In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Mogo Inc (NASDAQ:MOGO) reported a strong quarter with wealth revenue up 41% and payments revenue up 34%.
-
The company is maintaining positive adjusted EBITDA and a strong balance sheet.
-
Mogo Inc (NASDAQ:MOGO) is transitioning to an AI-native business model, which has already resulted in productivity gains of 10 to 20 times in certain areas.
-
The company has successfully integrated AI into its operations, with over 60% of customer support interactions now handled by AI agents.
-
Mogo Inc (NASDAQ:MOGO) has a solid cash position with cash and total investments of approximately $39 million.
Negative Points
-
Mogo Inc (NASDAQ:MOGO) has exited the Canadian market for its Carter payments business, which may impact future growth rates.
-
The company is taking a cautious approach to its lending business due to economic uncertainties, potentially limiting growth in this area.
-
Despite positive adjusted EBITDA, Mogo Inc (NASDAQ:MOGO) reported an adjusted net loss of $1.5 million for the quarter.
-
The investment portfolio, heavily weighted in crypto, is subject to market volatility, as seen with the recent fluctuations in the value of its stake in the Canadian crypto exchange.
-
The transition to an AI-native model is a phased approach and not an immediate switch, which may delay the realization of full benefits.
Q & A Highlights
Q: Growth in both wealth and payments was well above the full-year growth expectation during the first quarter. Are you expecting a slowdown in that growth for the remainder of the year, or was there something unique in the first quarter that caused this outperformance? A: Greg Feller, President and CFO: We are not changing our guidance for the year at this point. The payment side saw some increase due to exiting Canada, which will moderate growth in the next few quarters. We are taking a conservative approach due to market volatility and uncertainty, and will reassess as the year progresses.
Q: Have you seen any deterioration in the lending business so far this year? A: Greg Feller, President and CFO: No, we haven't seen any deterioration. We are monitoring the situation, especially with tariff negotiations and their potential impact on the Canadian economy. Our cautious approach allows us to wait and see how things develop before making any aggressive moves in lending.
Q: How do you balance the size and timing of AI investments with the desire to maintain profitability? Does accelerating these investments take priority over profitability in the near term? A: Greg Feller, President and CFO: Our goal is to stay EBITDA positive while making appropriate investments. AI investments drive efficiencies and have an ROI. We believe we can manage the right level of investment while maintaining positive EBITDA.