Mr. David Feller reports

MOGO ANNOUNCES FIRST QUARTER 2018 FINANCIAL RESULTS

Mogo Finance Technology Inc. has released its financial and operational results for the first quarter ended March 31, 2018.

"We delivered our highest-ever quarterly revenue, accelerating growth in our subscription and services revenue, and rapid member growth in the first quarter," said David Feller, Mogo's founder and chief executive officer. "Our goal is to become the go-to financial app for the next generation of Canadians, and every quarter we focus on improving our value proposition, whether with new features, an improved user experience or new products. We continued to make great progress in these areas in the quarter and in proving out our freemium model, where we attract users with benefits such as free credit score monitoring and, over time, cross-sell them into our other products, including premium account offerings. We believe that the future of financial services will not only be a digital one, but increasingly mobile-first as Millennials and Gen Z want to manage their financial life from an app, and expect a modern digital experience that is both simple and engaging."

"It was a very strong quarter for the company, highlighted by a 110-per-cent increase in our subscription and services revenue, which represented 35 per cent of total revenue at quarter-end, up from 21 per cent last year, and is increasingly driven by recurring monthly subscriptions," said Greg Feller, president and chief financial officer. "Subscription and services continues to be the primary driver of our revenue growth alongside managed growth of our MogoMoney product. Excluding the impact from our legacy short-term loans, based on our continued strategic shift away from this product, our core revenue had its third consecutive quarter of accelerating growth to 60 per cent in the first quarter."

First quarter financial highlights

• Record total revenue of $14.3-million, up from $11.3-million in the first quarter of 2017, representing accelerating year-over-year growth to 27 per cent.
• Subscription and services revenue had its fifth consecutive quarter of accelerating growth, increasing 110 per cent to $5.0-million, primarily driven by the continued rapid growth in recurring subscription revenue, including premium account options such as MogoProtect.
• Total revenue, excluding loan fees related to the company's legacy short-term loan product, increased by 60 per cent to $10.4-million, up from $6.5-million in the comparable quarter in 2017.
• Gross profit increased 26 per cent to $9.4-million (65 per cent of revenue), compared with $7.5-million (66 per cent of revenue) in the first quarter of 2017. Gross profit increased at a slower rate than revenue due to the impact of the adoption of international financial reporting standards during the quarter.
• Adjusted earnings before interest, taxes, depreciation and amortization increased 18 per cent to $300,000, versus the comparable period a year ago.
• Adjusted net loss for the first quarter of 2018 was $4.9-million, compared with $3.8-million in the comparable quarter in 2017.
• Net loss for the first quarter of 2018 was $3.9-million, or 17 cents per share, compared with $4.6-million, or 25 cents per share, for the first quarter of 2017.
• At March 31, 2018, the company had $35.7-million in cash and up to an additional $188.0-million, upon certain conditions, from undrawn facilities available to support future growth.

First quarter business highlights

• The company added approximately 60,000 net new members in the first quarter, an increase in total members of 53 per cent over the prior year;
• Launched MogoCrypto, enabling members to buy and sell Bitcoin at real-time prices instantly from their mobile devices;
• Expanded blockchain initiatives including commencement of small-scale Bitcoin mining hosted by DMG Blockchain Solutions;
• Continuing enhancements to mobile-first digital account and user experience with continued focus on making it easier for consumers to manage their financial health;
• Subsequent to quarter-end, added former HSBC executive Matthew Bosrock to its board of directors;
• Subsequent to quarter-end, extended the term of its marketing collaboration agreement with Postmedia Network for an additional two years covering calendar 2019 and 2020;
• Subsequent to quarter-end, commenced trading on the Nasdaq Stock Market under the symbol MOGO.

Conference call and webcast

Mogo will host a conference call to discuss its Q1 2018 financial results at 8:30 a.m. ET on May 8, 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 5996597. The webcast can be accessed at 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.

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 six products including free credit score monitoring, identity fraud protection, the Mogo Platinum prepaid Visa card, mortgages, personal loans and the MogoCrypto account, which enables the buying and selling of Bitcoin.

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