Mogo Inc. (MOGO) stock’s last trading session ended at $10.29. In recent trading session, the price of MOGO stock surged by 2.04% to $10.50.
Mogo Inc. (NASDAQ:MOGO) has recently announced its Full Year 2020 & Fourth Quarter financial results. Along with this news, the leading digital wallet and payments company has also announced the acquisition of MokaFinancial Technologies Inc., a leading saving and investing App.
Announcing Full Year Financial Report and MOKA acquisition
While releasing its financial report, David Feller, Mogo’s CEO announced that the company has taken some strategic steps towards its business fundamentals that will place them in an advantageous and stronger position. This position he was referring to is the trending adoption of digital wallets and financial health solutions by consumers in USA.
The major step it is taking to expand its operational business is by entering into the market of Canadian Wealth Management Industry which is worth $4+ million. For this, Mogo Inc. is seeking to acquire Moka Financial Technologies Inc.
The significance of acquiring Moka Technologies Inc
This acquisition will allow for the addition of Moka’s half-a-million members to increase the Mogo’s member base by +1.7 million. The 100% acquisition will be an all-stock transaction. Mogo Inc. aims to solidify the base of its MogoWealth wallet app by integrating Moka’s more than $250 million Assets Under Managements (AUMs) and management portfolios.
Furthermore, the merger will boost the planned initiation ofMogo’s(MOGO) free stock trading solution for Canadians. This will leave an impression for Canadian and European customers of MogoWealth’s digital wallet capabilities. This goes well with the already one-click user-friendly app of Moka; users are not required to have any mandatory financial knowledge and investment minimum limit. Simply link debit or credit card with the app to directly start investment or saving.
Insight into the Full Year 2020 and Fourth Quarter Report
This explains Mogo’s (MOGO) operational strategy, now let’s see how its financial results have performed in the past quarter and year.
MOGO added more than 50% of new customers compared to Q3 2020. The Full Year revenue was $44.2 million which was $15.6 million short from 2019’s $59.8 million. However, this was because the company had intentionally downsized its lending activities and growth investments due to the pandemics in Q2.
This downsizing did counter the foreseen loss and reduced the net loss to $2.8 million in the Fourth Quarter as compared to $6.2 million in the 2019’s Fourth Quarter. The cash-on-hand for the Q4 2020 was approximately $30.6 million compared to $27.8 in Q3 2020.
Mogo(NASDAQ:MOGO) has also made Bitcoin business endeavors. Up till the Q4, the company had acquired approximately 18 bitcoins at an average purchase price of $42,079 per bitcoin. This significantly showcases Mogo’s (MOGO) cryptocurrency investment portfolio that includes MogoCrypto and investments in Canada’s premier cryptocurrency company known as Coinsquare.
Overall outlook for the MOGO stock
Overall, Mogo’s CEO (David Feller) announced 2020 as a transformational year for its business and financial operations. Furthermore, David Feller has stated expectations for 2021’s outlook which includes 80% to 100% growth in Q4 in subscription and services revenue compared to Q4 of 2020.
Investors need to keep an eye out for the Insurance company’s investment in the Bitcoin and cryptocurrency as the volatility of this digital currency will significantly impact the MOGO’s stock value and EPS.
