Why did Mogo (TSX:MOGO) stock zoom 18% in a day?

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Why did Mogo (TSX:MOGO) stock zoom 18% in a day?

Why did Mogo (TSX: MOGO) stock zoom 18% in a day?
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Highlights

  • Mogo Inc (TSX: MOGO), a Canadian fintech company, saw its stock rise by 18 per cent on Wednesday, March 23, in the face of its fourth-quarter results for fiscal 2021
  • This increase in Mogo’s stock price came despite reporting a net loss of C$ 33.2 million in FY2021, up from C$ 13.4 million a year ago
  • The Mogo stock climbed nearly 33 per cent in the last seven days

Mogo Inc (TSX: MOGO), a Canadian fintech company, saw its stock rise by roughly 18 per cent on Wednesday, March 23, in the face of its fourth-quarter results for fiscal 2021.

This increase in Mogo’s stock price came despite reporting a net loss of C$ 33.2 million in FY2021, up from C$ 13.4 million a year ago.

So, let us look at Mogo Inc’s financials and stock performance in detail.

Mogo Inc (TSX: MOGO)’s financial performance in Q4 FY2021

The Vancouver-based financial technology firm recorded a year-over-year (YoY) revenue surge of 70 per cent to C$ 17 million in the fourth quarter of fiscal 2021. Meanwhile, its 2021 total revenue amounted to C$ 57.5 million, up by 30 per cent from 2020.

Its subscription and services revenue swelled 135 per cent YoY to C$ 10.7 million in the latest quarter. With this, its full-year subscription and services revenue reached C$ 34.4 million in 2021, i.e., up by 80 per cent.

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The small-cap firm incurred an adjusted EBITDA loss of C$ 3.7 million in Q4 2021 compared to a profit of C$ 1.1 million a year ago. Its Q4 net loss also expanded to C$ 29.6 million in FY2021 compared to C$ 2.8 million in the same quarter of 2020.

Mogo added that its combined cash, digital assets and investments stood at C$ 193 million including its investments (book value) in Coinsquare, a crypto platform, at the end of fiscal 2021, up from C$ 30.6 million a year ago.

Mogo Inc (TSX: MOGO)’s financial performance in Q4 FY2021

 Mogo Inc’s (TSX:MOGO) stock performance

Mogo’s stock climbed nearly 33 per cent in the last one week and closed at C$ 3.62 apiece on Wednesday after clocking a day high of C$ 3.70. It noted a trading volume of 1.5 million this day.

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Bottom line

Considering the ongoing investments and growth opportunities, Mogo expects its total revenue to reach somewhere between C$ 75 million to C$ 80 million in fiscal 2022. It also anticipates improved adjusted EBITDA as a percentage of its top line in the second half of 2022.

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