Dialogue, Thinkific, Mogo post mixed results in Q2 2021

Dialogue co-founders

A number of Canadian tech startups have recently disclosed their second quarter 2021 financial results, including Dialogue, Thinkific, and Mogo. Here’s a look at how it all went down.

Dialogue Health losses offset revenue gains

Dialogue Health Technologies announced hardy membership growth and revenues, August 11 when it released its latest financial results for the three, and six months periods ending June 30, 2021.

The virtual health and wellness platform reported that revenues jumped 53 percent year-over-year to $16.7 million CAD.

Recurring revenue grew 99.1 percent year-over-year to $70 million. The company said new customers helped drive growth. Those customers included a global financial services provider, an international law firm, and a large distributor of electrical material.

“As we move into the second half of the year, we are well positioned to maintain a strong momentum.”

Despite the gains, the Montreal-based startup posted an adjusted EBITDA loss of $5.6 million compared to a loss of $2.2 million in the same period last year. The firm attributed the loss to higher operating expenses to support company growth, the launch and promotion of new services, and the development of its technology platform.

Dialogue also said higher operating expenses led to a total comprehensive loss of $6.4 million compared to $2.2 million in the same period last year.

As of June 30, 2021, the firm held cash and cash equivalents of $117 million compared to 42.1 million as of December 31, 2020. The increase was the result of net proceeds from Dialogue’s initial public offering of $90.6 million in March 2021, offset in part by cash used in operations during the first half of 2021.

Cherif Habib, CEO of Dialogue, assured investors that “as we move into the second half of the year, we are well positioned to maintain a strong momentum through our partnerships, technologies, and multidisciplinary approach to care.”

Year-over-year, members of the health platform grew to nearly 1.5 million, an increase of approximately 690,000.

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Some of the second quarter 2021 highlights the company spotlighted included the acquisition of the internet-based cognitive behavioural therapy provider e-Hub Health Pty Ltd.; as well as number of improvements in technology to its platform.

During the reporting quarter, Tim Hodgson joined Dialogue’s board of directors. Hodgson currently serves as board chair of both Hydro One and Sagicor Financial Corporation Limited. Hodgson also serves on the board of PSP Investments and was the CEO of Goldman Sachs Canada from 2005 to 2010.

Post-IPO, Thinkific continues to experience growth

Vancouver-based EdTech firm Thinkific announced its second-quarter 2021 results, posting revenues of $11.3 million CAD ($9.1 million USD), an increase of 101 per cent compared to the second quarter of 2020.

The company reported an adjusted EBITDA loss of $4.9 million CAD ($4 million USD), and a net loss of $6.6 million CAD ($5.3 million ) USD. Thinkific said increased investments across all areas of the business contributed to the loss.

The firm’s paying customers grew by 68 percent to 29,200 compared to the second quarter of 2020. Thinkific defines their paying customers as the count of unique Thinkific subscribers on paid plans as of period end, excluding all trial and free customers, and including both monthly and annual subscribers.

While reporting the company’s earnings, Thinkific noted that the COVID-19 pandemic has accelerated the shift to online learning. “While pandemic behaviours are currently evolving, we remain optimistic for the long-term,” the firm said in its second quarter report.

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“We believe the growth of Thinkific and our industry is in its early innings,” maintained Greg Smith, co-founder and CEO of Thinkific. “Our large and growing addressable market combined with the strength of our platform as the core operating system for Course Creators continues to drive confidence in our significant long-term growth opportunities.”

On April 27, the firm completed an IPO, going public on the Toronto Stock Exchange, followed by an over-allotment on May 5, with total gross proceeds of CAD $184 million CAD. Thinkific issued 14,156,500 Subordinate Voting Shares at a price of $13 per share CAD. As at June 30, 2021, Thinkific’s issued and outstanding share capital consisted of 76,705,247 shares.

During its 2021 second quarter Thinkific launched its App Store as a marketplace for course creators. The store connects developers who can create and sell custom applications with course creators who may wish to enhance their course offerings beyond Thinkific’s core platform.

The company also introduced Thinkific Payments in July, simplifying business management for course creators.

Mogo announces plans for free stock trading platform

FinTech firm Mogo plans to launch a free stock trading platform that it expects will go live by the end of 2021. The Vancouver startup announced the platform that it will call MogoTrade while reporting its second quarter 2021 results.

Year-over-year, Mogo’s revenue increased 29 percent to $13.7 million CAD, while subscription and services revenue growth bounced upward, 81 percent year-over-year to a record $8.2 million.

The company’s adjusted EBITDA showed a loss of $3 million compared to a gain of $5.2 million in the same period last year. Mogo noted the decrease derived primarily from a significant increase in product and technology development for its upcoming trading platform, MogoTrade.

David Feller, Mogo’s founder and CEO, said MogoTrade, along with an expanded wealth management offering in 2022 “will greatly expand our market opportunity and revenue potential in 2022 and beyond.”

In the last quarter, Mogo pursued a strong acquisition strategy, beginning with a 39 percent equity investment (along with certain option and warrant rights) in Coinsquare, a digital asset trading platform.

In May, Mogo completed the acquisition of Moka, a saving and investing app, and entered into a binding letter of intent followed by a definitive share purchase agreement in July to acquire Fortification Capital Inc, a Canadian registered investment dealer.

Feature photo courtesy of Dialogue

Charles Mandel

Charles Mandel

Charles Mandel's reporting and writing on technology has appeared in Wired.com, Canadian Business, Report on Business Magazine, Canada's National Observer, The Globe and Mail, and the National Post, among many others. He lives off-grid in Nova Scotia.

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