Mogo Finance Technology Inc. (TSX:MOGO) is a Canadian financial technology company. Shares of Mogo were down 6.71% in early afternoon trading on May 8. The company released its first-quarter results for 2018 before trading opened today.
Mogo reported record quarterly revenue of $14.3 million which represented year-over-year growth of 27%. Subscription and services revenue surged 110% to $5 million with impressive growth in recurring subscription revenue and MogoProject demonstrating early success. Gross profit jumped 26% to $9.4 million and adjusted EBITDA rose 18% to $0.3 million. Adjusted net loss was $4.9 million compared to $3.8 million a year ago.
Mogo added 60,000 net new members in the first quarter, which represented a 53% increase year over year. The company also launched MogoCrypto, which enables members to buy and sell bitcoin on mobile devices. Bitcoin bounced back to some degree and is currently trading above $9,000 after dropping below $7,000 in mid-April.
The company has extended its collaboration with Postmedia Network for its advertising for the calendar year 2019 and 2020. In spite of some encouraging results, Mogo stock has been in freefall since peaking in late 2017. Its foray into cryptocurrencies may have been ill-timed in the short term but could pay off for the young company going forward.
Fintech companies like Mogo have grown exponentially in recent years and are projected to present a very real challenge to larger financial institutions going forward. It will be worth monitoring Mogo’s growth into the next decade.
