ML
Moneylion INC
NYSE
8-K: MoneyLion Reports Record Revenue and Profitability in Q2 2024, Raises Full-Year Guidance
Sentiment:
Quarterly Report
6 August 2024 7:35 AM
MoneyLion announced record second-quarter revenue of $131 million, a net income of $3.1 million, and raised its full-year 2024 revenue and adjusted EBITDA guidance.
Better than expected
MoneyLion's Q2 2024 results exceeded expectations with record revenue, a return to profitability, and significant growth in key metrics.
The company also raised its full-year guidance, indicating confidence in continued strong performance.
Summary
- MoneyLion reported a record revenue of $131 million for the second quarter of 2024, which is a 23% increase compared to the same period last year.
- The company achieved a net income of $3.1 million in Q2 2024, a significant improvement from a net loss of $27.7 million in Q2 2023.
- Adjusted EBITDA for Q2 2024 was $18.5 million, representing a 14.2% margin, compared to $9.2 million in Q2 2023.
- Total customers grew by 73% year-over-year to 17 million, and total products increased by 60% to 27.7 million.
- Total originations reached $770 million in Q2 2024, a 40% increase year-over-year.
- MoneyLion has raised its full-year 2024 revenue guidance to $525-$535 million and adjusted EBITDA guidance to $80-$87 million.
- For the third quarter of 2024, the company expects revenue between $133 and $138 million and adjusted EBITDA between $18 and $21 million.
Sentiment
Score: 9
Explanation: The document is overwhelmingly positive, highlighting record revenue, a return to profitability, and raised guidance. The tone is confident and optimistic, suggesting a strong outlook for the company.
Positives
- MoneyLion achieved record revenue of $131 million in Q2 2024, demonstrating strong growth.
- The company turned profitable with a net income of $3.1 million in Q2 2024, a major improvement from the previous year's loss.
- Adjusted EBITDA more than doubled year-over-year, reaching $18.5 million.
- The company experienced significant growth in customer base and product adoption.
- MoneyLion's Q2 results met or exceeded their guidance across all metrics.
- The company has raised its full-year revenue and adjusted EBITDA guidance, indicating confidence in future performance.
Negatives
- The document does not explicitly mention any negatives, focusing on the positive financial results and growth.
Risks
- The document includes a standard disclaimer about forward-looking statements, noting that actual results may differ due to various factors.
- These factors include market conditions, competition, reliance on third-party partners, and the company's ability to manage its growth and financial obligations.
- There are also risks related to technology, data security, and compliance with regulations.
Future Outlook
MoneyLion expects Q3 2024 revenue of $133 to $138 million and Adjusted EBITDA of $18 to $21 million. For full-year 2024, they anticipate revenue of $525 to $535 million and Adjusted EBITDA of $80 to $87 million.
Management Comments
- Dee Choubey, MoneyLion's Co-Founder and CEO, stated that the company's Q2 results reflect its leading position as the first digital ecosystem for consumer finance.
- Choubey also mentioned that MoneyLion has all the ingredients needed to disrupt consumer finance and that their ecosystem approach is reflected in their numbers.
- Rick Correia, MoneyLion's CFO, noted that the company generated record revenue and Adjusted EBITDA in Q2 and that their results met or exceeded guidance across all metrics.
- Correia also stated that they expect to finish strong in the next two quarters and create significant momentum going into 2025.
Industry Context
MoneyLion's strong performance contrasts with other business models that are reportedly seeing weakness, highlighting the potential of its digital ecosystem approach in the consumer finance sector. The company is positioning itself as a leader in the fintech space, leveraging AI and a broad range of financial products and services.
Comparison to Industry Standards
- MoneyLion's 23% year-over-year revenue growth in Q2 2024 is strong compared to traditional financial institutions, which often see single-digit growth.
- The company's shift to profitability, with a $3.1 million net income, is a positive sign, especially when compared to other fintech companies that are still operating at a loss.
- The 14.2% Adjusted EBITDA margin is competitive within the fintech industry, indicating efficient operations and cost management.
- Companies like SoFi and LendingClub, while having different business models, are also focused on digital financial services and are key competitors in the space. MoneyLion's growth rates and profitability metrics will be closely watched against these peers.
- MoneyLion's focus on a broad ecosystem of products and services is similar to companies like PayPal and Square, which aim to provide a comprehensive suite of financial tools to their users.
Stakeholder Impact
- Shareholders will likely view the results positively due to the strong financial performance and raised guidance.
- Employees may be encouraged by the company's growth and profitability.
- Customers should benefit from the continued development of MoneyLion's products and services.
- Partners and suppliers may see increased opportunities for collaboration with a growing company.
Next Steps
- MoneyLion will host a conference call and webcast to discuss the Q2 2024 results.
- The company will continue to focus on its ecosystem approach and growth in the next two quarters.
- MoneyLion will work towards achieving its raised full-year 2024 guidance.
Key Dates
- January 14, 2020: Original Account Servicing Agreement date.
- August 2, 2024: Date of the Third Amendment to Account Servicing Agreement.
- August 6, 2024: Date of the press release announcing Q2 2024 financial results.
Keywords
financial technology, consumer finance, digital ecosystem, revenue, EBITDA, net income, customer growth, financial guidance, originations, fintech
ML
Moneylion INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
3 April 2025 8:41 AM
Shareholder Communication
- The offer represents a premium of up to 80% over MoneyLion's 60-day VWAP, indicating a better outcome for shareholders compared to the company's standalone prospects.
Capital raise
5 March 2025 9:43 PM
Merger Announcement
- Gen Digital intends to fund the cash portion of the merger consideration using a combination of cash on hand and proceeds from an anticipated incremental $750 million term loan B facility.
Better than expected
25 February 2025 8:31 AM
Annual Results
- The company's net income of $9.1 million in 2024 is better than the net loss of $45.2 million in 2023.
- The company's total revenue increased by 28.9% year-over-year.
- The company's customer base grew significantly to 20.4 million.
Better than expected
25 February 2025 7:40 AM
Earnings Release
- MoneyLion's net income of $9 million is better than the net loss of $45.2 million in the previous year.
- The adjusted EBITDA of $92 million is better than the $46.4 million in the previous year.
- The revenue of $546 million is better than the $423.4 million in the previous year.
Better than expected
26 December 2024 6:12 AM
Form 425 Filing
- MoneyLion's growth and profitability improvements exceeded expectations, leading to the acquisition by Gen Digital.
Capital raise
10 December 2024 1:36 PM
Merger Announcement
- The document mentions the issuance of contingent value rights by Gen Digital in connection with the proposed transaction.
- These contingent value rights may involve the issuance of shares of Gen Digital's common stock, potentially diluting existing shareholders.
Better than expected
25 November 2024 5:30 PM
Debt Refinancing Announcement
- The refinancing significantly lowers the cost of capital and extends the debt maturity, which are both positive outcomes.
Better than expected
25 November 2024 5:29 PM
Debt Refinancing Announcement
- The refinancing significantly lowers the cost of capital and extends the debt maturity, which are both positive outcomes.
Worse than expected
7 November 2024 9:31 AM
Quarterly Report
- The company reported a net loss of $2.79 million for the quarter, which is worse than the previous quarter and indicates that the company is not yet profitable.
Better than expected
7 November 2024 7:35 AM
Quarterly Report
- The company's revenue, adjusted EBITDA, and customer growth all exceeded expectations.
- MoneyLion raised its full-year guidance for both revenue and adjusted EBITDA, indicating better-than-expected performance.
- The company achieved a net income before income taxes of $0.5 million, a significant improvement from a loss in the same quarter of the previous year.
Better than expected
6 August 2024 9:26 AM
Quarterly Report
- The company's net income improved significantly from a loss to a profit.
- The company's revenue growth was strong, exceeding expectations.
- The company's adjusted EBITDA improved substantially year-over-year.
Better than expected
6 August 2024 7:35 AM
Quarterly Report
- MoneyLion's Q2 2024 results exceeded expectations with record revenue, a return to profitability, and significant growth in key metrics.
- The company also raised its full-year guidance, indicating confidence in continued strong performance.
Better than expected
16 May 2024 7:30 AM
Legal Update
- The dismissal of the lawsuit is a better outcome than expected, as it removes a legal challenge and potential financial burden for the company.
Better than expected
7 May 2024 9:12 AM
Quarterly Report
- The company reported a net income of $7.1 million compared to a net loss of $9.2 million in the same period last year.
- The company's Adjusted EBITDA improved substantially to $23.5 million compared to $7.3 million in the same quarter last year.
- The company's total revenue increased by 29.2% year-over-year.
Better than expected
7 May 2024 7:32 AM
Quarterly Report
- MoneyLion's Q1 2024 results exceeded the high end of their guidance range across all metrics.
- The company achieved record revenue, net income, and adjusted EBITDA, indicating better than expected performance.
Better than expected
29 April 2024 4:15 PM
Proxy Statement
- MoneyLion's revenue of $423 million in 2023 represents a 24% year-over-year increase, indicating better than expected growth.
- The company's customer base more than doubled, reaching approximately 14 million by the end of 2023, suggesting better than expected customer acquisition.
Better than expected
7 March 2024 7:31 AM
Quarterly Report
- The company's full-year revenue, gross profit, and adjusted EBITDA exceeded expectations.
- Management is projecting the first positive GAAP EPS quarter in 2024, which is better than previous performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.