Q2 2022 Mogo Inc Earnings Call
Investor Relations you May begin your conference.
Thank you and good afternoon, everyone. Thanks for joining us.
Q my normal kind of quick recap a few notes before we get started.
First.
Note that 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.
And about the risks and uncertainties are included in our Q2 filings as well as periodic filings with regulators in Canada, and the U S, which you can find on SEDAR, Edgar and through our Investor Relations website.
Today's discussion will include adjusted financial measures and non F. R. I FRS measures.
These should be considered as a supplement to and not as a substitute for IRS measures and you can find reconciliations both in the filings and in the deck.
Lastly, the amounts today are discussed in Canadian dollars unless otherwise indicated.
I'll now turn the call over to Dave seller to get started thanks, Dave.
Thanks, Greg.
Welcome again to our second quarter 2022 results call I'm joined today by Greg Fuller, our president and CFO .
No question that Q2 was a challenging period broadly in the Fintech space with many companies seeing significantly declining revenue year over year.
We also faced some headwinds are 27% revenue growth highlights the resilience and diversity of our business something we've worked hard to build over many years.
In this difficult macro environment with inflation and stock market volatility top of mind consumers have less money to spend and they're also looking for better value. These pressures mean, our products are more relevant today than ever this.
This quarter was also one with a focus on expenses cash flow and balancing growth with profitability.
This is demonstrated by a 14% reduction in expenses and improvement in cash flow from operations, which Greg will go into more detail little later.
While we are reducing our cost structure and moving on an accelerated path to profitability. We are not losing sight of the tremendous growth opportunity and continue invest in key growth opportunities like our New Commission free stock trading App mobile trade.
Our mission continues to be a driving force, helping Canadians achieve financial freedom and positive impact and in today's world. We believe this mission is more relevant than ever we've turned the mission into a simple formula that helps guide our roadmap and our experience. Our goal is to build products that make it easy to follow a formula for achieving this.
This formula ties into three key products spend management passive investing and active investing.
Which brings us to our newest product and the biggest product initiative in our history to date MOGO trade.
In Q2, we continued to advance the product and accomplished a lot in the quarter, which positioned us for a recent in the recent announcement that we've now removed the weightless. So that means the app is now available for anyone to download and sign up on Android and iOS.
This is obviously, a really exciting milestone and I want to say a special. Thank you to the entire team that has worked tirelessly to get us to this stage not only has just been our biggest initiative, we have undertaken but the level of the product. We have built I believe is truly impressive.
We believe we have created something truly unique in the Canadian market. In fact this is the only stock trading app that we don't have anywhere in the world where every investment you make has a very measurable impact on making the world a better place. This takes ESG investing to a whole new level.
In addition to this we've created a very simple and compelling user experience. It also includes real time streaming prices and one of the lowest FX fees in the market.
<unk> 75, this is less than half of what some of the competitors charged I invite you all to sign up and see for yourself.
Now this is just the beginning of mobile trade in as we continue to get valuable feedback from our customers and iterate improve the experience as well as launch new features every quarter a few of our upcoming features include things like real time price notifications on stock movement more funding options that enable our users are users to easily transfer money to their account as well as in <unk>.
<unk> transfer option, where users can easily transfer over accounts from other brokers.
We plan to continue to evolve this product with the goal of becoming the most popular stock trading App in Canada longer term plans include full crypto trading fractional investing and many other exciting features.
In addition to the work on mobile trade. We also continue to think it through our growth strategy for our passive investing solution moca.
We acquired <unk> last year and this product is one that we continue to get more and more excited about.
As important as trade is having a best in class passive strategy that enables anyone to automate the wealth building is critical and for most people should be their primary wealth building strategy.
Is just as big of an opportunity is trade, especially when looking at the size of the market with approximately two trillion investment mutual funds in Canada today as you can see our value proposition is very compelling because of our low fixed fee model. The same amount of money invested through moca versus a mutual fund assuming both track. The S&P 500, as you can see with Moca, you end up with over 60% more.
The difference continues to grow over time.
Our goal is to continue to evolve moca from a short term savings out to one that also becomes our members main long term wealth building solution from.
From a product perspective, we continue to build products that we ourselves would want to use and be proud to share with friends and family.
This is also a solution that I wish I had when I first start out and not only has it become my main passive solution. Both of my kids are now on their path to financial freedom using logo.
Lots of new features and improvements to come in Moca, and if you haven't already checked out yourself I encourage you to do so as always we welcome all feedback good and bad to help us make it even better.
Although we have been primarily focused on our digital wealth platform. We continue to be excited by the growth opportunity with their mobile card, which has proven to be a highly effective tool to help people control their spending which is a harder part of wealth building like trade. This product makes it easy for anyone to make a really big impact for their spending most of us have been experiencing the heat waves of late and climate change continues.
The increase in important yet most people don't know what they can do to make a meaningful impact.
Mobile card, unlike any debit or credit card makes it easy for anyone to not only eliminate their carbon footprint, but actually get climate positive in fact, our average card users climate positive I E. Removing more C O two from the atmosphere than they are contributing all for free.
Again, I challenge anyone to find a simpler and more effective tool for stopping climate change and the mobile card if 25% of transaction in Canada were down the most car today, Canada to be climate positive today decades ahead of its 2050 goal.
In terms of impact we now have two partners that we work with both of them focus on tree planting but in different ways. Our newest partner is an innovative Canadian company called Flash for US. It uses drones plant trees through our flash for US partnership we've already planted 100000 trees in Canada focused on areas that were devastated by wildfires. This tree planting is designed to not only help reduce.
C O two but also plays an important role in helping restore and maintain the natural ecosystem. So the benefits go beyond just carbon absorption.
All of us want to not only achieve financial freedom, but do it in a way that also helps build the world. We all want to live in and making a positive impact has to be measurable and meaningful which is one of the challenges with the es ESG investing with mogul. Our members can clearly see the impact they are having and see with full transparency of the partners and the impact of their actions have.
Lots more to do on this as we continue to evolve and improve but we're already proud of the fact that we've planted over a million trees as just a side benefit of helping our members got on track to financial freedom.
With that I'll turn the call over to Greg.
Thanks, Dave and good afternoon.
Given our full results were posted this morning will be brief with my comments when we get to your questions.
Our Q2 sales results were solid despite a reduced spending in marketing in the current macro environment headwinds, which further highlights the diversification of recurring nature of our base.
Highlights for the quarter include 27% year over year revenue growth alongside of 18% member growth payment volume in the quarter of $1 7 billion European City car type.
Quarterly gross profit of $11 3 million, which is down sequentially due to increased loan loss provisions as we return to more normalized pre COVID-19 default level as well as the impact from an additional provision required under ifr at two account for forward looking factor given the macro challenging more challenging macro environment.
With benefit where recent cost cutting initiatives kicking in we also saw an improvement in our adjusted EBITDA loss of 25% from Q1.
Lastly, we ended the quarter in a strong financial position with combined cash digital assets and investments totaling $100 2 million, which is after the impact of taking close to 38 million of noncash write downs of your investment.
As Dave mentioned, we surpassed an important milestone in the quarter, a 2 million members with total members up 18% over last year the quarter growth was achieved despite our decision to proactively Vince marketing spend in the period to focus on efficient marketing, including a faster payback period from our members.
The decrease in spend of course has a direct impact on our member growth. This quarter. Our member base continues to be a major asset for the company puts us in a small number of Canadian print textbook member scale.
During the period of economic and financial market volatility Fintech business models, and the reliance of nonrecurring transaction based revenue had been particularly hard hit Conversely, our revenues up 27% over the same period last year, which is a testament to the primarily recurring nature of our revenue and position us well to manage through periods of macro headwinds.
Approximately 94% of our revenue comes from subscription payment processing interest and other recurring revenue streams. In addition to the recurring nature of our revenue we've shown that despite the impact of market conditions, our business model will generate healthy margin.
Well our business has proved comparatively resilient, we were not immune to the macroeconomic backdrop impacted accordingly by reducing our expense base during the quarter, we implemented a cost savings plan to reduce noncash opex by 14% compared to Q1 either.
These are never easy decisions. However, given the current economic uncertainty, we believe it's appropriate and prudent to assume these challenges will persist through 2023 and as a result, we plan to continue to manage our growth investments more conservatively with a greater emphasis on driving towards profitability.
The actions we started in Q2 had a material and rapid positive impact on our cash flow.
Net cash used from operations before investment and low receivables improved 62% to.
$2 8 million in the quarter compared to $7 2 million cash used in the first quarter.
We expect to see further benefits from our cost reduction initiatives in Q3.
With high recurring revenue base and flexible operating model has allowed us to quickly change our priority the topline growth and profitability.
If you've followed mobile for some time you will recall that we generated very strong positive EBITDA margins from Covid, when we decided to reduce our spend.
Typically in the first quarter of 2020, we were able to dial back our our cash opex by almost 50% along with our high recurring revenue components, resulting in us generating an average of $5 million of adjusted EBITDA or approximately 50% adjusted EBITDA margin over the subsequent two quarters before we decided to resume our growth again in Q.
For 2020.
Although we are not being as aggressive today in dialing back our growth spend given our confidence in the return potential of our investment along with the strength of our balance sheet beginning beginning in Q2 of this year, we did make the decision to moderate our growth investments to adjust the balance of topline growth and path to profitability with a target to hit adjusted EBITDA breakeven by Q4 of 'twenty three.
Outside of our core digital finance products, we continue to see a big opportunity for digital payments business part of it despite a customer specific headwinds.
On page 22, which we discussed last quarter.
Outstanding that's even strong underlying growth of our customers as we increase overall transaction volumes sequentially in Q2 to approximately $1 7 billion. We believe card is a valuable an underappreciated asset in a growing market poised to benefit from secular growth trends and see significant opportunity for the business to drive shareholder value in the future.
During the quarter, we recognized 39 million of net non cash charges, mostly related to the write down of our investment in <unk>, where our digital assets and other investments in our portfolio, which collectively with the primary contributor to our $51 9 million reported net loss in the quarter. Despite these noncash charges. We continue a very strong balance sheet, specifically we ended the.
With cash digital assets and investments totaling $122 million. This included cash of approximately 44 million and an investment portfolio that now totals over $78 million.
Largest investment in this portfolio is approximately 38% ownership in points, where which had a book value of $63 million as of June 32002, we continue to be believers in crypto as an asset class and believe that our investment in the sector and provide significant value creation opportunities for our shareholders.
White square in particular, we believe is well positioned to become the first fully regulated crypto investment dealer and Ats in Canada later, this year, which would be a milestone event for both the company and the industry.
With today's results. We also reiterated our most recent 'twenty two guidance. Despite short term headwinds total revenue is still expected to grow between 2025%. This year to 69 $72 million. We also stated we expect improvement adjusted EBITDA margin in the second half of the year, which we already demonstrated in this quarter looking out to 'twenty three we're currently.
Managing our growth investment spend assuming total revenue growth of 23 in the range of 10% to 15% with the goal of being adjusted EBITDA positive in Q4 dollars 23 again, given the macro conditions, we believe the strikes the right balance, enabling us to shift our investments and to the most impactful areas.
Such as mobile trade in Moca.
In these uncertain economic times financial well being is as relevant as ever to Canadian consumers and we want to bring them the best tools and products to help them save invest and achieve financial freedom will also making a positive impact with their money.
With that we will now open the questions open the call to questions operator.
Thank you at this time I would like to mine everyone in order to ask a question press star one on your telephone keypad, we'll pause for just a moment to compile the Q&A roster.
Your first question comes from Ed tier caps from eight capital. Please go ahead.
Thanks, guys. Thanks for taking my questions here I wanted to ask on Bogo trade I know early days in terms of the rollout, but any early callouts you guys would have on mobile trade.
Things in the in the realm of user sign ups, how those are trending.
What kind of things you're focusing on in terms of improvements and just on the on the go to market campaign that we're going to see earlier in the year any additional color on that thanks.
Sure, It's Steve Yes.
I mean, obviously the initial goal was to remove the wait list by the end of last quarter, and we actually decided to hold back on that.
And obviously, we're trying to take a kind of very kind of careful thoughtful approach in how we're rolling this product out obviously, it's as we say it's not only our biggest product it's very complex product a lot of moving parts.
And it really is about trying to make sure that we've got everything as right as possible and.
With the wait list that enabled us to bring on enough users to be able to actually test the product out get the feedback.
Identify issues.
Some of them can obviously be bug, some others can be user experience items.
And for those reasons as we as we get that we're also doing net promoter scores. So surveys gauging the response rate.
On the product what I can say there is our initial net promoter score is very encouraging. It's it's in any anything essentially above zero was considered a net positive.
But we have quite a few segments that are considered active promoters of the product a lot of the specific feedback we're getting aligns to our value proposition just comments around the simplicity of it.
Including comparing it to two well simple, which obviously is the biggest commission free trading App in Canada, and obviously for US is clearly a big growth opportunity in terms of just the free users. They have obviously that's the biggest segment of users are those on the on the free side, so our value proposition.
Compared to them is as you know very compelling not only has the experience a lot easier because they are now.
Forward with bringing a lot more things into the App. So this one is again just focused on stock trading.
We have the real time streaming quotes which they don't have obviously, we have the impact component, which we think is increasingly important and relevant for all consumers and obviously, including the the millennial and Gen Z segment.
And then our fees on the free side or half of well simple. So it's a pretty simple and compelling value prop and we're excited to get in front of those users.
In terms of kind of the rollout plan. Obviously, we're also just looking at the market conditions in general our plan is to continue to carefully market. This product beginning with our own internal member base and we'll keep an eye on when we think the time is right to start getting a little bit more aggressive with it.
A broader marketing campaign.
That could be as early as Q4, but I think generally we're really focusing on kind of getting gearing everything up. So we're we're in kind of solid growth mode for for next year beginning of Q1.
No that makes sense and then just maybe as a user growth catalyst.
Pull back on marketing spend do you find that.
This product can actually catalyze that and kind of accelerate that moving forward just given how like you said one or two products like this in the market. It seems as though this could be a bigger quote unquote marketing campaign that than really anything else. Yeah definitely I mean, obviously, we're not in a situation where we're fighting.
Big comps from the year before in terms of.
Peak trading retail trading for us, we're coming out of the market, where essentially we're starting at zero. So.
Don't forget in the bigger months when well simple is growing back in 2000 22021, I mean, it got to a point, where they're signing up for 100000, a month, so depending on where the market gets too. Obviously this is a big opportunity.
And we're really focused on just trying to make sure that this product really delivers from a personal experience that actually drives word of mouth right. So just in terms of even efficiency. How do you go out there and increasingly trying to not rely on the expense of customer acquisition and really putting the value proposition into the product.
And looking for that to really kind of drive word of mouth. So we'll also be focusing on referral referral type campaigns contest things that helps kind of drive some excitement around it.
But we have also actually prepared.
Uh huh.
Our campaign and potentially could even be a TV spot and that actually is is almost completed so we're kind of ready for when we think it's the right time to get that bigger message out there and really going to be using MOGO trade as well as a brand elevating our product as well right really is that new way to kind of reintroduce MOGO elevate our brand.
And and introduce it to basically a segment of consumers in Canada that really have never been aware of <unk> member.
Yes, Sir and then maybe just on the on the back of that last comment is that kind of what.
What prompted the shift because last quarter you were kind of interesting that you want to go with more of a minimum viable product and then kind of grow on that but now it seems as though you are real.
Taking a much more measured approach is that kind of driven by the macro or is that kind of more driven by you know you have.
Good opportunity here to drive.
The adoption of that product, yes, Theres no question its a little bit of both obviously, if we were back in the heyday of retail trading.
It would be a different approach for sure right.
But I think generally.
We're even our current product today I don't know if you've had a chance to sign up and give it a try but.
Give it a try and give us your feedback.
It's clearly even beyond just the basic minimal viable product.
And with some of the features we have coming up shortly including even things like price notifications that are automated based on specific movements in the stock that you don't have to pre program. These are examples of features that in almost any app in Canada. Today, you won't see so the challenge obviously from a product perspective is coming up with features it.
Really differentiate you from what's in the market, even though they may have some other features and potentially products that you don't have right. So we're really kind of being careful and obviously using customer feedback to determine which do we think are the most important things, but ultimately as you release. These new features in that that actually does become really your main driver of growth.
People are starting to bring more assets onto the platform.
More likely to share it and talk to their friends.
So and again continuing to look at both of our customer feedback as well as keeping an eye on the on the macro environment and be in a position, where we're ready to kind of get going pretty quickly. If we feel the time is right.
Got it.
And then maybe just.
Shifting gears, a little bit to the forward guidance can you unpack that a little bit for us because it seems as though again mobile trade just it seems like it's going to be such a big product. It seems like it's going to really.
Catalyze your growth a little bit.
You guys talked about a level of conservatism baked into the guidance, but can you just maybe unpack that deliberate for us.
So yes.
Greg.
So just to reiterate obviously, we reconfirmed our guidance for 'twenty two.
We haven't given actually formal guidance as it relates to 'twenty three as much as what we've stated is how we are managing the business today and look our perspective is that there were obviously in a very volatile period from a macroeconomic perspective.
Among other perspective.
And Theres a lot of debate as to where the economy goes in 2023.
And depending on on that being more positive or negative it's going to have an impact overall on the economy and the consumer.
And ultimately businesses.
Including by the way on things like trading volume and things like that that will that will impact mogul and the rollout of that product.
Our approach is to say it.
Take a conservative approach as it relates to outlook in the economy. So instead of us assuming everything is going to be great. We're taking a pretty cautious.
Our approach on the economy and within that context, we are going to be managing our spend our investments in that.
On that basis.
And really sort of targeting that as we said the 10% to 15% revenue growth in 2023.
So if you think about the dio throughout the profitability. It requires a certain level of revenue against certain level of cost and if we are managing that business to a higher level of revenue I E. We're planning to spend more.
And things change then you're at risk on hitting those targets. So that's our approach obviously.
The trade itself, we're super excited about it but it's just really starting to get out the door now.
So we don't have any any real data point, yet and clearly trading volumes in general remain down.
So that is the context that we're sort of stating the target that we are managing our business to again, it's not formal guidance.
But we think that is the prudent way for us to manage our business in this environment, but this is we've been public now for seven years, we have managed through cycles.
And we.
We managed through the global financial crisis, which we may be one of the only fintech that.
That is public that actually has been around that long.
<unk> seen cycles, we've managed through them and we feel confident we have the team and capabilities and quite frankly, the diverse recurring revenue base to be able to do that.
So as I say, if you don't have scale and you can't cost cut your way to profitability. We believe we do have scale.
We talked about it in my remarks that going back to Q1 of 2020, when we were doing $10 million of revenue, we turn that dial back and generated close to 50% EBITDA margins on $10 million a quarter revenue and now we're just over 17 million in quarter revenue and we continue to have a dial that we can adjust.
Now we're not adjusting the nearly as strongly as we did back then because we do believe in the growth opportunity and the investment opportunity that we're making but we will continue to monitor conditions and adjust as necessary, but at this point, we're going to take a more conservative outlook as it relates to 2023.
And adjust from there.
Got you and maybe if I could just sneak one last one in and then I'll pass the line just on Moca. It just seems as though with mobile trade coming out now and Moca. It just seems like a very complementary set of products I know in the past you guys have mentioned that youll bring moca under the <unk>.
Under the overall mobile.
Local banner can you give us a sense of.
How long that would kind of take or what the roadmap is there I'm sorry, what the timeline is there kind of bring both of these products together.
Sure.
So yeah, I mean definitely obviously, there that is a very real opportunity and we continue to see it as a big opportunity.
We've tried to stay very focused on our priority around trade and essentially dedicating the resources to that product.
And now that we've actually past the current milestone in terms of inviting and feeling that that product is.
More at a state where we're starting to get it out into the market.
We're just now going to start putting some more resources on moca. So that actually is just going to be starting now and that will actually happen in parallel with with trade.
I can't give you exact timing of exactly what we're doing there I mean, we've been thinking through the strategy and doing a lot of planning around it.
But.
We are expecting to continue to improve that experience.
New features enhancements to the user experience et cetera, we've already made some some pretty material updates, including how that value proposition is marketing communicated you can check out the website to see that so as we continue to kind of move it towards.
Being a long term investing well building up alongside of short term savings out.
A lot of those changes have already been made.
While we kind of once we kind of start getting some of these features out there part of that is obviously looking at all the different ways in which we can better better integrate.
The experience so theres a few different paths, we just havent decided on which one but you know.
<unk> give can give more color on updates on the next quarter.
Got it so this won't be impacted by the by the cost saving measures.
No.
So yeah, I mean, two to Greg's point.
We are still from a strategic perspective very focused on this kind of digital wealth platform passive and active obviously the active being trade we didn't even have a product now that is out there essentially we're going to be focusing on both mocha and trade in parallel.
Got it thanks, guys and Im looking forward I'll download department can give you my feedback, but thanks for taking my questions. Thank you.
Again, if you'd like to ask a question press star one on your telephone keypad.
And your next question comes from Scott Buck from H C. Wainwright. Please go ahead.
Hi, Good afternoon, guys. Thank you for taking my questions. So I have a couple on crypto here to start off with first it seems like over the past few weeks investor sentiment has turned more positive towards crypto wondering what you guys are seeing among your customer base and whether youre seeing an uptick in crypto trading.
Great.
It's Greg so so I would say.
We have a very limited crypto offering at MOGO.
A bitcoin only account wins.
We were early in the sector, which was exciting when we did it.
But clearly now most crypto.
Investors are looking for access to more.
Sure.
Alternatives as an asset and obviously our roadmap is to bring in full crypto trading at some point in time into local trade and really kind of bringing together equity trading in crypto trading at some point in the future.
But I think that.
Obviously, our meet our real significant investment in crypto.
There are approximately 38% interest in Queen square.
Going through as you know one of the leading.
Crypto trading platform in Canada.
Super excited about the opportunity there.
I mentioned.
They have been very focused I think.
Why don't really important point on crypto for U S. Investors is that the Canadian regulatory framework.
A lot more certain and stable and clear than the U S.
Obviously, there is regulatory overhang as it relates to crypto right now in the U S. Given.
People are sort of waiting for that framework for the biggest crypto exchanges in Canada Queens.
Queen Square is focused on as I mentioned in my remarks on becoming the first fully regulated crypto investment dealer and ETF in Canada, which.
They're expecting you're going to get that.
But before the end of the year.
Potentially before the end of Q3, so that we see is really a milestone event options for the company, but for the industry and again actually not just in Canada, but in North America.
Again as we talked about also that this is a regulated industry that we're operating in and crypto being the same.
And so we do see big kind of geographic borders and barriers between geographic markets like the U S and Canada, which is why we remain focused on the Canadian opportunity. So obviously, then we've taken a meaningful charge this quarter on it noncash charge, but we remain big believers in that as an asset class going forward, especially for the next generation.
Nation, and one that we're excited to have a meaningful investment that we believe in the long run in the medium to long run is going to going to provide.
Meaningful opportunity for for our investors.
Great. That's very helpful color, Greg second question from me as you Cross the 2 million member Mark how should we think about what the market is.
Are there.
An incremental 2 million members out there that would make sense or is the number is significantly higher than that.
Yeah.
So Dave maybe I'll, just make a couple of comments here.
So yes in terms of from a member perspective.
Just put it in perspective.
RBC largest bank in Canada.
Has approximately 13 million active customers.
Customers right so.
Obviously, we have our member count, but then we have.
Obviously, a portion of them that are actually active within our products.
And so there's a there's an opportunity in terms of just getting more and more of our members active within our products, including cross selling obviously, including.
Getting for example, moca users to become trade users and vice versa.
But from a member perspective, there's no reason that MOGO couldnt get above $10 million right in the Canadian market. So you know obviously a lot of growth opportunity.
As an example, we're still not we actually haven't been in Quebec, right, which obviously is a large provinces in Canada.
<unk> amount of the population is in Quebec, we are alive with mocha in Quebec, and mobile trade today is not available in French will come back, but it will be before the end of the year.
And that will also start to obviously bring bring that part of the market on as well, which predominantly hasn't been part of the mogul mogul member base.
That's helpful and so when we think about your revenue commentary for 2023, how much of that 10% to 15% is coming from just better monetization of our current customer base, our member base versus.
Adding additional members onto the platform.
Yes, Scott I'll.
Try to answer that I mean, I I did get the mix I mean, our plan is.
He didn't grow our member base and I guess, what I would say is we expect.
Once we kind of.
Launch logo trade marketing campaign really.
Really everything we're doing is trying to sort of set us up so so we hit the ground running in Q1 and earn a position.
The accelerating growth and including net member additions.
Quarterly in 2023.
So that's really what our goal is.
And.
And we see MOGO trained.
Great opportunity to.
Grow the member base at a very attractive cap.
<unk>.
From an overall <unk> perspective, we've also talked about this but.
There's a big massive Tam as far as what the available financial wallet sizes of the customer in Canada again average Canadian bank over $1000 of Arco.
Per year.
MOGO right now sitting around $35 beverage our pool across our member base.
So clearly a big opportunity there, but actual RFP could go down as member growth goes as we.
Increases and we add on.
Lower lower <unk> customers, initially, which may be customers that come on with smaller dollar trading amounts on trade and then grow with you.
So we're more focused on driving the member growth and overall revenue growth and less ARPA growth in the short term and the long term we obviously.
Significant upside opportunity as we increase the monetization of that member base to also then drive higher overall ARPA across your members.
Great. That's very helpful. Greg I appreciate the time guys. Thank you so much.
Thanks.
And there are no further question at this time I will turn the call back over to the presenter for closing remarks.
Well, thanks, everybody for your time today, and we look forward to updating you.
On our Q3 results again.
Again, if you haven't already done so encourage everybody to download and try out the new mobile trade up and please share your feedback good and bad.
Thanks.
This concludes today's conference call you may now disconnect.
[music].