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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

Comment by prophetoffactzon Oct 31, 2023 10:12am
201 Views
Post# 35709073

RE:Press Release

RE:Press ReleaseNo longer in a zero interest rate world with all that free money to throw at development stage products MOGO has cut various products to focus on the products that clear a path to profitable growth. This has reduced some revenue. It expects a $10-$14 aEBITDA rate by the end of the year with only 2 months left in the year. From there it will focus on growth with its industry leading low cost platforms - the lowest cost platforms in the industry. It expects to be able to grow within cashflow. MOGO has been buying back shares as it completes its transition.

"Greg Feller, President & CFO. “With a solid balance sheet, five quarters of sequential increases in Adjusted EBITDA, improving cash flow and a seasoned management team, we are well positioned to withstand periods of market volatility. In addition, we believe the investments we have been making in our core wealth, payments and lending businesses put us on track to achieve our previously stated target of a combined Adjusted EBITDA margin and revenue growth rate of at least 40% in the second half of 2024.” news release


Viking2233 wrote: Sounds 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?



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