10-Q: MoneyLion Inc. Reports Q3 2024 Results: Revenue Growth Driven by Consumer and Enterprise Segments

• MoneyLion Inc. reported a net loss of $2.79 million for the third quarter of 2024, compared to a net loss of $4.11 million in the same period last year.
• Total revenue increased by 22.9% to $135.47 million, up from $110.26 million in Q3 2023.
• Consumer revenue grew by 26.9% to $90.20 million, while enterprise service revenue increased by 15.6% to $45.27 million.
• The company's total customer base reached 18.7 million, with 30.7 million total products.
• Total originations for the quarter were $776 million, compared to $564 million in the same period last year.
• Operating expenses increased by 20.4% to $131.46 million, driven by higher marketing and professional services costs.
• The company repurchased 24,405 shares of its common stock for $976,000 during the quarter.

Score: 5

Explanation: The document presents a mixed picture. While revenue growth is positive, the net loss and identified material weakness in internal controls temper the overall sentiment. The company is showing growth but also has some challenges to overcome.

• The company experienced significant growth in both consumer and enterprise revenue.
• Banking revenue saw a substantial increase due to the growth of Instacash advances.
• The total customer base and product usage continued to expand.
• Total originations increased significantly year-over-year.
• The company has a share repurchase program in place.

• The company reported a net loss of $2.79 million for the quarter.
• Operating expenses increased significantly, particularly in marketing and professional services.
• Membership subscription revenue decreased by 8.3% due to transitioning subscribers off legacy memberships.
• The company identified a material weakness in internal controls related to the Credit Builder Loan product.

• The company faces risks related to the successful development of products, services, and functionality.
• There is a need for additional capital to fund operating losses.
• The company faces intense competition from traditional banks and other fintech companies.
• The company is subject to various legal proceedings and regulatory actions.
• The company's performance is impacted by economic conditions and consumer spending behavior.
• The company's risk management processes and procedures may not be effective.

The company strategically intends to wind down MoneyLion Crypto by the end of 2024 and expects to replace the offering with access to third-party cryptocurrency providers through its Consumer Marketplace.

• Management believes Adjusted EBITDA provides relevant and useful information to investors regarding the performance of the company.
• Management believes that the company's existing cash and cash equivalents and cash flows from operating activities will be sufficient to meet its operating working capital needs for at least the next twelve months.

MoneyLion operates in the competitive fintech industry, facing competition from traditional banks, credit unions, and other digital financial platforms. The company's focus on personalized financial products and content aims to differentiate it in the market.

• MoneyLion's revenue growth of 22.9% in Q3 2024 is a strong result compared to some traditional financial institutions, but it is important to compare this to other fintech companies with similar business models.
• The increase in marketing expenses by 50.7% suggests an aggressive customer acquisition strategy, which is common among growth-focused fintech companies.
• The company's adjusted EBITDA of $24.4 million indicates a positive trend in profitability, but it is important to compare this to industry benchmarks for similar companies.
• The material weakness in internal controls is a concern and needs to be addressed to ensure the reliability of financial reporting.
• The company's reliance on third-party financing arrangements is a common practice in the fintech industry, but it also introduces risks related to funding availability and cost of capital.

• Shareholders may be concerned about the net loss and the material weakness in internal controls.
• Employees may be affected by the ongoing legal proceedings and the company's financial performance.
• Customers may be impacted by any changes to the company's products and services.
• Creditors may be concerned about the company's ability to repay its debts.
• Suppliers may be affected by the company's financial performance and any changes to its business operations.

• The company intends to wind down MoneyLion Crypto by the end of 2024.
• The company will continue to implement additional controls to enhance monitoring of cash disbursements and information technology resources related to the Credit Builder Loan product.
• The company intends to complete the remediation of the material weakness by June 30, 2025.

• The company is involved in ongoing litigation with the CFPB, alleging violations of the Military Lending Act and the Consumer Financial Protection Act.
• The company is also involved in litigation with former equity owners of MALKA, alleging breaches of the Membership Interest Purchase Agreement.
• A lawsuit brought by former Series A Preferred Stockholders was dismissed, and the matter is now fully resolved.

• April 19, 2023: The reverse stock split was approved by the company's stockholders at a Special Meeting of Stockholders.
• April 21, 2023: The reverse stock split was approved by the Board of Directors.
• April 24, 2023: A 1-for-30 reverse stock split of the Class A common stock became effective.
• 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, triggering the Automatic Conversion Event.
• June 30, 2024: ML Plus LLC entered into a Master Receivables Purchase Agreement with Sound Point Capital Management LP.
• August 26, 2024: The company announced that its Board of Directors approved a share repurchase program.
• October 2024: The company paid down the outstanding balance of the ROAR 1 SPV Credit Facility and terminated the facility.
• November 2024: The company entered into the Third Amendment to Credit Agreement related to the ROAR 2 SPV Credit Facility.