Mogo Inc. (NASDAQ:MOGO) Q1 2022 Results Conference Call May 12, 2022 3:00 PM ET

Company Participants

Craig Armitage - IR

David Feller - Founder, CEO & Chairman

Greg Feller - President, CFO & Director

Conference Call Participants

Adhir Kadve - Eight Capital

Scott Buck - H.C. Wainwright

Operator

Ladies and gentlemen, thank you for standing by for the Mogo Q1 2022 Earnings Call.

I will now introduce Mr. Craig Armitage of Investor Relations. Please go ahead, sir.

Craig Armitage

Thank you, Solve. Good afternoon and thanks for joining us today. Just like a couple of quick notes before we get started.

First, today's call will contain forward-looking statements that are based on current assumptions and subject to risks and uncertainties that could cause actual results to differ materially from those projected. The Company undertakes no obligation update these statements, except as required by law. Information about these risks and uncertainties are included in the Company's annual information form as well as periodic filings with regulators in Canada and the U.S., which you can find on SEDAR, EDGAR and the Company website.

Second, today's discussion will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not as a substitute for IFRS measures, and you can find reconciliations in the filings for those measures. And lastly, the amounts today are discussed in Canadian dollars, unless we indicate otherwise. As with most quarters, we do have slides to accompany the today's call. You can find these on the webcast page and on the website under presentation.

With that, I'll turn it over to David Feller gets started. Dave?

David Feller

Great. Thanks Craig. Good afternoon and welcome to Mogo's first quarter 2022 results call. I'm joined today by Greg Feller, our President and CFO. Obviously we're clearly in one of the most challenging environments we've seen in a while. And one of the things this market is showcasing is how different certain fintechs are in terms of revenue stability and composition. With some of our peers seeing revenue fall of over 40% within a few quarters, having a diversified business model is more important than ever.

We saw this strength in Q1 with member growth up 62% revenue growth, up 50% year-over-year, and record gross profit of over $12 million. It's important to note that this was also driven by the revenue base of our existing products, which is 95% recurring revenue. While existing business model is strong given the current environment like all companies, we're taking a hard look at where we are investing and ensuring that these are areas that will give us a solid ROI with near-term impact.