Mogo Finance Technolgoy (TSX:MOGO)(NASDAQ:MOGO) is a Vancouver-based financial technology company. Its stock fell 6.75% on November 20. Shares have dropped 40.8% in 2018 so far.
Mogo finished very strong in 2017, as its link to cryptocurrency technology gave the stock a big boost in December. When the crypto bubble burst, Mogo’s stock struggled.
However, the stock performance in 2018 should not necessarily steer investors away. This is an interesting fintech company that has managed to grow its consumer base at a promising rate in the past several quarters.
The company released its third-quarter results on November 7. Total revenue rose 23% year-over-year to $15.4 million and subscription and services revenue climbed 111% and now represents 51% of total revenue. Mogo’s member base increased 45% from Q3 2017 to 711,000.
Adjusted EBITDA rose to $1 million and this represented Mogo’s ninth consecutive quarter of positive adjusted EBITDA.
By the end of the third quarter Mogo announced that it had launched its products in Nova Scotia and had expanded its MogoMortgage offering to customers in Manitoba, PEI, New Brunswick, and Newfoundland.
As far as technicals are concerned Mogo stock is not oversold but has managed to maintain a decent floor especially considering the bloodbath in the North American tech sector. Its RSI currently sits at 51.
Mogo has significantly reduced its debt from Q3 2017 and is on track to meet its outlook for the full year. It remains a solid target for long-term growth investors.
