Q3 2021 Mogo Inc Earnings Call
Good afternoon, and welcome to the mogul Q3, 2021 earnings conference call and webcast.
Note that all lines will be in listen only mode until the question and answer session of today's conference.
To ask a question over the phone it by that time, you May press the star key followed by the number one.
I'll now turn the call over to your host head of Investor Relations, Craig Armitage, Sir you may now begin.
Yeah.
Thank you good afternoon, and thanks for joining US today, just a couple quick notes before we get started first.
Today's call will contain forward looking statements that are based on current assumptions and subject to risks and uncertainties that could cause actual results to differ materially from those projected.
The company undertakes no obligation to update these statements except as required by law information about these risks and uncertainties are included in our Q3 2021 filings as well as periodic filings with regulators in Canada, and the United States, which you can find on SEDAR Edgar and the company web site.
Second today's discussion will include some adjusted financial measures, which are non <unk> measures. These should be considered as a supplement to and not as a substitute for E. I FRS financial measures.
Also the amount today are discussing Canadian dollars, unless otherwise indicated and lastly as per our normal practice. We do have a presentation slides are available to accompany todays call encourage you to download those from the Investor Relations section of the website.
With that I'll turn the call over to Dave Feller and get Us started.
Thanks, Greg.
Afternoon, and welcome to <unk> third quarter 2021 results call I'm joined today by Greg <unk>, our president and CFO.
Building on our strong Q2 results this quarter showcased the strength of our business and its multiple revenue drivers, which helped drive record subscription and services revenue growth even in a market, where some fintech and crypto company saw declining sequential Q3 revenue.
The diversification we've added has really helped to solidify the business model.
Building a successful Fintech is definitely hard you have to differentiate yourself from the existing banks as well as the Fintech competition, while also developing solid unit economics in our business model.
Mobile has clearly demonstrated success in this regard and at the same time. We appreciate we're still at a small scale relative to the massive market opportunity. As a result, we are investing heavily and appropriately for long term growth led by our biggest initiative ever in mobile trade.
Two of the biggest issues of our time, our climate change in the Wolfcamp and there are clearly linked and ties directly into our mission. Our team continues to be guided by a simple mission to make it easy and engaging for consumers to get financially fit and live a more sustainable lifestyle save planet staff money.
Our strategy and performance are driving our results and reflecting our strong third quarter and year to date performance highlights include 64% increase in our member base $1 8 million.
Subscription and services revenue accelerated to 126% year over year.
Payment processing volume was up 65% to $2 4 billion.
And just as importantly through our platform. Our members have now contributed to planning over 500000 trees.
Ultimately, we believe that a nextgen money solution will be one that makes it simple and engaging to not only achieve financial freedom, but in a way that also positively impacts the planet. The fact is it becoming a millionaire is very achievable for almost anyone if they get into the right habits early on.
One today, who has 20 years old began investing just $200 a month in the market based on the average return over the last 100 years, the S&P they could get to almost $3 million by the time they are seven years old and.
And if that member was also using mobile for the majority of their spending and investing during that timeline. The average person was would also plant over 30000 trees.
There's no question that the hardest part of wealth building equation really comes down to spending as we all know it is possible to be broke even if you have a high income and if you were always spending just as it's possible to be on track to be a millionaire, even if you're only making 30000 a year well below the average if you are spending less and you make so you have more money for saving and investing.
Today, we live in a world of not only credit cards that make it easy to overspend, but new solutions like buy now pay later, but also helped drive over spending.
We are focused on more of the buy now pay now lifestyle and helping people spend less than they make which is why our average user report saving over $200 a month again $200 a month invest it could turn into almost 3 million over time.
What's more this is the first and only spending card in Canada that actually makes it easy and even free to normally be net zero, but climate positive.
The average Canadian uses or debit and credit card about 50 times a month.
That was done through mogul the average person would plant enough trees to absorb about 300000 pounds of C. O. Two a year, which is more than six times the average carbon footprint of the Canadian today.
So this isn't just a tool to control spending is perhaps the most powerful tool around for the average person to make a big impact in helping stop climate change in.
In fact that just 20% of all spending in Canada were done through this card, Canada would be climate positive today.
We are still early days and the new value proposition and continued focus on increasing awareness of the product and encouraged with the growth trend. We're seeing in spend volume with Q3 up over 900% versus the same period last year.
The other part of the planet saving stacking money solution is investing in our goals to build the leading next gen digital wealth platform in Canada, and we're extremely excited about the progress we're making in this area.
This is a massive market in Canada in fact Canadians have over eight trillion in financial assets, including more than three trillion in equities mutual funds and Eft's Etfs.
There are two key elements of our wealth platform. They were focused on one is passive investing and the others active investing in the long run we believe that most people will have a blend of both and so we see the two as complementary.
In terms of active investing we're still heads down on our biggest growth initiative ever mobile trade mobile trade is now a Canadian registered investment dealer and a member of Iraq. Our goal with mobile trade is to build a modern nextgen trading platform that is truly native to where things are going we continued to witness the rise of retail trading not just in equities, but in crypto currencies and even.
N F Ts.
No longer just a world of Monday to Friday, where the market's close at four P. M. We now live in a world where things are being traded 20, 473% to 65 days a year globally, particularly with crypto our Gulf for trade is to build a platform that has been built with this new world in mind.
As previously announced our goal is to start start with commission free stock trading and our goal remains to launch this in the quarter this quarter subject to regulatory approval.
The U S Commission free trading is still very new in Canada and there is currently only one other commission free trading app in the market and we expect to be the second.
We're also excited about our differentiated value proposition, including the first trading out but also home. It helps make every investment we make greener by planting a tree with every stock purchase.
There are also some other first in terms of innovation in Canadian market, which we think will help us achieve product market fit early on.
Again, our goal remains to launch this quarter subject to final regulatory approval.
We were one of the earliest companies and candidates offer bitcoin back in 2018, and we believe more than ever and the market opportunity for crypto. This space is rapidly evolving and we plan on being a major player in the Canadian Crypto space.
From a product standpoint, our goal is to build a leading crypto platform within mobile trade route right alongside stocks in terms of growth opportunity for crypto. The estimated market Catholic stocks globally is around 100 trillion dollars today versus just three trillion for crypto today, what's more again crypto trade 20, $473 65 and global in nature.
Similar to how we have put the pieces together for stock trading we are very focused on the strategic components for crypto and importantly believe that the future of this space is a platform that brings them all together.
With noting we also recently announced the first climate positive bitcoin in the world. So now the best performing asset class of last decade is now one of the greenest through mobile.
The other key part of our wealth building platform as passive investing and through our asset management business. We offer we offer passive investing to our members, including the ability to round up and save or make regular contributions.
Total.
<unk> is approaching approximately $300 million today and an area that we also believe we will continue to grow right alongside active investing.
Gamification has always been an important part of our product strategy and a bitcoin rewards program. It's something we continue to build out and leverage both internally with our members as well as externally with new marketing partnerships like the one we recently announced with the Ellman combo.
Just like any good game our goal is to reward users with bitcoin has ways to motivate them towards their financial goals, whether that's improving their credit score or reaching savings goals. Just another example of what we think a modern platform will look like versus traditional banking experience today, why not making getting wealthy and saving the planet one of the coolest most reward.
Games, you can play.
In terms of our brand and marketing strategy, we are continuing to focus on not only cost effective channels to drive growth, but important partnerships like gaming that not only helped to drive relevancy of our brands, but leverage gamers for spreading the word lots of exciting things on the horizon here and I believe in the long run our brand can and will become a competitive differentiator.
Alongside our strong and differentiated product and value proposition.
One of the key strategic advantages, we have with our platform as our payments platform not only does this give us the benefits of vertical integration in terms of long term cost advantages, but also serves as another revenue driver. We've seen this model before in terms of companies like Amazon building, a core competency in web services and then offering this as a service for other for other businesses.
Again, our payments volume was at 65% year over year to $2 4 billion.
Another important strategic opportunity this businesses potential new partnership opportunities for for MOGO through our <unk> partners.
As we continue to build out our platform and key areas like legal and compliance we continue to build a competitive moat that isn't easy to replicate hundreds of millions in investments and years of work are needed to get to where we are today and we continue to build on this moat every quarter.
With that I will introduce great to walk through the financials.
Yeah.
Thanks, Dave.
They had a strong Q2, our third quarter results were again highlighted by accelerating top line growth from an increasingly diversified set of products revenue streams, which allowed us to raise the outlook for both Q4 subscription services revenue as well as total revenue for full year 2022.
Key third highlights include a significant jump in our member base second quarter in a row of accelerating total revenue growth in third quarter in a row of accelerating subscription services revenue growth record gross profit and we also ended the quarter with a strong balance sheet, including approximately $64 million of cash and in our investment portfolio.
This amount excludes approximately 128 million book value investment in Crypto exchange point score.
Although total member base increased by 64% over last year to approximately $1 8 million members from a combination of accelerating net member additions and the benefit of members acquired as part of our <unk> acquisition. We believe the scale of our member base, which excludes coin square. It's approximately 600000 members puts us in rare category in terms of member breadth and scale in Canada.
Our member base is also an incredibly valuable asset that enhances their ability to successfully launch new products like Bogo trade that product in particular should enable us to both increase member monetization as well as further accelerated growth in new members.
Q3, 2021 revenue growth, 58% was driven by continued acceleration subscription services growth, which increased to 126% year over year now makes up 61% of total revenue the growth comes from an increasingly diversified set of products and revenue streams, including the contribution match acquisitions, along with a substantial increase in logo.
Card volume and revenue, we saw volumes increased 834% year over year as well as strong organic growth of subscription and payment processing revenue.
<unk> was not a driver of revenue growth this quarter given the overall decreases in volume seen in the market, but we still exceeded expectations this quarter, highlighting the diversification and recurring components of our model.
In a period of high revenue volatility experienced by a number of Fintech in crypto players, we were very happy with both the growth and resiliency of our model, which includes a high percentage of recurring revenue across a diverse range of products.
The high recurring revenue component or a model at approximately 95% also gives us increased confidence in our outlook total.
Total <unk> of $36. This quarter was down slightly from last quarter due to significant growth in our average member count during the quarter. Although we expect this number to have some volatility quarter to quarter in the long term, we see a significant opportunity to expand this metric as a reminder, the average our COO by most of the Canadian banks and credit unions is $1000 or greater.
In 2020, we clearly demonstrated the underlying profitability of our financial model combined with strong industry tailwind just gave us the conviction to significantly increase our investments in growth initiatives and we're starting to see the benefits of those investments in Q3, specifically, we continue to make the large investments in the largest investment in our history in the development of <unk>.
Good trade, which we expect to be a major driver of member and revenue growth. This is a massive Tam we were very very early innings of the shift in Canada to a fully digital and mobile trading experience.
Not to mention the shift to commission free trading.
In addition, we are making a big investment in digital payments business as we expand into the massive U S market and see significant opportunities to grow the business long term importantly.
Importantly, we have discussed before we have high profitability model to generate close to 50% margins in Q2 and Q3.
When we chose to dial back our leavers, they should give investors confidence in our ability to manage the growth spend and these levers going forward.
A significant and perhaps underappreciated asset on our balance sheet as at the 39% ownership in crypto platform point square, our total book value of our investment on our balance sheet is approximately $129 million in the quarter. When you include this investment alongside our cap cash digital assets and investment portfolio, we have close to 200 million cash investments on our balance sheet today.
It's a second periods accounted for the investment under the equity method and we recognize pickup loss of $2 5 million and $5 5 million for the three and nine months for September 30th there are $2 5 million loss was driven primarily by mobile share of points, where it's 5 million loss in the quarter.
And the amortization of coin squares intangible asset fair value at acquisition date, <unk> Q3 losses, largely driven by nonoperating losses related to the revaluation of equity investments in the quarter, including shares it holds in Muslim.
In terms of Q3 results for clients, where they were impacted by lower crypto currency volumes that were also seen across the broader sector. Subsequent to Q3. However claim square has seen a meaningful picked up pick up in volumes, resulting in revenue of $3 6 million for the month of October alone, which represents a meaningful increase over the average performance in Q3.
Cuz points squares total assets under custody were approximately 851 million at the end of October.
We continue to be big believers in the disruptive power of crypto and its importance in any next gen digital financial platform and continue to view points, where the strategic and attractive long term investment. Although we do have crypto related revenue a mogul would account for less than 5% of our total revenue. So crypto volatility doesn't have a meaningful impact on our core business and results.
During Q3, we also announced a small investment in Petro was spun off from Queensbury became candidates first because qualified custodian for crypto assets core business as the custody and storage of crypto currency assets, including bitcoin either in a variety of other digital assets.
We continue to have a sizable investment portfolio and our balance sheet of about $19 million, which we have been slowly migrating from legacy investments into companies that we believe that strategic value and partnership opportunities for mobile and our ecosystem in Canada.
Great example is our investment in the gaming sector, which increasingly is converging with the crypto sector as well as the emerging members all of which are clearly relevant for mogul and our role in that ecosystem. Our portfolio includes investments in digital assets Bitcoin and ethereum was at both seen significant appreciation since our original investment which started back in January.
We also expect to see monetization opportunities within the portfolio over the next six to 12 months as some of our portfolio of companies pursue ipos.
Our strong results year to date and the multiple growth drivers have talked about today enabled us to increase our financial guidance for the remainder of 2021 as well as for 2022.
Specifically, we expect year over year growth of 110, 115% and subscription services revenue in Q4 that compares to the previously guidance of 100% to 110%. We're also expecting total revenue for 2022 in the range of $75 million to $80 million up from previous guidance of 70 to 75.
While we are investing heavily in growth, we do anticipate improving adjusted EBITDA margins in 2022, and we also believe that we continue to increase their scale EBITDA margins in the range of 35% are achievable over time.
While we do expect to remain active in M&A, we have not factored that into our outlook at this time.
To quickly summarize it's been a strong year to date from mogul and we're carrying great momentum into 2022, where we expect to complement an already strong revenue profile with upside from Bogo trade, we're targeting a massive addressable market supported by long term tailwind and we are heavily investing to build nextgen fintech platform that can capture.
More of this market with that we will now open the call to questions operator.
Participants.
Since we will now begin the question and answer session. As a reminder to ask a question over the phone you May press Star one.
To withdraw your request you May press the pound key.
Yeah.
Speakers. Our first question is from Doug Taylor with Canaccord. Your line is now open.
Okay. Thank you and good afternoon.
I wanted to ask a couple more questions about MOGO trade it seems pretty eminent here I mean can you just update us on what these final steps are I mean.
Is there any.
Any risk of the launch slipping out of the quarter are these pretty much rubber stamps.
Any additional color there.
Yeah, so so I'll I'll take that.
Look where we are confident in our ability from a from a product perspective too.
Lunch before quarter end as Dave mentioned.
The the regulatory approval that we require.
Is effectively related to.
Change of business through the acquisition of fortification.
And we do believe.
That's something that we can get before year end, but obviously, it's not something that that we directly control. So.
It's hard for us to specifically comment beyond that but at this stage right. Now we are hopeful that we're going to be able to launch this before year end.
So I mean just.
All the development work behind the scenes is done and you're just waiting for that approval is that kind of a state of affairs right now is functioning.
Beta trial basis internally.
Yes, Dave you can maybe touch on the status of the product.
Sure Yeah, I mean, we are obviously.
We've been actually using essentially a version of the App for a while now and obviously, you're keeping a close eye on things as it relates to kind of regulatory approval.
This is a product that.
There's going to be a lot of development, even when we launch what we really considered the M V P.
There is gonna be ongoing development of iterations and new features et cetera. So this is an ongoing project and we will continue to be even after the launch of what we kind of look at is our kind of MVP minimal viable product.
But bottom line is we're going to be ready to go with a solid MVP as soon as we get the approval.
Maybe one more question on the Bogo trade or.
No.
This is a free stock trading App I know that you are intending to use us to monetize your.
<unk> member base.
Perhaps I'll just get you to refresh to what extent, you've factored anything related to MOGO trade into your updated guidance here, which once you've increased this quarter.
Yes. So it is re stock trading having said that there is a monetization model to it in particular through the FX side, So which you know so.
This is a product that that.
We expect to monetize.
Users directly as well as be a product that actually drives engagement and opportunities to monetize more broadly.
So I think theres sort of two benefits to the monetization model there.
I would say, yes, there is some revenue associated with MOGO trade in our in our guidance. It was the increase in guidance with the combination.
The most of the increased momentum we've got in our core business today.
And the momentum and confidence we have going into 2022 on it as.
As well as our confidence to get mobile trade launch in and make an impact during 2022 as well.
Okay, well that answers. My next question you mentioned something in your prepared remarks about this being the biggest investment you've ever made sandy have smuggled trade platform I wonder.
Just out of curiosity. What are you know if you would quantify where you think the amount of investment that I'm sure just trying to get an idea of the barriers to entry to do something like this.
Yeah, So I'll touch on that.
First.
Look I would say that their direct cost.
Associated with MOGO trade.
R. R. I think and that is ultimately going to be in the tens of millions.
But if you actually look at it our ability to even.
Launch MOGO trade and be in the position that we're in is.
Is a combination of the acquisition of moka, bringing.
Bringing that team around the table that has all the pieces and the capabilities that we need there as.
As well as the development capabilities that we've got a bogo and then you sort of layer on to the member base that we've got and our ability to leverage that member base as part of the launch.
And.
And just the scale from a regulatory and compliance perspective also by the way that we think is needed in this market I mean, if you look at the crypto market.
That's been an unregulated market in Canada as you know various entry there very low our general view is that increasingly we are going to see crypto trading on the retail side flow into those players that actually can do stock trading as well that barrier. We believe is much higher of the regulatory barrier the capital barrier.
And really just sort of putting all those pieces together.
So I think it's a combination of all of those things.
By the way. We also think there are geographic barriers given the regulatory environment in Canada, both on the equity side and on the crypto side.
So I think we definitely believe that there are a number of barriers here.
That I think position MOGO well given the assets that we've got on the table and the opportunity to leverage those assets as part of the launch of a bogo trade.
One last question for me on the crypto side.
You provided a little bit of color into the financial performance of coin square, it's obviously, a pretty material asset now for.
For MOGO.
First of all can you just reiterate or repeat what the revenue run rate for <unk>.
For coin square is an operating profitably once you look past some of those equity related machinations that you mentioned I know the net income that shows up in your income statement is not always a good representation of the.
The operating profitability.
Profitability of an asset like that.
Any other color you can give us would be useful.
Sure so.
I guess look at what we did comment on on revenue that coin square has seen it pick up in October.
You know this is a volatile sector. So it's difficult to just pick out run rate, but at that level that would be north of $43 million revenue run rate.
On the recent October results.
And I would say also at that scale.
Queen square is profitable.
And Queen square as well, though is making a significant investment in their platform.
And their business as well so.
Profitability as you know in these businesses is a function of the profitability and the margin contribution of the business and the level of investment that the business is looking to make in their platform and new products et cetera, obviously quaint square as its own company makes those decisions as well, but that's sort of the high level metrics that give you.
Okay I appreciate the extra color I will pass the line.
Thanks.
Next question is from Scott Buck of H C. Wainwright. Your line is now open.
Hi, good afternoon, guys congrats on the quarter.
Thanks Scott.
Quickly on <unk> can you remind us is that going to be a wide rollout to are you going to specific.
Members first and then rolling wider.
In 2022, and then also can you discuss a little bit of the marketing and promotion.
Those of us that are here in the states.
What you guys are doing up there.
So, yes, I would say in terms of the rollout definitely initially we're gonna be inviting existing members.
Two mobile trade. So you know one of the ways. We built this as we mentioned before it is going to be a separate app. So it's gonna be a separate app similar to our Robin Hood up down in the states.
It is linked to the mogul accounts, so our existing members with an existing mobile account will actually be able to download that app and be able to log directly into it.
And then and then that's obviously one of the points in terms of what is taking to kind of build this out obviously.
A core part of our platform that we've already built out as it relates to just Onboarding Ky see payments all of these things obviously are being leveraged in trade, but they're also an integrated so as we've said before summer.
Somebody will be able to transfer money for example from the mobile card directly into their trade account and vice versa. Right same thing is going to happen even on crypto. So that also then kind of brings people into that broader.
System of our of our products. So our initially when we get approval, we'll be launching through an invitation to our existing members will also be marketing essentially a waitlist as well to kind of build up for those that just want to wait until the actual they can download the app and sign up for that.
And there is you're getting a sense in this presentation a little bit of the brand. Although it is called mobile trade mobile trade is actually going to have its own brand and own vibe as it relates to both the product.
And the brand itself and.
And we are working on a on a broader base campaign, including you know quite a few event level items, let me know partnering with Influencers and some other kind of creative things too.
Two market Kinda MOGO trade.
More broadly and then potentially even including a TV campaign in early next year.
Okay Super. Thanks, that's very helpful. Second it looks like member growth is still running at kind of elevated levels.
Is there a particular product or service, that's driving nanometers, a crypto is it the card or is it more just broadly the overall value proposition of.
<unk> membership.
So yeah, it's Dave I would say it really is kind of our broader value prop. We have many members coming in for our today, our passive investment and investing solution.
We also obviously every people coming directly for card for Bitcoin, obviously, we still have a lending business as well. So you know there and I think that's part of what we saw in terms of just our our performance relative to what you're obviously starting to see in the crypto space is not only that volatility, but a strong desire to be.
And our product offering.
So that you're not just dependent on on crypto.
So I think today, we feel pretty confident in.
Most of the products that we have today and in each one of them has their has its own path for driving member sign ups. Ultimately, we believe trade, especially obviously just given the excitement around kind of retail trading will will be by far our biggest kind of driver of growth and net new growth going forward once once.
We launch it.
Great. That's helpful and then last one for me.
Interest revenue is still about 40% of the business are so can you give us a little bit of an update on the lending environment and the outlook there for 2022.
Yeah. So.
Look that product continues to be a very strong performing product for us.
And an attractive yield and a strong cash flow generator.
And obviously just more broadly in the Fintech space, we've seen we've seen on the credit side that really kind of rise in importance, whether it's the firms or the after pays.
The world.
And so we continue to like that product it will.
We don't expect it to we expect it to continue to be a contributor to growth, but the main driver of growth will continue to be subscription services revenue.
In general what we are we believe there is a significant opportunity there with that product going into 2022 again as the economy opens up more broadly.
We think that theres going to continue to be strong demand there and we're continuing to see strong credit performance. There. So again, it's an attractive product. It's if you if you look at our history.
A product that that we've been doing for well over 15 years deep credit expertise.
And a nice complement to the rest of the products that we've got ultimately we don't believe it's possible for you to be.
Number one or a key part of our consumers' financial wallet, if youre not willing to offer some form of credit.
And Thats, why Youre really seeing more and more fintech, if not all fintech get into that side of it but it's a hard business to get into.
Unless you've been doing it for a number of years like we have and so we continue to continue to like it as a complement to the rest of the product portfolio.
Okay. That's great color I appreciate the time today guys. Thanks a lot.
Thanks Scott.
Next question is from Mark Palmer of <unk>. Your line is now open.
Yes, gentlemen, good afternoon.
Looking at the boost to the companies.
'twenty two.
Guidance.
Just wanted to.
See if you could shed some light on what the drivers are of that.
What makes you incrementally more confident about the outlook for 'twenty, two and to what extent is.
MOGO trade or the impact from logo trade reflected in that guidance.
Yeah. Thanks, Mark So I guess, a couple of things, obviously I think we know.
Meaningfully outperformed this quarter.
Versus where the street was.
And obviously that outperformance as well as the guidance for and our confidence in in Q4 raising that guidance.
Tells you that we have increasing confidence in our core the growth of our core business.
And look the last time, we gave that guidance that was the first time, we ever gave next year revenue guidance. So I think we took a we.
We're taking a conservative approach and as we continue to execute.
And and see.
The model working that gives us more confidence to up that guidance. So it's a combination of.
The strong growth we've seen in our core business and the confidence we have that we can continue to drive growth in 2022.
And yes, the original guidance.
We said it was really minimal impact from Covid trade, but again as we get closer to launch a mega trade.
We have more confidence in our ability to include.
Some amount of revenue in 2022.
So I would say, it's a combination of both of those things but.
But I think we're we feel good about where we are just given the momentum and the opportunities to drive further momentum with Mongo trade.
Very good thanks, very much and and very nice quarter.
Thank you.
Next question is from a deer cottie of eight capital. Your line is now open.
Great. Thanks, guys for taking my questions.
I just wanted a question on the Moca business overall can you maybe you could give us some details on how that business is trending and what youre seeing in that business and then just maybe a follow up to that how the cross sell efforts are coming within mocha and logo sorry between local model.
So yes, it's Dave I would say, we're continuing to see see good traction on the Moca business and again, we're kind of we look at that overall is kind of what we call mogul invest.
Obviously, our focus and priority has actually been all on trade and so a lot of the opportunities that we still have including Mocha and bogo.
We expect to actually come post post trade.
So.
Although there is opportunities to do the odd campaign the.
The big difference say with trade and and Mocha is as I said before moka. Today. For example is a separate app with a separate login.
Compared to MOGO, so those two two or not synced.
Whereas trade is actually gonna be sync. So if you are already existing MOGO member, but you don't have to pass K y C. It's all the same information you can transfer between accounts et cetera et cetera.
All essentially like it's in in one app.
The.
So that complement in terms of cross sell between trade and logo. We expect is going to be 100 X what what obviously the market opportunity is today our goal.
Is two to essentially integrate moka into the mobile App and mobile trade. So essentially the three of them will all be integrated and.
And that's just something that we're going to be doing following post the launch of trade, but it just kind of shows you our general belief in and the opportunity with trade and I think it's pretty easy to see trade is again think about trade as a platform for trading we just happened to be start starting with equity.
Stocks first and then obviously expanding I mean.
Crypto and Ftes, there's a whole host of other products that could be brought into to trade.
And then.
Once once that is growing our goal is hopefully at some point next year.
The integration, where moca is integrated into that ecosystem. So you get that same synergies.
That's great that's very very helpful. Thank you and then just.
On the <unk> partnership that you guys announced I guess yesterday and today can you maybe talk about how that came out and what your.
What your expectations are for that partnership.
Yeah.
Sure.
So that was actually a partnership opportunity that was started by the moat. Good moka team pre acquisition. So obviously these guys are a large company. It takes a long time just to even get to to that type of a partnership opportunity.
They have a member base in Canada of I think around $6 million. So you know, it's obviously a big opportunity.
The fact that we're even at this milestone of doing this pilot with 20000 is obviously material and again I bet, you would see and it's taken well over a year to get to to this the spot so.
I think we're hopeful and confident that.
They were gonna see good value in it and hopefully that that expands I mean, it's hard to say, but it does just show you the types of potential partnership opportunities that increasingly we're seeing with our kind of broader broader platform and obviously that's a.
Going to be an increasingly important part of our marketing strategy as well, it's not just out there with direct to consumer marketing is continuing to fine you know partnership opportunities obviously, the more we kind of build out our differentiated value proposition.
The board there are those opportunities are available as well. So I think that's hopefully going to be the first of what we hope to be many types of those those partnership opportunities in the future.
Great. Thank you very much I appreciate all the color guys. Congrats on the quarter I'll pass the line.
Thank you.
Next question is from Steven Li of Raymond James Your line is now open.
Thank you.
Yeah.
So it's about 2022 guidance.
Much of a bogo trade you've got it bill.
So yes, so Stephen we're not.
We're not breaking it down into the specifics as I said I think the way to think about it is in our original guidance.
We had very little from MOGO trade.
And I think the increased guidance is a combination of.
No.
Increased confidence in core growth versus growth of our existing core business as well as starting to bring some amount of MOGO trade revenue into into that guidance. So it's a combination of the two but we're not we're not at this point breaking out specifically.
Okay.
And then Greg on mobile spend.
Can you give us a range in terms of monthly transaction volume is at between 10, and 25 or maybe even higher.
Yeah. So.
I would say, we're again, we're not breaking out specifics on the products what I would say is where we're very early days on on the card.
It is our fastest revenue growth driver.
In our subscription and services revenue.
Bye bye a meaningful margin right now.
And we continue to see that.
Being the case for a while here.
At least before we get MOGO trade up and running.
But we're still early days on that and we see a massive opportunity for for that card to continue to grow.
This quarter was really a combination of one of the things we tried to highlight in our presentation is it's a combination of really everything working together the savings investing payment.
Payment processing.
Growth from new products like card.
And other subscription services revenue, it's all of those together despite the fact that.
Crypto as everybody knows with with not a big performer in Q3 in the sector. We were able to I think exceed expectations on the strength of the rest of those products. So we like the diversified revenue model that we've got.
And we do believe absolutely that card is going to become a more meaningful part of the revenue and I think as it does become that.
We'll see if it makes sense to get rigged up more of the detail.
Got it very helpful. And then maybe my last one on coins.
For the month of October.
Are we back up the level of revenue level, we saw back in the spring like $6 million to $7 million a month, so we're not quite there yet.
No. We're no we're not we're not back at that at that level yet.
Okay. Thank you.
Thanks.
Thank you participants I'll now turn it back over to Dave pillar for closing remarks.
Okay, well, thanks again for your time today, we appreciate all the questions and following the mogul and we look forward to updating you after Q4 in our year end. Thanks again.
Okay.
That concludes today's conference call. Thank you all for joining you may now disconnect.
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