Q4 2024 MoneyHero Ltd Earnings Call
Okay.
Good morning, please standby the call will begin momentarily.
Operator: Please stand by. The call will begin momentarily.
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Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to some money he rose fourth quarter and full year 'twenty 'twenty four earnings conference call. At this time all participants are in a listen only mode. After the speaker presentation that will be a question and answer session to ask a question. During this session you would need to press.
Operator: Ladies and gentlemen, thank you for standing by and welcome to MoneyHero's fourth quarter and full year 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during this session, you would need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again.
Pan: Star One wondering your telephone you wouldn't hear an automated message advising your hands, it's right to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded I would like now to turn the conference over to me and your Pan head up corporate development. Please go ahead.
Operator: Please be advised that today's conference is being recorded.
Meena Pan: I would like now to turn the conference over to Meena Pan, Head of Corporate Development. Please go ahead. Thank you, Michelle. Hello, everyone.
Thank you Michelle Hello, everyone. Good morning, and good evening and welcome to money he was fourth quarter and full year 2024 earnings conference call.
Meena Pan: Good morning and good evening, and welcome to MoneyHero School Quarter and Full Year 2024 Earnings Conference.
Meena Pan: Joining me on the call today are Roger Murphy, CEO, and Daniel Leung, Interim CFO. Our earnings released with Yiju earlier today and is now available on our IR website, as well as Swire Group Newswire services. Before we begin, I would like to remind you that today's call will include forward looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Please refer to the safe harbor statement in our earnings press release which applies to this call. In addition, please note that today's discussion will include both IFRS and non-IFRS financial measures.
Rocking Murphy: Joining me on the call today are rocking Murphy CEO and Daniel the interim CFO.
Rocking Murphy: Earnings release was issued earlier today and is now available on our IR website as well as wire rope newswire services.
Rocking Murphy: Before we begin I would like to remind you that today's call will include forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.
Rocking Murphy: Please refer to the Safe Harbor statement in our earnings press release, which applies <unk> coal.
Rocking Murphy: In addition, please note that today's discussion will include both ISR.
Rocking Murphy: And none at all as financial measures Vulcan dairy growth target is only for a reconciliation of these non ISR mashes choosing those service fee comparable <unk> measures. Please refer to our earnings release and SEC filings.
Meena Pan: For comparison purpose only, for reconciliation of these non-IFRS measures to the most seriously comparable IFRS measures, please refer to our earnings release and SEC follow-up. All money drew references will be in United States dollars, unless otherwise states.
Speaker Change: Good morning drew referenced since bogie in United States stores.
Speaker Change: Our device States lastly, a webcast replay of this conference call will be available on our IR, that's fine I think.
Meena Pan: Lastly, a webcast replay of this conference call will be available on our IR website.
Rohit: I will now turn the call over to Raohe, CEO of MoneyHero Group. Please go ahead. Thank you, Meena. Hello everyone and thank you for joining us today to discuss MoneyHero Group's fourth quarter and full year 2024 financial results. We close out the year with a robust quarter of financial and operational results reflecting the clear progress we have made on our path to profitability. As we continue to focus on diversifying our revenue mix towards high-margin products, lowering operating expenses and improving operational efficiency. Adjusted EBITDA loss during the quarter improved substantially to $2.9 million. our best quarterly performance since going public.
Speaker Change: Now turn the call over to <unk> CEO of <unk>. Please go ahead.
Speaker Change: Thank you.
Speaker Change: Hello, everyone and thank you for joining us today to discuss <unk> group's fourth quarter and full year 2024 financial results.
Speaker Change: We closed out the year with a robust quarter of financial and operational results, reflecting the clear progress we have made on our path to profitability.
Speaker Change: As we continue to focus on diversifying our revenue mix towards high margin products.
Speaker Change: During operating expenses and improving operational efficiency.
Speaker Change: Adjusted EBITA loss during the quarter improved substantially to $2 $9 million.
Speaker Change: Our best quarterly performance since going public.
Rohit: underscoring our improving trajectory throughout the year from losses of $6.4 million in Q1, $9.3 million in Q2, and $5 million in Q3. At the same time, our gross margin expanded by 25% points year-over-year, while net loss narrowed sharply to $18.8 million from $94.3 million during the same period last year. Registered members reached 7.5 million, up 42% year-on-year, reflecting strong user engagement. while approved applications grew 21% year-over-year to 767,000. underscoring increasing user trust and robust demand across our platform. With such solid results heading into 2025, We are confident in our ability to regain top line growth momentum and have set a target of achieving $100 million in revenue in 2025.
Underscoring our improving trajectory throughout the year from losses of $6 $4 million in Q1, $9 3 million in Q2 and $5 million in Q3.
Speaker Change: At the same time, our gross margin expanded by 25 percentage points year over year, while net loss narrowed sharply to $18 8 million from $94 3 million during the same period last year.
Speaker Change: Registered members reached $7 5 million up 42% year on year, reflecting strong user engagement.
Speaker Change: While approved applications grew 21% year over year to 767000.
Speaker Change: Underscoring increasing user trust and robust demand across our platform.
Speaker Change: With such solid results heading into 2025.
Speaker Change: We are confident in our ability to regain top line growth momentum and have set a target of achieving $100 million in revenue in 2025.
Rohit: and generating a positive adjusted EBITDA in the second half of the year. Now these results directly reflect the impact and discipline execution our efficiency strategy is having since we rolled it out in mid-2024. Our objective is clear to transform MoneyHero into a leaner more focused resilient and sustainable profitable business. We have made meaningful progress across the five strategic pillars we outlined then, consumer pull, conversion expertise, operating leverage, strong provider partnerships, and insurance programs. We remain the largest credit card digital acquisition partner for majority of the banks across our geographies and are leveraging the strong market position to strategically pivot towards higher margin.
Speaker Change: And generating a positive adjusted EBITDA in the second half of the year.
Speaker Change: Now these results directly reflect the impact.
Speaker Change: Disciplined execution, our efficiency strategy.
Speaker Change: Having since we rolled it out in mid 2024.
Speaker Change: Our objective is clear too.
Speaker Change: To transform money hurdle into a leaner more focused resilient and sustainable profitable business.
Speaker Change: We have made meaningful progress across the five strategic pillars. We outlined then consumer poll conversion expertise operating leverage.
Speaker Change: <unk> provider partnerships and insurance brokerage.
Speaker Change: We remain the largest credit card digital acquisition partner for majority of the Brian across our geographies.
Speaker Change: And are leveraging the strong market position.
Speaker Change: Strategically pivot towards higher margin verticals.
Rohit: While revenue during the quarter fell as a result of the strategic pivot and the high base set during the same period last year, it substantially improved in quality and is fueling our transformation. We launched seamless end-to-end purchasing journeys in travel and car insurance. and developed targeted strategic collaborations resulting in insurance revenue growing an impressive 40% to $8.2 million in 2024. Now accounting for a double-digit share of total revenue. Wealth revenue surged by 138% to $8.5 million in 2024, driven by our deepening banking relationships and robust demand for investment products, stock, and banking accounts. These verticals strengthen our margin profile while generating consistent and recurring revenue streams. both of which are key pillars of long-term sustainability.
Speaker Change: While revenue during the quarter fell as a result of the strategic pivot and the high base set during the same period last year is substantially improved in quality and is fueling our transformation.
Speaker Change: We launched seamless end to end purchasing journeys in travel and car insurance.
Speaker Change: And developed targeted strategic collaborations, resulting in insurance revenue growing an impressive 40% to $8 2 million in 2024.
Speaker Change: Now accounting for a double digit share of total revenue.
Speaker Change: Whilst revenues surged by 138% to $8 $5 million in 2024, driven by our deepening banking relationships and robust demand for investment products stock and banking accounts.
Speaker Change: This vertical strengthen our margin profile, while generating consistent and recurring revenue streams.
Speaker Change: Both of which are key pillars of long term sustainability.
Speaker Change: We also laid the foundation for scalable growth by materially lowering operating expenses and improving unit economics with an optimized cost structure across all markets.
Rohit: We also laid the foundation for scalable growth by materially lowering operating expenses and improving unit economics with an optimized cost structure across all markets. Streamlined operations and reduced paid marketing and rewards Now, looking ahead to 2025, we will maintain our focus on scaling higher margin verticals, particularly insurance, while continuing to tighten cost controls and simplifying work. Our product and tech strategy continues to follow a buy-over-bill philosophy, enabling faster innovation through strategic partnership. including new initiatives in AI and automation that are already underway. Our commitment to becoming an AI-first organization is already translating into several impactful initiatives across the globe.
Speaker Change: Streamlined operations and reduce paid marketing and rewards spend.
Speaker Change: Now looking ahead to 2025, we will maintain our focus on scaling higher margin verticals, particularly insurance, while continuing to tighten cost controls and simplifying workflows.
Speaker Change: Our product and Tech strategy continues to follow a buy or build philosophy, enabling foster innovation through strategic partnerships, including new initiatives in AI and automation that are already underway.
Speaker Change: Our commitment to becoming an AI first organization is already translating into several impactful initiatives across the business.
Rohit: We're actively working on deploying AI-powered customer service tools designed to significantly reduce inquiry volumes and achieve higher first-contact resolution. Additionally, we're piloting generative AI solutions to accelerate and scale content production efficiently. Throughout the organization, we are exploring opportunities to automate workflows using advanced AI tools and agentic AI to boost productivity, reduce operational overhead, and enable our teams to focus more strategically. We operate in a rapidly growing billion dollar addressable market across banking and insurance where we've only begun tapping into our full potential.
Speaker Change: We're actively working on deploying AI powered customer service tools designed to significantly reduce inquiry volumes.
Speaker Change: <unk> higher first contact resolution rates and.
Speaker Change: Additionally, we're piloting generative AI solutions.
Speaker Change: To accelerate and scale content production efficiently.
Speaker Change: Throughout the organization, we are exploring opportunities to automate workflows using advanced AI tools and agent take AI to boost productivity reduce operational overhead and enable our teams to focus more strategically.
Speaker Change: We operate in a rapidly growing billion dollar addressable market across banking and insurance, where we are.
Speaker Change: Only begun tapping into our full potential.
Rohit: With a debt-free balance sheet, $42.5 million in cash, and a more efficient, profitable, and scalable business model, we have a considerable runway ahead and are ideally positioned to capture a greater share of this large and growing addressable market and deliver sustainable, longer-term value to shareholders.
Speaker Change: With a debt free balance sheet $42 $5 million in cash and a more efficient profitable and scalable business model. We have considered considerable runway ahead and are ideally positioned to capture a greater share of this large and growing addressable market and <unk>.
Liver sustainable longer term value to shareholders.
Speaker Change: With that.
Daniel Yong: I will now turn the call over to Daniel Yong, our CFO. Thank you, Rohit. Good day, everyone. Our strong results in the fourth quarter demonstrate the effectiveness of our strategy as we continue to make significant strides in the diversification of our revenue mix. expand partnerships with our key providers, and broaden our product offerings. We believe these adjustments position ourselves for sustainable and as providers scale the operations in different regions. we see opportunities to further strengthen our revenue mix. and deepen our market presence with them.
Daniel: I will now turn the call over to Daniel <unk>, our CFO.
Speaker Change: Thank you Rohit.
Speaker Change: Hey, everyone.
Speaker Change: Strong results in the fourth quarter demonstrated the effectiveness of our strategy as we continue to make significant strides in the diversification of our revenue mix.
Speaker Change: Expand partnerships with our key providers and broaden our product offerings.
Speaker Change: We believe these adjustments position ourselves for sustained growth.
Speaker Change: As providers Gallagher operations in different regions.
Speaker Change: We see opportunities to further strengthen our revenue mix.
Speaker Change: And deepen our market presence with them.
Daniel Yong: This quarter, we remain focused on executing our growth strategy and continue our comprehensive reorganization and restructuring exercise to streamline operations and reduce costs. Total revenue during the quarter fell by 40% year-over-year to $15.7 million. driven mainly by a shift in focus on diversifying revenue mix for high-margin products, such as insurance and wealth products. and the high base impact during the same period last year with increased investment in marketing and customer acquisition to expand market share. Revenue from insurance products increased by 10% year-over-year to $2.1 billion during the quarter. accounting for 14% of total revenue, comparing to 7% during the same period last year.
Speaker Change: This quarter, we remain focused on executing our growth strategy and continue all comprehensive reorganization and restructuring exercise.
Speaker Change: Streamline operations and reduce costs.
Speaker Change: Total revenue during the quarter fell by 40% year over year to $15 7 million.
Speaker Change: Ruben mainly by a shift in focus on diversifying our revenue mix for high margin products, such as insurance and wealth products.
Speaker Change: And the high base impact during the same period last year with increased in fact, many marketing and customer acquisition to expand market share.
Speaker Change: Revenue from insurance products increased by 10% year over year to $2 1 billion during the quarter.
Speaker Change: Accounting for 14% of total revenue.
Speaker Change: Comparing two 7% during the same period last year.
Speaker Change: Revenue from wealth products increased by 195% year over year to $2 4 million.
Daniel Yong: Revenue from Wealth products increased by 195% year-over-year to $2.4 million, accounting for 15% of total revenue, compared to 3% during the same period last year.
Speaker Change: Accounting for 15% of total revenue compared to 3% during the same period last year.
Speaker Change: On a full year basis the.
Daniel Yong: on a full year basis. The impact of our strategic pivot is equally pronounced. With revenue remaining essentially flat, while revenue from insurance and wealth products surged 40% and 138% respectively from last year. We will continue to explore new opportunities to offer more new high-margin products, lines to build top-line growth, and further narrow our bottom line. Cost of revenue decreased by 62% year-over-year to $6.6 million during the quarter. with advertising and marketing expenses decreasing by 23% year over year. as we focus on scaling high-marketing protocols, and optimize reward costs associated with the credit card protocol, and paid marketing span across all markets.
Speaker Change: The impact of our strategic pivot is equally pronounced.
Speaker Change: With revenue remaining essentially flat, while revenue from insurance and wealth products surged, 40% and 138% respectively from last year.
Speaker Change: We will continue to explore new opportunities to offer more new high margin product lines to feel topline growth and further narrow our bottom line.
Speaker Change: Cost of revenue decreased by 62% year over year to $6 6 million during the quarter.
Speaker Change: With advertising and marketing expenses decreasing by 23% year over year.
Speaker Change: As we focus on scaling high margin protocols and optimized rewards costs associated with the credit cost protocol and paid marketing spend across all markets.
Total operating cost and expenses, excluding net foreign exchange differences decreased it to $25 2 million during the quarter from $45 6 million during the same period last year.
Daniel Yong: Total operating costs and expenses, excluding net foreign exchange differences, decreased to $25.2 million during the quarter from $45.6 million during the same period last year. This translated into adjusted EBITDA improving substantially to a loss of $2.9 million from $4.6 million during the same period last year. This was mainly driven by increased investments in customer acquisition. Technology re-performing and data infrastructure. to build a solid foundation for our future growth and profitability. These strategic investments were balanced by initiatives to streamline other aspects of our operation, designed to enhance efficiency and drive return.
Speaker Change: This translated into adjusted EBITDA, improving substantially to a loss of $2 9 million from $4 6 million during the same period last year.
Speaker Change: This was mainly driven by increased investments in customer acquisition.
Speaker Change: <unk> re performing.
Speaker Change: And data infrastructure.
Speaker Change: To build a solid foundation for our future growth and profitability.
Speaker Change: These strategic investments were financed by initiatives to streamline other aspects of our operations designed to enhance efficiency and drive returns.
Speaker Change: Looking ahead.
Daniel Yong: Looking ahead, we expect Adjusted EBITDA to consistently improve, building on the significant progress we made during the fourth quarter. With margins steadily improving, we are well positioned to drive growth momentum heading into 2025. Strengthening our confidence to generate positive adjusted EBITDA on a quarterly basis in the second half of 2025. Our comprehensive review of our organizational structure, completed alongside successful reorganization this year, has strengthened our operational foundation and set a stage for continued sustainable growth.
Speaker Change: We expect adjusted EBITDA to consistently improve building.
Speaker Change: Building on the significant progress we made during the fourth quarter.
Speaker Change: With modest steadily improving.
Speaker Change: Well positioned to drive growth momentum heading into 2025.
Speaker Change: Strengthening our confidence to generate positive adjusted EBITDA on a quarterly basis in the second half of two zero to five.
Speaker Change: Our comprehensive review of our organizational structure completed alongside the SaaS for reorganization this year.
Speaker Change: Strengthen our operational foundation and set the stage for continued sustainable growth.
Speaker Change: Yeah.
Speaker: That concludes our prepared remarks for today.
Speaker Change: That concludes our prepared remarks for today.
Operator: I'll now turn the call over to the operator to begin the Q&A section. Operator, please go ahead. Thank you. As a reminder, please press star 11 on your telephone and wait for your name to be announced. And to withdraw your question, please press star 11 again.
Speaker Change: I'll now turn the call over to the operator to begin the Q&A session. Operator. Please go ahead.
Speaker Change: Thank you as a reminder, please press star one on your telephone and wait for your name to be announced and to withdraw. Your question. Please press star one one again and the first question will come from Chen Yang with New Street Research. Your line is now open.
Chen Yun: And the first questions will come from Chen Yun with New Street Research. Your line is now open. I thank management for taking the questions.
Chen Yang: Hi, Thanks management for taking my questions. So a couple of questions from my end as that first whats the companys strategy to lower your acquisition costs and how do you plan to leverage.
Rohit: So a couple of questions from my end is that first, what's the company's strategy to lower your acquisition costs and how do you plan to leverage the growing registered membership base? Second question is related to insurance. Just want to understand what how much is the insurance revenue expected to contribute for FY25 and what will be the key drivers behind that? And a third question, if I may, is that given the current cash position that you have, what's your capital allocation strategy? Thank. Thank you for those questions.
Speaker Change: Growing registered membership base.
Speaker Change: Second question.
Chen Yang: To insurance.
Chen Yang: Just wanted to understand what how much of the insurance revenue expected to.
Chen Yang: Contribute for FY, 'twenty, five and will be the key drivers behind that.
Chen Yang: And third question.
Chen Yang: I mean is that given the current cash position that you have.
What's your capital allocation strategy. Thank you.
Chen Yang: Yes.
Chen Yang: Thank you for those questions I'll take the first two questions and then I'll pass it to Daniel for the last one so.
Rohit: I'll take the first two questions and then I'll pass it to Danny for the last one. So your first question on our strategy to lower our customer acquisition costs. Now, lowering our customer acquisition cost is central to the efficiency strategy, and it actually directly aligns really well with all our strategic pillars. But the one thing I want to point out is that CAC optimization for us is not a one-size-fits-all approach. So what do I mean by that is we are willing to strategically invest at various CAC levels. based on the potential lifetime value and also the renewal revenue stream from different customers.
Chen Yang: Your first question on on our strategy to lower our customer acquisition cost now.
Chen Yang: Lowering our customer acquisition cost is.
Chen Yang: Central to the efficiency strategy.
Chen Yang: And it's actually directly aligns really well with all our strategic pillars.
Chen Yang: But the one thing I want to point out is that cash flow optimization for us is not a one size fits all approach. So what do I mean by that is.
Chen Yang: We are willing to strategically invest at various CAC levels.
Chen Yang: Based on the potential lifetime value and also the renewable revenue stream from different customer segments.
Chen Yang: Now a few things to note about this is we have our centralized data platform now fully operational and what this does is it gives us now the capability to accurately segment our customers. So we can run more personalized marketing campaigns and this really significantly boost our marketing efficiency.
Rohit: Now, a few things to note about this is we have our centralized data platform now fully operational. And what this does is it gives us now the capability to accurately segment our customers. So we can run more personalized marketing campaigns. And this really significantly boosts our marketing efficiency. This will enable us to direct our resources towards higher value, higher intent customer segments, and this should help us lowering our overall cap. The other key aspect is our growing registered member base, now over 7.5 million. It's a powerful asset for us, and we are now actively investing in loyalty-based strategies because this will drive deeper customer engagement, but also effective monetization.
Chen Yang: This will enable us to direct our resources towards higher value higher intent customer segments and this should help us lowering our overall CAC.
Chen Yang: The other key aspect is our growing registered member base now over $5 million.
Chen Yang: Powerful asset for us and and we are now actively investing in loyalty based strategies, because this will drive deeper customer engagement, but also effective monetization.
Rohit: A key initiative which we recently announced is we are launching the Credit Club in Hong Kong in partnership with TransUnion. Club Credit will allow us to build a valuable member base with enriched credit profiles. And this also enables us to run very highly personalized, targeted recommendations. that match more precisely to our users eligibility and credit. And this is not just announcing the customer experience, but... We end up improving our conversion rates that will also, again, significantly reduce our marginal cost. Also, you know, by leveraging these personalized recommendations and enhancing our eligibility and having these insights, we can also drive more targeted cross-sell and up-sell.
Chen Yang: A key initiative, which we recently announced is we are launching the credit club in Hong Kong in partnership with Transunion.
Chen Yang: Credit will allow us to build.
A valuable member base with enriched credit profiles and.
Chen Yang: And this also enables us to run very highly personalized targeted recommendations.
Chen Yang: And that much more precisely to our users and its ability and credit needs.
Chen Yang: And this is not just enhancing the customer experience but.
Chen Yang: We ended up improving our conversion rates that will also again significantly reduce our marginal CAC.
Chen Yang: Also by the by leveraging these personalized recommendations.
Chen Yang: And enhancing our eligibility and having these insights we can also drive more targeted cross sell and upsell.
Rohit: We spoke about how, you know, we are really focused on higher margin and recurring revenue verticals such as insurance and wealth. This will again boost the customer lifetime value. Now, taking the segmented approach. We selectively accept higher interest rates for specific segments, where we see there's a clear opportunity for us to generate recurring revenue streams. car insurance being one of them. this sort of long-term renewal economic will justify initial CAC investments we would make for these segments. and the renewal revenue streams will carry minimal incremental acquisition. And finally, we're really intensifying our focus on SEO-driven, high-quality organic traffic.
Chen Yang: Spoke about how we are really focused on higher margin and recurring revenue verticals, such as insurance and wealth. This will again boost the customer lifetime value.
Chen Yang: Now taking the segmented approach.
Chen Yang: We selectively accept higher.
Chen Yang: Jack for specific segments, where we see that as a clear opportunity for us to generate recurring revenue streams car insurance being one of them.
Chen Yang: This sort of long term renewable economics will justify initial CAC investments, we would make for these segments.
Chen Yang: And the renewal renewal revenue streams will.
Chen Yang: We'll carry minimal incremental acquisition costs and finally, we are really intensifying our focus on SCO driven high quality organic traffic.
Rohit: What this means is it substantially reduces our reliance on paid channels. And this sort of sustainable organic growth strategy will also continually degrade our CAC. And it allows us to reinvest those savings in growth and innovation.
Chen Yang: What this means that substantially reduces our reliance on paid channels.
Chen Yang: And this sort of sustainable organic growth strategy will also continually decrease our CAC and it allows us to reinvest those savings in our growth and innovation.
Chen Yang:
Rohit: Your second question was on the insurance revenue and how much we expect it to contribute. Now, we don't provide specific product-level revenue guidance, but let me speak about insurance, given it's already grown into a double-digit contributor now to our revenue in 2024, and we really expect insurance to become an even more meaningful driver in 2025. And here are the sort of drivers that will feel this. It's a real-time car insurance platform. We recently announced the launch of our car insurance marketplace in Hong Kong. In partnership with Balltech, we've introduced real-time pricing capabilities and a seamless end-to-end purchasing journey.
Chen Yang: Your second question.
Chen Yang: Was on the insurance revenue and how much we expect it to contribute now we don't provide specific product level revenue guidance, but let me speak about insurance.
Chen Yang: Given it's already grown into a double digit contributor now to our revenue in 2024 and.
Chen Yang: And we really expect insurance to become an even more meaningful driver in 'twenty five.
Chen Yang: And your other sort of drivers that will fuel this growth.
Chen Yang: One.
Chen Yang: It's a real time car insurance platform.
Chen Yang: We recently announced the launch of our car insurance marketplace in Hong Kong.
Chen Yang: In partnership with Baltic, We've introduced real time pricing capabilities and a seamless end to end purchasing journey.
Rohit: And this is a really unique and differentiated offering that boosts customer convenience, engagement, and ultimately our conversion rate. Second, fast and friction-free travel insurance. We are continuously enhancing our travel insurance offering with simplified and now a three-click purchasing journey. This again, significantly removes the friction from the whole buying experience. All of these things will boost conversion rate, it really encourages repeat purchasing behavior, creating that strong revenue, recurring revenue potential.
Chen Yang: This is a really unique and differentiated offering that boost customer convenience engagement and ultimately our conversion rates.
Chen Yang: Second fast and friction free travel insurance.
Chen Yang: Continuously enhancing our travel insurance offering with simplified our now three click purchasing journey this against significantly removes the friction from the whole buying experience.
Chen Yang: All of these things will boost conversion rate.
Chen Yang: Really encourages repeat purchasing behavior, creating that strong revenue record revenue potential.
Rohit: The other few opportunities with insurance, which are really interesting for us, is embedded insurance opportunities. Again, you know, leveraging our partnership ecosystem, particularly with Boltec, we're looking at embedding high-demand insurance products, such as device protection plans, directly into the consumer purchasing journey. And as I mentioned, we have, you know, over seven and a half million registered members and growing. There's rich customer insights now we get from our data platform, so we're also looking at executing cross-sell and up-sell strategies. And with the Credit Club initiative, we're confident we can match insurance offerings to also these highly targeted customer sectors.
Chen Yang: The other few opportunities with insurance, which are really interesting for us is embedded insurance opportunities again, leveraging our partnership ecosystem, particularly with <unk>, where we're at.
Chen Yang: Looking at embedding high demand insurance products, such as device protection plans directly into the consumer purchasing journey.
And as I mentioned, we have over seven 5 million registered members and growing rich customer insights now we get from our data platform. So we're also looking at executing cross sell and upsell strategies and with the credit Club initiative. We're confident we can match insurance offerings to also these hi E.
Chen Yang: <unk> customer segments.
Rohit: And finally, you know, while some of these segments, we will be, as I mentioned, looking at initial upfront customer acquisition costs. what they offer will be a predictable and a substantial recurring revenue stream And car insurance is going to be one of those high-value segments that we want to strategically invest in acquiring these new customers.
Chen Yang: And finally.
Chen Yang: While some of these segments, we will be as I mentioned looking at initial upfront customer acquisition cost.
Chen Yang: What they offer will be a predictable and a substantial.
Chen Yang: Recurring revenue stream.
Chen Yang: And car insurance is going to be one of those high value segments that we want to strategically invest in acquiring these new customers.
Donna: Donna I'll pass over to you for the third question Yeah.
Daniel Yong: Danny, I'll pass over to you for the third question. Okay, so the third question that we have is the capital allocation strategy of our current Okay, given that we have a debt-free balance sheet and cash position of approximately 42 million, we're taking a disciplined, prudent, yet proactive approach to capital allocation. Firstly, we ensure robust liquidity to comfortably fund our cooperation. such as maintaining sufficient reserves for operational expenses such as payroll, strategic reward programs, professional services, and general corporate purposes. Secondly, with available assets cash, we are placing funds into conservative interest-bearing instruments. to yield capital preservation.
Donna: Okay. So the third question that we have is the capital allocation strategy, our current cash position.
Donna: Okay, given that we have a debt free balance sheet and cash position.
Donna: Approximately $42 million.
Donna: We're taking a disciplined prudent yet proactive approach to capital allocation.
Donna: Firstly, we ensure robust liquidity to comfortably fund our cooperations.
Donna: Such includes maintaining sufficient reserves for operational expenses.
Speaker Change: Payroll strategic reward programs professional services and general corporate purposes.
Speaker Change: Secondly, with available cash we are pleasing funds into conservative interest bearing instruments to yield.
Speaker Change: Capital Preservation these aligns with our commitment to responsible stewardship of capital and prudent risk management in the current macro environment.
Daniel Yong: These align with our commitment to responsible stewardship of capital and prudent risk management in the current macro environment.
Daniel Yong: And also at the same time, we actively assess growth opportunities that can deliver clear strategic value to our business. This might include considering target investments such as hold-on acquisition. Strategic Talent Addition Innovative Technology Partnership of growth initiatives with high return potential. especially those aligned with our high-margin protocols. Technology Platforms and AI for Strategic Direction. and ultimately our approach balances financial discipline with strategic agility. We remain well positioned to capitalize quickly on attractive opportunities while staying conscious and deliberate to ensure all allocations strive meaningful long-term share of the value.
Speaker Change: And also at the same time we.
Speaker Change: Actively assess growth opportunities that can deliver clear strategic value to our business.
Speaker Change: This might include considering pocket and departments such as bolt on acquisitions.
Speaker Change: T J talent additions.
Speaker Change: Innovative technology partnerships.
Speaker Change: Our growth initiatives with high return potential.
Speaker Change: Especially don't align with our high margin verticals.
Speaker Change: Technology platforms, and AI for strategic direction.
Speaker Change: And ultimately.
Speaker Change: Approach balances financial discipline with strategic agility.
Speaker Change: We remain well positioned to capitalize quickly on attractive opportunities, while staying conscious and deliberate to ensure all applications should drive meaningful long term shareholder value.
Speaker Change: Thank you.
Speaker Change: If I may have a follow up is just wondering what markets do you expect to drive that growth in 2025.
William Gregoziski: If I may have a follow-up is that I'm just wondering what markets do you expect to drive that growth in 2025? And if you can provide any outlook from that one, that would be great. Again, thanks for taking the question and appreciate the call.
Speaker Change: If you can provide any outlook from that one there'll be great alright, guys. Thanks for taking the question then I appreciate the color.
Speaker Change: Sure.
Rohit: Sure, I mean this question I would like to sort of tie it back again to our strategic pillars and just to recap our strategic pillars being consumer pull, conversion, expertise. strong provider partnerships, operating leverage and insurance brokerage. And when we look at our sort of markets, we look at our right to win across the strategic.
Speaker Change: I mean this question I would like to sort of tie back again to our strategic pillars.
Speaker Change: And just to recap our strategic pillars being consumer pools conversion expertise.
Speaker Change: Strong.
Speaker Change: The wider partnerships.
Speaker Change: Operating leverage in insurance brokerage and when we look at our sort of markets. We look at our right to win across three strategic pillars.
Rohit: So I'll start first with Singapore and Hong Kong, because these are mature digital first markets. and they really offer a very sort of ideal environment for us. for simultaneous sort of investment across all these. Both these markets, you know, they're sort of characterized by, firstly, financial hubs, advanced digital infrastructure, a very strong consumer adoption of digital financial products. There's also a really highly developed ecosystem of local and international financial institutions, many of whom are now fully API integrated. And that really enables us to also do seamless product integration and real time. user experiences and purchasing journeys.
Speaker Change: So, let's start first with Singapore, and Hong Kong, because these are mature digital first markets and they really offer a very sort of ideal environment for us.
Speaker Change: For simultaneous sort of investment across all of these pillars.
Speaker Change: Both of these markets they are they're sort of characterized by firstly financial hubs.
Speaker Change: Advanced digital infrastructure, a very strong consumer adoption of digital financial products.
Speaker Change: There is also a really highly developed ecosystem of local and international financial institutions. Many.
Speaker Change: Many of whom are now fully API integrated and that really enables us also to seamless product integration and real time.
Speaker Change: User experiences and purchasing journey.
Rohit: And finally, you know, when you take a look at these two markets, it comes with the consumer sort of sophistication where we can drive a higher intent organic traffic and also sort of a robust demand for personalized. So with these dynamics, we will continue to invest across our pillars, whether it is enhancing our brand awareness or leveraging our expanding membership sort of base on the consumer pillar. ongoing optimization of our UX and UI, the data platform we have for personalization. strong partnerships that we are leveraging on, including recently with TransUnion for credit products and our partnership with BOLTEC for innovative insurance solutions.
Speaker Change: And finally.
Speaker Change: Take a look at these two markets it comes with.
Speaker Change: The consumer sort of sophistication, where we can drive a higher intent organic traffic and also sort of a robust demand for personalized offerings. So with these dynamics, we will continue to invest across our pillars, whether it is enhancing our brand awareness for our.
Speaker Change: Leveraging our expanding membership base on the consumer pull pillar <unk>.
Speaker Change: Ongoing optimization of our UX and UI the data platform behalf for personalization.
Speaker Change: The strong partnerships that we are leveraging on including recently with Transunion for credit products.
Speaker Change: And our partnership with bolt export innovative insurance solutions.
Rohit: And finally, as we think of insurance, we really feel both these markets. are primed as we expand into car insurance and other higher margin articles, including wealth, where we can offer a very frictionless sort of experience. So we feel looking at our pillars and these two markets to begin with, we can really drive profitable growth.
Speaker Change: And finally as you think of insurance, we really feel both of these markets.
Speaker Change: Primed as we expand into car insurance and other higher margin.
Speaker Change: What it goes including wealth.
Speaker Change: Where we can offer a very frictionless sort of experience.
Speaker Change: So we feel looking at our pillars and these two markets to begin with we can really drive profitable growth.
Rohit: Driven by a diversified higher margin and reckoning revenue Now, let me talk about the other two markets we have, Philippines and Taiwan. Philippines is really emerging as a really critical sort of digital financial services market. significant growth potential for us. And here we are especially focused on. The three of the pillars conversion expertise in Philippines. We we are investing substantially in our tele sales capabilities where we're able to optimize our conversion from an inquiry all the way to purchase. And and this really enhances our unit economics and profit. Also we're really focused on stronger provider partnerships.
Speaker Change: Driven by a diversified.
Speaker Change: Our higher margin and reckoning revenue stream.
Speaker Change: Now, let me talk about the other two markets, we have Philippines, and Taiwan, Philippines is really emerging.
Speaker Change: <unk> is a really critical sort of digital financial services market.
Speaker Change: Significant growth potential for us and here, we are especially focused on.
Speaker Change: The three of the pillars conversion expertise our.
Speaker Change: In Philippines, we are investing substantially in our telesales capabilities, where we are able to optimize our conversion from an inquiry all the way to purchase and and this really enhances our unit economics and profitability.
Speaker Change: Also.
Speaker Change: Really focused on stronger provider partnerships, we recently on boarded a major local bank and this significantly sort of expands our.
Rohit: We recently onboarded a major local bank and this significantly sort of expands our partner network but also strengthens our ability to offer differentiated financial products in the market. And you know our influencer-driven platform Creatory is driving cost-efficient customer acquisition in Philippines and also increasing our brand recognition. in this fast-growing market.
Speaker Change: Partner network, but also strengthens our ability to offer differentiated financial product in the market and and our Influencer driven platform create three is driving.
Speaker Change: Cost efficient customer acquisition in Philippines, and also increasing our brand recognition.
Speaker Change: In this fast growing market.
Rohit: And finally, Taiwan presents a really unique opportunity for us, given its existing already substantial consumer pool. We have one of the highest levels of organic traffic and brand recall in Taiwan across all our markets. So here, our strategic focus is, again, on conversion expertise. So we're really investing in our UX and UI and our user journeys, targeting friction points when users leave our platform, post-product selection. We are exploring generative AI solutions here to improve the funnel efficiency. Again a market where we want to deepen our ties with local financial institutions so we can come up with more product offerings, and this is a market where we currently don't have an insurance brokerage license, but we're also exploring an entry strategy, leveraging also our sort of existing partnership with BOLTEC.
Speaker Change: And finally, Taiwan, Taiwan presents a really unique opportunity for us given its existing already substantial consumer pool, we have one of the highest levels of organic traffic and brand recall and Taiwan across all our markets. So here a strategic strategic focus is again on conversion expertise.
Speaker Change: Where we're really investing in our UX and UI and a user journeys.
Speaker Change: Targeting sort of friction points when users leave our platform post product selection, we are exploring generally of AI solutions here.
Speaker Change: To improve the funnel efficiency.
Speaker Change: Again, a market, where we want to deepen our ties with local financial institutions. So we can comp it.
Speaker Change: More product offerings and this is a market where we we currently don't have an insurance brokerage license, but we're also exploring an entry strategy.
Speaker Change: Leveraging also our sort of existing partnership with Baltic.
Rohit: So I think in summary... We really have differentiated sort of growth strategies. We look at the local market maturity and the dynamic and the strategic pillars. and we look at various ways in which we invest in these markets.
Speaker Change: So I think in summary.
Speaker Change: We really have differentiated sort of growth strategies, we look at the local market maturity and the dynamic and the strategic pillars.
Speaker Change: And we look at various ways in which we invest in these markets and.
Rohit: And finally, as Danny had sort of mentioned, we've really restructured and reorganized ourselves. So we are leaner and more horizontal when it comes to our operating model. And that significantly enhances our operating leverage across all these markets. So that means we can simultaneously invest across these markets, but also more efficiently allocate resources as we drive growth. Thank you for that question.
Speaker Change: And finally as you know Danny I sort of mentioned, we've really re structured and reorganized ourselves. So we are leaner and more.
Speaker Change: <unk> and when it comes to our operating model and that significantly enhances our operating leverage across all these markets. So that means we can simultaneously invest across these markets, but also more efficiently allocate resources as we drive growth.
Speaker Change: Thank you for that question.
Speaker Change: Thank you that's very clear.
Speaker: Thank you, that's very clear.
Speaker Change: And our next question.
Operator: And our next question. One moment.
Speaker Change: One moment.
Speaker Change: And our next question will come from Greg <unk> with Green Ranch Global your line is open.
William Gregoziski: And our next question will come from William Gregoziski with Green Ridge Global. Your line is open. Hi, thank you. I have a couple questions I'll ask separately. The first kind of touches on your last answer about the reorganization and allocating resources.
Greg <unk>: Hi, Thank you I have a couple of questions I'll ask separately. The first kind of touches on your last answer about the reorganization and allocating resources can you talk a little more about the impact that pad the reorganization on the cost structure and margins and what youre able to do.
Daniel Yong: Can you talk a little more about the impact that's had the reorganization on the cost structure and margins and what you're able to do?
Daniel Yong: Yeah, Daniel, you want to take that? Over the last year, we implemented significant changes aimed at creating a leaner, more efficient organization. and tightly aligned with our efficiency strategy. This restructuring was mainly focused on optimizing our cost base and improving productivity. uh it positioned ourselves for sustainable profitability. This restructuring is largely complete and I believe the benefits are clearly reflected in our results. Specifically, our employee-related expenses during the quarters decreased by approximately 45% year-over-year. This savings resulted from strategic headcount reductions, eliminating role duplication, and restructuring teams horizontally across boxes. This allows us to scale efficiently without compromising growth potential.
Speaker Change: Yes, I don't want to take that okay.
Speaker Change: Okay. So over the last year, we implemented significant changes aimed at creating a leaner more efficient organization.
Speaker Change: It's highly aligned with our efficiency strategy.
Speaker Change: This structure restructuring was mainly focused on optimizing our cost base and improving productivity.
Speaker Change: Position ourselves for sustainable profitability.
Speaker Change: This restructuring is largely complete and I believe the benefits are clearly reflected in our results.
Speaker Change: Specifically.
Speaker Change: <unk> related expenses during the quarters decreased by approximately 45% year over year.
Speaker Change: This savings resulted from strategic headcount reductions eliminating road application and restructuring teams horizontally across buckets.
Speaker Change: This allows us to scale efficiently without compromising growth potential.
Daniel Yong: And by doing so, we've effectively optimized our cost structure, creating operating leverage that enables us in incremental revenue growth with minimum additional fixed costs. As a direct outcome, adjusted EBITDA loss improved significantly to $2.9 million in Q4 2025. and reflecting a 1.7 million improvement year over year. This underscores our discipline execution in reducing operating expenses while continuing target investments in critical areas such as technology innovation, product enhancement, and customer acquisition.
Speaker Change: And by doing so with effectively optimize our cost structure, creating operating leverage.
Speaker Change: Enables us.
Speaker Change: Incremental revenue growth with minimal additional fixed costs.
Speaker Change: As a direct outcome adjusted EBITDA loss improved significantly to $2 9 million in Q4 2024.
Speaker Change: And reflecting a $1 7 million improvement year over year.
Speaker Change: This underscores our disciplined execution in reducing operating expenses, while continuing to target investments in critical areas such as technology innovation.
Speaker Change: The enhancement and customer acquisition.
Speaker Change: Looking forward, we will continue to prioritize productivity and margin expansion.
Daniel Yong: Looking forward, we will continue to prioritize productivity and margin expansion. With investments in technology, particularly around AI-driven automation, workflow efficiencies, and precision-targeted marketing, We expect ongoing productivity gains throughout 2025. The restructuring completed in 2024 provides a robust foundation, it enables us to further enhance margins, and achieve greater operating leverage as we scale.
Speaker Change: With investments in technology, particularly around AI, driven automation workflow efficiencies and precision target marketing.
Speaker Change: We expect ongoing productivity gains throughout 2025.
The restructuring completed in 2024 provides a robust foundation and enables us to further enhance margins and achieve greater operating leverage as we scale.
Speaker: So in short, the restructuring was not just a cost-cutting exercise, it was a strategic realignment that has significantly improved our efficiency and positioned us for profitable and scalable long-term growth. Thank you for your question. Okay, great.
Speaker Change: So in short the restructuring was not just a cost cutting exercise.
Speaker Change: It was a strategic realignment.
Speaker Change: Significantly improved our.
Speaker Change: Efficiency and position us for profitable and scalable long term growth.
Speaker Change: Thank you for your question.
Speaker Change: Okay great.
William Gregoziski: My next question is another modeling-related question. The advertising and marketing expenses were up quite a bit from last year in terms of absolute dollars and percent of revenue. Can you kind of give your thoughts on how you expect that going forward, especially with the $100 million revenue target?
Speaker Change: Question is another modeling related question.
Speaker Change: Advertising and marketing expenses were up quite a bit from last year in terms of absolute dollars and percent of revenue can you kind of give your thoughts on how you expect that going forward, especially with the $100 million revenue targets.
Daniel Yong: Yes, so do me. Uh yeah, you're correct. Marketing expenses increased in 2024. This was the result of a deliberate decision to capitalize on target growth opportunities in key markets. However, I want to emphasize that every dollar spent is carefully measured against clear performance metrics. Since Q2 of 2024, we've implemented a more focused and efficient marketing strategy to ensure we are driving sustainable growth. The results are already visible, for example In Q4 of 2024, we saw a 23% reduction in marketing spend year-over-year as we optimized campaigns and reward costs. And also, advertising marketing expenses in Q4 fell by 20% sequentially.
Speaker Change: Yes, certainly.
Speaker Change: Yes, Youre correct marketing expenses increased in 2024. This was the result of a deliberate decision to capitalize on target growth opportunities in key markets.
Speaker Change: However, I want to emphasize that every dollar spent is carefully measure against key performance metrics.
Speaker Change: Since quarter, two 2024 with implement a more focused and efficient marketing strategy to ensure we are driving sustainable growth.
Speaker Change: The results are already visible for example.
Speaker Change: In Q4 of 2024, we saw 23% reduction in marketing spend year over year, as we optimize campaigns and we won't cost.
Speaker Change: And also advertising marketing expenses in Q4, followed by 20% sequentially.
Daniel Yong: We've also shifted investment towards high-margin verticals, where we see better returns. Our team has streamlined operations, improving cost structures across all markets. That being said, marketing remains essential to our business model. Because we operate in a competitive digital space, we must continue investing in, such as... For example, use acquisition to grow our platform traffic. promotional campaigns that drive engagement, and partner incentives to maintain strong commercial relationships.
Speaker Change: With Ultrashape investment towards high marketing vehicles, where we see better returns.
Speaker Change: And our team has streamline operations improving cost structures across all markets.
Speaker Change: Means that <unk>.
Speaker Change: Marketing remains essential to our business model because we all we operate in a competitive digital space, we must continue investing in such as.
Speaker Change: For example, our user acquisition to grow our platform traffic.
Speaker Change: Promotional campaigns that drive engagement and.
Speaker Change: And Paula incentives to maintain strong commercial relationships.
Speaker Change: And moving ahead.
Daniel Yong: I'm moving a hat. will maintain discipline spending. We will keep optimizing campaigns to improve ROI, ensuring marketing dollars generate measurable revenue. Prioritize time and growth. We are focusing on further codes where customer value justifies the acquisition cost. Also to balance short-term and long-term gains, some expenses like brand building takes time to pay off. But with disciplined spending, we'll directly align with profitable goals. While we have reduced spending from peak levels, we won't cut marketing to the point of stopping growth. Our strategy is about smarter spending, and not just less spending. The improvement in Q4 proved we can scale efficiently and we'll continue refining this approach to target a positive adjusted EBITDA on a quarterly basis beginning in the second half of 2025.
Speaker Change: We will maintain disciplined spending.
Speaker Change: We will keep optimizing campaigns to win to improve our line ensuring marketing dollars generate measurable revenue.
Speaker Change: Prioritize high margin growth.
Speaker Change: We are focusing on verticals, where customer value with justified the acquisition costs.
Speaker Change: Also to balance short term and long term gains.
Speaker Change: Some expenses like brand building.
Speaker Change: Time to pay it off.
Speaker Change: With disciplined spending will directly align with profitable goals.
Speaker Change: While we have reduced spending from peak levels, we won't cut marketing to the point of staffing growth. Our strategy is about Martha spending and not just last Monday.
Speaker Change: The improvement in Q4 proved we can scale efficiently and we will continue refining these approach to target a positive adjusted EBITDA on a quarterly basis beginning in the second half of 2025.
Speaker: Thank you for your question.
Speaker Change: Thank you for your question.
Speaker: Okay, great. Thanks for all that color.
Speaker Change: Okay, great. Thanks for all that color.
Rohit: On the AI and automation, you touched on in the prepared remarks, can you give a little more color on what the plans are for that and the role and what kind of top and bottom line contribution you expect to have from that. Sure.
Speaker Change: On the AI and automation you touched on it in the prepared remarks can you give a little more color on.
Speaker Change: What the plans are for that in the role.
Speaker Change: Kind of top and bottom line contribution you expect to have from that.
Speaker Change: Sure let me take that.
Rohit: Let me take that. So, look, I think one is, we're very clear, we have an AI-first strategy and, and we our operational efficiency, as well as drive the efficiency strategy that we spoke about. And what we're doing is we're really actively beginning to embed AI into our workflows and processes. This will allow us to scale our business while we continue to maintain a stable headcount and an operating cost structure. Again, drives that strategic pillar operating leverage. Now, a couple of areas where we've already started seeing some results. One is an AI-powered customer service. We've introduced that.
Speaker Change: So I think one is we're very clear we have an AI first strategy and we.
Speaker Change: Strongly believe the skin and Hans.
Speaker Change: Our operational efficiency as well as drive the efficiency strategy.
Speaker Change: We spoke about.
Speaker Change: And what we're doing is we are really actively beginning to embed AI into our workflows and processes.
Speaker Change: This will allow us to scale our business, while we continue to maintain a stable head count and operating cost structure again drive that strategic pillar operating leverage now couple of areas where.
Speaker Change: We've already started seeing some results one is an AI powered customer service we've introduced that.
Rohit: Significantly now, we are reducing our customer inquiry volumes. much more sort of improved self-service and proactive support. We're seeing also, I would say, improvements in first inquiry resolution rate.
Speaker Change: Significantly now we are reducing our customer inquiry volumes.
Speaker Change: Much more sort of improved self service and proactive support.
Speaker Change: We are seeing and also I would say improvements in first inquiry resolution rates.
Rohit: So that's one such initiative already underway. The second, generative AI for content creation. We are rapidly scaling our content production capabilities. In markets like Singapore, more than half of our content now, we're leveraging, you know, Gen AI. And this really enables us to deliver very highly personalized and targeted content to our users. at the fraction of the previous effort and cost and turnaround time. So again, this is something that we're really doubling down on.
Speaker Change: So thats one such initiative already underway, the second generator of AI for content creation.
Speaker Change: We are rapidly scaling our content production capabilities in markets like Singapore more than half of our content now we're leveraging journey II and this really enables us to deliver a very highly personalized and targeted content to our users.
Speaker Change: At the fraction of the previous effort in cost and turnaround time. So again. This is something that we're really doubling down on a.
Rohit: Couple of other areas which are really interesting for us is how do we start deploying agentic AI tools? The as you'll appreciate there are a lot of also repetitive tasks and workflows. We, we ourselves undertake. This is a good, great opportunity for us to really in a very autonomous way manage these tasks and what it essentially does is it will free up our human resources to focus on more strategic and creative activities. Ultimately, it's all about driving the productivity, and that is something that we're very focused with our AI first strategy.
Speaker Change: A couple of other areas, which are really interesting for us is how do we start deploying agentic AI tools.
Speaker Change: As you'll appreciate there are a lot of also references <unk> Dawson workflows, we ourselves undertake this is a good create opportunity for us too.
Speaker Change: Really.
Speaker Change: In a very autonomous way manage these stocks and what it essentially does is it free up our human resources to focus on more strategic and creative activities.
Speaker Change: Ultimately, it's all about driving the productivity and that is something that we're very focused with our <unk> strategy and finally, the data platform I spoke about.
Rohit: And finally, the data platform I spoke about, we have AI capabilities where we can look at much better segmentation, personalization, and as we grow this member base, this will be quite critical to drive the monetization of the space. Now, you all could have recently seen, you know, Shopify CEO Toby Lutke, he recently sort of emphasized how AI usage has become like a baseline expectation now for every digital organization. This is equally true at MoneyHero Group. And the point I want to make is AI is just not a tool for us, it's a core capability that everyone in the company is now expected to master.
Speaker Change: AI capabilities, where we can look at much better segmentation personalization and as we grow this member base.
Speaker Change: Be quite critical to drive.
The monetization of the space.
Speaker Change: No.
Speaker Change: All could have recently seen.
Speaker Change: Shopify CEO Toby Lucky he recently sort of emphasize how AI usage has become like a baseline expectation now for every digital organization.
Speaker Change: Is equally true at money HELOC group and.
Speaker Change: The point I want to make is AI is just not a tool for us.
Speaker Change: Core capability that everyone in the company is now expected to master.
Rohit: And we really feel. By using this incredible capability now at our disposal. We can scale this business more efficiently. And essentially, we can turn tasks that required months and days now into hours and even minutes. So we're really sort of doubling down on AI because we feel this will enhance our productivity and eventually our profitability.
Speaker Change: And we really feel.
Speaker Change: By using this incredible capability now at our disposal.
Speaker Change: We can scale this business more efficiently.
Speaker Change: And essentially we can turn to us that required months and days now into ours and even minutes.
Speaker Change: So we're really sort of doubling down on AI, because we feel this will enhance our productivity and eventually.
Speaker Change: Our profitability.
Speaker Change: Great Great. Thank you last question is can you just talk about your plans to leverage the NASDAQ listing and how you plan to get the stock back up over the dollar threshold.
Speaker: Great, great, thank you.
Daniel Yong: Last question is, can you just talk about your plans to leverage the NASDAQ listing and how you plan to get the stock back up over the dollar threshold? Yeah, sure. Just give us a couple minutes. I...
Speaker Change: Yes sure.
Speaker Change: Yes.
Speaker Change: Just give us a couple of minutes I think.
Daniel Yong: Donnie, you can take this. Okay, yeah, I'll take this. Yeah.
Speaker Change: <unk>, Okay, yes, yes.
Speaker Change: Okay.
Daniel Yong: So, the $67 million one-time share-based payment expenses incurred in 2023 related to our NASDAQ listing was a significant but essential investment in our long-term growth trajectory. Becoming a publicly listed company has substantially enhanced our strategic position by firstly enhancing credibility and building trust among investors, customers and partners with the high standards of governance and operational transparency expected from a listed company. Talk to me. Providing flexibility for target M&A, and attracting and retaining key talents by using our shares as currency to accelerate growth in high margin segments, such as insurance and wealth management. and also to increase our brand recognition, exposure, and reputation in international markets.
Speaker Change: So.
Speaker Change: 67 million onetime share based payment expenses incurred in 2023 related to our NASDAQ listing was a significant but essential investment in our long term growth trajectory.
Speaker Change: Becoming a public release the company has substantially enhanced our strategic position by FERC.
Speaker Change: Firstly, enhancing credibility and building trust among investors customers and partners with the highest standards of governance and operational transparency expanded from Melissa Company Secondly.
Speaker Change: Providing flexibility for target M&A, and attracting and retaining key talent by using our shares as currency to accelerate growth in high margin segments, such as insurance and wealth management.
Speaker Change: And also to increase our brand recognition exposure and reputation in international markets.
Daniel Yong: Regarding our current share price, we believe our stock remains undervalued and does not fully reflect our efficiency strategy and the impact it is already having in improving the quality of our top line and narrowing the bottom line. While the market has been challenging, we remain confident that our ability to capitalise on the enormous addressable market opportunities and our primary focus remains firmly on executing our efficiency strategy. driving revenue growth in profitable verticals, controlling costs, having a clear path to profitability, and steadily expanding market share through strategic partnerships. innovative product offerings and leveraging our AI-first capability.
Speaker Change: Regarding our current share price, we believe our stock remains undervalued and does not fully reflect our efficiency strategy and the impact it is already having and improving the quality of our topline and narrowing the bottom line.
Speaker Change: While market has been challenging we remain confident that our ability to capitalize on the enormous addressable market opportunity.
Speaker Change: And I'll, primarily primary focus remains firmly on executing our efficiency strategy.
Speaker Change: <unk> revenue growth in profitable vehicles.
Speaker Change: Controlling costs, having a clear path to profitability and steadily expanding market share through strategic partnerships.
Speaker Change: Innovative product offerings, and leveraging our AI capabilities.
Speaker: We firmly believe the market will recognize and reward the underlying strengths of our business model and operational performance, translating into sustained long-term shareholder value. Thank you. Okay, great. Thank you for all the answers and I appreciate the color on. Thanks for the question. I show no further questions at this time.
Speaker Change: We firmly believe the market, we recognize and reward the underlying strength of our business model and operational performance translating into sustained.
Speaker Change: Long term shareholder value. Thank you.
Speaker Change: Okay, great. Thank you for all the answers and I appreciate it.
Speaker Change: Color on that.
Speaker Change: Thank you for the questions.
Speaker Change: I show no further questions at this time I would now like to turn the call back over to Rohit for closing remarks.
Rohit: I would now like to turn the call back over to Rohith for closing remarks. Well, thank you for all your questions and for your time. I just want to finally end by thanking the entire MoneyHero group team for all their hard work and dedication and commitment to our consumers, to our business, to our partners. We're really very much energized to continue this performance in 2025 and I really look forward to sharing the results the next time we speak.
Rohit: Well. Thank you for all your questions and for your time I just wanted to finally end by thanking the entire <unk> group team.
Rohit: For all their hard work and dedication and commitment.
Rohit: To our consumers to our business to our partners.
Rohit: We're really very much energized.
Rohit: To continue this performance in 2025, and I really look forward to sharing the results. The next time, we speak so thank you everyone for your time.
Speaker: So, thank you everyone for attending.
Operator: This does conclude today's conference call. Thank you for participating. You may now disconnect.
Rohit: This does conclude today's conference call. Thank you for participating you may now disconnect.
Rohit: Okay.
Rohit: [music].
Rohit: Okay.
Rohit: Yes.
Rohit: Yes.
Rohit: [music].
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Rohit: [music].
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