Orion Digital Corp

Good morning ladies and gentlemen and welcome to MOGO Inc. Q4 2024 Financial Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, March 20, 2025. And I would now like to turn the conference over to Mr. Craig Armitage. Thank you. Please go ahead.

Thank you and good morning everyone. Just a few quick notes before we get started. Today's call will contain forward-looking statements that are based on current assumptions and subject to risks and uncertainties that could cause actual results to differ materially from those projected. Company undertakes no obligation to update these statements except as required by law. Information about the risks and uncertainties are included in MOGO's Q4 and year-end filings as well as periodic filings with regulators in Canada and the US which you'll find on CDAR and you can act in EDGAR and you can access via the investor relations website as well. And lastly today's session will include several adjusted financial measures or non IFRS measures. Please consider these as a supplement to and not a substitute for the IFRS measures. You'll see that we've included reconciliations to those in the press release and in the investor deck. There was some technical difficulty getting the slides uploaded but for anyone on the webcast you can download the slides to follow along and they will also be up in the IR website as well. So with that I'll turn the call over to Dave Feller. Go ahead Dave.

Thanks Craig. Thank you and good morning. Welcome to our fourth quarter of the full year 2024 results conference call. I'm joined today by Greg Feller, our president and CFO. I'll cover some of the key operating highlights and Greg will dig into the deeper financial results and I'll look. In 2024 we grew revenue by 9% to 71.2 million driven by a 16% increase in wealth revenue and a 21% increase in payments revenue. Our adjusted EBITDA for the full year was 6.7 million coming in above the middle of the range of our increased guidance. We also ended the year with 49.1 million in cash, marketable securities and investments up from 36.2 million in Q3. In wealth asset center management grew 22% year over year reaching 428 million. Our wealth platform continues gaining momentum with revenue reaching a 12 million dollar annual run rate. Our intelligent investing solution that includes MOCA, MOGO and Finch App Pro continues to gain traction with its unique and disruptive value proposition. In payments revenue grew 21% in 2024 reaching 8.6 million while total payments volume process increased 16% year over year to 11.5 billion. Reflecting the ongoing expansion of this business. We also took steps to stream our business including exiting our institutional brokerage operations to focus on higher margin areas and extending our credit facility to 2029 with lower interest rates. Looking ahead we see significant opportunity in wealth given the structural shifts happening in the market and the role that AI will play in reshaping how people invest. While it's still early we are focused on scaling wealth and payments in a disciplined way positioning ourselves for long-term growth in these key areas. Given the importance of a wealth business I want to take some time to explain a little more detail the opportunity and help investors understand our unique approach in this space. The market opportunity in wealth is massive Canadian households now hold 10.8 trillion in financial assets. We believe the entire industry is on the brink of a major transformation driven by the rise of AI. Investors today have access to more data than ever before but the traditional wealth management investing models have not kept up. Conflicted incentives, high fees, outdated strategies and a lack of transparency continue to hold investors back. The two trillion Canadians have in mutual funds with average fees of around two percent highlight the opportunity as Canadians continue to be sold into overcharging and underperforming products. Most financial platforms don't actually rethink wealth management. They just tweak the same old system. They operate within its constraints making minor adjustments instead of addressing real problems. But we're taking a first principles approach deconstructing wealth management investing down to its core truths and rebuilding it optimized for the investor not the firm. This is something that many don't fully appreciate as Charlie Munger put it the whole damn system is corrupt. The wealth management and self-directed investing market is designed to maximize investor success. It's designed to maximize corporate revenue and profitability. Fees, conflicts of interest, engagement driven platforms. They all keep investors in a cycle to benefit the firm more than the individual. We have a unique opportunity to change that by applying first principles thinking and leveraging AI. We're not just improving the system. We're fundamentally reshaping it. This first principles thinking applies not just to the products and experience but to the business model itself. A business model that actually aligns with the success of the investors combined with the power of AI will fundamentally change the industry and empower investors in a way they've never been before. When it comes to being a successful investor one of the questions investors need to ask themselves is what is my edge. Every successful investor has one Buffett, Munger, Lynch, the pros playing at the highest level don't win because they're lucky. They win because they have an advantage. But here's the problem. Most platforms are built to take the edge away from the users and give it to the house. They push you into high funds, fee funds. They push you to trade. They create experiences designed to drive behaviors that are optimized for their business model and your returns. The system is designed for them to win not you. We built Intelligent Investing to flip the script on its head. We're obsessed with one thing. The actual performance of our members as investors. Our solution is designed to help investors improve their informational, analytical, and most importantly behavioral edge. At MOGO we didn't just build another trading app. We built a system. Intelligent Investing is designed around the principles of the greatest investor of all time, Warren Buffett. This system is based on a few key truths. Firstly, as Warren Buffett says, success in investing is about temperament, not intellect. Our primary objective is giving investors the behavioral edge they need to win, which means it's designed to also help minimize the behaviors that lead to poor performance. The second truth is another thing that Buffett and Munger has been preaching for years. That the average investor would be way better off by simply investing through a low cost index like the S&P 500. In fact, it outperforms 98% of professionals over the long run. So no plausible narratives to try and justify high fees for funds that underperform. And the third truth is that being a successful active investor is really hard, contrary to what is generally marketed today. As Charlie Munger said, anyone who thinks it's easy is stupid. Empowering investors with the right knowledge and analytical capabilities is critical for any chance to be a successful stock picker. Today, our top 100 members are curling on track to over 3 billion. This isn't about getting rich quick. It's about discipline, patient, long term wealth building. Real wealth isn't built on hype. It's built on consistency. And that's exactly what the first part of our solution is designed for. Mocha makes investing automatic. No market timing. No guesswork. Just set up scheduled contributions, stay invested, and let compounded do its thing. And the results speak for themselves. Last year, Mocha growth portfolio delivered a 34% return. That's the kind of performance that would have placed it third among the top hedge funds in the US. Without the complexity, without the high fees, and without the stress of active trading. Again, this is a fully managed solution. It's based on the proven forms of the S&P 500. It includes weekly dollar cost averaging, automated dividend reinvestments, and importantly, an experience is designed to help investors stay disciplined and consistent. Through the inevitable ups and downs of the market. One of Buffett's criticisms with the industry was that you won't find anyone telling their customers to simply go into a low cost index fund like the S&P. Because that's not where the money is. Even though that's where most investors would be better off. Well, now there is. Most self-directed investing apps today aren't for investing. They're dopamine fueled casinos. They're designed to maximize engagement, not returns. Flashing charts, zero commission trades, and social driven FOMO keep users trading constantly. Because that's how these platforms make money. But as any real investor knows, more trading usually leads to worse results. MoGo, the second part of our solution, is designed to take a different approach. We're not here to push trading. We're here to help our members build well. That means no gimmicks, no hidden fees, and no casino tricks. Just the right mindset, strategy, and tools to invest intelligently. Trading apps profit when investors are distracted and addicted. Our success is tied to helping our members actually succeed. If you understand that difference, you understand what MoGo is all about. We believe the future of investing will be won by the platforms that actually deliver the best results. Not the ones with the most features or those that have done the best job of gamifying trading. Most investors are at a disadvantage. They're making decisions with surface level data, hype driven analysis, and the same generic research is widely available. Meanwhile, institutions and hedge funds have access to far more sophisticated tools, giving them an edge that retail investors simply don't have. The third part of our intelligent investing is designed to change that. Dintchak Pro provides institutional grade data, hedge fund level research, and deep fundamental analysis. The kind of insights that give serious investors a real advantage. Normally, to access this level of research would cost $110 a month, but we've included it as part of the intelligent investing membership. For investors who care about performance over speculation, signal over noise, and long-term wealth building over short-term trading, Dintchak Pro is a game changer. The typical investing platform makes money in ways that don't align with the investor's best interests. Whether it's high management fees and underperforming funds, hidden spreads, or business models that rely on encouraging more training. The reality is simple. Most platforms profit even when you don't. We took a completely different approach. Instead of charging big management fees or relying on revenue from trading activity, we built a simple transparent subscription model, just $20 a month. While others push trading, we've designed our solution to minimize trading and focus on long-term patient investing, the approach that historically delivers the best results. In an industry with management fees that typically range from .5% to 2%, and trading revenue driven by commissions and foreign exchange fees as high as 2%, it's easy to see how the incentives aren't aligned. Our business model is built around helping our members become better investors, not more active traders. We are witnessing one of the most profound technological shifts in the world has ever seen as the impact on wealth management investing industry will be transformational with AI. For decades, banks, wealth advisors, and trading apps have controlled the industry, built on high fees, complexity, and models that serve institutions more than investors. That was before AI. Now we're entering the after AI era where technology is breaking down barriers, eliminating deficiencies, and fundamentally changing how wealth is built. AI driven platforms will enable those that have an investor first mindset to deliver a transformational experience and value proposition that delivers better performance, lower cost, and a level of transparency that traditional industry will be reluctant to match. This shift will enable new leaders to emerge, and we believe we have the approach and determination to be one of them. The future of investing isn't just about technology, it's about culture. The next generation doesn't just want tools, they want something they can believe in. A brand that stands for something, a brand that inspires them to invest intelligently. Most investing platforms today feel transactional, just another app with charts and numbers. But wealth building is more than that. It's about a mindset, identity, and a long term vision. That's why we're building more than just an investing platform. We're building a brand, a brand that challenges the status quo and brings the proven principles of the world's greatest investors to a new generation, but in a way that is culturally relevant. A brand that speaks to a new generation of investors who want to break free from the traps and take control of their financial future. This is about making intelligent investing aspirational, making it high status, making it something people want to be a part of. With that, I'll turn this call over to Greg. Greg?