Fintech MoneyLion (NYSE: ML) Reports Growth In Q2 2023 Earnings, Surpasses Guidance Fueled By Combined Consumer & Enterprise Ecosystem

MoneyLion ML is a leader in financial technology and embedded finance that has received multiple awards for its services, including the 2019 Fintech Award For Innovation In Personal Finance from Benzinga. The company offers multiple AI-powered consumer services including digital banking, cash advances, automated investing, credit-building loans, budgeting and financial tracking and rewards. It also offers enterprise marketplace solutions and boasts a network of more than 1,000 enterprise partners.

The company recently announced its Q2 financial results for 2023, showcasing robust performance across both enterprise and consumer segments. Below are the essential details.

Financial Performance 

MoneyLion reported record revenue of $107m, a significant increase of 22% year-over-year. The revenue exceeded guidance of $95m -$100m, reflecting strong growth in its core business segments.

The second quarter gross profit margin was 59%, surpassing the expected range of 54-58%. Additionally, the company posted an adjusted EBITDA of $9 million, marking the second consecutive quarter of positive performance and exceeding the projected guidance of $1 million to $8 million. Both achievements reflect advantages in the consumer and enterprise ecosystems.

“Revenue, gross profit margin, and Adjusted EBITDA all exceeded the high end of our guidance. For the third quarter of 2023, we expect revenue of $110 to $115 million, gross profit margin of 55% to 60% and Adjusted EBITDA of $6 to $10 million,” said Rick Correia, MoneyLion’s Chief Financial Officer.

Customer and Product Growth

The company reported 10 million total customers, with a record addition of two million in the second quarter, reflecting 114% growth year-over-year. Alongside this, the company's total products expanded by 71% year-over-year, showcasing MoneyLion's capacity to connect more customers with suitable financial solutions.

Future Outlook

MoneyLion's co-founder and CEO, Dee Choubey, emphasized the solid diversification of products and anticipates continued growth throughout the year.

He stated, “Performance in the second quarter was driven by product diversification and margin expansion in our Enterprise marketplace business and continued momentum and robust credit performance in our Consumer business. With this platform strength, a robust balance sheet and our pipeline of innovative product releases and features, MoneyLion is poised to build on its momentum of scaling profitably.”

MoneyLion: Growing Revenues In A Fast-Growing Market 

MoneyLion operates in a growth market – according to Allied Market Research, the global embedded finance market was worth $66.8 billion in 2022, and it is expected to grow at a compound annual growth rate (CAGR) of 25.4% between 2023 and 2032 to reach a value of $622.9 billion in 2032. 

The rising trend of digital transformation in several sectors including finance is a key factor driving the market’s growth. Embedded finance is revolutionizing the way financial services are delivered and consumed, and MoneyLion seems well-placed to continue to be a part of the growth of this sector. 

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