Mogo Finance Technology Inc. (NASDAQ:MOGO) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET

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Mogo Finance Technology Inc. (NASDAQ:MOGO) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Greg Feller

fund what will be a decreased investment in loan receivables in 2020. And importantly, we expect to be net cash break-even even after net cash used in receivables by Q4 2020.

In addition, for the full-year 2020, we are anticipating accelerating core revenue growth, expanding gross margins and EBITDA margins, all of which will drive lower quarterly adjusted net loss.

Lastly, as we transition our model to a capital-light model, we thought it would be helpful to give some guidance as to what we believe the business can deliver longer term. We believe we are also consistent with the profiles of many leading tech and some of the larger more successful FinTech companies. Specifically, for longer term target operating model, we see long term revenue growth of 20% to 30% and adjusted EBITDA margins of 30% to 35%. When we discuss the opportunity with new investors, particularly outside of Canada, the idea really crystallizes the opportunity for value creation.

We see significant opportunity to continue to grow our member base and drive increased monetization of the member base through new products, improving our user experience and enhancing our overall value proposition for Canadians. As Dave outlined, we see no reason that Mogo's average earnings per member cannot be significantly higher than where it is today as we provide more digital products and effectively replace the traditional bank offering.

That concludes our formal remarks. And we'll now pass it over to the Operator to open it up for questions.