Mogo Finance Technology Inc. (TSX:MOGO)(NASDAQ:MOGO) stock rose 5.79% on August 9 ahead of the release of its second-quarter results. Shares are still down 24.6% in 2018 so far.
Mogo is a Vancouver-based fintech company that jumped into the cryptocurrency and blockchain sector at the turn of the year. This turned out to be poor timing as bitcoin and other cryptocurrencies suffered huge losses that have extended into the late summer.
In March, Mogo launched MogoCrypto which offers another platform to buy and sell bitcoin. It announced the formation of Mogo Blockchain in January in an effort to lease bitcoin mining machines.
These initiatives hurt Mogo’s stock in spite of relatively strong earnings in late 2017 and early 2018. Mogo released its second-quarter results on August 9.
The company reported record total revenue of $15.4 million which represented a 34% increase from the prior year. Subscription and services revenue surged 105% from the prior year and adjusted EBITDA soared 255% to $0.7 million. Gross profit climbed 29% to $9.9 million.
Mogo increased its members to 654,000 at the end of the second quarter which was a 49% increase from Q2 2017. It also began trading on the NASDAQ during this past quarter.
Mogo continues to post impressive numbers as this quarter was the fifth sequential quarter of accelerating core revenue growth. Its foray into crypto and blockchain did not pay off immediately but this ambitious strategy could still pay off in the long term.
Mogo remains an exciting opportunity for investors looking to dip into the rapidly-growing fintech sector.
