Mr. David Feller reports

MOGO REPORTS RESULTS FOR Q1 2024

Mogo Inc. today released its financial and operational results for the first quarter ended March 31, 2024.

"As we focused on increasing the profitability and efficiency of the business last year, we were also hard at work driving improvements to our digital wealth platform which resulted in the relaunch of the Moka and Mogo apps during the first quarter," said David Feller, Mogo's founder and chief executive officer. "The vast majority of Canadians are nowhere close to being on a path to retirement, and a lot of this is due to investing products that are designed primarily to drive revenue for the companies and not to optimize returns for investors. Our products are designed to help the next generation of investors dramatically improve their performance through discipline, patience and smart investing, rather than trade excessively or speculate on high-risk stocks. We have started to ramp-up our marketing and are seeing good early results which is contributing to our accelerated revenue growth in the quarter."

Key financial highlights for Q1 2024

• Revenue increased in Q1 2024 to a record $17.9-million, up 13 per cent over the prior year and by 4 per cent sequentially, reflecting an acceleration of growth in the company's core products including wealth and payments.
  • Subscription and services revenue grew 13 per cent over the prior year to $10.7-million in Q1 2024.
• Gross profit was $11.6-million in Q1 2024, versus $11.9-million in Q1 2023.
• Operating expenses for Q1 2024 decreased to $13.4-million, compared with $13.5-million in Q1 2023, reflecting the company's continued efficiency efforts which also resulted in a significant improvement in revenue per employee of 23 per cent during the same period.
• Cash flow from operating activities before investment in gross loans receivable was positive for the sixth consecutive quarter, reaching $1.8-million in Q1 2024, a 2,609-per-cent increase over Q1 2023.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $1.0-million in Q1 2024 (5.8-per-cent margin), compared with $1.0-million (6.4-per-cent margin) in Q1 2023.
• Net loss improved to $3.6-million in Q1 2024, compared with net loss of $6.9-million in Q1 2023.
• Adjusted net loss was $4.0-million in Q1 2024 compared with adjusted net loss of $3.9-million in Q1 2023.
• Cash, marketable securities and investments totalled $53.4-million as of March 31, 2024, versus $55.6-million at the end of 2023. This included combined cash and restricted cash of $13.8-million, marketable securities of $28-million, and investment portfolio of $11.6-million.
• Total share buybacks in Q1 2024 were 17,093. Since 2022, under its share buyback program on Nasdaq and its normal course issuer bid on the Toronto Stock Exchange, Mogo has repurchased 1,091,446 common shares, representing 4.5 per cent of the company's current outstanding common shares.
• Bitcoin and Bitcoin ETFs (exchange-traded funds) were added to Mogo's treasury management strategy during the quarter with an authorization for an initial investment of up to $5.0-million. During the quarter, the company invested less than $1.0-million in Bitcoin ETFs.

"It was a solid start to 2024 as we generated record quarterly revenue, including a 13 per cent increase in our subscription and services revenue, driven by growth in our wealth and payments businesses," said Greg Feller, president and chief financial officer. "The subscription and services revenue growth, along with our 6-per-cent adjusted EBITDA margin resulted in the second consecutive increase in our subscription and services rule of 40 to 19 per cent (up from 14.5 per cent in Q4 2023). We also ended the quarter with a strong balance sheet including marketable securities and investment portfolio of roughly $40-million, from which we expect to see monetization opportunities over the next 12 months."

Business and operations highlights

• Continued growth in payments volume -- Mogo's digital payment solutions business, Carta Worldwide, processed over $2.6-billion of payment volume in Q1 2024, an increase of 18 per cent compared with Q1 2023.
• Assets under management exceed $400-million -- Assets under management in the company's wealth businesses increased 22 per cent year over year to $403-million, with assets within the company's MogoTrade product up 150 per cent year over year.
• Mogo members increased to 2.1 million at quarter-end, up 5 per cent from Q1 2023.
• Mogo announces the launch of Moka.ai -- In March, 2024, the company announced the launch of Moka.ai, the next generation of its wealth-building app with significant updates and enhancements designed to help the next generation of Canadians get on a real path to becoming millionaires and achieving financial freedom.
• Mogo launches Buffett Mode -- Mogo launched its redesigned and enhanced self-directed investing app, Mogo, which is built to help the next generation of Canadians approach investing with the discipline, patience and approach of Warren Buffett.

Financial outlook

The outlook that follows supersedes all prior financial outlook statements made by Mogo, constitutes forward-looking information within the meaning of applicable securities laws, and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond Mogo's control.

Coming out of a period where the company successfully accelerated its path to profitability, in fiscal 2024 Mogo is shifting the balance toward accelerating revenue growth while at the same time continuing to generate positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). The company will increase growth investments to drive acceleration in subscription and services revenue growth from its wealth and payments businesses where it sees significant opportunity for expansion.

Specifically, for 2024 Mogo expects accelerating subscription and services revenue growth with an overall subscription and services revenue growth rate in the mid-teens for the full year.

Conference call and webcast

Mogo will host a conference call to discuss its Q1 2024 financial results at 2 p.m. ET on May 9, 2024. The call will be hosted by David Feller, founder and CEO, and Greg Feller, president and CFO. To participate in the call, dial 416-764-8658 or 888-886-7786 (international) using conference ID: 41948978. The webcast can be accessed at the Mogo website. Listeners should access the webcast or call 10 to 15 minutes before the start time to ensure they are connected.

The attached tables present a reconciliation of each non-IFRS (international financial reporting standards) financial measure to the most comparable IFRS financial measure.

About Mogo Inc.

Mogo is a digital wealth and payments company headquartered in Vancouver, Canada, with more than two million members, $9.9-billion in annual payments volume and an approximately 13-per-cent equity stake in Canada's leading cryptocurrency exchange, WonderFi. Mogo offers simple digital solutions to help its members dramatically improve their path to wealth creation and financial freedom. Mogo offers commission-free stock trading that helps users thoughtfully invest based on a Warren Buffett approach to long-term investing -- while also making a positive impact with every investment. Mogo offers Canadians a real alternative to mutual funds and wealth managers that overcharge and underperform, with a fully managed investing solution based on the proven outperformance of an S&P 500 strategy, and at a fraction of the cost. Through its wholly owned digital payments subsidiary, Carta Worldwide, Mogo also offers a low-cost payments platform that powers next-generation card programs for companies across Europe and Canada. The company, which was founded in 2003, has approximately 200 employees across its offices in Vancouver, Toronto, London and Casablanca.

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