MoneyLion Inc.

Greetings. Welcome to MoneyLion's third 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 store zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Sean Horgan, head of investor relations. Thank you. You may begin.

Thank you, Operator. Hi, everyone. Thanks for joining us for our third quarter 2023 earnings conference call. With me today to discuss our results are Moneyline CEO, Dee Chaube, and CFO, Rick Correa. You can find the presentation accompanying our earnings release on our investor relations website at investors.moneyline.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. With that, I'll turn the call over to Dave.

Thank you, Sean. Good morning, and thank you all for joining us for our third quarter 2023 earnings call. Moneyline had another record quarter in Q3, demonstrating the strength and resilience of our business model. I'm pleased to again be able to say we executed like we said we would. We continue to demonstrate our ability to generate growth and drive profitability while maintaining a healthy and sustainable balance sheet. The benefits of our two-sided ecosystem are working, underscoring the durability of our business as we navigate with focus and discipline. While others are pulling back and waiting for things in the face of challenges, we are leaning in and driving forward, optimizing our technology and building on the momentum of our mutually reinforcing businesses. That's in our DNA and we'll continue delivering on that. Now I'd like to highlight the key investor takeaways for the third quarter. First, we achieved record quarterly revenue of $110 million. This was within our guidance range and represents 24% year over year growth, up from 22% year over year growth in the prior quarter. Importantly, our consumer and enterprise businesses both achieved record quarterly revenue. Second, we generated record quarterly adjusted EBITDA of $13 million. As it has been for many quarters, we are focused on cashflow generation and it's good to see we exceeded our guidance of six to $10 million for the quarter. This represents a 12% adjusted EBITDA margin up from 9% in the prior quarter and marks our third consecutive quarter of positive adjusted EBITDA amounting to $30 million year to date. Last, we generated $8 million in cashflow after operating and investing activities marking another important milestone for us as we position for self-funded growth. These are all healthy markers that should get investors excited about our progress in the quarter. Finally, the third takeaway for the quarter is that we're rapidly scaling our marketplace network. Let me provide some metrics to illustrate how expansive our network is. We had almost 60 million total customer inquiries in Q3, which is up from roughly 50 million in Q2 2023 and 34 million in Q1 23. This translated to over a billion dollars of financial products transacted across our network of over 1,100 enterprise partners in the third quarter alone. We're in the enablement business, meaning that we provide the marketplace network that enables financial product providers to instantly reach the broadest set of potential customers. And correspondingly, we enable high intent consumers to easily find the product that works best for them. Our data advantage comes from our proprietary data sets. This positions us to improve monetization for all our partners and deliver better outcomes for consumers and over time creates opportunities for us to deliver more value through our data products. Total customer growth continues to be an area of strength for Moneyline. In the third quarter, we added a record 2.2 million customers bringing our total customers to 12.1 million. Over 80% of the customers added in the third quarter took a third party product as their first product on our platform. This speaks to our ability to attract customers with a wide array of competitive offerings through our marketplace. Our ability to consistently generate 100% year over year growth in total customers underscores our focus on rapidly scaling our ecosystem. which we believe provides significant revenue opportunities for the long run. We will talk more about this in our financial update as well. Turning to total products, over 20 million total products were consumed on our platform through the third quarter, an increase of about 3 million from the prior quarter. To date, 44% of the products consumed were third-party products, up from 39% as of Q2 2023 and 21% as of Q3 2022. Third-party products continue to make up an increasing mix of overall product consumption, reflecting our strategy to deepen the offer set to more segments of consumers. This approach continues to allow us to provide value to three important core constituents. Number one, to our channel partners like large digital publishers and news sites that drive consumers to our platform. By providing increased ways for them to provide value to their users, and in turn monetize the impressions that they're having on their own and operated sites. Number two, to our product partners like FinTechs, banks, insurance companies, and other lenders by providing high intent in market consumers seeking a financial product. And finally, to consumers who now expect the same personalized financial offers and money adjacent content and education that they're accustomed to in other facets of their digital lives. As a result, we continue to see these strong KPIs translate to financial performance, marked by a healthy combination of revenue growth and margin expansion quarter over quarter. Now we'll provide an update on the progress of both our consumer and enterprise businesses. We've talked extensively about the flywheel effect in the past, and I continue to believe the way that we've set up our business model gives us structural advantages over FinTech and marketplace peers. Starting with our consumer business, our first-party personal financial management products showed continued growth and performance during Q3. In the post-pandemic era, with strong real wage growth and low unemployment, the average employed American consumer is performing well. This is the mass audience we primarily serve with a robust suite of personal financial management capabilities. This is critical to the success of our overall network. more engaged customers allow us to onboard a deeper set of financial institutions. Our risk management practices remain best in class, and Q3 was no exception. We leverage a vast set of ingested and proprietary data that informs our decision-making, and we continuously improve our risk models and optimize our payment rails. Put simply, we can underwrite risk better than those that use outdated, point-in-time traditional models. Moneyline's predictive models are more modern relying on multiple signals and data sources, and therefore we're more agile and more adaptable across economic cycles. The compounding benefits of the infrastructure show up in our Q3 results. We delivered $564 million in first-party originations in the third quarter, while maintaining performance at a level we are very comfortable with. Most of these originations came from our liquidity product, Instacash. We welcome the increased popularity of the product, And again, our ability to manage the risk and operational levers is industry leading. Our consumer facing PFM platform is taking share with a growing number of products and services that help our customers save, borrow, spend, invest, and importantly, find personalized financial insights and advice. Now I'll turn to our enterprise business. In the third quarter, our enterprise business achieved record revenue for the second quarter in a row, demonstrating the resilience of our marketplace and media divisions. Remember, Moneyline is the marketplace solution and embedded finance that enables, not competes with financial institutions' products, solutions, and brands. In our enterprise marketplace, we delivered another quarter of growth despite decreased industry-wide advertising spend in the face of slowing loan growth driven by higher cost of capital. We have diversified our product mix, significantly into non-lending verticals in areas like high yield savings, which has been critical to our success. Revenue from our personal loan verticals now represents 55% of our enterprise marketplace revenue in Q3 compared to 85% in Q3 2022. In Q3 and continuing into Q4, we have been diversifying our enterprise marketplace revenue mix and laying the groundwork for the future to expand more into credit cards, insurance and mortgage verticals as demand for these products improve. Additionally, we now have over 1100 enterprise partners on our embedded finance network and we're finding the new revenue streams that leverage our data advantage. Things like consumer insights and fraud signals that show lead quality and cashflow underwriting models. Our entire ecosystem and the three core constituents we outlined benefits from our proprietary data sets generated through our robust marketplace. Our consumer marketplace is an important component of the overall product. We provide our network by matching high intent consumers with the right financial product at the right time. This portion of the overall enterprise business drives high gross margin revenue and is a key driver of margin expansion as we continue to scale. And finally, our media division is focused on several areas that represent untapped revenue opportunities, most notably cross-selling media services to our existing partners throughout our network. This enhances the value proposition that we provide to our channel partners, product partners, and of course, to our consumers. Our media business has exited the quarter with strong momentum and remains laser-focused in driving growth and profitability through its expanding list of clients, as well as continuing to enhance the value of the consumer product in the consumer marketplace. The Moneyline ecosystem continues to rapidly evolve and drive innovation forward. Since our last update, we've added intuitive product applications like savings and loan calculators that make it easy for users to find the products they need. We've rolled out AI-powered search and insights within our app. Leveraging our vast proprietary data set, we are providing customers with insights into their spending habits that can help them better budget, save, and invest for the future. As we previewed last quarter, we are providing this technology to any financial institution looking to build marketplace capabilities. We use behavioral insights like our driver score, which helps match good driving behavior with personalized offers for related financial products like auto insurance. We provide credit monitoring and insights that help customers improve their credit score and find personalized offers that fit their needs. Finally, we unlock new social features in the Discover feed that drive engagement and a sense of community. We are starting conversations about money through prompts and polls that start conversations with and amongst users. In addition to these capabilities, we are building the most engaging tools, widgets, and calculators in the industry, helping our customers learn about products and make their best product decisions. These experiences are distributable anywhere across our enterprise network. enabling our partners to maximize the value of their product offerings. Because of these innovations in building unique products, we're driving more consumers to our platform, which makes our marketplace deeper and attracts more enterprise partners to our network. This is the structural advantage we've been talking about, and we believe the flywheel effect significantly differentiates our business model, and it will propel our growth for years to come. So what is Moneyline doing in Q4 and beyond as other marketplaces are just waiting for the market to shift? We're building. We're innovating. We're playing offense. We're executing and gaining momentum. We're shortening the distance between consumers and the products they want. That means taking market share no matter the market. Now I'll turn the call over to Rick to walk through our financials in detail.