Mogo Inc. (NASDAQ:MOGO) Q3 2023 Results Conference Call November 9, 2023 3:00 PM ET

Company Participants

Craig Armitage - Investor Relations

Dave Feller - Chairman and CEO

Greg Feller - President and CFO

Conference Call Participants

Scott Buck - H.C. Wainwright

Adhir Kadve - Eight Capital

Operator

Good afternoon, ladies and gentlemen. And welcome to the Mogo Third Quarter 2023 Earnings Conference Call [Operator Instructions]. This call is being recorded on Thursday, November 9, 2023.

I would now like to turn the conference over to Craig Armitage. Please go ahead.

Craig Armitage

Thank you, Joanna, and good afternoon, everyone. Thanks for joining us today. Just a few notes before we get started. 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. Company undertakes no obligation to update these statements, except as required by law. Information about the risks and uncertainties are included in Mogo's Q3 filings as well as periodic filings with regulators in Canada and the United States, which you'll find on SEDAR, EDGAR and you can access through our Investor Relations Web site as well. Secondly, today's discussion will include several adjusted financial measures, non-IFRS measures. Please consider these as a supplement to and not as a substitute for the IFRS measures, and we've included reconciliations to those, which you will see in the press release and the investor deck.

And with that, I'll turn it over to Dave Feller to get us started. Go ahead, Dave.

Dave Feller

Thanks, Craig. Thank you. Good afternoon. And welcome to our third quarter 2023 results call. I'm joined today by Greg Feller, our President and CFO. Our third quarter results showcase the continued progress we're making in building a highly efficient and more profitable operating platform at Mogo, one that will allow us to scale more profitably over time, while also driving long term organic growth across our products. As you can see, we're continuing to make solid progress. Q3 revenue was $16.2 million, up from $16 million in Q2 of 2023. This is our second quarter in a row of sequential quarterly revenue growth, another solid quarter with continued improvement in adjusted EBITDA from a loss of $2.8 million last year to positive $2.1 million this quarter. Q3 gross profit increased $11.4 million to 70% margin compared to $10.8 million and 63% margin in Q3 of last year. We continue to be on a path towards our EBITDA target of $7 million to $9 million. Our progress goes beyond efficiencies as we're also seeing growth in our business, which we'll touch on. We continue to focus on both our Canadian consumer fintech business and our B2B international payments business. Over the last 18 months, we've successfully simplified and narrowed our focus and you can consider two main business segments, Mogo, which includes wealth and lending and Carta, our payments business, this runs completely independently with its own team resources.