MoneyLion (NYSE: ML), a neobank that offers a diverse portfolio of financial services to consumers, reported Q1 earnings this week deliving a solid increase on the top line but flat GAAP net income results.
First quarter 2023 revenues increased 34% to $93.7 million in comparison to the first quarter of 2022. Adjusted Revenue increased 34% as well to $89.0 million compared to same period year prior.
MoneyLion recorded a net loss of $9.2 million for the first quarter of 2023 versus a net loss of $10.0 million in the first quarter of 2022.
Adjusted EBITDA was $7.3 million for the first quarter of 2023 versus ($24.8) million in the first quarter of 2022, when adjusted for certain non-operating costs.
Dee Choubey, MoneyLion’s co-founder and Chief Executive Officer, said he was proud of the performance during the quarter, which highlights their progress towards profitability.
“Our Consumer business exceeded our expectations, demonstrating the incredible value of our products to our customers. We continue to leverage our platform of capabilities to drive low customer acquisition costs and our advanced AI and technology to manage risk, driving exceptionally strong credit performance. Our expansion into high-value third-party product verticals, including high-yield savings, CDs, safe driver tracking, and health, has significantly broadened our reach and bolstered our network of over 1,000 Enterprise Partners.”
Total Customers grew 102% year-over-year to 7.8 million for the first quarter of 2023.
MoneyLion provided Q2 2023 guidance as follows:
- Total revenues, net of approximately $95 to $100 million
- A gross profit margin of 54% to 58%
- Adjusted EBITDA of approximately $1 to $8 million
Choubey said despite the challenging economic climate, their business showed remarkable resilience. He said that going forward, they remain laser-focused on growth and profitability.