MoneyLion Inc. (NYSE:ML) Q4 2022 Earnings Call Transcript

Rick Correia: Yes. So, I think if you look at what’s been kind of driving the expansion, you have to really point to that recurring revenue profile of the business. And whether you look at the consumer side or the enterprise side, now when you have that recurring revenue profile it increases the performance across all the revenue metrics. You can increase banking transactions, increase fee transactions, you get operating leverage in your expense base, Dee talked about marketing, you will just see kind of our low provisioning; and so all of that allows us to kind of drive that that EBITDA margin expansion. And when you also look at that growing returning user base combined with the largest overall customer base that we have, it allows us to really retarget them and realize more and more first and third party products, which then kind of perpetuates that overall virtuous revenue cycle and extends lifetime value.

That of course all drops to our bottom line kind of given our unit economic profile. So we feel really good about being EBITDA positive this year and realizing kind of quarterly EBITDA positive in 2023. And so I think that’s a unique position for us to be in, which not only kind of positions us uniquely in the space, but also kind of gives us more than adequate runways we get to profitability this year.

George Sutton: Could we answer that question a little more on a quantitative basis in terms of flow through margins, you would be targeting an ultimate EBITDA margins you would anticipate?

Rick Correia: Yes. We’re not guiding to actual EBITDA margins. I think if you see that, that from an incremental margin taking things down like our net interest expense, you’ll see that we made a pay down of one of our warehouse facilities is a use of cash, which allows us to kind of reduce our interest expense that came from excess cash in the facility as well as kind of bringing down our marketing expense.

George Sutton: Nice job, guys.

Operator: Thank you. We reached the end of our question-and-answer session. And ladies and gentlemen, that does conclude today’s teleconference and webcast. You may disconnect your lives at this time and have a wonderful day. We thank you for your participation today.