(MENAFN – Baystreet.ca) Mogo (TSX:MOGO)(NASDAQ:MOGO) is a financial technology company that is set to release its fourth quarter and full-year 2019 earnings in the coming days. Its stock has dropped 25% over the past month as of close on March 6. Shares are down 22% from the prior year.
The company released its Q3 2019 results back in November. Mogo’s member base increased 30% year-over-year to 925,000 and core revenue rose 13.4% to $16.6 million.
Adjusted EBITDA rose 3% to $1.1 million – or 7% of total revenue. Mogo reported an adjusted net loss of $5.8 million, down from an adjusted net loss of $5.5 million in Q3 2018.
In late 2019, Mogo announced a partnership with the highly successful financial services company Goeasy. This expanded to a three-year lending partnership in late February. As part of the deal, Mogo sold the majority of its MogoLiquid loan portfolio to Goeasy. Mogo has worked to improve its balance sheet, and this will contribute to its efforts.
Through Mogo’s platform, consumers can download the Mogo app and get a no-obligation pre-approval, customize their loan, and complete the loan agreement in minutes. Certain Mogo members will have their loan funded by Goeasy’s easyfinancial division.
Mogo still boasts solid growth potential, but its stock has been highly volatile in recent months. To add to that, there are still concerns surrounding its balance sheet.
I love the deal with Goeasy, but timing could not be worse as North American markets have been pummeled. Mogo is worth monitoring in this choppy market, and it hold promise as it approaches a 52-week low.