The following is a summary of the Mogo Inc (MOGO) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Mogo raised its 2024 EBITDA guidance and introduced EBITDA guidance for 2025, indicating a 69% growth at the midpoint.

• For the first time, Mogo expects to report positive adjusted net income in 2025.

• Subscription and services revenue increased by 12% year-over-year, driven by growth in the payments business and the wealth segment.

• Adjusted EBITDA for the quarter was $2.1 million, maintaining a 12% margin, showing stable profitability.

• Year-over-year growth was observed across all primary business lines, including wealth, payments, and lending, alongside significant improvements in cash flow and profitability metrics.

• Adjusted cash flow from operations reached a record $4.8 million in Q3, up 85% from the previous year.

Business Progress:

• Mogo has made significant technology investments, particularly in the Carta tech platform, expected to complete by Q1 of 2025, enhancing long-term prospects.

• The ongoing development of Mogo's wealth platform was highlighted, presenting a unique value proposition in a market dominated by traditional banks.

• Mogo has integrated AI into its investing app through a partnership with FinChat.io, enhancing the app's capabilities with up-to-date company information and analytics.

Opportunities:

• Mogo sees a huge opportunity in disrupting the Canadian wealth management industry, traditionally dominated by major banks, by addressing the inefficiencies in mutual funds and self-directed investing apps.

• The new wealth platform is designed not only for performance but also to empower investors with the right knowledge and tools for intelligent investing, at a disruptive price point of $15 per month.

Risks:

• The new rate cap effective January lowers the maximum APR from 47% to 34%, impacting the revenue from Mogo's lending services.

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