© Reuters. The tale of two personal finance SPACs: What MoneyLion and Mark Cuban-backed Dave have to say about earnings
Benzinga – Two personal finance companies have gone public via the SPAC merger with high hopes for continued customer growth and new product offerings as part of a shift to digital banking and non-traditional banking. Stock prices have fallen drastically. Here is what happened.
MoneyLion shares fall: personal finance company SilverLion (NYSE: ML) announced a SPAC merger in February 2021.
The company recently reported third-quarter revenue of $88.7 million, up 103% year-over-year. This marks the company’s seventh consecutive quarter of triple-digit adjusted revenue growth.
“The products we see the most engagement from our daily content feed, the content we create, curation as well as creators. And of course the combination of our digital banking product,” the company said.
MoneyLion said it saw engagement triple in the third quarter.
The company cut its adjusted full-year 2022 revenue forecast to a range of $320 million to $330 million. The company’s initial forecast for fiscal 2022 at the time of its SPAC merger was $258 million in revenue.
“We remain focused on optimizing our cost structure and are focusing our investments in high-quality areas of our business that position us for long-term market share,” the MoneyLion CEO said. Dee Choubey said.
The company also revised down its EBITDA outlook. MoneyLion now expects adjusted EBITDA for the full year to be in the range of a loss of $70 million to a loss of $65 million. The reduced outlook compares to prior guidance for adjusted EBITDA of a loss of $65 million to $55 million. The company said it was close to profitability and remained confident in its “future growth targets”.
MoneyLion shares traded at 73 cents on Wednesday, down 87% from a year ago. The shares have traded between 75 cents and $5.87 over the past 52 weeks.
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Dave’s earnings don’t help shares: With a mission to create products to level the financial playing field, David Inc. (NASDAQ: DAVE) launched several products and eliminated overdraft fees for its more than 10 million members.
Dave, who counts Marc Cuban as the first investor, also went public via the SPAC merger.
The company saw net new members increase 43% in the third quarter to 7.8 million.
“We delivered impressive third quarter results on all fronts, with record revenue, transacting members and new member growth, as well as a strong performance from our Dave Card business following the rollout of our new experience. integrated product,” said Dave’s CEO. Jason Wilck said.
One thing that could be important for investors going forward: Wilk’s comments on the progress he’s made on his cash burn in the third quarter. The company expects to achieve positive Adjusted EBITDA in 2024.
Dave forecasts revenue for fiscal 2022 in the range of $200 million to $215 million. The company’s initial forecast for 2022 at the time of its SPAC merger was $377 million.
Shares of Dave traded at 32 cents on Thursday and are down 97% from a year ago.
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