MoneyLion Inc.

Moneyline's innovative financial literacy initiative aimed at filling the gap in money education across the United States. MLU will provide a compelling curriculum centered around real-world money education and skills to Moneyline customers, delivered via long-form and short-form videos covering topics such as budgeting, building credit, investing, and understanding financial inequities. We also launched a docuseries, Money Like a Girl, that follows women who turn their passions into careers. Our ownership of a content studio truly gives us differentiated customer acquisition and retention capabilities. And finally, in November, we established a multi-year marketing partnership that makes Moneyline the official money app of the NBA's G League Ignite. This partnership represents our commitment to owning the culture of money, putting Moneyline at the center of people betting on themselves. These are just a handful of examples of how we are differentiating our value proposition with consumers through our engaging and personalized content. We continue to see our investments in content and culture translate into higher levels of engagement through our consumer ecosystem, including our mobile app, our website, and all of our social media properties and shows. As we noted last quarter, we saw a strong increase in day zero customer engagement driven by the expansion of our content feed. We saw three times increase quarter over quarter in overall engagement across our platform, illustrating the growing stickiness of our platform. All of this content is available throughout Moneyline's consumer ecosystem and very soon will be available to a lot of our enterprise clients as well to enrich their own customer acquisition retention and marketing strategies. So what does all of this add up to? It means Moneyline is becoming what we set out to build, the daily destination for all things money as we continue to add creators, product partners, engaging content, and overlay contextual data to personalize the content each of our customers experiences. We added 780,000 new customers in Q3 and end of the quarter with 5.4 million total customers. representing over 100% year-over-year growth. As a reminder, we had just 1.4 million customers at the end of 2020, illustrating an incredible accomplishment of how much we have scaled to date. Turning to key operating metrics by the end of Q3, 11.3 million total products were consumed on our platform, an incremental 1.2 million compared to Q2. Total originations were 446 million in Q3, up 63% year over year. Taking a closer look at our credit quality, our provision as a percentage of originations in the third quarter was 5.3%, down from 5.4% in Q2, and within our target range, reflecting our focus on high quality customers. Consistent with our focus on profitability, we targeted flat quarter over quarter origination levels. We have increasingly prioritized profitability over growth across our business as we adjust to the macro climate. It's important to note that new customers tend to underperform returning customers, and we're fortunate to have a highly recurring customer base to continue to grow revenues efficiently. Rick will discuss this point more later. Our ability to consistently manage credit performance is a reflection of our incredibly talented team with nearly 10 years of expertise and experience navigating different economic environments. This expertise relies on our vast analytics and artificial intelligence capabilities that allow us to make near real-time operational decisions to react to changes in economic circumstances at both the consumer and the macro level. We will continue to take a conservative approach towards the direction of the economy in order to optimize credit performance and continue to drive operating leverage. In our enterprise business, we use our software platform to connect and match consumers with real-time personalized financial product recommendations from banks, insurance, and fintech companies on mobile apps and websites by enabling the display of offers for financial products to consumers. This extensive network covers a breadth of products including loans, credit cards, mortgages, savings, and insurance products, and distribution channels comprising high intent customers. Our infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, bridging financial institutions referred to as product partners and new sites or content publishers referred to as channel partners via our API and embedded finance marketplaces. Our unique combination of content, data, and product marketplace drives self-reinforcing benefits. I'll briefly touch on each of these now. First, our large top of funnel has been a consistent driver of both our efficient customer acquisition strategy and our data advantage. We saw over 28 million consumer inquiries in Q3, bolstering our ability to offer personalized offerings and content. Second, our data advantage is fueled by our large top of the funnel. Approximately 32 million user profiles have passed through our platform to date. benefits from the vast amount of contextual data that we see compounds over time, allowing us to drive better outcomes for our customers. Third, our extensive suite of products bolstered by our network of over 1,000 enterprise partners gives us a broader set of solutions to better match customers with the best products for them. Collectively, this creates a virtuous cycle of customer acquisition, personalization, monetization, and retention that only becomes more valuable with scale. We've been talking about our powerful business model for a while now, but now we can proudly say that our results in 2022 have demonstrated the flywheel in action. With a consistently low CAC, a compounding data strategy, and an expanding network of enterprise partners, we're able to both drive better outcomes for our customers and scale our business efficiently. With that, I'd like to pass it over to our CFO, Rick Correa for a financial update.

Thanks, Steve. Good morning to everyone. I look forward to sharing details about our record financial performance and unit economics driven by our key metrics that Dee presented. As we are going through the financials, please note that unless otherwise stated, I will be referring to adjusted results and all quarterly period references referred to the third quarter of 2022 versus the third quarter of 2021. Our GAAP consolidated financial statements and non-GAAP reconciliations are available in today's earnings release and our 10Q filings. As a reminder, in Q1 2022, we realigned our financials to better reflect our consumer and enterprise businesses and KPIs. Let's take a deeper look at these two businesses in terms of their respective revenue streams. Our consumer business generates revenue from four broad categories. Instacash. This is our popular earned wage access product, which generates revenues in the form of instant transfer convenience fees and tips. RoarMoney. This is our first-party banking product. Roar Money generates revenues in the form of interchange, payment network, and cardholder fees. Investing. We offer our customers the ability to invest in managed investment accounts and crypto. These offerings include auto investing, roundups, and rewards functionality to help our customers develop healthy investing habits. We generate rev share on crypto transactions and a monthly per account fee on investment accounts. Credit Builder Plus. This is our membership product, which has helped many of our customers increase their credit scores and improve their financial lives. Revenues from this product comprise membership fees and interest income. Our enterprise business revenue includes affiliate fees. We work with various affiliate partners that provide third-party products on our marketplace in our consumer app. We earn performance-based revenue based on a range of criteria such as a completed transaction or a share of revenue generated by the affiliate partner. Similarly, our enterprise market business earns performance-based revenue through our network outside of the app. Enterprise SaaS. Moneyline also earns revenue from SaaS contracts for providing infrastructure to our enterprise accounts for connecting product partners to channel partners. Advertising Fees. Additionally, given our deep understanding of customers' interest in transactions, we are able to offer our customers targeted content and offers that generate advertising fees. And lastly, our media division generates revenue from providing content and production services to creators, influencers, and corporate clients, or what we sometimes refer to as content as a service. In Q3, our revenue mix remained relatively stable with the second quarter at about 40% enterprise and 60% consumer. The deceleration in our mix shifting towards our 50-50 steady state revenue split expectation was a result of the weakness in enterprise product partners' ad spend impacting our marketplace business. While we continue to expect our mix to move towards 50-50 consumer enterprise over time, the timing has become less certain in the current environment. That said, given our focus on improving our offering and adding additional product and channel partners during periods of softness in the industry, we are positioning ourselves for an outsized rebound in demand for our enterprise offering as the market returns to a more normalized state. Our unit economics showed continued strength in the third quarter. Our POO was $68 in Q3, slightly lower from last quarter as we continue to scale our user base at a significant pace. This lower ARPU represents a growing mix of new customers, which historically reach higher ARPU levels as they mature. We saw another great quarter for customer acquisition costs with a fully loaded CAC of $8. As we continue to see industry forces pressure higher CAC from many of our peers, our low cost advantage fuels our ability to acquire more customers for less over time. As we look forward, We expect to maintain attractive unit economics regardless of the macro climate. I'd also like to take a moment to discuss the realignment of our total customers metric, given the integration of the marketplace business. Previously, total customers included a relatively small cohort of marketplace customers that submitted for or clicked on an offer, but were not necessarily monetized, which we changed beginning this quarter in order to more accurately align with management's view of our customers. The total customers for all prior periods have been recast to present the updated definition of total customers. Our corresponding change has also been reflected in total products. Turning to retention, another continued great story for us where we continue to see constructive trends across our business. As you can see, our adjusted revenue retention for historical cohorts in both our consumer and enterprise businesses has remained robust despite the more challenging macro backdrop. Notably, our adjusted revenue retention in Q3 2022 was positive across all 2021, 2020, 2019, and pre-2019 enterprise customer cohorts. This speaks to the stickiness of our marketplace offerings. Altogether, these retention trends are differentiated in the industry and are an indicator that gives us confidence in our ability to drive recurring revenue across any economic cycle. Despite the softer than expected top line revenues in our enterprise business, we again delivered an improvement in adjusted EBITDA on the third quarter. We saw a $14 million adjusted EBITDA loss in Q3, in line with our guidance range and about a $4 million improvement over Q2 2022. As we reduced our cash burn rate, we ended the third quarter with $189 million in cash, which provides more than adequate runway through profitability and future growth. We are continuing to make progress towards reaching profitability and realizing acquisition synergies. Continuing these efforts, we are actioning over $15 million in annualized run rate fixed cost savings in Q4 2022. Adjusted revenue for the quarter grew 103% year-over-year to $85 million, another record quarter for us and our seventh consecutive quarter with 100% plus year-over-year growth. While we continue to scale our business, we are taking a more deliberate focus on reaching profitability. We are revising our full year 2022 adjusted revenue guidance to $320 to $330 million, reflecting the ongoing weakness in ad spend that is impacting our enterprise business. In Q3 2022, we generated $49 million of adjusted gross profit representing about a 58% gross margin and within our previously guided range of 55% to 60%. We continue to expect our gross margins to return to the 60% to 65% range over the medium term as we realize synergies in our consumer business with more product offerings, scale our enterprise SaaS business, and prioritize high-quality enterprise customers. As mentioned, macroeconomic conditions have led to an increase in consumer demand for financial products, as well as a reduction in advertising spend across the industry in which our enterprise customers operate. As a result, we were revising our full year 2022 guidance and removing the timing of our adjusted EBITDA breakeven target. We now expect full year 2022 adjusted revenue of $320 to $330 million and adjusted EBITDA loss of $70 to $65 million. As mentioned, we are reducing our annualized fixed costs by 15 million this quarter, which, along with our strong balance sheet, provides adequate runway well beyond the point at which we reach near-term profitability. Overall, our business continues to drive towards profitability without sacrificing growth. We're uniquely positioned and committed to continue making progress towards both profitability in the near term while scaling the business for the long term. With that, I'll turn it over back to Dee for closing remarks.

Thanks, Rick. 2022 has been a challenging year for our customers, our peers in the industry, and for market participants broadly. Nevertheless, we remain incredibly excited about what we are building, and we are confident in our ability to navigate through economic cycles. Industry-wide macroeconomic conditions have impacted areas of our business, no doubt. But we have taken important steps to optimize our cost structure, to keep scaling our business, while progressing each quarter towards our path to profitability. Our fundamental performance remains incredibly strong, with Q3 marking yet another quarter of triple-digit top-line growth and adjusted EBITDA improvement. Looking ahead, we're confident that we will come out the other side of this economic cycle in an even better position. We will continue to focus on what we can control while building on our powerful two-sided marketplace underpinned by our content data, and marketplace assets that continue to redefine how consumers think about and consume money-related products. Thank you very much for joining us today, and we look forward to taking your questions.