Why MoneyLion Stocks Are Trading With Volatility Today

What happened

Shares of SilverLion (ML -4.44%) traded up 18% earlier this morning after the content and financial services company announced its results for the second quarter of the year.

However, the stock then gave up most of those gains and was trading nearly 3% lower at 11:34 a.m. ET today.

So what

MoneyLion posted a net loss of more than $23 million in the quarter on total revenue of $87.3 million. Profits and revenues exceeded estimates.

“In the second quarter, we continued to execute on our effective growth strategy,” Dee Choubey, co-founder and CEO of MoneyLion, said in a statement.

Choubey added, “We achieved our sixth consecutive quarter of triple-digit adjusted revenue growth, while further improving our adjusted EBITDA. [earnings before interest, taxes, depreciation, and amortization] margin.”

During the quarter, MoneyLion added a record approximately 950,000 new customers and reached 4.9 million total customers. Total loans issued also increased 8% in the quarter to $439 million.

Additionally, the company raised its full-year guidance and now expects adjusted revenue of $330 million to $340 million and adjusted EBITDA of minus $55 million to minus $65 million. However, it expects to end the year with adjusted EBITDA at breakeven.

Now what

With a market capitalization of $550 million, the fintech company is trading at a very low price on revenue, but investors still seem to be looking for more progress when it comes to its profitability and margins.

I never thought MoneyLion had a great business model or product suite, but the company just grew its membership base by an all-time high and continues to move its finances in the right direction. If he keeps doing what he’s been doing, he may start to build an investor base.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.

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