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Mogo Inc T.MOGO

Alternate Symbol(s):  MOGO

Mogo Inc. is a Canada-based digital finance company. The Company provides simple digital solutions to help them in building wealth and achieve financial freedom. Its trade app, MogoTrade, offers lowest cost way to invest while making a positive impact with every investment. The Company also offers digital loans and mortgages. Through its wholly owned subsidiary, Carta Worldwide, the Company also offer a digital payments platform that powers card programs for both established global corporations and fintech companies in Europe and Canada.


TSX:MOGO - Post by User

Bullboard Posts
Post by ilikeznon May 18, 2016 1:43am
166 Views
Post# 24883769

Canaccord comment - bullish

Canaccord comment - bullishTAKING OUT HIGH INTEREST LOANS THE COOL WAY. Financial technology company Mogo, reported in-line Q1 results on Tuesday which Canaccord Genuity Financials Analyst Scott Chan called relatively clean. The company reported total revenue of $12.7M, up 2% Q/Q and 39% Y/Y. Total expenses of $9.5M were a bit lower than Chan's estimate of $10.0M, reflecting better cost control and marketing savings from the marketing Postmedia agreement. Adj. EBITDA of -$1.0M versus the estimate at -$0.8M, was relatively in-line. As of Q1, long term loans represented 77% of gross loan receivables, compared to 45% last year. Chan believes this trend towards LT loans will continue near-term. Also, as of Q1, Mogo’s membership reached 204K, compared to ~76K memberships in Q4/14. This implies a growth rate of ~168% in just 16 months. Chan believes memberships are a good leading indicator for revenue growth. Looking ahead, the company is targeting to reach 1M members in three years. On the earnings call management discussed targets to achieve positive adj. EBITDA in Q4 through new product launches this year, providing higher revenue growth. Also cost savings from third-party marketing and cost controls from customer service and G&A. Mogo closed 8 stores in Q1 but those costs will be slightly offset by potential increases in technology spend to support upcoming new products. Overall, Chan believes Mogo shares are relatively attractive and remains bullish.
Bullboard Posts