Home Business MoneyLion rose after Q2 results but prices are now falling

MoneyLion rose after Q2 results but prices are now falling

by Atlanta Business Journal

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MoneyLion (ML) was trading ~15% higher after reporting Q2 results, having raised FY adjusted revenue guidance, but the stock prices are now falling.

The digital financial platform reported a Q2 net loss of $23M and revenue of $84.1M (+120.2% Y/Y), which beats by $3.96M.

Q2 adjusted revenue stood at $84.06M, up 131% from $36.45M in the year-ago quarter.

“Our record second quarter adjusted revenue exceeded the high end of our guidance and we realized record adjusted EBITDA margin, which resulted in second quarter adjusted EBITDA within guidance. Our revised full year 2022 guidance reflects 103% adjusted revenue growth,” CFO Rick Correia said.

For FY22, adjusted revenue is expected to be in the range of ~$330M to $340M. Here is a look at the company’s annual adjusted revenue figures:

However, despite the raised target and above consensus results, the stock prices could not rise after a particular point on Aug. 11. The prices have fallen by ~8%:

The company has one-year price performance of -82.57%, while the financials sector median is -8.9%.

It has negative EPS revisions and decelerating momentum when compared to other financials stocks, to the point that it gets a Sell rating from Seeking Alpha’s Quant Rating system.

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