MoneyLion Stock can Roar Higher

Personal financial management platform provider MoneyLion NYSE: ML stock has lost nearly (-70%) of its value from its 2021 peak. The fintech envisions building a digital private banks for the working middle class and focuses on marketing heavily to the Generation-Z demographic. With an easy to use all-in-one smartphone app, MoneyLion features saving to investing to building credit, personal loans, and cryptocurrency trading. the MoneyLion app functions very much like the Sofi NASDAQ: SOFI personal finance app as a one-stop shop for all things personal finance. The Company went public through a special purpose acquisition corporation (SPAC) reverse merger.

Q3 FY 2021 Earnings Release

On Nov. 10, 2021, MoneyLion released its fiscal third-quarter 2021 results for the quarter ending September 2021. The Company reported net revenue growth of 91% year-over-year (YoY) to $44.2 million, compared to $23.1 million in the year ago period. Gross profit rose 146% to $27 million. Adjusted gross profit margin rose 64%. Total customers grew 131% to 2.7 million and total originals grew 135% to @74 million. Net loss was $20.3 million compared to $5.5 million in the year ago period. MoneyLion CEO Dee Choubey commented, “MoneyLion is delivering on our vision of building a fully-digital private bank for the working middle class. Our platform of financial products, which now includes full-featured banking, investing, credit, crypto and rewards, along with personalized insights and advice, is resonating with millions of Americans as evidenced by our strong third quarter and year to date results.

We reported record adjusted revenue in the third quarter, while also improving our adjusted gross profit margin to 64%. MoneyLion’s strategy of building a ‘fintech super-app’ has found product market fit, as we added approximately 510,000 new users in the third quarter, underscoring the continued positive outcomes our digital financial platform delivers daily. Finally, we achieved a significant milestone in September by successfully transitioning to a public company. Looking ahead, our fortified balance sheet, continued product innovation, and experienced management team provides a strong foundation for future growth. Based on our progress year to date and in anticipation of continued momentum in the fourth quarter, we are reiterating our full year 2021 guidance of adjusted revenue of $155 million.”

Conference Call Takeaways

CEO Choubey set the tone, “We always say we are a technology and data first company with a deep emphasis on building enduring technologies that expand our platform and network benefits. Over the medium and long-term, we will use our advantage in data to continue adding even more features into our ecosystem to drive user engagement, and even more reasons for consumers to join and stay on MoneyLion. The big milestone for the year, of course, has been bringing MoneyLion to the public markets, via a SPAC merger under the historic ticker ML. With the transaction, we’ve greatly fortified our balance sheet with over $300 million in cash. And this really allows us to execute against the plan we’ve laid out. We’ve assembled a world class Board that increases our vantage points across regulatory and compliance with the additions of former SEC Commissioner, Annette Nazareth and former U.S. ambassador and banking veteran, Dwight Bush, as well as on data, content, and lifestyles with the additions of Matt Derella, formerly Chief Customer Officer at Twitter; Lisa Gersh, formerly at NBC Universal; and Michael Paull, currently President of Disney+. Our users represent the 90-plus-million hardworking Americans that are unhappily banked and are looking for financial products that make sense and are easy to understand. We are building essential content, tools. and technologies for our members to navigate times of access, and invariably, a few times a year, times of need.” He continued, “Most Americans don’t have a financial advisor, but GamePlan curates the best practices of a large community to bring advice to financial decision-making, like buying a car, saving for a house, reducing debt and planning for retirement, all for free. Features like GamePlan, allow us to accelerate our two-sided marketplace. We know we can’t provide every financial product to consumers, but we know our consumers better than anyone from a data perspective. It puts us in the best position to match our users’ inflection points with just the right products at just the right time. And financial product creators like being part of the MoneyLion ecosystem, because they can be served as actionable solutions to consumers, who display high intent, at a point of time when the product is really needed, leading to better conversion metrics than most other publishers. Because of that, we are executing a strategy of becoming an aggregator. We want to be in the middle of every financial decision made by our consumers. Just like Apple and Google and Amazon have app marketplaces, our strategy is to build a financial product marketplace at similarly large scale.”

ML Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provide a precise view of the price action playing field for ML stock. The weekly rifle chart peaked off the $7.57 Fibonacci (fib) level before falling as low as the $3.56 fib before attempting to bottom. The weekly rifle chart has an inverse pup breakdown with a falling 5-period moving average (MA) at $4.68 followed by the 15-period MA at $6.62. The weekly stochastic has been smothered in oversold territory under the 10-band for weeks. The weekly lower Bollinger Bands (BBs) sit as low as $1.46. The daily rifle chart downtrend is slowing as the 5-period MA flattens at $3.84 followed by the 15-period MA at $4.29. The daily market structure low (MSL) buy triggers on a breakout above $3.98. The daily lower BBs sit at $2.67. The daily stochastic has coiled but needs to bounce up through the 20-band to gain momentum. Prudent investors can watch for opportunistic pullbacks at the $3.69 fib, $3.25, $2.9ff fib, $2.25, and the $1.93 fib level. The upside trajectories range from the $5.45 fib up towards the $8.17 fib level.