MoneyLion Inc. (NYSE:ML) Q1 2024 Earnings Call Transcript

When they take a third-party product, it’s around a 30% product margin. When we cross-sell later, we are able to have a 90% product margin with those customers going through that journey. We call it our 30%, 60%, 90% strategy. And so, while, yes, we are seeing muted conversions on the lending side, on the non-lending side, we’ve been able to increase the percentage of our product consumption within non-lending, within the marketplace. And overall we’re seeing margin expansion because we are able to successfully take that customer through the 30%, 60%, 90% journey. And we’re going to continue to see that as we focus on investing in kind of marketing and helping our customers get into the right second and third product with us going forward.

Jacob Stephan: Got it. Okay, that’s helpful. And then just maybe touching on guidance a little bit here. EBITDA margin guidance implies a sequential step down, something we haven’t seen for a while here. But maybe I was just looking for some additional kind of comments on why we are, all of a sudden, like sequential down in EBITDA margins?

Rick Correia: Yeah, I think I would just clarify. In fact, you’re seeing us really consistent, guidance for the first quarter was 13% to 15% of EBITDA margin, which is extremely strong in terms of — you think about us, where we are in our lifecycle, as company. We talked about medium-term targets in the 20% to 30% range. The Q2 guidance was right in line with that. In fact, it was slightly higher at 13.1% to 16%, so higher midpoint. As I talked about, we did see a little bit of seasonality, give us some lift in Q1 in terms of EBITDA margin at 19.4%. Kind of given the macro, given everything that’s happening within the space, we’re really confident we’re going to be consistent in terms of our really strong EBITDA margin at 13% to 16%.

Jacob Stephan: Okay. Got it. Thanks, guys. Good luck going forward here.

Operator: Thank you. We have reached the end of our question-and-answer session. And with that, I would like to bring the call to a close. We appreciate your participation. You may disconnect at this time. Enjoy the rest of your day.