plus in on ours expect to have so And end. code that the somewhere that's

we to will explore so a capital. cost significantly opportunities And lower to of have certainly, continue

Operator

line Stephan from with of Street. Lake Our question Jacob next comes the

Jacob Stephan

could vertical on congrats that is us or Maybe focus that? the on the assume my growth wanted new quarter guidance side you personal as as of well. product add about kind well? Enterprise. help new Is of what's think I I'll in rebound kind some side, more just in loans that driving on the XX% to

Richard Correia

Yes.

diversification been the across that the So planning Jacob, for right? X different we've The this this, is making, verticals. where investments we've been

down coming helps perspective, the leader because marketplace our within a coming lending rates course, way. personal that's Of as space,

And XX the the from of XX we've making mix into really kind kind terms journeys shifting in and the that been the customer investments of of XX. of our then

of of acceleration our all say the it's in kind the for confidence above. Enterprise that, within And of of gives again, the anticipates what, us kind it's quarter so And being Enterprise time of take so growth first fourth to that within business. kind able management confidently much terms business the

forward business XX% that year-over-year. kind towards been consumer. within with kind of cash the consumer, And that focused on completely was of We've financing the arrangements We're the within product. of flow very be continuing up course, of through type to shifting

of growth. terms of see growth of to kind historical of kind top revert you'll that kind in so its And line business

kind enterprise, not got hitting of to really specifically overall we So cylinders. all about good and business feel on the

Jacob Stephan

kind of product another Okay. Got XX, falls just from going it. the with kind this XX to us help the just into question product guys of third-party Or kind where essentially Can think That's I'll first-party this and the correct about helpful. is help of of Checkout product, you approve on And then of launched. really XX, and the you maybe framework? kind ask about customers kind us them match take offers think product?

Diwakar Choubey

really Look, about to APIs. What the into there. through was if Jacob, MoneyLion the fit are banks, to card expand to regional able target there start, to of addressable technology right, lot companies, think no-code a companies, their small sophisticated really landscape, already wanted do banks and we products. checkout consumers environment midsize, I to be get that integrate I'll market that financial credit you high-vetted Sure. a think use with really

Checkout think Because flow give ready what trying consideration do, an the decision. when financial the it's in offer in to if consumer to buying transact and for execute product a of trying you they're right about to is that's

consumer it they're product conversion creates different for reentering It because sides. really, both their improves better websites X much or a they So where into out get on information. the clicked don't X rates

franca asset types become integrating We across lingua of the for offers kind really different classes. of

partners the and with we capabilities what it really engage that but of our that their replace funnel. actually necessarily doesn't expands Checkout number into MoneyLion can the It deep now So enterprise does. that's provide offers have,

software own consumer can whether website, that we kits SDK we app, to focus of their and into see whether we're marketplace, that to bank their ecosystems. whatever ecosystems, success a of mobile through any that inside a also Over that's digital the or development offer now starting with taking own putting financial that's offer institution MoneyLion embed lot time, a

we where we've we that of SDKs. can also provide this bit consumers that to the the now now the all we a make we of be here, is decision, come and always their that cover just So marketplace really of that to of brand, As directly the through illustrated through air -- partners little that margin bit APIs all but little technology any little believe both, that a a MoneyLion awareness a our I instead putting can can of said everything perspective in think of background, from here answer into is the the guidance, increase best distributed inside profile we've consumer we're investments the right? MoneyLion doing brand, more of bit brand that works a

-- It engaging So gives to we multiple that consumers -- a what just our acquiring organically. with us us extends than customer we acquisition business like perspective. I ways for area it it model because really gives win more surface from are

Operator

question line Northland. [ next the from comes of Grondahl Our with Mike ]

Unknown Analyst

First are question, MoneyLion? which guys about excited represents most X credit most you the upside card, what for mortgage, auto,

Richard Correia

announced with benefit able we're approach we very kind developing that to into Well, people of within from this. specifically, the kind experience, cards, like personalization with announced Plaid a to are as of now and like finance to of the and consumer think of think about credit of the the kind about breadth about you app. bring of data ecosystem Certainly, if entire excited of a offers our be well, we able Checkout unique all when to kind lack of takes TransUnion, going you have that being us personalized specific partner

that's expand course, and with we approach me-too go of a a going not into things. how into a of vertical kind We're strategy. vertical And to

we're most do able excited card about so And credit vertical. being that the to within

Unknown Analyst

you then us of And X example how executing an it. top strategy, Got you're the could your on quadrant? that XX-XX-XX give or XX

Richard Correia

I'll millions Yes, stick to but we examples, of have a couple.

is increasing that X mentioned, marketing is around, it. in to is kind that kind ways seeing and as So this have been bring directly we customers of brand we what One of happening. there's you're spend

So that partners, have offering. with we are product what we hundreds matching that means kind of is product partners of

to product. the a being make search of spend, use that are their financial marketing So of bring to we've and ingenuity kind going somebody That's decisions. under place branded the strategic really indirectly them working kind positioning match right a kind product, customers of for AI kind on the where been all direct of to able search kind our be of of we with starting

And so a that customer that happens, when XX% journey. is

somebody. I've really testament cards that's being as we the mentioned, on our number ability to of other, a increased talked now is to The kind cycle of consumed about when life the platform,

understand and we We about person. our profiles deeper develop deeper

best of is their a As kind products I financial MoneyLion. mentioned, understood by propensity buy to

the on And represents we're of we've of to now kind kind that third them they're XX% so our to been also and what is do able once second give customer journey. kind platform, offers of able derivative that

Diwakar Choubey

the lot of of management we've app really now have success Yes. what amounts we're a Also, put and we're And that a look Mike, And we reiterate sort is just into incredible download app, super tool. community, seeing it in of said at nation's capabilities the right? things that, what the financial always right? and like you improving our leading to just on personal we right, call, the you MoneyLion in really built, investing if

incredible of account they're to app, we the join So let that family of section the parts you the their providing really various capabilities, friends if the their work then of MoneyLion inviting their a advice features perspective you give do to Linker insights. go lot community around people onto financial consumer direct-to-consumer for there's conversations, and premium bank life, So and some on right? the product thousands the those the mostly all us is free, about and some of talking search

score. not lot and score provide their our that's trade We are now free, enhanced more it. your a capabilities like with accounts linked give free with lines. in the just their that what's link manage on we a you leading capabilities it to now. an think data more incredible can that, free We credit credit It's consumer the We've simulate industry can surrounding things like happening toolkit even all operating even smart financial and bank about lives, financial systems budgeting daily your as insights, with just

financial they're between our a got insurance ecosystem but keeps our inflection or a the and in when or credit engagement an consumer thinking points card. decision-making then, And we've that points about third-party course, or first-party products, mortgage of

a offers day. links representation them consumer the lot for ability happening a what's to they're weekly, best engaging relevant personalized We've the high-converting of that in contextualized precise lives they're them, with daily, really that's wallet the of give strategy We've that's And that all data and the MoneyLion. we're because monthly. got for for got XX% now their are got them

margin together level don't expansion in of on have that with a the think that of there capability the sort this can the I group think in keeping really by So people excitement our of of I drives peer or PFM a that lot the ecosystem. have are all we today. that the in And consumer markets

Unknown Analyst

and that's robust, Yes, pretty that's helpful.

Just lastly, you October did guys comment all? at about

Richard Correia

specific? or You mean something Halloween more

Unknown Analyst

month the went? October of How

Richard Correia

No.

Operator

Q&A today's concludes today's session This concludes and call.

now may disconnect. You

MoneyLion (ML) 7 Nov 242024 Q3 Earnings call transcript