With our data advantage, we are now creating really interesting tools that are advanced, that are using machine learning, that are using some of the advancements to pinpoint the exact consumer some of these financial institutions want. And that really just drives the multiplier effect on both sides, the more supply you have, the more demand that comes. The more demand you have, the more revenue per lead you can give to your publishers and your suppliers. And that’s our pipeline is really good. We’re going to continue investing in sales and partner solutions, as we’ve said in the past, in 2024. And I think a combination of that continues to give us a tailwind in the total inquiries increasing in 2024.
Josh Siegler: Got it. That’s really helpful colored and thank you. And then I also wanted to focus on the other side of things, which is just increasing lifetime value of those customers. We saw a really strong expansion of the 2022 cohort. How are you focused on cross selling and upselling on the 2023 cohort moving forward?
Richard Correia: Hey, Josh, I appreciate the question. So when you look at our focus for 2024 and those kind of growth pillars, that relentless focus on funnel optimization, one of the components of that, in addition to, of course, what Dee just talked about in terms of expanding the top of funnel, is really looking at kind of the middle and kind of lower end of that funnel. So from the middle of the funnel, our AI-driven conversion continues to improve quarter-over-quarter. And so matching customers with the right product is something we’re just getting better and better at. And it’s what’s making us such a big participant within the kind of marketplace space across all of financial services. But then when we look at the bottom of the funnel, what you’ve highlighted is exactly another area that we’re focused on.
2022 is the proof point that our ability to kind of land and expand is working. And so our ability to kind of take that marketplace technology and use it to cross-sell that second and third derivative product has a couple impacts. So of course, it has an impact on our LTV, but it also has an impact on ARPU. And so the game we were playing in terms of letting ARPU kind of drift down to expand basically the number of customers coming into the ecosystem, was because we have such confidence to be able to kind of cross-sell that again, that second and third product. And in some cases, those are kind of products that have 30%, 40% margins, and in other cases, those are products that have 70% to 90% margins. And so it’s an important part of our overall strategy, and it’s a high priority and focus area for MoneyLion in 2024.
Josh Siegler: Thanks, Rick. I appreciate it and congrats again on the results, guys.
Richard Correia: Yes, thanks, Josh.
Diwakar Choubey: Thanks, Josh.
Operator: Our next question comes from Jacob Stephan from Lake Street Capital Markets. Please proceed.
Jacob Stephan: Yes, good morning, guys. Congrats on the results and strong guidance here. May be just kind of looking at capital allocation priorities as your model continues to scale, you’re throwing off incremental free cash flow. Obviously, you paid down debt in the quarter, but how can we think about kind of the mix of debt reduction, leverage reduction to overall kind of reinvesting back into the business?
Diwakar Choubey: Hey, first of all, welcome. And Jacob we kind of appreciate you picking up coverage. In terms of your question, I think in 2023, you saw us pay down about $25 million of senior debt. We don’t have another payment due until 2026. We believe, actually the best use of our cash right now is to continue focusing on kind of scaling and growing our business. It’s why you’ll see from a revenue perspective, we’ve guided to accelerating our revenue growth. In Q4 2023, we had a kind of a 19% year-over-year growth in revenue, and we’re guiding to something in the zip code of over 24% year-over-year growth. So that’s where we’re focusing from a capital allocation perspective. To dig into the specifics which we just touched upon, it’s about funnel optimization at every level.
It’s about the top of the funnel with more distribution and more channel partners. It’s about the AI-driven conversions and matching with the right product and it’s about cross-selling the second and third derivative product. That’s where we’re going to put our cash and we’re able to do it with efficiency. We’re able to do it while continuing to focus on our rule of 40. So again, driving growth alongside EBITDA margins in the 13% to 15% range, which is what we’ve guided for the first quarter, puts us in that kind of rule of 40 in the 36% to 41% zip code. I think if you comped us against others in the space, it’s pretty remarkable. And so that’s where you’re going to see us continuing to focus as we generate and spin up more cash, given the efficiency of our business today.
Jacob Stephan: Okay, got it. And maybe just one more on the MoneyLion WOW. Maybe you could kind of talk about conversion rate, non-premium subs to kind of premium subs. What has that uptake been like? Could you kind of quantify the user base on the premium platform?
Richard Correia: So, Jacob, I think there are a couple of strategies to growing our MoneyLion WOW subscription over time, and we’re taking a little bit of a phased approach. We’ve been providing bundles and subscriptions since 2016 and we were one of the first really to kind of put it all together in one seamless application. So right now, the first phase is really to have MoneyLion WOW as an upgrade and as a cross-sell journey in the existing funnels. As I said before, 80% of our consumer revenue comes from prior cohorts. So these are really loyal, really sticky, really recurring customers to begin with. And we’ll be really offering them the upgrade to the MoneyLion WOW membership. As we continue over the next few months to add more partners, more capabilities, more cash back, we’ve got a metal debit card coming out that we’re excited about.
