Press ReleaseSounds like management is running scared here. I hardly think company is in a financial position to spend valuable capital buying back shares.
The management team loves to draft fluffy news releases that are not material. Mr market has a different valuation on the company.
Management has a creative way of drafting news relases and only tells 1/2 the story.
Here are few examples from today:
Q2 revenue of $16.0 million, up from $15.9 million in Q1 2023 and down 7% over the prior year,
Big deal, up $100K but more import down 7% from 2022. How is a 7% decline in Revenue positive?
During 2023, Mogo continued to focus on cost efficiency and improving its cash flow. As a result of these initiatives, total operating expenses for Q2 2023 decreased by $8.1 million, or 38%, compared to Q2 2022.
Why have their operating margins improved from year to year from 68% to 75%, simple they cut operating costs by 38%. This is a blip, has they improved revenue to $11.9M from 11.3. The question is will this trend continue. I can see margins improving as it was one time event.
Net loss decreased to ($10.0) million in Q2 2023, compared with net loss of ($51.9) million in Q2 2022.
The key words to focus on is they lost $10M un Q2 of 2023. I believe a big part of tge $51M loss in 2022 was a right down on investment. Once again smoke & mirrors.
Mogo's digital payment solutions business, Carta Worldwide, processed over $2.5 billion of payments volume in Q2 2023, an increase of 51% compared to Q2 2022.
Sounds impressive but they lost $10M in Q2 2023. How come they have $10M loss if division
improved up 51%
The company lost $10M in Q2 2023 and they are buring through cash yet they bought back 500K in shares. Does that even make sense?