MoneyLion Inc.

Greetings and welcome to the Money Lion second quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Sean Horgan, Head of Investor Relations for Money Lion. Thank you. You may begin.

Thank you, Operator. Good morning, everyone, and welcome to MoneyLion's second quarter 2023 earnings conference call. Joining me today to discuss our results are MoneyLion CEO, Dee Chaube, and CFO, Rick Correa. You can find the presentation accompanying our earnings release on our investor relations website, investors.moneylion.com. Please note that any forward-looking statements made in this commentary are subject to our safe harbor statement found in our SEC filings and in our earnings press release. Now I'll turn the call over to Dave.

Thank you, Sean. Good morning, and thank you all for joining us for our second quarter 2023 earnings presentation. I am pleased to share with you that Moneyline delivered yet another quarter of strong performance in Q2 23. This quarter, we reached additional important milestones in our path to profitability, and we saw the healthy operating markers we were looking for as we execute for growth and profitability for the long run. This performance is a reflection of our ecosystem advantage, which is driving tangible results compounding on the inherent flywheels embedded in our business model. We are incredibly proud of the team's execution and the progress we've made, which reflects our deeper mission and vision to help every consumer make their best financial decision. Now let's dive into the key takeaways for Q2 2023. The first item to highlight is that we achieved record revenue of $107 million in the quarter. We exceeded our quarterly revenue guidance of $95 million to $100 million. This represents 14% quarter over quarter growth and 22% year over year growth. Importantly, our consumer and enterprise businesses both achieved record quarterly revenue, reflecting the strength and scalability of our business model. The second takeaways are gross profit margin expansion. Gross profit margin was 59% up four points from 55% in Q1 2023. This exceeded the high end of our guidance of 54 to 58%. This margin expansion was driven by our combined consumer plus enterprise ecosystem advantage. The third takeaway to highlight, we generated record adjusted EBITDA of $9 million. This exceeded our guidance of 1 to 8 million in the quarter and represents 9% adjusted EBITDA margin. Q2 also marked our second consecutive quarter of positive adjusted EBITDA and more than a year of consistent quarterly improvement towards profitability, highlighting our acute focus on efficiency. We drove operating leverage across the board with reduced provision, marketing, and compensation expenses. And last but not least, we reached nearly 10 million total customers. We added a record 2.1 million total customers during the quarter, up from 1.3 million customer ads in Q1 23. This represented 26% quarter over quarter growth and 114% year over year growth. The growth in total customers is a testament to the increasing effectiveness of our marketplace customer acquisition channel. As you can see, our total customer growth has been over 100% year over year for almost every quarter since we became a public company in 2021. We've been increasing the strength of our ecosystem by leveraging customer acquisition across a diverse set of channels and providing personalized content, insights, widgets, and expanding product breadth. Importantly, we're adding customers more efficiently than ever. This is a result of the strategies we implemented a year ago in building an immersive and holistic experience. Turning to total products, over 17 million total products have been consumed in our platform through Q2 2023, with 39% representing third-party products, up from 32% in Q1 23. It is evident that third-party products are becoming an increasingly larger part of our overall product mix. This design trade-off is a planned part of our strategy. You'll see that our average products per customer has declined year over year. This is natural given the velocity of recent customer ads and represents meaningful future product cross-sell and monetization opportunities, leveraging the full spectrum of financial and non-financial offers. Our philosophy is simple. We aim to match customers with the right product, regardless of whether that's a first party product provided by us or a third party product from one of our enterprise partners. We aim to be the single most trusted source for customers to find the right product for their personal financial situation. This differentiates Moneyline from the other platforms that exclusively offer first party products. With each interaction, our data set gets better at predicting exactly the right next best action for the benefit of our entire customer base. Our strong execution is creating sustainable growth and profitability. Our total customer and total product growth trends are translating into attractive financial results marked by quarter over quarter healthy revenue growth, gross profit, and adjusted EBITDA margin expansion. Now we'll provide an update on our consumer and enterprise businesses and a new initiative that incorporates the power of our combined ecosystem. Starting with our consumer business, performance during the quarter was strong. We originated over $1 billion year to date in our liquidity and credit building products, demonstrating continued demand for our first party products. Our credit quality remained incredibly healthy with performance well within our target in the second quarter. As we've said before, our decade-long experience in building scaled payments technologies and managing identity and fraud issues positions us as an industry leader in effectively providing liquidity products to a large number of American consumers. We continuously manage risk effectively in the face of a dynamic economic environment. Our risk selection allows our consumer business to consistently demonstrate robust credit performance quarter over quarter, year after year. Our first party products are part of the important flywheels embedded in our business model. The Moneyline ecosystem is a platform with what we believe is an unmatched range of products and offers, giving consumers more options to make the right financial decisions. We also have a powerful content strategy, providing an engaging experience around all money and adjacent conversations. we're making learning about the right next financial move a less stressful proposition for hardworking families. Expect us to continue rapidly releasing products, content, insights that reinforce our mission of matching customers with the right product at the right time. Let me provide an update on our enterprise business, Moneyline's embedded finance platform. In the second quarter, our enterprise business achieved record revenue, growing over 30% quarter over quarter. This is an incredible accomplishment in the face of industry-wide headwinds. In our marketplace business, our consumer marketplace delivered meaningful high margin revenue during the quarter, which is a direct result of the benefits of cross-selling the right financial product from the marketplace to our consumers. This is a synergy of our combined ecosystems. In our enterprise marketplace, we continue to diversify our revenue mix with additional third-party products like high yield savings, special offers, and many more. Growth in these revenue streams accelerated this quarter, helping to offset the headwinds impacting some of the traditional lending products offered in our marketplace, with loans now representing a considerably lower mix of our enterprise revenue from a year ago. In our media business, we continue to reap the benefits of having in-house media and content capabilities with a team focused on scaling profitably while we build out the next phase of the media business. Having served 10 million customers to date with many more in our ecosystem, in addition to the 50 million quarterly customer inquiries added in the second quarter through our enterprise network, Moneyline sits on top of a treasure trove of valuable consumer intent and preference data. Our ability to apply machine learning across the ecosystem consistently leads to better outcomes for consumers and enterprise clients alike. So what's next? We're moving to deliver the value of Moneyline as a search-first experience. When we started 10 years ago in 2013, we were pioneers in applying artificial intelligence and machine learning to make financial products more accessible to more users. will use those same capabilities to fulfill the vision of becoming the interface layer providing guidance on the right financial product at the right time for all Americans. Generative AI search is a natural extension of what we believe Moneyline is best positioned to bring to market, building on top of the company's vast data lake. Just like machine learning technology has led to better outcomes, Generative AI technologies will change how consumers find and consume information and take action. Our bold vision is to be the first place all consumers go when they have a financial question or a need a financial product. Moneyline will be the first place all consumers go when they have a money or money adjacent question. Moneyline will provide the most comprehensive answer generated through our own content and insights while incorporating the product of the entire marketplace. Moneyline will generate intelligent, personalized tools, tips, and offers that are actionable right then and there instead of a long list of links or hard to navigate written blogs as exist in the market today. We believe Moneyline is the only company in the world with the assets, capabilities, and technology to do this right. The exciting part is this technology isn't just limited to our own owned and operated properties. We will also deliver our embedded finance search and modernization technology to any business. This technology will be made available to our broad network of enterprise partners through easy to integrate technology. The opportunity to empower consumers to make their best financial decision across the internet is in front of us. And with that, let's turn it over to Rick to walk us through the quarter's financial performance in detail.