10-Q: MoneyLion Inc. Reports Q2 2024 Results, Revenue Climbs 23% Year-Over-Year

• MoneyLion Inc. reported a 23% increase in total revenue, reaching $130.8 million for the second quarter of 2024, compared to $106.5 million in the same period last year.
• Service and subscription revenue saw a significant jump of 35%, totaling $89.4 million, primarily due to increased income from Instacash advances.
• Net interest income on loan receivables decreased by 10.5% to $3.0 million.
• The company's operating expenses totaled $125.1 million, with a notable increase in marketing expenses by 61% to $10.5 million.
• MoneyLion reported a net income of $3.1 million for the quarter, a significant improvement compared to a net loss of $27.7 million in the second quarter of 2023.
• The company's total customer base grew to 17 million, with 27.7 million total products used.
• Total originations for the quarter reached $770 million, up from $550 million in the same period last year.
• The company's adjusted EBITDA was $18.5 million for the quarter, compared to $9.2 million in the same period last year.

Score: 8

Explanation: The document presents a positive outlook with strong revenue growth and a return to profitability. However, some concerns remain regarding increasing expenses and competition. Overall, the sentiment is positive but with some caution.

• The company achieved a significant turnaround in profitability, moving from a net loss to a net income.
• Strong growth in service and subscription revenue indicates increased user engagement with MoneyLion's core products.
• The increase in total customers and products demonstrates the company's ability to attract and retain users.
• The substantial increase in total originations suggests strong demand for MoneyLion's lending products.
• The significant improvement in adjusted EBITDA reflects better operational efficiency and profitability.

• Net interest income on loan receivables decreased by 10.5%, indicating potential challenges in the lending segment.
• Marketing expenses increased significantly, which may impact profitability if not managed effectively.
• Professional services expenses increased by 143.6%, which may indicate higher costs associated with legal and consulting services.

• The company faces risks related to its ability to acquire and retain customers and sell additional products.
• Reliance on third-party partners and service providers poses a risk to the business.
• Adverse publicity or failure to maintain brand reputation could negatively impact the company.
• Intense competition in the financial technology industry could affect the company's market share and profitability.
• Economic conditions and market volatility could impact consumer spending and demand for MoneyLion's products.
• Cyberattacks and data security breaches pose a significant risk to the company's operations and reputation.
• The company is subject to extensive regulation and may face legal and regulatory challenges.

The company will continue to invest in expanding and enhancing its products, services, and functionality, and is focused on growing its customer base and increasing usage of its platform.

• Management believes that Adjusted EBITDA provides relevant and useful information to investors regarding the performance of the company.
• Management believes that the financial wellness gap in America can be addressed by bridging the financial literacy and the financial access gaps, shortening the distance between education and action.

MoneyLion operates in the competitive fintech industry, facing competition from traditional banks, digital providers, and other financial platforms. The company's focus on personalized products and financial content aligns with the broader trend of consumer-centric financial services.

• MoneyLion's revenue growth of 23% year-over-year is a strong performance compared to some traditional financial institutions, but may be in line with other high-growth fintech companies.
• The company's shift to profitability is a positive sign, but its operating expenses, particularly marketing and professional services, are higher than some established players.
• The growth in customer base and product usage is a key indicator of success in the competitive fintech landscape, and MoneyLion's numbers are competitive with other similar platforms.
• The company's adjusted EBITDA of $18.5 million is a positive sign, but it is important to compare this to other fintech companies with similar business models to assess its relative performance.

• Shareholders will likely view the improved financial performance and growth metrics positively.
• Employees may benefit from the company's growth and improved financial stability.
• Customers will likely benefit from the company's continued investment in its products and services.
• Suppliers and creditors may view the company as a more stable and reliable partner due to its improved financial performance.

• The company will continue to invest in expanding and enhancing its products, services, and functionality.
• The company will focus on growing its customer base and increasing usage of its platform.

• The company is involved in ongoing litigation with the CFPB, which is seeking injunctive relief, redress for affected consumers, and civil monetary penalties.
• The company is also involved in litigation with former equity owners of MALKA, alleging breaches of the Membership Interest Purchase Agreement.
• The company was involved in litigation with former holders of the Companys Series A Preferred Stock, which was dismissed by the SDNY, but is now subject to an appeal.

• April 19, 2023: Reverse Stock Split was approved by the Company's stockholders at a Special Meeting of Stockholders.
• April 21, 2023: Reverse Stock Split was approved by the Board of Directors.
• April 24, 2023: The Company amended the Company's Fourth Amended and Restated Certificate of Incorporation to effect a 1-for-30 reverse stock split.
• April 25, 2023: The Class A Common Stock began trading on the NYSE on an as-adjusted basis.
• May 26, 2023: The per share volume-weighted average price of the shares of Class A Common Stock on the NYSE equaled or exceeded $10.00 for the twentieth trading day within a consecutive thirty trading day period ending no earlier than the last day of the lockup period applicable to such shares of Series A Preferred Stock.
• June 30, 2024: ML Plus LLC entered into a Master Receivables Purchase Agreement with Sound Point Capital Management LP.
• August 1, 2024: There were 10,968,455 shares of the registrants Class A common stock outstanding.
• August 2, 2024: ML Plus LLC entered into the Third Amendment to Account Servicing Agreement with Pathward, N.A.
• August 6, 2024: The date on which these consolidated financial statements were available to be issued.