What happened
Shares of MoneyLion (ML 3.34%) traded nearly 18% lower as 12:40 p.m. ET today after the company reported earnings results for the fourth quarter of 2021. Since then, however, the stock has rebounded and had fully recouped all of those losses, trading roughly flat as of 2:10 p.m.
So what
MoneyLion reported a loss of $27.6 million, or a loss of about $0.12 per share on total revenue of nearly $55.6 million. Earnings missed analyst estimates, although revenue beat by roughly $7.7 million.
Image source: Getty Images.
For the year, MoneyLion reported revenue of more than $171 million and a loss of nearly $164.9 million. Total loan originations topped $1 billion, while total customers using the platform grew to 3.3 million.
Management is guiding for adjusted revenue of roughly $330 million this year and adjusted earnings before interest, taxes, depreciation, and amortization between negative $45 million and negative $50 million. MoneyLion also guided to finish 2022 with break-even adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Now what
MoneyLion has built an interesting financial platform that includes investing capabilities, insurance, mortgage, personal and student loans, and credit cards. It also offers personal finance insights and exclusive offers to its members.
But offering these kinds of financial services as a technology company can be expensive, which is reflected in the company's lack of profitability, something Wall Street isn't keen on right now.
Still, with the company trading at about 3.3 times revenue, growing pretty rapidly, and projecting to nearly double revenue in 2022, if MoneyLion can hit its guidance and get close to profitability, it definitely looks like the company could have upside from these levels.
