Mogo (TSX:MOGO)(NASDAQ:MOGO) is a Vancouver-based financial technology (fintech) company. Its shares have climbed 95% in 2021 as of mid-afternoon trading on May 31. The stock has soared 725% from the prior year. Mogo jumped into the crypto space during the big bull run in 2017 and early 2018. This has allowed it to take advantage of bitcoin’s even more impressive run over the past year.
The company released its first quarter 2021 results on May 13. Subscription and services revenue reached $6.0 million – up 32% from the prior year. Meanwhile, total revenue came in at $11.4 million – down from $13.9 million in Q1 2020. The year-over-year decline was due to the strategic sale of a portion of Mogo’s loan book in the first quarter of 2020. Mogo achieved a gross profit margin of 83% in Q1 2021 compared to 60% in the previous year.
Net member additions came in at 70,000 in the quarter, which was up 35% from the fourth quarter of 2020. The closing of the acquisition of Moka Financial Technologies brings Mogo’s total members to roughly 1.6 million. MogoCrypto trading volume and MogoCard transaction volumes were up over 1,500% and 1,000%, respectively, from the prior year.
Mogo projects accelerated growth in subscription and services revenue in 2021, as well as growth of 80% to 100% in subscription and services revenue. The company has proven to be one of the most accomplished and reliable fintech firms in Canada. Turbulence in the crypto space has led to volatility, but I’m still bullish on Mogo for the long haul.
