What happened
Shares of MoneyLion (ML 3.34%) traded as much as 18% higher earlier this morning after the financial content and services company reported earnings results for the second quarter of the year.
However, the stock then gave up most of those gains and was trading nearly 3% lower as of 11:34 a.m. ET today.
So what
MoneyLion reported a net loss of more than $23 million in the quarter on total revenue of $87.3 million. Both earnings and revenue beat estimates.
"In the second quarter, we continued to execute on our efficient growth strategy," Dee Choubey, co-founder and CEO of MoneyLion, said in a statement.
Choubey added, "We delivered our sixth consecutive quarter of triple-digit Adjusted Revenue growth, while further improving our Adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] margin."
In the quarter, MoneyLion added a record roughly 950,000 new customers and reached 4.9 million customers total. Total loan originations also grew 8% in the quarter to $439 million.
Furthermore, the company raised its full-year guidance and now projects adjusted revenue of $330 million to $340 million and adjusted EBITDA of minus $55 million to minus $65 million. However, it projects to exit the year with break-even adjusted EBITDA.
Now what
With a market cap of $550 million, the fintech company trades very cheaply on revenue, but investors still seem to be looking for more progress in regard to its profitability and margins.
I've never thought that MoneyLion had a great business model or product suite, but the company did just grow its member base by a record number and continues to move its financials in the right direction. If it keeps doing what it's doing, then it may start to build more of an investor base.
