Mr. David Feller reports

MOGO ANNOUNCES FOURTH QUARTER & FULL-YEAR 2017 FINANCIAL RESULTS HIGHLIGHTED BY 96% GROWTH IN SUBSCRIPTION AND FEE BASED REVENUE

Mogo Finance Technology Inc. has released its financial and operational results for the fourth quarter and full year ended Dec. 31, 2017.

"It was a strong fourth quarter for Mogo both operationally and financially, highlighted by an almost doubling of subscription and fee-based revenue, which clearly underscores our continued success as a multiproduct company built on a leading, mobile-first digital platform," said David Feller, Mogo's founder and chief executive officer. "We continued to execute on our mission of empowering consumers with simple solutions to improve their financial health with the introduction of three new products in 2017, including MogoProtect in the fourth quarter, and we are advancing our MogoCrypto product toward launch this quarter, which will represent our sixth product. We are also encouraged by the early results of our efforts to cross-sell and monetize new products through our fast-growing member base, including through our premium account features. Our model is simple: The more we help our members improve their financial health, the more we grow our revenue."

"In the fourth quarter, our subscription and fee-based revenue increased 96 per cent to $4.1-million as compared to the fourth quarter of 2016. This was the fourth sequential quarter of accelerating year-over-year revenue growth, beginning with 28-per-cent growth in the fourth quarter of 2016," said Greg Feller, president and chief financial officer. "Subscription and fee-based revenue now represents 31 per cent of our current annualized revenue run rate of over $53-million, up from only 18 per cent in the fourth quarter of 2016. This keeps us on track towards our target of 50 per cent by year-end. Importantly, an increasing portion of this is monthly recurring revenue. The impact of this higher-margin, subscription and fee-based revenue is also evident in our record gross margins, which rose to 68 per cent in the fourth quarter. Lastly, we finished the year with a strong cash and liquidity position with over $40-million of cash that positions us extremely well to execute on our growth strategy in 2018 and beyond."

Fourth quarter 2017 financial highlights:

• Subscription and fee-based revenue rose 96 per cent year over year driven by increased adoption of new products and services, and now represents 31 per cent of the company's total revenue. This was the fourth sequential quarter of accelerating year-over-year revenue growth.
• Total revenue in fourth quarter 2017 was $13.3-million, up by 13 per cent over fourth quarter 2016 driven primarily by the growth of subscription and fee-based revenue and a 25-per-cent increase in loan interest from MogoMoney.
• Gross profit margin increased to a record 68 per cent of revenue, compared with 66 per cent in fourth quarter 2016, and gross profit was $9.1-million, an increase of 17 per cent compared with the fourth quarter of 2016. The increases were driven by the contribution of higher-margin, fee-based products and strong credit performance.
• The company achieved positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of $1.0-million in fourth quarter 2017, compared with $1.1-million in fourth quarter 2016. This is the sixth consecutive quarter of positive adjusted EBITDA.
• Adjusted net loss for fourth quarter 2017 was $4.1-million, compared with $3.0-million in fourth quarter 2016 and $4.1-million in third quarter 2017.
• The company completed equity financing for gross proceeds of $26.25-million.
• At Dec. 31, 2017, Mogo had $40.6-million in cash and cash equivalents.

Fourth quarter and full-year business highlights:

• The company added approximately 52,000 net new members in the fourth quarter and 196,000 for 2017, an increase of 56 per cent over the prior year.
• During the fourth quarter, the company launched MogoProtect, a new digital solution, to help consumers protect themselves against identity fraud. This adds to the two new digital products introduced in 2017 -- MogoMortgage and Mogo platinum prepaid Visa card.
• The company expanded into Manitoba, New Brunswick, Newfoundland and Prince Edward Island.
• The company prepared for the coming launch of MogoCrypto -- a new product that will enable MogoMembers to easily buy and sell bitcoin through their MogoAccount.
• The company made enhancements to the mobile-first digital account and user experience with a continued focus on making it easier for consumers to manage their financial health.
• The company added former head of PayPal Canada, Darrell MacMullin, as an adviser to support the company's product expansion efforts.
• The company formed a new subsidiary, Mogo Blockchain Technology Inc., which will serve as the main vehicle for Mogo's blockchain operations, including new product development and strategic partnerships. Subsequent to year-end, the company announced Mogo Blockchain's first strategic initiative of beginning bitcoin mining, through an agreement with DMG Blockchain Solutions, a Vancouver-based company focused on bitcoin mining hosting (mining as a service (MaaS)).
• Subsequent to year-end, ethereum co-founder Anthony Di Iorio joined Mogo as a special adviser.

Full-year 2017 financial highlights:

• Total revenue for 2017 was $48.7-million, a 2-per-cent decline compared with 2016. A 56-per-cent year-over-year increase in subscription and fee-based revenue was offset by the continued decrease in fees from short-term loan products.
• Subscription and fee-based revenue represented 27 per cent of revenue compared with 17 per cent in 2016.
• Despite the total revenue decline, gross profit dollars increased by 7 per cent driven by higher gross margin of 67 per cent compared with 62 per cent in 2016.
• Adjusted EBITDA (1) increased by 2,483 per cent, from $100,000 in 2016 to $2.5-million in 2017.

Outlook

Mogo expects accelerating revenue growth in 2018 based mainly on the ramp-up of its existing subscription and fee-based products and the launch of new fee-based products. The company expects continued growth in subscription and fee-based revenue and for this segment to represent an increasing percentage of total revenue, approaching 50 per cent by the end of 2018. In addition, the company expects continued strong member growth and is targeting 800,000 to one million members by the end of 2018.

Conference call and webcast

Mogo will host a conference call to discuss its fourth quarter 2017 financial results at 5 p.m. EST on March 6, 2018. The call will be hosted by David Feller and Greg Feller. To participate in the call, dial 647-427-7450 or 1-888-231-8191 using the conference ID 8378836. The webcast can be accessed on the company's website. Listeners should access the webcast or call 10 to 15 minutes before the start time to ensure they are connected. A copy of the presentation will be available at the company's website.

(1) A non-international financial reporting standard measure.

About Mogo Finance Technology Inc.

Mogo -- a Vancouver-based financial technology company -- is focused on building the leading digital financial platform in Canada and empowering consumers with simple solutions to help them improve their financial health. Built mobile first, users can sign up for a free MogoAccount in only three minutes and get access to five products, including free credit score monitoring, identity fraud protection, the Mogo platinum prepaid Visa card, mortgages and personal loans. The platform is engineered to deliver multiple financial products at scale through one account and enable the rapid launch of new features and products, including the company's recently announced MogoCrypto account, which is expected to launch in 2018. With more than 500,000 members and growing, Mogo continues to execute on its vision of becoming the leading financial brand and platform for the next generation of Canadians.

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