Mogo Inc.'s Q4 2024: Navigating Contradictions in Lending Strategy, MogoTrade Focus, and Product Prioritization
Thursday, Mar 20, 2025 2:52 pm ET
4min read These are the key contradictions discussed in Mogo Inc.'s latest 2024Q4 earnings call, specifically including: Lending Strategy and Macroeconomic Impact, Focus on MogoTrade and Strategic Growth, and Strategic Focus and Product Prioritization:
Wealth Business Momentum:
- Mogo reported a 22% year-over-year growth in assets under management, reaching $428 million.
- The wealth platform's revenue reached a $12 million annual run rate. The growth was driven by the expanding market opportunity in wealth management and the company's disruptive AI-driven intelligence investing solution.
Payments Business Expansion:
- Payments revenue grew by 21% in 2024, reaching $8.6 million, with total payments volume process increasing by 16% year-over-year to $11.5 billion.
- This expansion was supported by the ongoing expansion of the payments business and investments in Carta's technology platform, positioning it for future growth and profitability.
Investment Portfolio and Cash Position:
- Mogo ended the year with $49.1 million in cash, marketable securities, and investments.
- The company's investment portfolio totaled $38.1 million, with a significant portion in crypto-related assets. The strong cash position and liquid investment portfolio provide flexibility for future growth and capital requirements.
Strategic Focus Shift:
- Mogo exited its institutional brokerage operations, contributing negligible operating margin, to focus on higher-margin wealth and payments businesses.
- This strategic shift allows the company to focus on two high-growth areas in trillion-dollar total addressable markets, positioning it for long-term growth and scale.
Cautious Approach to Lending:
- The company expects interest revenue from its lending business to decrease by 8% to 10% in 2025.
- This decision is driven by a more cautious approach to lending due to economic uncertainty, particularly the potential impact of U.S.-Canadian tariff disputes on the Canadian economy.
MOGO Total Revenue YoY, P/E(TTM)...
Wealth Business Momentum:
- Mogo reported a 22% year-over-year growth in assets under management, reaching $428 million.
- The wealth platform's revenue reached a $12 million annual run rate. The growth was driven by the expanding market opportunity in wealth management and the company's disruptive AI-driven intelligence investing solution.
Payments Business Expansion:
- Payments revenue grew by 21% in 2024, reaching $8.6 million, with total payments volume process increasing by 16% year-over-year to $11.5 billion.
- This expansion was supported by the ongoing expansion of the payments business and investments in Carta's technology platform, positioning it for future growth and profitability.
Investment Portfolio and Cash Position:
- Mogo ended the year with $49.1 million in cash, marketable securities, and investments.
- The company's investment portfolio totaled $38.1 million, with a significant portion in crypto-related assets. The strong cash position and liquid investment portfolio provide flexibility for future growth and capital requirements.
Strategic Focus Shift:
- Mogo exited its institutional brokerage operations, contributing negligible operating margin, to focus on higher-margin wealth and payments businesses.
- This strategic shift allows the company to focus on two high-growth areas in trillion-dollar total addressable markets, positioning it for long-term growth and scale.
Cautious Approach to Lending:
- The company expects interest revenue from its lending business to decrease by 8% to 10% in 2025.
- This decision is driven by a more cautious approach to lending due to economic uncertainty, particularly the potential impact of U.S.-Canadian tariff disputes on the Canadian economy.
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