Q3 2021 MoneyLion Inc Earnings Call

[music].

Good day and welcome to your money Lion, Inc. Third quarter 2021 earnings call. Following the presentation. We will open the call for your questions before we go further I would like to turn the call over to Mr. Tom as he reads the company's safe Harbor statement within the meaning of the private Securities Litigation Reform Act of 1995.

That provides important cautions regarding forward looking statements Cody. Please go ahead.

Good morning, everyone and thank you for purchase stating in todays conference call to discuss money lines results for the third quarter ended September 32021.

Joining us today are <unk>, CEO and co founder and Rick Correa Chief Financial Officer.

Before I introduce D I'd like to remind you that any forward looking statements made in this commentary are subject to our safe Harbor statements found in our SEC filings and in our press releases.

Today's call is also accompanied by an earnings presentation that you can do on our webcast and is also available for download on our website at investors <unk> Dot com.

With that I'll hand, it over to Dee.

Thank you Cody and welcome everyone. It's an exciting moment for us to be hosting you for money lines first earnings call as a public company.

Today, we will talk to you about our mission our vision of building a private bank for the working middle class by owning the culture of money and our go forward product innovation strategy.

<unk> background, we started money line in 2013 to create financial access for hard working Americans. We're a mission driven company and all of our team members are passionate about building the most innovative financial technology products in the world.

We are well positioned with our global team were distributed across New York Sioux Falls, Kuala Lumpur, Malaysia, and a host of U S cities to a remote work programs.

Our quality import team consists of the region's leading engineers product developers and data scientists. These folks are young excited and hungry to work on the hardest problems in fintech using the latest technology tools.

This international location gives us significant operating leverage flexibility in both cost and speed to market advantages, we always say, where our technology and data first company with a deep emphasis on building enduring technologies.

Spanned our platform our network benefits.

Over the medium and long term, we will use our advantage in data to continue adding even more features into our ecosystem to drive user engagement and even more reasons for consumers to join and stay on moneyline the.

The big milestone for the year of course has been bringing money lined to the public markets via S back merger under the historic ticker Enel.

Whats the transaction.

With greatly fortified our balance sheet with over $300 million in cash.

And this really allows us to execute against the plan. We've laid out we've assembled a world class board that increases our vantage points across regulatory and compliance with the additions of former FCC Commissioner Annette Nazareth and former U S Ambassador and banking veteran Dwight Bush as well as on data content and lifestyle with the additions.

Matt Taylor, formerly Chief customer officer at Twitter, Lisa Gersh, formerly of NBC, Universal and Michael Paul currently President of Disney plus.

Our users represent the 90 plus million hard working Americans that are unhappily banked and are looking for financial products that make sense and are easy to understand we are building a central content tools and technologies for our members to navigate times of excess and invariably a few times a year times of need the money center banks continue to offer goods.

<unk> products to consumers, but no one bank or even any fintech properly provides context or personalization on what is the right financial products you use next.

Often times, we see moneyline enables our customers to achieve their biggest financial achievements of their lives by helping them build credit to buy a house by a car or generally live a better life. We continuously operated this intersection of lifestyle and finance our strategy is to deliver a daily destination experience, where our members look to spend 60.

<unk> 90, 120 seconds, a day in our app engaging with personalized insights timely recommendations market movements account tracking financial content.

All to optimize daily life, using the superpowers of a feature rich digital bank.

The future of Commerce is lives and social we're making money line more dynamic and allowing users to engage and finances alongside of their friends families Influencers and trusted thought leaders, we believe finance should not be walled off but actually as we part of social conversation from Q1 2022, we plan to launch a series of.

Of social features like chat based peer to peer capabilities to continue to bring together the power of community and financial decision, making good things are meant to be sure. We're investing heavily in our referral program to create moneyline ambassadors to drive new user acquisition Influencers in mavens will be able to use the money line today feed to share.

Their own learnings with our users and help democratize access to financial Knowhow and advice that was previously held for those in the know our long term vision is to create a repository of interest in content grafts for our user base to deliver targeted content and product recommendations in a fun and social way.

As American Society changes as more Americans, one gig or multiple jobs, we're well positioned to be the private bank of the future of the fastest growing labor segments of the United States.

And we see this in the numbers not only as customer growth accelerating but we're doing it with highly profitable unit economics, resulting in year over year increases in contribution profit margin.

Our adjusted revenue grew to $42 million at the end of Q3 up 119% from Q3 2020.

Adjusted gross profit, which is a good measure for our unit cash flows increased to $27 million in Q3 up 146% from Q3 2020, what's exciting is that while we're accelerating user growth our gross profit margin increased to 64% compared to 55% in Q3 2020.

We've always said, we provide superpowers to our users in times of excess with our banking and investing products, but also must have solutions with credit products in times of need.

With that total originations jumped to $274 million in the quarter up 135% from Q3 2020.

We're run rating now at well over $1 billion on an annualized basis and there is more growth ahead for these products in the future.

The top of the funnel advantages and the flywheel effect of our multi product strategy are working a great way to see this in action is due to significant growth in total product consumed by moneyline numbers.

By way of background, we have $9 4 million registered users on the moneyline platform at the end of Q3. These users enjoy our PFM tools credit monitoring tools content and other free resources. After was $9 4 million total customers with at least one financial account, which we think is a higher bar user measurement than what the industry typically.

<unk> increased to $2 7 million at the end of the quarter vastly exceeding our 2021 full year expectations and representing our seventh straight seventh straight quarter of growth.

Those $2 7 million customers have taken out $6 9 million products on our platform, representing 75% growth from Q3 2020 total product adoption over a cohort continues to increase as we cross sell throughout the lifecycle of a user.

Let me take this opportunity to make an important point on what money line is.

Money line is a unique accelerating growth story in the public markets requiring continued investments in technology people and user growth to propel what we see as compounding growth for future periods Moneyline provides exposure to hyper growth characteristics of our late stage private company in the public markets while building the essential.

Prior Terry technology, and data assets that will provide sustained long term cash flows earnings and ROI.

There is a future of money for Middle America, and we will always be innovating and experiment experimenting to be at the forefront of technology that will be loved by consumers today and tomorrow at.

At the same time, given this opportunity to create a consumer finance behemoths Moneyline is not currently optimizing for short term profitability why is that well we can see that new user growth is contributing to incremental profitable unit economics, our payback periods on customer acquisition continued to be under one year.

New users are accretive to <unk> and contribution profit margin, we're sustaining $55 of <unk> on a new user in the first calendar year and seeing significantly more on top of that over a cohort with robust lifetime values given the growth and adoption. We're seeing the smartest use of cash is to continue that user growth we want to use this opportunity.

To continue accelerating and keep investing cash flows and building proprietary technology to expand our cross sell advantage and operating leverage.

We have a lot of confidence in the strategy.

This management team has a proven track record of financial product innovation, and we've done it cost effectively having use less capital to create the platform than most of our fintech peers.

As an example, we pioneered algorithmic lending and financial management technologies, we added a fully managed robo advisor in 2017, along with behavior linked rewards, we followed that with a full service banking products in 2018 and continue driving financial access with the expansion into cash advanced products in 2020 crypto.

NPL and personalized advice, where either added or refined continuously in 2021, our technology drives full automation of account opening servicing lifestyle lifecycle nurturing and cross selling.

We will continue to invest in automation across our tech stack to drive operating leverage.

This automation is a constant optimization and we continue to work on it every quarter.

To emphasize we are one of the few fin techs globally that have this breadth of products already in market. It's not just that we can build the products, but moneyline's elegance and the seamless integration of each capability to drive instant funding and importantly insights to users on when and how to use the products our platform approach is not.

Afterthought, we've been very intentional about it and it's working.

Well, while others are just now getting onto adding cross sell features and product lines. Our platform has been built from the get go in from the ground up to foster this holistic relationship as opposed to a transactional onetime relationship with the consumer.

As I've noted before we are seeing this approach paid off now with our customers now trusting us with a second third fourth and sometimes even a fifth product on our platform. Once they are in they don't have to leave and our strategy is to remove any reason for them to leave us for financial decision, making.

If you look at it our product journey starts with war money, our digital banking product, we have designed and built this wallet to be one of the most feature rich products and off American financial services. Its features include two day early paycheck remote deposit cheque capture automated direct deposit switches mastercard's purchase price protection Cashback rewards.

Spare change roundups into bitcoin Rand ups entire managed investment capabilities, a very unique shaken bank rewards on every swipe of a $10 and earlier this year, we announced the creation of our own buy now pay later product very soon we look forward to fully releasing the capability out of our beta program and into the hands.

For users nationally.

Our investing solutions seamlessly connect with the war money account, making it easier, making it very easy for consumers to setup and fund the account.

We believe in giving users investing choice across the spectrum of returns, but our philosophy is that every American should have access to a managed way to invest for specific goals tailored to their time and risk horizons in for the long run.

We've opened millions of investment accounts over the years and for 80% of our users moneyline as their first managed investment account, we're teaching our members the essentials of compounding and growing savings responsibly. The features of this account include personalized portfolios from will shorten global ex thematic portfolios, giving exposure to ESG.

Greater good future innovation as well as roundup, Donato investing as well as goals based investing for our consumers as well, while we know that managed investing is usually the best way to start investing we've always been an advocate for the consumer and our customers have resoundingly told us that they want access and easy ways to learn and get exposure to crypto.

Currencies were very proud of our team for leasing integrated crypto into our war money Digital bank account in Q3 and broadly into our ecosystem as well the adoption has been phenomenal as evidenced by account openings with over 80000 accounts opened in the first weeks of announcing a crypto prize pool.

Our product set will focus on rounding up daily into bitcoin to give exposure to dollar cost averaging and for first time crypto investors. This is the best on ramp into the asset class.

Our innovation is always around giving more micro investing capabilities to our consumers as well as more found money strategies in the future. We will look to add additional coins to drive education and engagement.

In Q3, we increase the adoption of game plan continuing on the success of success.

Success in the past, we have had with building personal financial management tools.

The value proposition to consumers here is that money line is able to bring to bear the habits of millions of other consumers on our platform to illuminate the best path best path forward.

Most Americans don't have a financial advisor, but gameplan curates the best practices, if a large community to bring advice to financial decision, making like buying a car saving for a house, reducing debt and planning for retirement offer free.

Features like game plan allow us to accelerate our two sided marketplace. We know we can't provide every financial product to consumers, but we know our consumers better than anyone from a data perspective, it puts us in the best position to match our users inflection points with just the right products at just the right time and.

In financial product creators like being part of the moneyline ecosystem because they can be served as actionable solutions to consumers who display high intent at a point of time when the product is really needed leading to better conversion metrics in most other publishers.

Does have that we're executing our strategy of becoming an aggregator we want to be in the middle of every financial decision made by our consumers just like Apple and Google and Amazon have App marketplaces, our strategy is to build a financial product marketplace. It. Similarly large scale I'd like to emphasize we have a purpose built team of data science.

Tests and engineers that are building the future of dynamic marketplaces that meld content advice, our own first party financial products like banking investing crypto credit and game plan with that of every type of third party financial products originators No. One does this well in the market today and our investments into marketplace are already <unk>.

<unk> and strong growth in Q3.

But more importantly, we're making the investments today in 2021 to set us up as the go to destination for any financial decision across mortgages insurance credit cards and wealth management advice too.

We're excited about how all of these products are fitting together and working together it gives us confidence to invest in the top of the funnel brand marketing knowing that users are taking multiple products and contributing to <unk> in multiple ways. We're seeing the flywheel effects all of these products working together to deliver positive consumer outcomes, while helping.

<unk> delivered diversified profitable unit economics.

In conclusion, I'd like to drive home that we're in a great position with a well capitalized balance sheet.

<unk> transaction medicine intended outcome now our team will continue to use our platform benefits to deliver flywheel usage of our many features and products to the top of the funnel.

We feel confident deploying marketing dollars to brand and awareness marketing and as we continue to expand on our data advantage with even more users using our platform will be in a great position to aggregate consumer choice goals with third party financial and nonfinancial products further driving our ability to collect economic rents for having created a daily destination.

Moneyline will always innovate and bring together the best of Fintech easy to use powerful financial accounts insights advice encapsulated by a delivery mechanism that aims to be at the center of the culture of money and making it fun while dealing.

With that I'll pass it on to Rick So run us through the results in more detail. Thank you.

Thanks, Steve and good morning to everyone and welcome to our first earnings call.

Another record quarter across our most important metrics revenue products and customers positioning us for a strong close to the year and momentum as we head into 2022.

I'll start off with an overview of our financial performance for the third quarter and the last 12 months and then transition to our key operating metrics segment revenue net income and our financial outlook.

As we were going through the financials. Please note that unless otherwise stated I will be referring to adjusted results in all period references refer to the third quarter of 2021 versus the third quarter of 2020.

Our GAAP consolidated financial statements and reconciliations are available in today's earnings release, and our upcoming 10-Q filing.

Starting with our Q3 2021 financial performance adjusted revenue for the quarter grew 119% year over year to 42 million another record for us and our third consecutive quarter with a 100 plus year over year growth and in line with our increased revenue guidance.

In Q3, 2021, we generated 27 million of adjusted gross profit, which is an increase of 145% over Q3 2020 gross profit of $11 million.

The Q3 2021 adjusted gross profit was also realized at a higher gross profit margin of 64% versus 55% in Q3 2020 that.

That represents a 16% year over year gross product gross profit margin improvement.

For the last 12 months, we generated 136 million of adjusted revenue, which is a 78% increase versus our full year 2020, and a 240% increase over full year 2019 importantly, we accomplished these record levels, while generating 83 million of adjusted gross profit.

Speaker 1: increase over full year 2019. Importantly, we accomplished these record levels while generating $83 million of adjusted gross profit at a 61% gross profit margin.

At a 61% gross profit margin.

Speaker 1: Our last 12 months gross margin of 61% represents a 20% increase over full year 2020. This is a critical differentiator from Moneyline as historical investments in our technology platform, data, and artificial intelligence driven processes is translating to margin expansion. Looking at our key operating methods.

Last 12 months gross margin of 61% represents a 20% increase over full year 2020.

This is a critical differentiator for moneyline.

Historical investments in our technology platform data and artificial intelligence driven processes.

Is translating to margin expansion.

Looking at our key operating metrics.

Key performance metrics drove our performance.

Speaker 1: These include customers, originations, and products. First, customers, which is defined as the cumulative number of customers that have opened at least one account, including banking, membership, secured personal loans, Instacash advances, a managed investment account, a cryptocurrency account, or a affiliate product.

These include customers originations and products first customers, which is defined as the cumulative number of customers that have opened at least one accounts, including banking membership secured personal loans into cash advances our managed investment account of crypto currency account or affiliate product.

Speaker 1: As Dee mentioned, our customer growth continues to be above plan as we end the quarter with 2.7 million customers representing 131% year-over-year income.

As Dave mentioned, our customer growth continues to be above plan as we ended the quarter with $2 7 million customers representing.

131% year over year increase.

Speaker 1: Given our $55 ARPU on a user in the first calendar year, with mature cohorts yielding over $165 of ARPU, these customers continue to represent strong unit economic potential and revenue growth.

Given our $55 <unk> on a user in the first calendar year with mature cohorts healing over $165 <unk>.

These customers continue to represent strong unit economic potential and revenue growth.

Speaker 1: Shifting to our operating metrics, originations, which is defined as the dollar volume of the secure personal loans originated and Instacash advances funded within the stated period.

Shifting to our operating metrics.

Originations, which is defined as the dollar volume of the secured personal loans originated and into cash advances funded within the stated period.

Speaker 1: From the county perspective, originations is a key driver for our fee and interest revenue. Also, given the GAAP requirement to book credit provisions and reserves up front, this metric along with our provisions line provides transparency into the strong performance of our credit product.

From an accounting perspective originations as a key driver for our fee and interest revenue.

Also given the GAAP requirement to book credit provisions and reserves upfront. This metric along with our provisions line provides transparency into the strong performance of our credit products.

Speaker 1: This of course also highlights where origination in excess of our plan can drive non-cash provision expenses on our statement of operations. However, you will see from the provision to originations ratio later in the presentation that product performance is very consistent, which is indicative of our highly predictive AI-based underwriting model.

This of course also highlights where origination in excess of our plan can drive noncash provision expenses on our statement of operations. However, you will see from the provision to originations ratio later in the presentation. The product performance is very consistent which is indicative of our highly.

AI based underwriting models.

Speaker 1: We had yet another consecutive record quarter with 274 million of originations, which is 135% year-over-year increase and translated directly into our Q3 revenue performance.

We had yet another consecutive record quarter with $274 million of originations, which is a 135% year over year increase and translated directly into our Q3 revenue performance.

Speaker 1: This also provides us with strong momentum for upcoming quarter.

This also provides us with strong momentum for upcoming quarters.

Speaker 1: Lastly, products of the KPI we are introducing as it is a key driver of both engagement and revenue.

Lastly, <unk>.

Products of the Kpis, we are introducing as it is a key driver of both engagement and revenue.

Speaker 1: Products is the total number of products that our customers have opened, including banking, with membership subscriptions.

Product is the total number of products that our customers have opened including banking.

Membership subscription.

Speaker 1: shared personal loans, Instacash advances, a managed investment account, a cryptocurrency account, an affiliate product, or signing up for our financial tracking service.

Secured personal loans instant cash advances.

Managed investment account of crypto currency account, an affiliate product or signing up for our financial tracking services.

Speaker 1: Note that if a customer has funded multiple secured loans or instant cash advances, it is only counted once for each product type.

Note that if a customer has funded multiple secured loans, where etsy cash advances. It is only counted once for each product type.

Now from a business equation perspective, we see this as a better metric versus any one of our standalone products kpis such as payment volume.

Speaker 1: Now from a business equation perspective, we see this as a better metric versus any one of our standalone products, KPIs, such as payment volume, as it demonstrates the utilization of products across the public.

This demonstrates the utilization of products across the platform.

Total products were at a record $6 9 million, which is a 75% year over year increase and is driven by strong product adoption and continues our strong revenue to product trend.

Looking at our <unk> importantly, the increasing product trend drives our ability to increase our <unk> from $55 for all of our customers to $165 <unk> for mature cohorts, meaning customers that are on the platform for more than 12 months.

Speaker 1: The increasing product trend drives our ability to increase our poo from $55 for all of our customers.

Speaker 1: Our success in cross selling current and new products to customers is evident in both the R-POO and our revenue per product trend.

Our success in cross selling current and new products to customers as evidenced in both the <unk> and our revenue per product trend.

Shifting to our segment adjusted revenue adjusted net income and operating metrics.

Speaker 1: Shifting to our segment, adjusted revenue, adjusted net income and operating metrics.

Speaker 1: Looking at our detailed revenue performance, I want to remind you that we report across four revenue segments.

Looking at our detailed revenue performance I want to remind you that we report across four revenue segments.

Speaker 1: fees are a large segment which represents revenue from our Instacash and Credit Builder Plus membership. It is made up primarily of optional instant transfer fees and membership subscription.

<unk>, our largest segment, which represents revenue from our instant cash and credit.

Plus membership it is made up primarily of optional instant transfer fees and membership subscriptions.

Speaker 1: These generated 33 million of revenue, representing another record revenue quarter and 120% year-over-year income.

These generated $33 million of revenue, representing another record revenue quarter, and 120% year over year increase.

We continue to see the benefits of user growth and product adoption and into cash utilization of interest and transfers.

Speaker 1: We continue to see the benefits of user growth and product adoption in Instacash utilization of instant transfer.

Speaker 1: Our high and returning customer base and user capacity optimizations drove consistently strong performance in the quarter. Similarly, credit-builder plus memberships continued a strong pace as users benefited from bundle pricing and exclusive rewards.

Our higher returning customer base and user capacity optimization drove consistently strong performance in the quarter.

Similarly credit buildup plus memberships continued a strong pace as you just benefited from bundled pricing and exclusive rewards.

Speaker 1: Payments. This represents revenue from merchant paid interchange, ATM out of network fees, and user admin.

Payments. This represents revenue from merchant paid interchange ATM out of network fees and user admin fee.

Payments generated $3 million of revenue in the quarter, representing a 114% year over year increase.

Speaker 1: Payments generated 3 million of revenue in the quarter, representing 114% Eurobre yearning.

Speaker 1: While the largest component of revenue merchant paid interchange experienced some seasonality and volatility driven by revenue share rates that vary by merchants and purchase chargebacks, payment segment revenue continues to be an important offering from a platform perspective, as it drives lifetime value by unlocking both user data and a better experience across our high margin product.

While the largest component of revenue merchant paid interchange experienced some seasonality and volatility driven by revenue share rates that vary by merchants and purchase charged back payments segment revenue continues to be an important offering from a platform perspective as it drive lifetime value by unlocking both user data.

And a better experience across our high margin products.

Speaker 1: Advice, this represents revenue earned from our managed investing platform and our third party product market.

Advice. This represents revenue earned from our managed investing platform and our third party product marketplace.

Speaker 1: Not only is it our fastest growing segment, but strategically, this is an important growth area as we continue to surround our customers with engaging content that provides advice, entertainment, and education based on user data observation.

Not only is our fastest growing segment, but strategically this is an important growth area as we continue to surround our customers with engaging content that provides advice entertainment and education based on user data observations then at the right moment, we cross sell financial and non financial products and offers.

Speaker 1: Then at the right moment, we cross self-financial and non-financial products and offers to our customers.

To our customers.

Speaker 1: At Q3 we generated 3.4 million of revenue up from 0.7 million last

In Q3, we generated $3 4 million of revenue up from $7 million last year.

Speaker 1: As we talked about in our prior annual calls, content continues to also be a focus area from an M&A perspective for us.

As we've talked about in our prior analyst calls content continues to also be a focus area from an M&A perspective for us.

The interest segment represents interest from our secured consumer loans made available as part of the credit filter program.

Speaker 1: The interest segment represents interest from our secured consumer loans made available as part of the credit field program. It generated 2.8 million of revenue in the quarter which is up 75% year over year. While secured lending is an important product of the platform to be able to meet the full spectrum of our customers needs, our focus is to make the credit available while monetizing through our other product off.

The $2 8 million of revenue in the quarter, which is up 75% year over year.

While secured lending is an important product for the platform to be able to meet the full spectrum of our customers' needs. Our focus is to meet the credit available while monetizing through our other product offerings.

Speaker 1: Well, can you let me come? As D highlighted, we are taking advantage of our product market fit, attractive unit economics, and payback period.

Net income.

As <unk> highlighted we are taking advantage of our product market fit attractive unit economics and payback period.

Speaker 1: 60 plus percent gross profit margins and a unique platform to drive growth from both a user and product perspective.

60, plus percent gross profit margins and a unique platform to drive growth from both a user and product perspective.

These growth investments will of course have short term negative implications to GAAP net income, but we believe driving compounded growth track.

Speaker 1: These growth investments will of course have short-term negative implications to GAAP net income, but we believe driving compounded growth.

Speaker 1: Attractive roast profit margins strategically represent the optimal use of our balance.

Tractive gross profit margins strategically represents optimal use of our balance sheet.

Speaker 1: As we discussed, Q3 was transformative for MoneyLion as we became a public company.

As we discussed Q3 was transformative for moneyline as we became a public company.

Speaker 1: We strengthened our balance sheet to adequately fund our long-term financial plan.

We strengthened our balance sheet to adequately fund our long term financial plan.

Additionally, we closed another warehouse facility to finance originations of course with this transformation, we realized a few one time expenses, but more importantly.

Speaker 1: Additionally, we closed another warehouse facility to finance originations. Of course, with this transformation we realized a few one-time expenses, but more importantly,

Speaker 1: we funded user and product growth outperformance, which fueled Q3 and create strong momentum for Q4 and 2022. With that backdrop, our adjusted net loss for Q3 2021 is 20 million. As you will see in the supplemental financial information, there was a 6.6 million warrant liability fair value adjustment benefit and one time SPAC related expenses of 6.5 million.

We funded user and product growth outperformance, which fueled Q3 and create strong momentum for Q4 and 2022.

With that backdrop, our adjusted net loss for Q3 2021 is $20 million as you will see in the supplemental financial information there was a $6 6 million warrant liability fair value adjustment benefit and one time <unk> related expenses of $6 5 million.

Speaker 1: excluding these items our gap net loss for the quarter was 20 million

Excluding these items, our GAAP net loss for the quarter was $20 million.

Speaker 1: Further, we attribute $6 million of costs in the quarter from variable costs driven by outperformance versus plan due to variable user acquisition and origination costs.

Further we attribute 6 million of costs in the quarter from variable costs, driven by outperformance versus plan due to variable user acquisition and origination costs, given our consistent user CAC short payback period, increasing revenue per product and consistent credit performance our focus.

Speaker 1: Given our consistent user-cac, short payback period, increasing revenue per product, and consistent credit performance, our focus on growth outperformance is warranted, and will continue to be a priority in Q4. Excluding costs from outperformance metrics, our adjusted net loss was 14 million for Q3. A couple of-

On growth outperformance is warranted and will continue to be a priority in Q4.

Excluding cost from outperformance metrics, our adjusted net loss was $14 million for Q3.

A couple of items, we want to highlight in the 10-Q.

Speaker 1: We continue investing in people as we increase personnel across the globe. As we expand our product offering and skilled functional areas to support new business growth.

We continue to invest in people as we increased personnel across the globe as we expand our product offering and scaled functional areas to support new business growth.

Speaker 1: Additionally, there's a one time 6.5 million transaction related bonus in that expense.

Additionally, there was a one time $6 5 million transaction related bonus.

That expense line.

Speaker 1: Another important clarification is our increased provision.

Another important clarification is our increased provisions as a reminder, provisions of our upfront noncash expense that as a percentage of originations.

Speaker 1: As a reminder, provisions are an upfront non-cashic spend that is a percentage of origination.

Speaker 1: Given higher growth in our instacash and secured credit-builder loans, we recognize higher provisions.

Given higher growth in our earnings to cash and secured credit builder loans, we recognized higher provisions. We are very encouraged by the continued strong performance of the originations and are highly predictive AI based underwriting model, which you can see in our provisions to originations ratio.

Speaker 1: We are very encouraged by the continued strong performance of the originations and our highly predictive AI-based underwriting model, which you can see in our Provisions to Originations ratio.

Speaker 1: Lastly, while total marketing costs increase as we accelerated our marketing budget, given our strong RPO and unit economics, our cast and payback period remained in line with our plan, which leads the digital finance competitive set as Dee mentioned earlier.

Lastly, while total marketing cost increases we accelerated our marketing budget, given our strong <unk> unit economics, our Caf and payback period remained in line with our plan, which leads the digital finance competitive set as Dean mentioned earlier.

Lastly, shifting to our Q4 2021 and 2021 full year adjusted revenue guidance.

Speaker 1: Lastly, shifting to our Q4 2021 and 2021 full year adjusted revenue guide.

Speaker 1: We are highly encouraged by the performance of our business and the momentum with which we enter the fourth quarter. Our growth priorities, platform investments, and

We are highly encouraged by the performance of our business and the momentum with which we entered the fourth quarter.

Our growth priorities.

That form investments and product optimizations give us considerable confidence in our business equation and as such we are expecting strong originations customer adds and product adoption to drive 2021 full year revenue of $155 million.

Speaker 1: Give us considerable confidence in our business equation. And as such, we are expecting strong origination.

Speaker 1: customer ads and product adoption to drive 2021 full year revenue of $155 million.

Speaker 1: will generate $100 million of gross profit, and will exit with over 3 million customers, which reiterates the increased guidance we provided in our prior investor day presentation.

We'll generate a $100 million of gross profit and we will exit with over 3 million customers, which reiterates the increased guidance, we provided in our prior investor day presentation.

Speaker 1: As you can sense from our tone, we are very bullish on Moneylion and look forward to being the platform of choice for hard working Americans.

As you can sense from our tone, we are very bullish on moneyline and look forward to being the platform of choice for hard working Americans with that I'll turn it back to <unk> for final comments. Thank you Ed.

Speaker 1: With that, I'll turn it back to Dee for final comments and Q&A.

Thank you Rick.

Speaker 1: We want to leave you with the following. We have a fortified balance sheet following a successful SPAC merger that gives us ample resources to realize our strategic vision. We have a laser focused and motivated management team and a mission-driven board of directors in place.

We want to leave you with the following we have a fortified balance sheet. Following our successful bank merger that gives us ample resources to realize our strategic vision, we have a laser focused and motivated management team and a mission driven board of directors in place, we're accelerating our user growth to make sure money lines all in one financial platform demonstrates.

Speaker 1: We're accelerating our user growth to make sure money lines all in one financial platform demonstrates strong product market fit for the additional cross-cell and RPU expansion opportunities.

Strong product market fit with additional cross sell and <unk> expansion opportunities.

Speaker 1: We've had confidence in our ability to scale marketing budgets while continuing to deliver efficient CACs and payback periods.

We have high confidence in our ability to scale marketing budgets, while continuing to deliver efficient tax and payback periods and we have a strong data advantage that allows moneyline to aggregate consumer needs and goals and deliver a very differentiated marketplace and daily destination strategy.

Speaker 1: And we have a strong data advantage that allows money line to aggregate consumer needs and goals and deliver a very differentiated marketplace in daily destination strategy. Thank you so much for joining our third quarter earnings call and we're happy to take questions. Back over to the up.

So much for joining our third quarter earnings call and we're happy to take questions back over to the operator. Thank you.

Thank you the floor is now open for questions. If you do have a question. Please press star one on your telephone keypad at this time, if youre using a speaker phone we asked while posing your question you pick up your handset to provide the best sound quality.

Speaker 2: Thank you. The floor is now open for questions. If you do have a question, please press star one on your telephone keypad at this time. If you're using a speakerphone, we ask that while posing your question, you pick up your handset to provide the best sound quality.

Speaker 2: Again ladies and gentlemen if you do have a question or comment please press star one on your telephone keypad at this time.

Again, ladies and gentlemen, if you do have a question or comment. Please press star one on your telephone keypad at this time.

We will take our first question from Sean Hogan with Rosenblatt. Please go ahead.

Speaker 2: We'll take our first question from Sean Horge and the Frozen Black. Please go ahead.

Hey, guys good morning.

Speaker 3: Hey guys, good morning. First question I just wanted to dig into by now.

First question I, just wanted to dig into buy now pay later and crypto a bit.

Speaker 3: how should we think about sizing the potential in?

How should we think about sizing.

<unk> impact.

'twenty two.

And what are your expectations for things like adoption rates.

And what will you be what will pricing look like for each of those offerings.

Speaker 1: Hey, Sean. First, first of all, good morning. Thanks for the questions.

Hey, Sean first first off good morning, thanks for the questions.

Speaker 1: So on crypto, we've been for the good part of the year in a alpha program. And as we announced, we lost it to the entire user base.

So on crypto, we've been for the good part of the year in a alpha program and as we announced we launched it to the entire user base in Q3, and we had a very successful price pools. If I went background really the elegance of the product as it allows our consumers to round up.

Speaker 1: in Q3 and we had a very successful crypto price pool. So by way of background, really the elegance of the product is it allows our consumers to round up.

Speaker 1: into Bitcoin as well as trade both Bitcoin and Ethereum and would set over time will use opportunities to educate our consumer base on the benefits of cryptocurrencies and of course add additional capabilities to that capability down the line. You know, we're super excited about the adoption. Remember when we first decided to do crypto, 77% of our users were saying that they want access to the asset class.

And to bitcoin as well as trade, both bitcoin and ethereum.

We've said over time, we will use opportunities to educate our consumer base on the benefits of course their currencies and of course add additional capabilities to that capability down the line.

We're super excited about the adoption remember when we first.

Decided to do crypto, 77% of our users we are saying that they want access to the asset class.

Speaker 1: So we launched really with a crypto prize pool, which was more of a promotional product to educate and get consumers excited about it. Then as we said, we had 80,000 new account openings in the first three weeks of launching the product, needless to say, we're seeing that momentum continue incredibly well into Q4 as well.

So we launched really with a crypto prize pool, which was more of a promotional product to educate and get consumers excited about it and as we said we had 80000 new account openings in the first.

Three weeks of launching the product Needless to say, we're seeing that momentum continue incredibly well into Q4 as well.

Speaker 1: From an adoption perspective, looking at our crypto program works very well with our digital bank. The product innovation there is really, Fiat can be converted into Bitcoin or Ethereum instantly. And we've built all the technology in the back end from a custody perspective to allow that.

From a adoption perspective looking at our <unk> program works well with our digital bank.

The product innovation, there is really Fiat can be converted into bitcoin or cerium instantly.

We've built all of the technology in the back end from a custody perspective to allow that.

Speaker 1: And again, right now all of the costs are included.

Right now all of the costs are included in delivering the product, but none of the.

Speaker 1: in delivering the product, but none of the, you know, revenue implications are included in the guidance for this year at least.

Revenue implications are included in the guidance for this year at least.

Speaker 1: On by-dapilator, again, we've been in alpha for the better part of the year. And we're looking to scale that program and launch that nationally in the first quarter of 2022.

On buy now pay later again, we've been in alpha for the better part of the year.

And we're looking to scale that program and launched that nationally in the first quarter of 2022.

Yes.

Speaker 4: Yes, I think just to expand what he's saying in terms of just to reiterate, we have included all the expenses to bring both crypto and binoculars into the market. And then we've included none of the revenue in either our 21 or 22 financials and that gives us the opportunity to outperform on our revenue projection.

Yes, so I think just to expand on what you're saying in terms of just to reiterate we have included all the expenses to bring both crypto and buy now pay later into the market.

And then we've included none of the revenue in either our 'twenty, one or 'twenty two.

Financials and that gives us the opportunity to outperform on our revenue.

Projections.

Speaker 4: You know, the other point is just around engagement. So what we're finding is kind of both find out that later in crypto are driving that kind of engagement and daily destination, destination as customers continue to transact. I got a really helpful color, guys. Thanks. And then. And.

The other point is just around engagement. So what we're finding is kind of both buy now pay later and crypto are driving that kind of engagement and daily destination destination as customers continue to transact.

That's really helpful color guys. Thanks.

And then.

The next question is kind of a two part.

Part question, but.

The recent data privacy changes I'm, just curious how thats impacting customer acquisition costs.

And how you guys are combating those pressures.

Speaker 3: and how would you describe MoneyLions competitive position from a cost standpoint there. And then I guess related to that, you know.

And how would you describe.

<unk> competitive position.

Cost standpoint, there and then I guess related to that.

What are some of the most interesting brand marketing investments, you're making whether it's content influencers sponsorships videos or podcasts.

Speaker 1: Sure, so you know, the great thing that we're seeing in our business today is that we've been in a position of strength by having first party data. You know, consumers are engaging with money line for banking, for investing, for crypto. And that gives us a 360 degree view of the consumer. Their inflection points were able to provide them products and times of excess and invariably with their credit products and times of need. So what that allows us to do is.

Sure so.

The great thing that we're seeing in our business today is that we've been in a position of strength by.

By having first party data.

Consumers are engaging with moneyline for banking for investing for crypto.

That gives us a 360 degree view of the consumer their inflection points, we're able to provide them products in times of excess and invariably with their credit products in times of need. So what that allows us to do is really be our own walled garden and a lot of ways from a customer acquisition perspective, our customer acquisition is highly diverse.

Speaker 1: Really be our own walled garden in a lot of ways from a customer acquisition perspective. Our customer acquisition is highly diversified.

The 575% of our new users are actually coming through word of mouth referrals and other organic channels. They are reading our money life bond content.

Speaker 1: 75% of our new users are actually coming through a word of mouth

Speaker 1: referrals and other organic channels. They're reading our money life blog content.

Speaker 1: and they're engaging with the broader money line everywhere strategy of us delivering our content.

They are engaging with the.

The broader moneyline everywhere strategy of us delivering our content and this is where we think of as daily destination strategy acts as a moat because consumers are seeking moneyline for content and then we're able to nurture them into financial accounts and what that really allows us to do is not necessarily be beholden to performance marketing.

Speaker 1: And this is where we think that this daily destination strategy acts as a mo because consumers are seeking money lines for content and then we're able to nurture them into financial accounts.

Speaker 1: And what that really allows us to do is not necessarily be beholden to performance marketing on the social media channels or any other one particular channel. Data privacy...

On the social media channels or any other one particular channel.

Data privacy.

Speaker 1: changes or policies change or technology platforms take their own views of

Changes are a policy change or technology platforms take their own views of walling off consumers one of the great things about the way. We're approaching this is we have our own relationship with consumers and consumers are seeking us outside of the technology platforms.

Speaker 1: walling off uh... consumers you know one of the great things about the way we're approaching this is we have our own relationship with consumers and consumers are seeking us outside of the technology platforms uh... for must have financial content that that that puts us in a a pretty unique position as it relates to

For must have financial content.

Puts us in a pretty unique position as it relates to.

Speaker 1: You know, sort of channels that are working. We've always said that finance is social, consumers really want to be at the intersection.

No.

Sort of channels that are working we've always said that finances social.

Consumers really want to be at the intersection of.

Speaker 1: you know, the financial accounts, what does it really drive? Does it help me buy a car? Does it help me live in a better house? Does it allow me to send my kids to college and really plan for it?

The financial accounts, what does it really drive does it help me buy a car does it help me live and a better house does it allow me to send my kids to college and really plan for it.

And that's where we're seeing the future of Fintech really going is this melding of consumers.

Speaker 1: That's what we're seeing the future of, you know, fintech really going is this melding of, you know, consumers using Moneyline to think about outcomes, rather than the tactics of these individual accounts. And we are 100%, you know, investing significantly.

Consumers using money line to think about outcomes rather than the tactics of these individual accounts and we are 100%.

Investing significantly in financial content in different regions to be a part of the moneyline ecosystem and we're seeing them partners are now seeing that as well as their they are creating purpose built content for the moneyline feed to help drive the awareness of whether it's an insurance product or a mortgage <unk>.

Speaker 1: in financial content, in different reasons to be a part of the money line ecosystem. And we're seeing that partners are now seeing that as well. They're creating purpose-built contents to the money line feed.

Speaker 1: to help drive the awareness of whether it's an insurance product or a mortgage product for the exact inflection point when a consumer may need it. And you'll see it's investing a lot more in that strategy as we go forward here in Q4 in early 2022 as well.

For the exact inflection point, when a consumer may need it and Youll see us investing a lot more and that strategy as we go forward here in Q4 and early 2022 as well.

Great. Thanks for taking my questions.

Brad on the strong quarter.

Thanks, Sean.

Okay.

Speaker 2: We'll take our next question from George Sutton with Craig Hallam. Please proceed.

We will take our next question from George Sutton with Craig Hallum. Please proceed.

Thank you wonderful initial results guys. So.

Speaker 1: Thank you, wonderful initial results guys. So with metrics as attractive as you have, I just want to be on the side of endorsing fully aggressively investing in the business. I wanted to talk about a question I've had from clients pretty consistently since we've launched coverage relative to your CAQ. It is uniquely attractive in the space.

With metrics as attractive as you have I just wanted to be on the <unk>.

Endorsing fully aggressively investing in the business.

Wanted to talk about a question I've had from.

Clients pretty consistently since we've launched coverage relative to your CAC is uniquely attractive in the space frankly hard for me to explain why it is as low as it is why you are seeing as much.

Speaker 1: Frankly hard for me to explain why it is as low as it is, why you are seeing as much unaided benefit as you are. Can you just give us some picture that might not be clear to people looking at this from the outside?

Unaided benefit as you are can you just give us some picture that might not be clear to people looking at this from the outside.

Okay.

Yes, we appreciate the endorsement in the question. So I think when you look at Moneyline's marketing mix, we will spend around 50%, 60% of our marketing budget on performance marketing.

Speaker 4: Yeah, we appreciate the endorsement and the question. So I think when you look at money lines marketing mix, we'll spend around 50, 60% of our marketing budget on performance marketing will spend around 20 to 30% of our budget on brand awareness.

We'll spend around <unk>.

<unk> to 30% of our budget on.

Brand.

Awareness.

Speaker 4: And what that translates to is of course, you know, kind of a high organic growth, which is currently sitting, you know, north of 70%. The third element is where we spend about 20% of our budget on data. And this is a secret weapon for us, because what it allows us to do is it allows us to have a very kind of high conversion from our top of funnel.

And what that translates to is of course, a kind of a high organic growth, which is currently sitting north of 70%.

The third element is where we spend about 20% of our budget on data and this is a secret weapon for us because what it allows us to do is it allows us to have a very kind of high conversion from our top of funnel.

Speaker 4: It then also allows us to create that bespoke experience that D was referring to. And then lastly, allows us to cross-fell affiliate and give our customers access to third-party, financial and non-financial products. And that happens to be our fastest growing segment as well.

Then also allows us to create that bespoke experience. If he was referring to and then lastly allows us to cross sell affiliate and gives.

Our customers access to third party financial and non financial products and that happens to be our fastest growing segment as well and so overall, what our marketing spend allows us to do then is to be able to take advantage of them.

Speaker 4: So overall, what our marketing spend allows us to do then is to be able to take advantage of immersing our customer in extensive content and experience that gives them real solutions.

Immersing, our customer in extensive content and experience.

That gives them real solutions and it allows them to kind of extended lifetime value with us because we're able to support them in both there are times of excess as well as their times of need and so we just been finding is that that product market fit is what allows us to continue to have a payback periods of under six months and <unk> that are well within our targeted tax spending.

Speaker 4: and it allows them to kind of extend their lifetime value with us because we're able to support them in both their times of excess as well as their times of need. And so what we just been finding is that that product market fit is what allows us to continue to have payback periods of under six months and cacks that are well within our targeted cacks meant.

Okay. That's helpful.

Speaker 1: Gotcha, that's helpful. Dee, honestly, one of the most overused words in the language these days is the word flywheel, but I do actually think you've got a very significant flywheel situation, so I just want to make sure I'm representing it correctly. You basically are bringing in these customers at relatively inexpensive levels.

Honestly one of the most over were used words in the language. These days is the word flywheel, but.

I do actually think you've got a very significant flywheel situations. So I just wanted to make sure I'm representing it correctly.

You basically are bringing in these customers at relatively inexpensive levels.

Speaker 1: you are basically able to grow the engagement dramatically increasing the average revenue per customer, which increases the lifetime value, which basically makes that low CAC even more attractive and therefore additional investment. Is that sort of the simplest way to summarize it?

Sure.

Basically able to grow the engagement dramatically increasing.

Average revenue per customer, which increases the lifetime value, which basically makes that low CAC, even more attractive and therefore additional investment or is that sort of the simplest way to summarize it.

Speaker 1: Yeah, it is. Look, if you look at our digital banking strategy, it's a low-cost, highly powerful account that we're giving to most of our consumers.

Yes. It is if you look at our digital banking strategy.

A low cost highly powerful account that we're giving to most of our consumers and.

Speaker 1: And you'll see that there's really two ways to make money in digital banking, whether you're a crypto bank, a virtual bank, a physical bank, we've said this all the time, really, from a business model perspective, you have to be able to provide advice. And we have our investing in crypto and recommendations businesses that help do that, or you have to provide credits in those times of need, or instacash products or credit building products as well as our marketplace.

Youll see that Theres really two ways to make money in digital banking, whether youre, a crypto bank a virtual bank of physical bank. We've said this all the time really from a business model perspective, you have to be able to provide advice and.

We have our investing in crypto and recommendations businesses that helped do that or you have to provide credits in those times of need.

Our into cash products for quite a building products as well as our marketplace.

Speaker 1: you know kind of initiatives that make it very seamless you know we've been investing in the trans union quest course since 2014 so our our ability to know every single trade line and every single inflection point of this consumer is having from a data perspective actually gives us an unfair advantage to make that sort of the the rate of change or that slope of that flywheel

Kind of initiatives that make it very seamless we've been investing in the Trans Union credit score since 2014, so our ability to know every single trade line and every single inflection point that as consumers having from a data perspective actually gives us an unfair advantage to make that sort of the rate of change or that slope of that flywheel.

<unk>.

Speaker 1: Probably in a lot of ways, more dynamics than most other competing platforms out there.

Probably in a lot of ways more dynamic than most other competing platforms out there so that low cost digital bank account acts as the hub, where we're able to engage with the consumer around recurring spending how theyre getting their payroll what they may be interested in by way of preferences and then we're able to take.

Speaker 1: So that low cost digital bank account acts as.

Speaker 1: that data to help them invest better, give them alpha through crypto, and when they need it, really go into the GMV side of the equation and allow them to have very powerful payments products, right? So our Instacash product is at the end of the day, a payments product, we're seeing it being used as a credit card replacement. We're seeing it, you know, really being used by consumers in a very smart way because of its low cost nature, right? So all of that working together creates these internal growth

That data to help them invest better give them alpha crypto and when when they need it.

It really go into the <unk> side of the equation and allow them to have very powerful payments products rates are into cash product is at the end of the day a payments product, we're seeing it being used as a credit card replacement, we're seeing it really being used by consumers.

Speaker 1: you know, really being used by consumers in a very smart way because of its low cost nature, right? So all of that working together creates these internal growth loops inside of the money line that each product makes the other one better.

In a very smart way because of its low cost nature right. So all of that working together creates these internal growth loops inside of money line that each product makes the other one better.

Speaker 1: And of course, with investing, because it can be funded instantly with our digital bank, because crypto can be funded instantly with our digital bank, Instacash works really well with the word money. All of that continues when we say flywheel, each one of these products makes the other better.

And of course with investing because it can be funded instantly with our digital bank because crypto. It can be funded instantly with our digital bank into cash works really well with more money all of that continues when we say flywheel. Each one of these products makes the other better.

Speaker 1: Perfect and I think that's why nice to go us talk about the total products as well, which is increasing nicely over the quarter

Perfect and I think that's why I used to talk about the total products as well, which is increasing nicely over the quarter.

Speaker 5: Absolutely. Just last comment, it's nice to live life with an unfair advantage. Nice job, guys. Appreciate it. Thank you, George.

Absolutely.

Last comment it's nice to live life was an unfair advantage price Joe Okay.

Yes.

Appreciate it thank you George.

Speaker 2: As a reminder, everyone, if you do have a question or comment, please press star one on your telephone keypad at this time. We'll take our next question from Josh Seagler with Cantor Fitzgerald. Please go ahead.

As a reminder, every one of you do have a question or comment. Please press star one on your telephone keypad at this time, we will take our next question from Josh Ziegler with Cantor Fitzgerald. Please go ahead.

Speaker 6: Hi, thanks for taking my call. Really nice growth in your advice revenue. I want to dive a little further into that, you know, given that your perspective will be a big chunk of revenue in the next few years. What were some of the drivers behind the performance this quarter? And how do you plan on growing that business exponentially in the future?

Hi, Thanks for taking my call.

Really nice growth in your device revenue I wanted to dive a little further into that given that you would expect it will be a big chunk of revenue in the next few years what were some of the drivers behind the performance this quarter and how do you plan on growing that business exponentially in the future.

Speaker 1: So let me start off and Rick's, can I answer some of the slope related questions there. We're continuing to invest in making the offerings in the marketplace more integrated to the first party product. So what that means is if you think about the industry and you think about some of the great players that are out there, they often take your credit score and they give you three or four or five static products that you may consider.

So let me let me start off in <unk>.

Can I answer some of the slope related questions. There, we're continuing to invest in making the offerings in the marketplace more integrated to the first party product. So what that means is if you think about the industry and you think about some of the great players that are out there they often take your credit score.

And they give you three or four or five static products that you may consider but because we have.

Speaker 1: But because we have such a handle on our data platform, we're actually able to...

Such a handle on our data platform, we're actually able to form the exact unit of insurance, whether it's auto whether it's life, whether it's home renters or the exact amount of mortgage.

Speaker 1: tailored for how the consumer is earning, how they're spending, where they're living. That data platform, when we talk about AI and machine learning, that's the next generation of the marketplace, where it's completely contextualized and personalized for the consumer. We're not fully there on our vision, but we're starting to see the platform benefits of the technology investments that we're making into the marketplace to fully integrate that living like a native product next to banking investing and the credit products that we have on a first party basis. When you look at our ability to understand a customer and...

Tailored for how the consumer is earning how they're spending more they are living that data platform. When we talk about AI and machine learning. That's the next generation of the marketplace, where it's completely contextualize and personalized for the consumer we're not fully there on our vision, but we're starting to see the platform benefits of the technology <unk>.

<unk> that we're making into the marketplace to fully integrate that living like a native product next to banking investing in credit products that we have on a first party basis.

Speaker 4: When you look at the...

Yes, when you look at the.

Speaker 4: our ability to understand a customer and what their pain points are, what the opportunities are for them. It surpasses most in the other market potential.

Our ability to understand the customer and what their pain points are what the opportunities are for them. It surpasses.

Most any other market participant.

Speaker 4: So we were able to deliver relevant content in our today feed.

So we were able to deliver relevant content in our today feed and that allows us to surround the customer with engaging entertainment content. It allows us to surround them with advice and it allows us to surround them with with products that makes sense for them and their particular situation and as a result of that we get that high conversion with our affiliate partners.

Speaker 4: And that allows us to surround the customer with engaging entertainment content, it allows us to surround them with advice, and it allows us to surround them with products that make sense for them in their particular situation. And as a result of that, we get that high conversion with our affiliate partners.

Speaker 4: In addition, so that was the key driver, and I'm glad you observed that. The second is around the just number of partners. And this continues to be an area of investment for us as we continue just to expand and have that connectivity between the partners that we have in the platform and the focus areas for our customers, what they care about, whether it's around health, whether it's around fitness, whether it's around, just kind of entertainment, or their, their,

In addition to that.

It was a key driver and I'm glad you observed that the second is around the number of partners and this continues to be an area of investment for us as we continue to expand and.

That connectivity between the partners that we have in the platform and the focus areas for our customers what they care about whether it's around health, whether it's around fitness, whether it's around just kind of entertainment or they're there.

Speaker 4: Commutations, expenses and things like that. So from that perspective, it makes our customers highly convertible into those kind of third party products that we've continued to add in the platform.

Computations expenses and things like that so from that perspective, it makes our customers.

Highly convertible into those kind of third party products that we have continued to add on the platform and I think what youll see when do you talked about we continue to fulfilling the vision. We have talked about this which is there are two key areas for us in terms of expansion from an M&A perspective.

Speaker 4: I think we'll see when D talks about, you know, we continue to fulfill on the vision. We've talked about this, which is there are kind of two key areas for us in terms of expansion from an M&A perspective.

Speaker 4: The first is around just significantly expanding that availability of kind of content for our customers. And then the second focus area for us is around exponentially increasing the number of affiliates that we have available on our platform. Those two focus areas from an MA perspective are ones that we'll continue to execute over the coming quarters.

First is around just significantly expanding that availability of kind of content for our customers.

And then the second focus area for us is around exponentially increasing the number of affiliates that we have available on our platform and so those two focus areas from an M&A perspective are ones that will continue to execute on over the coming quarters.

Speaker 6: Got it. That's very helpful commentary. Thank you for that. As my follow up, you know, I'm curious to hear a little more color about the rollout process for new solutions given you know, that money line does operate as a financial platform with a competitive advantage being your suite of solutions. Clearly, you have a lot more coming in the pipeline. How much do you invest in these new solutions? And what's their typical time to market? What should we expect moving forward?

Got it Thats very helpful commentary, thank you for that.

This is my follow up I'm curious to hear a little more color about the rollout process for new solutions given that money line does operate as a financial platform with a competitive advantage being your suite of solutions clearly you have a lot more coming in the pipeline how much do you invest in these new solutions and what's their typical time to market what should we expect moving forward.

Speaker 1: Sure, so I'll start off there. If you look at our crypto and BNPL products, you know, both of them took inside of six months from ideation to testing to, you know, at least the alpha program.

Sure.

I'll start off there if you will.

Look at our crypto and be NPL products, both of them took inside of six months from ideation to testing to at least the Alpha program.

Speaker 1: coming to market. Now, I think, as we've said in our commentary today, one of the things where we see an incredible opportunity for Q1 is really investing in money lines, social capabilities, whether it's referrals, whether it's peer to peer, whether everything that we're seeing from our consumers is they wanna make their financial decisions.

Coming to market I think as we've said in our.

Our commentary today, one of the things, where we see an incredible opportunity for Q1 is really investing in money lines social capabilities, whether it's referrals, whether its peer to peer weather.

Everything that we're seeing from our consumers as they want to make their financial decision, making even more social and they want to use the the.

Speaker 1: even more social and they want to use the you know the mistakes or the alligator bites or you know the successes of the community to make their own financial decisions so you'll you can expect money line to be releasing and working on more of these peer-to-peer solutions that again from the previous conversation you know if you think about the flywheel effect or if you think about the network effect of the platform effect

Mistakes or the alligator bites or the successes of the community to make their own financial decisions. So you'll you can expect <unk> line to be releasing and working on more of these peer to peer solution that again from the previous conversation. If you think about the flywheel effect or if you think about the network effects of the platform effects.

Speaker 1: You know, that's where we see a lot of excitement and a lot of the investments that we're making in Q4 to drive scale in Q1 of next year.

That's where we see a lot of excitement and a lot of the investments that we're making in Q4 to drive scale in Q1 of next year.

Great. Thank you very much.

Speaker 2: For our next question, we'll return to Sean Horkin with Rosenblatt. Please go ahead.

Our next question will return to Sean Horrigan with Rosenblatt. Please go ahead.

Okay.

Hey, guys. Thanks for taking my follow up.

Speaker 3: Hey guys, thanks for taking my follow up. I appreciate the new product metric disclosure.

I appreciate that.

Metric disclosure.

Just wondering if you could give any more color on.

The breakdown there shows the number of members per product.

And Rick if you could remind me, which.

Products are included there that'd be great.

Yeah, absolutely. So we introduced this metric.

Speaker 4: Yeah, absolutely. So so we, we have introduced this metric, we believe that.

We believe that it's important for our metric to represent our differentiator in the marketplaces, which is we are a platform and as a result, our customers kind of run the gamut in terms of using the product set that we have ranging from our bank offering to our membership product to our.

Speaker 4: It's important for our metric to represent our differentiator in the marketplace, which is we are a platform. And as a result, our customers kind of run the gamut in terms of using the products that we have, ranging from our bank offering to our membership product to our credit builder loans to Instacash, to our third party products, our financial tracking, which includes our credit monitoring, as well as our kind of...

Credit builder loans to instant cash.

Our third party products our <unk>.

<unk> financial tracking which includes our credit building our credit monitoring.

As well as our kind of.

Speaker 4: linked bank accounts. And so, that's an important metric for us. And it is a metric that also helps to demonstrate what the revenue per product is across the platform, which again, our differentiator is the ability for customers to move really seamlessly across that product set. And sometimes using one more than the other in any one quarter versus another. And so, that kind of revenue per product set is indicative and that trend is indicative of, the value and the benefit of having that platform. So we exited, you know, with just under 7 million total products in Q3. And, you know, we exited with about 2.7 million customers. And that translated to, you know, it adjusted revenue per product of just over $6.

Linked bank accounts and so that's an important metric for us and it is a metric that also help to demonstrate what the revenue per product is across the platform, which again, our differentiator is the ability for customers to move really seamlessly across that product set and sometimes using one more than the other in any one quarter versus.

<unk> is another and so that kind of revenue per product set is indicative and that trend is indicative of the value and the benefit of having that platform. So we exited with just under 7 million total tool products in Q3.

We exited with about $2 7 million customers and that translated to.

Adjusted revenue per product of just over $6.

Speaker 4: Again, that's also, you know, nicely puts with when you look at our overall our proof for our customers

Again, that's also nicely foots with when you look at our overall are proof of our customers.

Speaker 4: That metric allows us to bring customers on and generate that kind of north of $55 over our entire customer set.

Metric.

Allows us to bring customers on and generate that kind of north of $55 over our entire customer set and it represents significant upside as we continue to cross sell those products and drive that <unk> up to.

Speaker 4: and it represents significant upside as we continue to cross sell those products and drive that RPU up to about $155 for customers that kind of take one plus product across our platform. Once they've been on the platform for about 12 months, and it continues to go to the north of that as customers take two and three plus products on the platform. So we think that is the power of our overall platform. We think that this metric best represents the potential and the growth going forward.

About $155 for customers that kind of take a one plus products across our platform once they've been on the platform about 12 months and it continues to go north of that as customers take two and three plus products in the platform. So we think that is the power of our overall platform. We think that this metric best represents the potential and the growth going forward.

Speaker 3: I don't know if I could just follow up there. What, you know, I know Rourimani, I think, you guys have mentioned.

Alright, and then if I could just follow up there.

Yes, I know more money I think you guys had mentioned before is usually the first product what's the typical second product.

Yes.

Speaker 4: Yes, so the first product that they'll open tends to be that bank account and that bank relationship really does drive lifetime value in terms of just extending it.

Yes, so the first product that they will open tends to be that bank account in that bank.

<unk> really does drive lifetime value in terms of just extending edge.

Speaker 4: It makes all of our products better. It allows us to cross sell higher margin products to the customer. And so, you know, that's kind of the first part that they open. The steep curve on our RPU comes from our credit...

It makes all of our products better it allows us to kind of cross sell higher margin products to the customer.

So that's kind of the first part that they opened the steep curve on our <unk> comes from our either.

Credit builder membership or the instant cash product. So that's one where it's got a high conversion it solves.

Speaker 4: membership or the instacash product. So that's one where it's got that high conversion. It solves a solution for solves a problem for a customer

Solution for solves the problem for a customer and allows us to kind of have them quickly engaging with us in using that product anywhere from kind of five to eight times a month.

Speaker 4: and allows us to kind of have them quickly engaging with us and using that product anywhere from kind of five to eight times a month.

Speaker 4: And so again while you have kind of the steep or poo driven by the solutions that are instacash and the credit builder plus membership

So again, while you have kind of a steep or <unk> driven by the solutions that are into cash and the credit builder plus membership.

Speaker 4: the driver of our lifetime value tends to be the bank relationship. And that also gives us considerable insights into the customers' life. And so we're able to then cross sell them third-party affiliate products as part of that overall experience.

The driver of our lifetime value tends to be the bank relationship and that also gives us considerable insights into the customers' life and so we're able to then cross sell them third party affiliate products as part of that overall experience.

Okay.

Speaker 4: And it's important just to note, as you'll see in kind of a definition around the products, we really only count instacash once, if they take it a second time, it's still one product. Similarly, on the secured loan side, if they take it multiple times, we only count it once. So it's a real indicator of really just the adoption of the product. From an engagement perspective, it's significantly higher than the number we'd even reflect.

And it's important just to note as we as we as Youll see in the kind of a definition around the products, we really only kind of account into cash once that particular second time its still one product. Similarly on the secured loan side. If you take it multiple times, we only kind of counter at once and so it's a real indicator.

It's really just the adoption of the product.

From an engagement perspective, it's significantly higher than that number we didn't reflect.

Okay. So just so I understand it.

Typically ruler money first and then maybe into cash or credit builder plus.

Second product.

Speaker 4: yes but to clarify it you know the relationship around baking takes time to to season the mature and so while i'll open that account right away the driver from

Yes, but to clarify the.

The relationship around baking takes time to season and mature and so while the open that account right away the dry.