Q1 2025 MoneyHero Ltd Earnings Call
Operator: Good day and thank you for standing by. Welcome to MoneyHero Group first quarter 2025 earnings conference call. At this time, all parties are in a listen-only mode.
Good day, and thank you for standing by won't come to money here a group first quarter.
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At this time all participants are in a listen only mode.
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Operator: Please be advised that today's conference is being recorded.
On the streets.
Today's conference is being recorded.
Georgina Chan: I would now like to turn the call over to your first speaker today, Ms. Georgina Chan. Thank you. Please go ahead.
But to your first speaker today, Mr. Jean Thank.
Speaker Change: Thank you. Please go ahead.
Georgina Chan: Hi, everyone. Good morning and good evening. And welcome to MoneyHero's First Quarter 2025 Earnest Conference Call. Joining me on the call today are Rohith Murthy, CEO, and Danny Leung, interim CFO. Our Earnest release was issued earlier today and is now available on our IR website, as well as our global newsware services.
Speaker Change: Hi, everyone. Good morning.
And welcome to money.
Earnings Conference call joining me on the call today are all E C.
T O N E.
Speaker Change: Interim CFO, although I'm used to it is was issued earlier today and is not abated.
Speaker Change: On our IR website as well.
Georgina Chan: Before we begin, I would like to remind you that today's call will include four rookie statements made under the Safe Harbor provisions of the US Private Security Litigation Reform Act of 1995. Please refer to the Safe Harbor statement in our Earnest press release. which applies to this call.
Speaker Change: Yes.
Speaker Change: Before we begin I would like to remind you that today's call will include forward looking statements made under the safe Harbor provision of the U S Securities.
Securities Litigation Reform Act of 90 95, please refer to the Safe Harbor statement in our earnings press release.
Speaker Change: Which applies to this call. In addition, please note that today's discussion will include both.
Georgina Chan: In addition, please note that today's discussion will include both IFRS and non-IFRS financial measures for comparison purposes only. For a reconsideration of these non-IFRS measures to the most directly comparable IFRS measures, please refer to our earnings release and the SEC filing. Our monetary reference will be in United States dollars unless otherwise stated.
Speaker Change: And in all financial.
Speaker Change: Financial measures for comparison purpose.
Speaker Change: Well, our reconsideration of these known by its nature to the most directly comparable.
Speaker Change: Measured basically brought to our unused.
And it's easy valleys, all monetary references will be in United States.
Speaker Change: Unless otherwise stated lastly, a web cast replay of this conference call will be available one hour.
Georgina Chan: Lastly, a webcast replay of this conference call will be available on our IR website.
Rohith Murthy: I will now turn the call over to Rohith, CEO of MoneyHero Group. Please go ahead. Thank you Georgina.
Speaker Change: Our website.
Rohit: Now turn the call over to Rohit he of money.
Rohit: Please go ahead.
Rohith Murthy: Hello everyone and thank you for joining us today to discuss MoneyHero Group's first quarter 2025 financial results. I'm pleased to report that we are executing strongly on our profitability roadmap. we remain on track to achieve positive adjusted EBITDA in the latter part of the second half of 2025. A key milestone marking our transition to a self-sustaining profitable growth trajectory. Our Q4 2024 results already reflected this ongoing transition, achieving the best quarterly performance since going public with adjusted EBITDA loss narrowing to just $2.9 million. This momentum has continued into Q1 as we sharpen our focus on higher quality revenue and operational efficiency.
Rohit: Thank you George and Hello, everyone and thank you for joining us today to discuss money HERA group's first quarter 2025 financial results.
Rohit: I am pleased to report that we are executing strongly on our profitability Road map.
Speaker Change: We remain on track to achieve positive adjusted EBITDA in the latter part of the second half of 2025.
Speaker Change: A key milestone, marking our transition to a self sustaining profitable growth trajectory.
Speaker Change: Our Q4, 'twenty four 'twenty 'twenty four results.
Speaker Change: Ready to reflect this ongoing transition.
Speaker Change: Keeping the best quarterly performance since going public.
Speaker Change: Adjusted EBITDA loss narrowing to just $2 9 million.
Speaker Change: This momentum has continued into Q1 as we sharpen our focus on higher quality revenue and operational efficiency.
Rohith Murthy: Our cross margins are also improving substantially, driven by deliberate initiatives we executed over the past year. We reduced low ROI paid marketing, enhanced the user experience and interface. and diversified revenue streams into higher margin verticals like wealth and insurance. As a result, our unit economics are significantly stronger today than a year ago. While top-line revenue in Q1 fell year on year due to a strategic pullback in aggressive marketing spend, this was an intentional trade-off to prioritize revenue quality over volume. We are encouraged to see this strategic pivot already yielding results with improving profitability. Our net loss has narrowed considerably in Q1 as adjusted EBITDA continues to improve quarter after quarter.
Our gross margins are also improving substantially.
Speaker Change: Driven by deliberate initiatives we executed.
Over the past year.
Speaker Change: We reduced LOE rois paid marketing and enhance the user experience and interface.
Speaker Change: And diversified revenue streams into higher margin verticals like wealth and insurance.
Speaker Change: As a result, our unit economics are significantly stronger today than a year ago.
While top line revenue in Q1.
Speaker Change: Year on year due to a strategic pullback in aggressive marketing spend this was an intentional trade off.
Speaker Change: Prioritize revenue quality over volume.
Speaker Change: We are encouraged to see this strategic pivot.
Speaker Change: Already ending results with improving profitability.
Speaker Change: Our net loss has narrowed considerably in Q1.
Speaker Change: Adjusted EBITDA continues to improve quarter after quarter.
Rohith Murthy: We are building a leaner, more profitable business with the goal of hitting 100 million revenue for full year 2025 and delivering positive adjusted EBITDA during the latter part of the year. In short, our path to profitability has never been clearer and we are executing with discipline to accelerate.
Speaker Change: We are building a leaner more profitable business with the goal of hitting 100 million revenue for full year 2025, and delivering positive adjusted EBITDA during the latter part of the year.
Speaker Change: In short.
Speaker Change: Our path to profitability has never been clear and we are executing with discipline to accelerated.
Rohith Murthy: Now let me turn to our Q1 operational performance and the progress we've made across our business line. A core part of our strategy is diversifying our revenue mix towards higher margin verticals and we are already seeing tangible results with wealth and insurance verticals contributing approximately 25% of our total revenue in Q1. an increase of 11 percentage points YOY and growing quickly. These verticals are now meaningful contributors to our top line and are driving gross margin expansion. We expect their growth to continue outpacing other segments supporting our 100 million revenue target for 2025. Importantly, this diversified revenue mix is also improving our profitability without sacrificing growth opportunities.
Now, let me turn to our Q1 operational performance and the progress we've made across our business lines.
Speaker Change: A core part of our strategy is diversifying our revenue mix towards higher margin verticals and.
Speaker Change: And we're already seeing tangible results with wealth and insurance verticals contributing approximately 25% of our total revenue in Q1.
Speaker Change: An increase of 11 percentage points Y O y and growing quickly.
These verticals are now meaningful contributors to our top line and are driving gross margin expansion.
Speaker Change: We expect growth to continue.
Outpacing other segments supporting our 100 million revenue target for 2025.
Speaker Change: Importantly, this diversified revenue mix is also improving our profitability without sacrificing growth opportunities.
Rohith Murthy: It's growth with quality. Now credit cards remain the largest revenue driver, contributing 57% of our total revenue in Q1. down from over 70% in previous years and reflecting successful diversification. This business is becoming more efficient and strategic. performing stronger on lower spend and generating higher profitability per unit. Credit cards continue to be a core customer acquisition engine, bringing in a steady flow of new users and re-engage existing ones. Our deep partnership with leading banks including Citi, HSBC, Stanchart, BPI, RCBC among many others not only fuel our credit card business but also allow us to broaden product engagement into wealth and lending products.
Speaker Change: It's growth with quality.
Speaker Change: Now credit got remain the large largest revenue driver contributing 57% of October revenue in Q1.
Speaker Change: Down from over 70% in previous years, and reflecting successful diversification.
Speaker Change: This business is becoming more efficient and strategic.
Speaker Change: Performing stronger on lower spend and generating higher profitability per unit.
Speaker Change: Credit continued to be a core customer acquisition engine.
Speaker Change: In a steady flow of new users.
Speaker Change: And reengage existing ones.
Speaker Change: Our deep partnership with leading banks, including Citi HSBC Stanchart P. P. I RCB C. Among many others.
Speaker Change: Not only our credit card business, but also allow us to broaden.
Speaker Change: Engagement into wealth and lending products.
Rohith Murthy: In other words, customers who come to us for credit cards today can also choose investment accounts, personal loans, or insurance down the line, increasing their lifetime value. So while the credit card share of revenue has moderated, it remains absolutely vital. It's now a more optimized strategic platform for broader growth.
In other words customers, who come to us for credit cards today, Ken also chose investment accounts personal loans or insurance down the line increasing the lifetime value.
Speaker Change: So while the credit card share of revenue is moderated it remains absolutely whitestone, it's now a more optimized strategic platform for broader growth.
Rohith Murthy: Our insurance segment is building significant momentum, particularly in car insurance. As a licensed digital broker, this high-margin vertical is made even more compelling with our new end-to-end purchase journey launched in partnership with Voltec in Hong Kong. Customers can now compare real-time quotes and purchase car insurance policies directly on our platform and avoid getting redirected to third-party sites and industry-first in Hong Kong. The result is a smoother user experience that drives higher conversion rates. and generates recurring revenue through policy renewals. We now essentially own the entire customer journey for car insurance. Early results are very promising with increased traffic and conversions in the car insurance funnel.
Our insurance segment is building significant momentum.
Speaker Change: Particularly encourage charters.
At the licensed digital broker.
Speaker Change: This high margin vertical it made even more compelling with our new end to end journey.
Speaker Change: Launched in partnership with Baltic in Hong Kong.
Speaker Change: Customers can now compare real time quotes and purchase car insurance policies.
<unk> on our platform.
Wide getting redirected to third party sites and industry first in Hong Kong.
Speaker Change: The result is a smoother user experience that drives higher conversion rates and.
Speaker Change: And generates recurring revenues through policy renewals.
Speaker Change: We are.
Speaker Change: Now essentially own the entire customer journey for car insurance.
Early results are very promising with increased traffic and conversions in the car insurance funnel.
Rohith Murthy: We are excited about scaling this model to other insurance products and markets. Insurance overall is scaling nicely for us and now represents about 13% of revenue and it continues to climb with strong unit economics that bolster our margin profile. Our personal loans business is another growth pillar, accounting for roughly 70% of revenue in Q1. and reflecting robust expansion as we help more users secure personal loans and other finances.
Speaker Change: We're excited about getting this model to other insurance products and markets.
Speaker Change: Insurance overall is scaling nicely for us and now represents about 13% of revenue and it continues to climb with strong unit economics that bolster our margin profile.
Speaker Change: Our personal loans business is another growth pillar.
For roughly 17% of revenue in Q1.
Speaker Change: And reflecting robust expansion as we help more use those secured personal loans and other financing.
Rohith Murthy: A big development here is our upcoming Credit Hero Club launch in Hong Kong during the second half of the year in partnership with TransUnion. Building on the successful pilot last year, the Credit Hero Club will offer consumers free credit scores. credit monitoring, and personalized financial product recommendations. By leveraging TransUnion's credit data, we can tailor product offers to each user's profile. such as showing them credit cards or loans they are more likely to be approved for. This personalization is expected to drive higher approval and conversion rates for our lending partners while helping consumers make smarter choices.
Speaker Change: A big development here is our upcoming launch in Hong Kong during the second half of the year in partnership with Transunion.
Speaker Change: Building on the successful pilot last year.
Speaker Change: Club will offer our consumers free credit scores.
Speaker Change: Credit monitoring and personalized financial product recommendations.
Speaker Change: While leveraging Transunion credit data, we can tailor product offers to each user's profile such as.
Speaker Change: Yes, showing them credit cards or loans, they are more likely to be approved for.
Speaker Change: This personalization is expected to drive higher approval in conversion rates for our lending partners.
Speaker Change: While helping consumers make smarter choices.
Rohith Murthy: Essentially, we're using data and AI to benefit everyone. Customers get better offers and enhanced transparency. and Bankense, more qualified, engaged borrowers. We anticipate the Credit Hero Club will not only deepen customer engagement but also boost our lending revenue. It's a great example of how we are innovating products to fuel growth in a margin accretive way.
Speaker Change: Essentially we're using data and data and AI to benefit everyone.
Speaker Change: Customers get better offers and enhance transparency.
Speaker Change: And bank gets more qualified engaged borrowers.
Speaker Change: We anticipate the credit Bureau club will not only deepen customer.
Speaker Change: Customer engagement, but also boost our lending revenues.
Speaker Change: It is a great example of how we are innovating products to fuel growth in a margin accretive way.
Rohith Murthy: Geographically, I want to highlight the progress we are making in the Philippines. an important market for us. Last year our operations faced headwinds when a major banking partner exited the market impacting our revenues. We took swift action to recalibrate our strategy, and I'm pleased to report a recovery is underway. in the past couple of months. We've signed strategic partnerships with two of the top banks in the country, BPI and RCBC, which significantly expand the range of products we offer them. In short, we've replenished and even enhanced the product supply after the partnering. These new partnerships reinforce our position as the go-to digital customer acquisition channel for banks in the Philippines and expect to start seeing our performance improve there in the second half of the year as these offerings gain traction.
Speaker Change: Geographically.
Speaker Change: I want to highlight the progress we are making in the Philippines.
Speaker Change: An important market for us.
Speaker Change: Last year.
Speaker Change: Our operations faced headwinds when a major banking partner exited the market impacting our revenue.
We took swift action to recalibrate our strategy.
Speaker Change: And I am pleased to report a recovery is underway.
Speaker Change: In the past couple of months.
Speaker Change: We've signed.
Speaker Change: Strategic partnerships with two of the top banks in the country BPI and RCB C with.
With significantly expand the range of products, we offer there.
Speaker Change: In short, we've replenished and even enhance the product supply.
Speaker Change: Or the partner exits it.
Speaker Change: These new partnerships reinforce our position as the go to digital customer acquisition channel for banks in the Philippines.
Speaker Change: And expect to start seeing our performance improve there in the second half of the or.
Speaker Change: As these offerings gained traction.
Rohith Murthy: It's a great example of how we can rebound from challenges by leveraging our regional scale and relationships. our ability to partner with leading financial institutions that remains a competitive advantage across all our markets.
It is a great example of how we can rebound from challenges by leveraging our regional scale and relationships.
Speaker Change: Our ability to partner with leading financial institutions that remains a competitive advantage across all our markets.
Rohith Murthy: Now beyond our high quality revenue growth, operational efficiency has been a major focus for us and is also a key driver for improving our margins. We have embraced an AI-first strategy across the organization to automate processes, reduce costs, and enhance productivity. Over the past few quarters, we have been implementing AI and machine learning solutions across everything from customer service to product development. For instance, intelligent chatbots and self-service tools have been deployed and are significantly reducing manual customer service or customer support inquiries, improving the efficiency of content creation. and also helping us optimize our marketing spend.
Speaker Change: Now beyond our high quality revenue growth.
Speaker Change: Operational efficiency has been a major focus for us.
Speaker Change: And it's also a key driver for improving our margins.
Speaker Change: We have embraced an AI first strategy across the organization to automate processes.
Speaker Change: <unk> cost and enhanced productivity.
Speaker Change: Over the past few quarters, we have been implementing AI and machine learning solutions across everything from customer service to product development.
Speaker Change: For instance, intelligent chat bots and self service tools have been deployed and are significantly reducing manual customer service or customer support inquiries.
Speaker Change: Moving the efficiency of content creation.
Speaker Change: And also helping us optimize our marketing spend.
Rohith Murthy: Over the past year, our operating expenses have come down substantially as a result. including a 26% ROI reduction in employee related costs. I want to stress that these efficiency gains go beyond cost cuts. they are driving better overall results. Our product and engineering teams are more productive than ever, rolling out new features fast with the help of AI-driven coding and testing. Our content and marketing teams are also personalizing at scale using AI Insights. All of these mean we can scale our business. without a proportional rise in headcount or expenses. We are essentially doing more with less.
Speaker Change: Over the past year, our operating expenses have come down substantially as a result.
Speaker Change: Including a 26% Y O Y a reduction in employee related costs.
Speaker Change: I want to stress that these efficiency gains go beyond cost cutting.
Speaker Change: Driving better overall results.
Speaker Change: Our product and engineering teams are more productive than ever rolling out new features fast with the help of AI driven coding and testing tools.
Speaker Change: Our content and marketing teams are also personalizing at scale using AI insights.
Speaker Change: All of these mean, we can scale our business.
Speaker Change: Without a proportionate rise in head count or expenses.
Speaker Change: We are essentially doing more with less which is a key reason, we remain confident about reaching breakeven in the coming quarters.
Rohith Murthy: which is a key reason we remain confident about reaching break-even in the coming quarter.
Rohith Murthy: Alongside improving operational efficiency is our focus on building a high performance company culture. In Q4 last year, we rolled out a broad-based RSU program effectively making most MoneyHero employees shareholders. Our goal is for the team to think and act like owners because they truly are owners. This initiative has energized the team, fostering a stronger sense of accountability and long-term commitment. Every team now has a skin in the game, aligning incentives to deliver results for shareholders. I firmly believe that a culture of aligned incentives and personal ownership will drive better execution. Through this RSU program, we are investing in our people and re-enforcing that when MoneyHero succeeds, we are investing in our people.
Alongside improving operational efficiency is our focus on building a high performance company culture.
Speaker Change: In Q4 last year, we rolled out a broad based RMC program.
Speaker Change: <unk>, making most money need our employees shareholders.
Speaker Change: Our goal is for the team to think and act like owners because they are truly our owners.
Speaker Change: This initiative has energized the team.
Speaker Change: Stirring a stronger sense of accountability and long term commitment.
Speaker Change: Every team now has the skin in the game aligning incentives to deliver results for our shareholders.
Speaker Change: I firmly believe that our culture of aligned incentives.
Speaker Change: And personal ownership will drive better execution.
Speaker Change: Through this RAC program, we are investing in our people and re enforcing that when men money hero succeed.
Rohith Murthy: We all succeed. This approach will also help us attract and retain top talent and ensure that our internal motivation supports our ambitious growth objectives.
Speaker Change: We all succeed.
Speaker Change: This approach will also help us attract and retain top talent.
Speaker Change: And ensure that our internal motivation supports our ambitious.
Speaker Change: Growth objectives.
Rohith Murthy: Let me touch on capital allocation and how we are thinking about shareholder values. We expect... continued markets evolution and consolidation in the months ahead. as a well-capitalized market leader. with 36.6 million in cash and no debt. We are in a strong position to capitalize on opportunities in a highly disciplined manner. We remain focused on maintaining shareholder value and currently we have no plans for equity funded M&A while our stock trades below what we believe to be its intrinsic value. That said... If the right opportunity arises to consolidate the market inorganically, we'll evaluate it, but only when it aligns with our long-term strategy and value creation goals.
Speaker Change: Okay.
Let me touch on our capital allocation and how we're thinking about shareholder value.
Speaker Change: Expect.
Speaker Change: Market evolution and consolidation in the months ahead.
Speaker Change: As a well capitalized market leader.
Speaker Change: With $36 6 million in cash and no debt.
We are in a strong position to capitalize on opportunities in a highly disciplined manner.
Speaker Change: We remain focused on maintaining shareholder value.
Speaker Change: And currently we have no plans for equity funded M&A, while our stock trades below what we believe to be its intrinsic value.
Speaker Change: That said.
Speaker Change: If the right opportunity arises to consolidate the market inorganically.
Speaker Change: We'll evaluate it but only when it aligns with our long term strategy and value creation goals.
Rohith Murthy: Finally, we are broadening investor engagement to improve our visibility and re-establish credibility in the market. Now, since our listing, our stock liquidity has been below our expectations. We are actively working to expand our shareholder base. and meet with cell site analysts to improve coverage. and raise awareness of our growth story. This quarter we onboarded a new investor relations partner to strengthen our communications and targeting efforts. As our performance improves, we expect increased analyst coverage. We're also engaging with long-term investors, including family offices and smaller funds, in our regions to share the MoneyHero story and invite them to join us on our growth journey.
Speaker Change: Finally, we are broadening investor engagement to improve our visibility and re establish credibility in the market now.
Speaker Change: Now since our listing our stock liquidity has been below our expectations.
Speaker Change: We are actively working to expand.
Speaker Change: Our shareholder base.
Speaker Change: And meet with sell side analysts to improve coverage.
Speaker Change: And raise awareness of our growth story.
Speaker Change: This quarter, we on boarded.
Speaker Change: New Investor relations partner to strengthen our communications and targeting efforts.
Speaker Change: As our performance improves we expect increased analyst coverage.
Speaker Change: We're also engaging with long term investors, including family offices in smaller farms in our regions to share the money hero story and invite them to join us on our growth journey.
Rohith Murthy: Additionally, we strengthen our corporate development and strategy team to better communicate our growth strategy to the market and explore strategic partnerships that can unlock value.
Speaker Change: Additionally, we strengthened our corporate development and strategy team to better communicate our growth strategy to the market.
Speaker Change: And explore strategic partnerships that can unlock value.
Rohith Murthy: The key message here is that we are not only improving our internal fundamentals, but also proactively working to re-establish our visibility and credibility in the public markets to ensure the investment community clearly recognizes the value and growth potential of MoneyHero.
Speaker Change: The key message here is that we're not only improving our internal fundamentals, but also proactively working to re establish our visibility and credibility in the public markets.
Speaker Change: To ensure the investment community clearly recognizes the value and growth potential.
Speaker Change: Funny hero.
Rohith Murthy: Now before I conclude, let me reiterate the key takeaways and our vision going forward. We are at a pivotal moment and have taken the hard but necessary steps. transform our business over the past year, focusing on higher margin revenue. lowering our cost base and innovating our product offering. These efforts position us for sustainable growth and profitability. We expect to hit positive adjusted EBITDA during the later part of the year and from that point onward we expect expand our bottom line as our revenue ramps towards our 100 million target. Our strategy is clear. Maintain leadership in our core categories such as credit cards.
Speaker Change: Now before I conclude let me reiterate the key takeaways and our vision going forward.
Speaker Change: We are at a pivotal moment and have taken the heart.
Speaker Change: Necessary steps to transform our business over the past year, focusing on higher margin revenue.
Speaker Change: Lowering our cost base.
Speaker Change: And innovating our product offerings.
Speaker Change: These efforts position us for sustainable growth and profitability.
Speaker Change: We expect to hit.
Speaker Change: Adjusted EBITDA during.
Speaker Change: The later part of the year and from that point onward, we expect.
Speaker Change: To expand our bottom line as our revenue ramp towards our 100 million target.
Speaker Change: Our strategy is clear.
Speaker Change: Maintain leadership in our core categories, such as credit cards.
Rohith Murthy: Aggressively grow new verticals like insurance, wealth, and lending that boost margins. and leverage technology including AI and data to drive efficiency and superior user experience. Looking at our performance over the past two quarters with improving margins. growing higher-quality revenue streams and a sharply narrowed loss, it's clear the strategy is already yielding results. Looking ahead to the rest of 2025 and beyond, we're confident that MoneyHero will emerge as one of the most profitable and trusted personal finance platforms in the region, with a unique ecosystem of product and partnerships, as well as a strong brand presence in our market.
Speaker Change: Rapidly grow new verticals like insurance and lending that boost margins.
Speaker Change: And leverage technology, including AI and data to drive efficiency and superior user experiences.
Speaker Change: Looking at our performance over the past two quarters with improving margins.
Speaker Change: Growing higher quality revenue streams and.
Speaker Change: In a sharply narrowed loss, it's clear the strategy is already yielding results.
Speaker Change: Looking ahead to the rest of 2025 and beyond we are confident that money hero will emerge as one of the most profitable and trusted personal finance platforms in the region with a unique ecosystem of products and partnerships.
Speaker Change: As well as a strong brand presence in our markets.
Rohith Murthy: With our renewed focus on operational excellence in ROI, we can capitalize on growth opportunities. without deepening our cash burden. Importantly, we remain accountable stewards of capital, both in how we invest for growth and how we approach shareholder return.
Speaker Change: With our renewed focus on operational excellence and ROI, we can capitalize on growth opportunities.
Speaker Change: Without deepening our cash burn.
Speaker Change: Importantly, we remain accountable stewards of capital both in how we invest for growth and how we approach shareholder returns.
Rohith Murthy: I want to thank our team members for their incredible effort and alignment with our mission to drive this transformation. I also want to thank our shareholders for their continued support and patience. We are committed to delivering the value you expect and deserve. The management team and I are laser focused on executing quarter by quarter and we believe the best days for MoneyHero are ahead of us. We are building a business that can grow robustly, generate cash, and create long-term value for our investors.
Speaker Change: I want to thank our team members for their incredible effort and alignment with our mission to drive this transformation.
Speaker Change: I also want to thank our shareholders for their continued support and patience.
Speaker Change: We are committed to delivering the value you expect them to do.
Speaker Change: The management team and I are laser focused on executing quarter by quarter.
Speaker Change: And we believe the best days for money hero.
Speaker Change: Ahead of us.
We are building a business.
That can grow robustly generate cash and create long term value for our investors.
Danny Leung: With that, I will now turn the call over to Danny Leung, our Interim CFO. Thank you, Rohith. Good day, everyone. Our Q1 results demonstrate continued progress in executing the strategic pivot we initiated in the second half of 2024. This quarter was less about chasing top-line growth and more about improving the quality of our revenue, reducing cost base, and positioning the business for sustainable, profitable growth. While revenue declined 35% year-over-year to $14.3 million, reflecting a strategic pivot to reduce marketing and focus on higher quality and modern products. our revenue mix substantially improved. High margin verticals now account for a large proportion of total revenue.
With that.
Daniel: I will now turn the call over to Daniel <unk>, our interim CFO.
Daniel <unk>: Thank you Rohit.
Daniel <unk>: Hey, everyone.
Speaker Change: Our Q1 results demonstrate continued progress in executing the strategic pivot we initiated in the second half of 2024.
This quarter was less about chasing topline growth and more about improving the quality of our revenue reducing cost base.
Daniel <unk>: And positioning the business for sustainable profitable growth.
Daniel <unk>: While revenue declined 35% year over year to $14 3 million, reflecting our strategic pivot to reduce marketing plan.
Daniel <unk>: And focus on higher quality and module products.
Daniel <unk>: Revenue mix substantially improved it.
Daniel <unk>: High margin protocols now account for a larger proportion of total revenue with.
Danny Leung: with personal loans increasing from 15% to 17%. insurance growing from 8% to 13% and while doubling to 12% further reducing our reliance on lower-margin credit cards, which decreased 13 points to 57%. This improving revenue mix directly contributed to a significant expansion in gross margins, as costs of revenue dropped by 55% year-over-year to account for just 44% of revenue, validating the effectiveness of our strategy. Our cost discipline and operational efficiency initiatives directly support them. Operating expenses declined 26% year-over-year in Q1. driven by deliberate reduction across paid marketing, technology span, employee cost, and general and administrative expenses.
Daniel <unk>: With personal loans, increasing from 15% to 17%.
Daniel <unk>: Insurance growing from 8% to 13%.
Daniel <unk>: And while doubling to 12%.
Daniel <unk>: Further reducing our reliance on lower margin credit card, which decreased 13 points to 57%.
Daniel <unk>: These improving revenue mix directly contributed to a significant expansion in gross margin.
Daniel <unk>: Cost of revenue dropped by 55% year over year to account for just 44% of revenue validating the effectiveness of our strategy.
Daniel <unk>: Our cost basis.
Daniel <unk>: Discipline and operational efficiency initiatives directly support this.
Daniel <unk>: Operating expenses declined to 26% year over year in Q1.
Daniel <unk>: Driven by deliberate reduction across paid marketing technology spend and employee costs.
Daniel <unk>: And general and administrative expense.
Danny Leung: This ain't just one-off cuts. They will form a new foundation for our operational cadence going forward. The changes have reset our cost structure and allow us to run a far more efficient business. AI hasn't driven this reduction, but it's now helping us maintain this lean cost base as we scale, especially across customer service and content operations. This is also having a material impact on our bottom line. Net loss narrowed sharply to $2.4 million from $13.1 million a year ago, more than $10 million of improvement. Adjusted EBITDA loss also improved significantly year-over-year to $3.3 million, underscoring a clear path towards sustainable profitability.
Daniel <unk>: These aim just one off cuts.
Daniel <unk>: Will form a new foundation for our operational cadence going forward.
Daniel <unk>: The changes have reset our cost structure and allow us to run a far more efficient business.
Daniel <unk>: AI Hasnt driven this reduction but is now helping us maintain.
Daniel <unk>: <unk> maintained this lean cost base as we scale.
Daniel <unk>: Actually across customer service and content operations.
Daniel <unk>: This is also having a material impact on our bottom line.
Daniel <unk>: Net loss narrowed sharply to $2 4 million from $13 1 million a year ago more than $10 million of improvement.
Daniel <unk>: Adjusted EBITDA also improved significantly year over year to $3 3 million.
Daniel <unk>: Underscoring our clear path towards sustainable profitability.
Danny Leung: Looking forward, we expect sequential improvements in adjusted EBITDA throughout 2025. Our goal is to achieve positive adjusted EBITDA during the later part of the year, and we remain confident that our ability to achieve that. We have no debt and ended the quarter with $36.6 million in cash, giving us the flexibility to fund growth and consider capital return options in a disciplined way. In short, Q1 proves that our strategy is working. We are building a stronger foundation, improving unit economics, and driving towards sustainable profitability with a more durable, capital-efficient business model.
Daniel <unk>: Looking forward.
Daniel <unk>: We expect sequential improvement in adjusted EBITDA throughout 2025.
Daniel <unk>: Our goal is to achieve positive adjusted EBITDA during the later part of the year.
Daniel <unk>: And we remain confident that our ability to achieve that.
Daniel <unk>: We have no debt and ended the quarter with $36 6 million in cash.
Daniel <unk>: US the flexibility to fund growth and consider capital return options in a disciplined way.
Daniel <unk>: This sharp.
Daniel <unk>: One proof that our strategy is working.
Daniel <unk>: We are building a stronger foundation, improving unit economics, and driving towards sustainable profitability with a more durable capital efficient business model.
Danny Leung: That concludes our prepared remarks for today.
Daniel <unk>: 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. We will now begin the question and answer session. If you would like to ask a question, please press star 11 on your telephone and wait for your name to be announced. To cancel request, please press the stop. All of you. Thank you.
Daniel <unk>: I'll now turn the call over to the operator to begin the Q&A section.
Daniel <unk>: Please go ahead.
Daniel <unk>: We will now begin the question and answer session.
Speaker Change: I would like to ask a question. Please press star one on your telephone and weaker and needing to be announced.
Speaker Change: Consider our request please press star.
Speaker Change: Okay.
Speaker Change: That's great.
Operator: and Greenwich Global.
Speaker Change: Yes.
Vincent Chen: Please go ahead. Hi Rohith, good quarter. I had a question on the OSL announcement you just made the other day.
Speaker Change: When reached global please go ahead.
Speaker Change: Hi, good quarter.
Speaker Change: I had a question on the Oss all announcement you just made the other day can you talk more about the partnership with them.
Rohith Murthy: Can you talk more about the partnership with them and kind of how you see the entrance into the digital asset space for the company? Sorry, your question was not that clear, but I think I heard about our partnership with the OSL in the digital assets phase. Is that correct? Yeah, yeah. Just if you can talk more about the partnership with them and then your plans for that space. Absolutely.
Speaker Change: Kind of how you see the entrants into the digital asset for the company.
Speaker Change: Okay.
Speaker Change: Sorry I was.
Daniel <unk>: Question was not that clear, but I think I heard about your about our partnership with dose element has lots of space.
Daniel <unk>: Is that correct.
Daniel <unk>: Yes, yes.
Daniel <unk>: Talk more about the partnership with them and then to your plans for that space.
Rohith Murthy: Look, this announcement, we believe, actually marks a very exciting and important first step for us. We're really strategically exploring the digital asset space. Now, digital assets are increasingly, I think, viewed alongside traditional insurance, stock, and banking products, also offering, like, enhanced user experiences, greater product diversification, and new monetization opportunities for our platform. So I think we offer a unique value proposition as a leading digital acquisition partner for a majority of banks in the region and we want to replicate this and expand this into the digital asset ecosystem as well. And this also, I want to point out, it directly aligns with our focus on expanding higher margin verticals, including wealth products.
Daniel <unk>: Really.
Daniel <unk>: Look this announcement, we believe actually marks a very exciting and important first step for us.
Daniel <unk>: They are really strategically exploring the digital asset space.
Daniel <unk>: Now digital assets are increasingly I think viewed alongside traditional insurance stock and banking products.
Daniel <unk>: Also offering like enhance user experiences with greater product diversification and.
Daniel <unk>: And new monetization opportunities for our platform.
Daniel <unk>: I think we offer a unique value proposition as a leading digital acquisition partner for a majority of banks in the region and we want to replicate this and expanded.
Daniel <unk>: Into the digital asset ecosystem as well.
Daniel <unk>: And just also I want to point out it directly aligns with our focus on expanding higher margin verticals, including wealth products.
Rohith Murthy: Now, on a personal note, I've been very closely studying companies like Strategy and MetaPlanet that have been, like, successfully, they have implemented digital asset strategies, and subsequently they've delivered impressive stock performance. And for me, their examples highlight the potential, you know, shareholder value that can be unlocked through well-considered moves that MoneyHero can make. Now, while we have not yet made any... definitive decisions regarding any additional investments, we remain proactive and open-minded. And given our strong cash position, and as you can see, a very disciplined capital allocation approach, we are actively evaluating strategic opportunities and digital assets.
Daniel <unk>: Now on a personal note I have.
Daniel <unk>: Been very closely studying companies like strategy and Metro planet.
Daniel <unk>: That had been like successfully they have implemented digital asset strategies and subsequently delivered impressive stock performance.
Daniel <unk>: And for me there are examples highlight the potential shareholder value that can be unlocked to well consider moves that money you know can make into the space now.
Daniel <unk>: Now, while we've not yet made any.
Daniel <unk>: Definitely decisions regarding any additional investments we are we remain proactive and open minded and.
Daniel <unk>: And given our strong cash position.
Daniel <unk>: And as you can see a very disciplined capital allocation approach.
Daniel <unk>: Actively evaluating strategic opportunities and digital assets.
Rohith Murthy: We're carefully assessing the risks, the potential benefits, and also the alignment with our long-term objectives.
Daniel <unk>: We're carefully assessing the risk the potential benefits and also the alignment with our with our long term objectives.
Vincent Chen: Okay, great. Thank you.
Danny Leung: And then on the cost of revenue, that fell quite a bit. You had really nice margin improvement. Can you talk about if that's a margin range you expect going forward as you get to that $100 million revenue, or if the cost structure is going to change at all as you scale up? Sure, I'll take that question. uh so the meaningful reduction in our cost of revenue from 14.1 million down 6.4 million over a year. This represents a decrease from 64% to just 44%. It is a direct result of a carefully executed strategy designed for sustainable profitability rather than a mere short-term cost-cutting strategy.
Speaker Change: Okay, great. Thank you and then on the cost of revenue that fell quite a bit you had really nice margin improvement can you talk about if that's.
Speaker Change: Our margin range, you expect going forward as you get to that $100 million revenue or <unk>.
Speaker Change: Cost structure is going to change at all as you scale up.
Speaker Change: Sure.
Speaker Change: I'll take that question.
Speaker Change: So the meaningful reduction in our cost of revenue from $14 1 billion down to <unk>.
Speaker Change: $6 4 million year over year.
Speaker Change: This represent a decrease from 64%, who just 44% of revenue.
Speaker Change: It is a direct result of a carefully executed strategy designed it for sustainable profitability, rather than a mere short term cost cutting.
Danny Leung: Now, let me break down exactly how we have achieved First, we have dramatically optimized our rewards and promotional programs. Reducing our spending in this area by over 50% year over Critically, we've accomplished this while maintaining a robust conversion rate. This efficiency gain was possible because we now leverage a large, engaged member base of over 8 billion U.S. By employing advanced data analytics and target AI-driven strategies, we ensure incentives reach the right users at precisely the right time, significantly improving ROI. Second, we've intentionally shifted our revenue mix towards higher margin, higher quality verticals like insurance and wealth management.
Speaker Change: Now, let me break down exactly how we have achieved this.
Speaker Change: First we have dramatically optimize our rewards and promotional programs.
Speaker Change: Using our spending in this area by over 50% year over year.
Speaker Change: Critically.
Speaker Change: With our accomplished this while maintaining robust conversion rates.
Speaker Change: This efficiency gain was possible because we know elaboration of large engaged member base of over 8 billion users.
Speaker Change: By employing advanced data analytics and target AI driven strategy.
Speaker Change: Ensure incentives reach the right users at precisely the right time significantly improving our.
Speaker Change: Second with.
Speaker Change: We have intentionally shift our revenue mix towards higher margin higher quality verticals like insurance and wealth management.
Danny Leung: These segments now contribute roughly 25% of total revenue. an increase of 11.0 over a year. and they offer inherently better unique economics. For example, our recently launched car insurance products in Singapore and Hong Kong now only offer superior user experience. with real-time price comparison. but they also create predictable recurring revenue through annual policy renewals. Regarding potential impact on our top-line growth. Yes in the immediate terms. We have accepted a trade-off Prioritizing quality and margin expansion over rapid, less profitable volume growth. But this decision is strategic and deliberate. By emphasizing profitability and sustainability now, we are laying the groundwork for stronger and more predictable long-term growth.
Speaker Change: This segment now contributed roughly 25% of total revenue.
Speaker Change: An increase of 11 points year over year.
Speaker Change: And they over inherently better unit economics.
Speaker Change: For example, our recently launched car insurance product in Singapore, and Hong Kong now only offer a superior user experience.
Speaker Change: With real time price comparison.
Speaker Change: But they also create predictable recurring revenue through annual policy renewals for us.
Speaker Change: And regarding potential impact on our top line growth yes.
Speaker Change: Immediate terms, we have accepted a trail.
Speaker Change: <unk> and margin expansion of a rapid last profitable volume growth.
Speaker Change: But this decision is strategic and deliberate.
Speaker Change: By emphasizing profitability and sustainability now we are laying the groundwork for stronger and more predictable long term growth.
Danny Leung: In short, while our near-term revenue growth might be more measurable... We are confident that this discipline approach positions us far better in the long run. Our focus on high margin recurring revenue streams such as insurance renewal and wild products means we are building lasting customer relationships. and sustainable growth engines that compound value year after year.
Speaker Change: While our near term revenue growth might be more measured.
Speaker Change: We are confident that this disciplined approach.
Speaker Change: <unk> as far better in the long run.
Speaker Change: I'll focus on high margin recurring revenue streams, such as insurance renewal and wealth products means we are building lasting customer relationships and sustainable growth engine that compound value up year after year.
Speaker Change: Thank you.
Danny Leung: Thanks. And then on the operating structure, you touched on the AI integration in the prepared remarks. What kind of increases do you expect on the operating costs as you scale to that 100 million revenue? Yep. Okay, let me take this question as well. The significant improvements we have delivered in our operating cost structure are indeed foundational to how we will run the business moving forward. To put this clearly, our recent cost reduction with advertising and marketing down 25%, technology expense down 56%. employee expense reduced by 26% and general administrative costs down 8% year-over-year are not temporary measures.
Speaker Change: Thanks, and then.
Speaker Change: The operating structure you touched on the AI integration in the prepared remarks.
Speaker Change: What kind of increases do you expect on the operating cost as you scale to that $100 million revenue.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Let me take this question as well.
Speaker Change: The significant improvement we have delivered in our operating cost structure.
Speaker Change: These fundamental foundational to how we will run the business moving forward.
Speaker Change: To put this clearly our recent cost reduction.
Speaker Change: Advertising and marketing down 25%.
Speaker Change: Technology expense down 56%.
Speaker Change: <unk> expense reduced by 26% and general administrative costs down 8% year over year.
Speaker Change: Are not temporary measures there.
Danny Leung: They represent a structural reset to a leaner, more disciplined, and sustainable operating model. Now, as we aim to significantly accelerate our revenue growth... particularly in the second half of 2025. We do anticipate some incremental increase in operating costs. However, importantly, these costs will grow at a far slower rate than revenue. Our technology infrastructure, data platform, and operational processes are now designed to scale efficiently. This means we can accommodate substantial increases in transaction volume and user engagement without proportionally higher expenses. enabling significant operating leverage. We are also strategically directing investment towards high margin protocols like insurance and wealth management.
Speaker Change: They represent a structural reset to a leaner more discipline and sustainable operating model.
Speaker Change: Now as we aim to significantly accelerate our revenue growth.
Speaker Change: Particularly in the second half of 2025.
Speaker Change: We do anticipate some incremental increase in operating costs. However, importantly.
Speaker Change: This cost will grow at a far slower rate than revenue.
Speaker Change: Our technology infrastructure data platform and operational processes, and now decided to scale efficiently.
Speaker Change: This means we can accommodate substantial increases in transaction volume and user engagement with our proportionately higher expenses.
Speaker Change: Enabling significant operating leverage.
Speaker Change: We are also strategically directing in fact, then towards high margin protocols like insurance and wealth management.
Danny Leung: areas crucial to our profitability and margin expansion strategy. Investments here on Investments here not only boost our revenue mix, but also contribute directly to healthier long-term profitability and recurring revenue streams. Additionally, our adoption of AI-driven automation across key business processes such as customer service, content generation, and operational workflows further enhance our ability to scale profitably. This automation reduces manual tasks, boosts productivity, and elevates customer experience, allowing us to maintain quality and trust while efficiently managing cost growth. Ultimately, our disciplined approach ensures that any incremental cost we take on is intentional and directly tied to profitable growth initiatives.
Speaker Change: Areas crucial to our profitability and margin expansion strategy.
Speaker Change: Investments here.
Speaker Change: Investments here not only booster our revenue mix, but also contribute directly to healthier long term profitability and recurring revenue streams.
Speaker Change: Our adoption of AI, driven automation across key business processes, such as customer service.
Speaker Change: <unk> generation and operational workflows further enhance our ability to scout profit.
Speaker Change: To scale profitably.
Speaker Change: This automation reduce manual task boost productivity.
Speaker Change: Elevated customer experience, allowing us to maintain quality and trust, while efficiently managing cost growth.
Speaker Change: Ultimately.
Speaker Change: Our disciplined approach ensures that any incremental cost we take on is intentional and directly tied to profitable growth initiatives.
Danny Leung: by maintaining this balance of strategic investment and rigorous cost discipline.
Speaker Change: By maintaining this balance of strategic investment.
Speaker Change: Rigorous cost discipline.
Danny Leung: We are confident we can achieve our ambitious revenue target, deliver expanding margins, and create sustainable long-term value for our shareholders and customers alike.
Speaker Change: We are confident we can achieve.
Speaker Change: Our ambitious revenue target.
Speaker Change: We're expanding margins and create sustainable long term value for shareholders and customers alike.
Operator: All right, that's all I have. Thank you. Thank you for the questions. One moment for the next question.
Speaker Change: Alright, that's all I had thank you. Thank.
Speaker Change: Thank you. Thank you for the questions one moment for the next question.
Nicky Yee Dan Kao: Next question comes from the line of Nicky Yee Dan Kao from Avaline, thank you so much, please proceed. Thank you. Your growth margin has improved year over year. What were the biggest drivers of that margin expansion? And how sustainable are we going forward?
Speaker Change: Your next question comes from July all Nicky Ito from <unk>.
Speaker Change: Thanks.
Speaker Change: Thank you.
Speaker Change: Gross margin have improved yes.
Speaker Change: What does all of that margin expansion.
Michael: And Michael I'll, just go with cobalt.
Danny Leung: Yes, let me take this. Our cross-margin expansion has been a deliberate outcome of the strategic choices we made starting mid-2024. And I would like to point out, like, three core drivers to it. Number one is our revenue mix shift. We've reduced our reliance on low-margin verticals like credit cards, which as we pointed out now represents 57% of our revenue. It's down from 70% and we are scaling and have scaled high margin segments like insurance and wealth, which now contributes 25% of our revenue. These, structurally, they carry better unit economics.
Michael: Yes, let me take this.
Speaker Change: Gross margin expansion has been a deliberate outcome.
Speaker Change: The strategic choices, we made starting mid 2024.
Speaker Change: And I would like to point out like three core drivers to it number one is our revenue mix shift.
Speaker Change: We've reduced our reliance on low margin verticals like credit cards, which as we pointed out now represents 57% of our revenue it's down from 70%.
Speaker Change: And we are scaling and have scale high margin segments like insurance and wealth, which now contributes 25% of our revenue.
Speaker Change: These structurally the carry better unit economics.
Danny Leung: That's number one. Number two is our cost of revenue optimization. We've significantly reduced our rewards and fulfillment costs. primarily by improving targeting of our promotional spend and economics. Now as a clear market leader, we no longer face direct competitive pressures requiring us to maintain high reward spending. Also, as the leading digital acquisition partner for the majority of the banks in the region, we also offer a unique value proposition with our ability to secure favorable bespoke offers and more attractive commercial value. We also reduced our reliance on paid marketing, and this is benefiting from stronger organic traffic growth driven by content investments, SEO optimizations, and improved data protection.
Speaker Change: Number one number two is our cost of revenue optimization, we have significantly reduced our rewards and fulfillment costs.
Speaker Change: Primarily by improving targeting of our promotional spend and economics.
Speaker Change: As a clear market leader, we no longer face direct competitive pressures requiring us to maintain higher rewards spending.
Speaker Change: Also as the leading digital acquisition partner for majority of the banks in the region.
Speaker Change: We also offer a unique value proposition with our ability to secure favorable bespoke offers and more attractive commercial trucks.
Speaker Change: We also reduced our reliance on paid marketing and this was benefiting from stronger organic traffic growth.
Speaker Change: Driven by content investments.
Speaker Change: Optimization and improved data platform.
Danny Leung: And the third point is our product and UX improvements. Our enhancements to UI, UX, and Funnel Performance have improved conversions, allowing us to drive the same or better outcomes with less spend. Now a good example is our recently launched 3-click travel insurance flow, which has significantly reduced friction and also improved customer conversion. Now, looking forward, we believe these gains are sustainable. Our margin profile will continue to benefit from growth in recurring and advisory driven verticals like insurance, wealth and lending.
Speaker Change: And the third point is our product and UX improvements.
Speaker Change: Our enhancements to UI and UX and funnel performance have have improved conversions.
Speaker Change: Allowing us to drive the same or better outcomes with less spend.
Speaker Change: Now a good example is our recently launched three click travel insurance floor, which has significantly reduced friction and also improve customer conversions.
Speaker Change: Now looking forward, we believe these gains are sustainable.
Speaker Change: Our margin profile, we continue to benefit from growth and record <unk> and advisory driven verticals like insurance wealth in lending.
Danny Leung: We rebuilt the business with efficiency in mind and that margin leverage is now coming through consistently. Okay, thank you for your explanation.
Speaker Change: We've rebuilt the business with efficiency in mind and.
Speaker Change: And that margin leverage is now coming through.
Speaker Change: Consistently.
Speaker Change: Okay. Thank you for your extraordinary.
Danny Leung: Can you elaborate on the earning traction you were seeing from the BIRCTA partnership in car insurance and how meaningful is this to your long-term recovering revenue strategy? Absolutely. The partnership with BOLTEC is strategically significant and transformative for our insurance business and let me spend some time just breaking this down clearly. Number one is the massive market opportunity. When you think about car insurance, it's mandatory in both Singapore and Hong Kong. Yet today, many consumers will still default to policies sold directly through car dealerships. And these are often at significantly high prices. So that's a massive opportunity for us to help users compare and find the right protection.
Speaker Change: Can you elaborate on the omni Checksum Youll also notice on the <unk>.
Speaker Change: Partnership in Pi insurance, and how meaningful is the key long term recurring revenue strategy.
Speaker Change: Absolutely.
Speaker Change: The partnership with Baltic is strategically significant and transformative for our insurance business and let me spend some time, just breaking that down clearly.
Speaker Change: Number one is the massive market opportunity.
Speaker Change: What do you think about car insurance is mandatory in both Singapore and Hong Kong yesterday, many consumers will still default to policies sold directly to car dealerships and these are often at significantly high prices. So that's a massive opportunity for us to help users compare and find the right protection.
Danny Leung: and saving hundreds of dollars in the process. The second is, which I mentioned, is an industry-first and a market-first innovation. Now, historically, the insurance purchase journey across our region has been quite cumbersome. Believe it or not, there's no real-time pricing, very poor digital experiences, and a complicated fulfillment process. So, what we've launched with Boltec in Hong Kong and Singapore is genuinely unique and market-leading. A fully embedded end-to-end digital experience that provides real-time price quotes and a seamless on-platform purchase.
Speaker Change: And saving hundreds of dollars in the process.
Speaker Change: The second is which I mentioned is an industry first in the market plus innovation now historically the insurance purchase journey across our region has been quite cumbersome.
Speaker Change: Believe it or not there's no real time pricing very poor digital experiences and a complicated fulfillment process now.
Speaker Change: Now, what we've launched with Baltic in Hong Kong, and Singapore is genuinely unique end market leading.
Speaker Change: Our fully embedded end to end digital experience that provides real time price quotes and a seamless on platform purchase.
Danny Leung: I mentioned the... Early results are encouraging. The initial traction has actually exceeded our expectations. The conversion rates are significantly higher than the previous funnel. And I think the strong unit economics allows us to confidently drive more volume into this funnel, knowing that the economics are working well. This partnership also strategically enables us to now build a book of recurring revenue through the policy renewals. significantly increasing the lifetime value for customer over time. And importantly, these insurance customers also demonstrate higher propensity to explore and purchase across our broader financial products catalog, and this also again further boosts our customer lifetime value.
Speaker Change: I mentioned the.
Speaker Change: Early results are encouraging the initial traction has actually exceeded our expectations. The conversion rates are significantly higher than the previous funnel.
Speaker Change: And I think the strong unit economics allows us to confidently drive more volume into the funnel knowing that the economics are looking but.
Speaker Change: This is this partnership also strategically enables us to now build a book of recurring revenue through the policy renewals.
Speaker Change: Significantly increasing the lifetime value per customer overtime.
Speaker Change: And importantly, these insurance customers also demonstrate higher propensity to explore and purchase.
Speaker Change: Cros are broader financial product catalog and then also again further boost our customer lifetime value.
Danny Leung: I've spoken about this in the past, our buy over build strategy and this partnership actually aligns perfectly with the strategy where we can leverage world-class technologies rather than building everything now. Now, BOLTEC is a global leader in insurance technology and, you know, we share a common investor. So we benefit directly from their technology, their expertise. and an accelerated go-to-market capability. We are also exploring the possibility of leveraging Voltec's insurance license in Taiwan. You know, we are a licensed broker in the other three markets, so this gives us an opportunity to also look at insurance in Taiwan to support further growth.
Speaker Change: Deep.
Speaker Change: <unk>.
Speaker Change: Thinking about this in the past our art Bill.
Speaker Change: Our <unk> strategy and this partnership actually aligned both directly with this strategy, where we can leverage world class technologies, rather than building everything in house.
Speaker Change: <unk> is a global leader in insurance technology and.
Speaker Change: We share a common investor so we benefit directly from their technology their expertise.
Speaker Change: And an accelerated go to market capability.
Speaker Change: We are also exploring the possibility of leveraging Baltic insurance license in Taiwan.
Speaker Change: We are a licensed broker in the other three markets. So this gives us an opportunity to also look at insurance in Taiwan to support further growth and finally.
Danny Leung: And finally... We're collaborating with Voltec to launch embedded insurance products. An example would be device protection for all the attractive rewards we offer. And this further expands monetization, but also a better customer engagement opportunity.
Speaker Change: We're collaborating with Baltic to launch embedded insurance products.
Speaker Change: An example would be device protection for all the attractive rewards we offer and this further expands monetization, but also a better customer engagement.
Speaker Change: Engagement opportunity.
Danny Leung: So, in short... This Poltech partnership is not merely a tactical initiative. It's a strategic step change in our insurance business. that's driving both immediate and a sustained margin accretive growth. Thank you for the questions.
Speaker Change: So in short.
Speaker Change: <unk> partnership is not merely a tactical initiative.
Speaker Change: It is a strategic step change in our insurance business.
Speaker Change: That's driving both immediate and sustained <unk>.
Speaker Change: And accretive growth.
Speaker Change: Thank you for the questions.
Vincent Chen: Our next question comes from Vincent Chen from USMAR Securities. Please go ahead. Hi, this is Winston from Usmart. Thank you for taking the call. So, congrats on the strong results on first quarter. I have a quick question regarding the Credit Hero Club partnership. Could you elaborate on that strategic value of the TransUnion collaboration? Also, particularly how it enhances your monetization potential and the user engagement metrics? Absolutely. Thank you, Vincent.
Speaker Change: Question comes from Vincent Chen from <unk> Securities. Please go ahead.
Speaker Change: Hi.
Speaker Change: Hi, This is Winston from your smart. Thank you for taking our costs. So congrats on the strong results from first quarter I have a quick question regarding the credit here row crop partnership could you elaborate on that strategic value.
Speaker Change: Union collaboration also particularly how it enhances your monetization potential and the user engagement metrics.
Speaker Change: Absolutely. Thank you Vincent.
Rohith Murthy: Now, Credit Hero Club is a core part of our strategy. Firstly, to deepen user engagement. enhance the approval rates and improve our monetization especially in lending and credit cards. Now, by partnering with TransUnion and with the user's concerns, we now gain access to real-time credit data. And this will allow us to make personalized recommendations based on the user's actual credit profiles, not just their stated preferences. And this is powerful for several reasons. Firstly, higher approval rate. Users are now matched precisely with products that they are more likely to be approved for, and this significantly boosts our conversion rates both for MoneyHero and our financial partners.
Speaker Change: Now credit Hero club is a core part of our strategy.
Speaker Change: Firstly to deepen user engagement.
Speaker Change: Enhance the approval rates and improve our monetization, especially in lending and credit cards.
Speaker Change: Now while partnering with Transunion.
Speaker Change: And with the users are concerned.
Pablo: Now gain access to real time credit data and this will allow us to make personalized recommendations based on the user's actual credit profiles not just their stated preferences and this is pablo for several reasons.
Pablo: Firstly higher approval rates users.
Pablo: Users are now matched precisely with products that they are more likely to be approved for and to significantly boost our conversion rates, both far money and our financial partners.
Rohith Murthy: Number two is an increase. user retention and engagement. Now, credit monitoring, score tracking, and financial insights helps us transform from just a one-time comparison destination into a trusted financial platform that users revisit regularly. The other thing is just rich data and very tailored cross-selling. The credit profiles now provide a wealth of data and insights that we can leverage. to tailor recommendations across our entire product portfolio, including insurance and wealth products. And again, this deepens our engagement and enhances our user satisfaction. And finally, you know, higher quality and just higher lifetime value users, users who actively monitor the check and work on improving their credit scores typically represent higher quality customers with greater lifetime value.
Pablo: <unk> two is an increased.
Pablo: User retention and engagement now credit monitoring score tracking and financial insights helped us transform from just a one time comparison destination into a trusted financial platform that users three visit regularly.
Pablo: The other thing is just rich data and very tailored cross selling the credit profiles now provides a wealth of data and insight that we can leverage to tailor recommendations across our entire product portfolio, including insurance and wealth products and again this deepens our engagement.
Pablo: And enhances our user satisfaction.
Pablo: And finally, you know higher quality and just higher lifetime value users users, who actively monitor the check and work on improving their credit scores typically represent higher quality customers with greater lifetime value.
Rohith Murthy: They tend to engage more deeply across our platform. And again, this drives higher monetization over time. So, again. Strategically, the Credit Hero Club now shifts us towards a logged-in... and a data-driven engagement model. And this positions MoneyHero again for recurring monetization. It unlocks new premium product opportunities. be it financial coaching or pre-qualified lending. and just meaningfully expands the lifetime customer value.
Pablo: They tend to engage more deeply across our platform and again this drives higher monetization over time, so again.
Pablo: Strategically the credit Hero club now shifts us towards a locked in.
Pablo: And a data driven engagement model.
Pablo: And dispositions money again for recurring monetization and unlocks new premium product opportunities.
Pablo: <unk> financial coaching our pre qualified lending.
Pablo: And just meaningfully expands the lifetime customer value.
Vincent Chen: Okay, thank you. And a follow-up question on the industry consolidation. So given the consolidation trends we've observed in the mature markets, developed markets like in the UK, US, so how do you view the competitive landscape evolution in Southeast Asia, in SEAN? With your current market position, your leading market position, a strong balance sheet, what's your capital allocation strategy regarding both the shareholder returns and also other strategic moves? Potential M&A opportunities, something like that.
Speaker Change: Okay. Thank you and a follow up question on the industry consolidation. So given the consolidation trends we've observed in our mature markets developed markets like in the UK you have.
Speaker Change: So how do you view the competitive landscape evolution.
Speaker Change: Southeast Asia in FDA and with the current your current market position your leading market position and strong balance sheet. What's your capital allocation strategy regarding both the shareholder returns and also other strategic moves Patel.
Speaker Change: Potential M&A opportunity something like that.
Rohith Murthy: Great question, Vincent. Now, I've spent a lot of time, as you mentioned, studying Successful businesses in UK and US, and I fully expect the financial aggregation market to evolve along a similar path. Just like those mature markets you mentioned like UK and US. Now a bit of history, a decade ago this region was crowded with multiple smaller platforms. Now many of which have since exited or consolidated. Today, MoneyHero has clearly emerged as the dominant market leader. Our revenues are roughly three times that of our nearest competitor. And we see the scale-driven gap continuing to widen.
Speaker Change: Great question, Richard now I've spent a lot of time as you mentioned studying <unk>.
Speaker Change: Successful businesses and you can use and I fully expect the financial aggregation market to evolve along a similar path.
Speaker Change: Just like those Metro markets, you mentioned like you can use.
Speaker Change: Now.
Speaker Change: A bit of history, a decade ago. This region was crowded.
Speaker Change: With multiple smaller platforms.
Speaker Change: Now many of which have since exited our consolidated <unk>.
Speaker Change: Today money has clearly emerged as the dominant market leader.
Speaker Change: Our revenues are roughly three times that of our nearest competitor and.
Speaker Change: And we see this scale driven GAAP continuing to widen.
Rohith Murthy: Now given the current market conditions with many fintech startups facing cash constraints and difficulty raising funds. We expect this consolidation trend to accelerate. We believe there will be attractive opportunities ahead as smaller or distressed players look for strategic partnerships or exits. You are right, with our strong cash position and a debt-free balance sheet and a significant regional footprint, we are the only ones in Hong Kong, Singapore, and Taiwan, MoneyHero is uniquely positioned to capitalize on these consolidation opportunities. And additionally, when you think about it, our strategic partnerships, such as Boltec and Insurance, TransUnion and Credit, we're really trying to further strengthen this entire ecosystem that gives us both the scale as well as the technological advantage that no other regional player can represent.
Speaker Change: Now given the current market conditions.
Speaker Change: With many fintech startups facing gas constraints and difficulty raising funds.
Speaker Change: We expect this consolidation trend to accelerate.
Speaker Change: We believe that will be attractive opportunities ahead.
Speaker Change: As smaller are distressed players look for strategic partnership or exits.
Speaker Change: You are right with our strong cash position and a debt free balance sheet and a significant regional footprint. We are the only ones in Hong Kong, Singapore, and Taiwan money <unk> is uniquely positioned to capitalize on these consolidation opportunities.
Speaker Change: And Additionally, when you think about it our strategic partnerships, such as <unk> and insurance Transunion credit, we're really trying to further strengthen this entire ecosystem that gives us both the scale as well as the technology advantage that no other regional player and replicate.
Rohith Murthy: But I want to be clear, we are very highly disciplined. Yes, we have the cash on hand, but we are very closely watching for opportunities that can enhance our market leadership. that can expand our product capabilities. or that can further improve our margin profile. any potential move must be strategically compelling, it must be clearly accretive. and Synergistic with our core team. We do see this evolution as a natural next stage for our industry and I do believe we are very well placed financially, strategically and operationally to lead and benefit from this next phase of development.
Speaker Change: But I want to be clear, we're very highly disciplined.
Speaker Change: Yes, we have.
Speaker Change: Cash on hand, but we're very closely watching for opportunities.
Speaker Change: That can enhance our market leadership.
Speaker Change: That can expand our product capabilities.
Speaker Change: All that can further improve our margin profile.
Speaker Change: Any potential move.
Speaker Change: Must be strategically compelling it must be clearly accretive.
Speaker Change: And synergistic with our core business.
Speaker Change: We do see this evolution as a as a natural next stage for our industry and I do believe we are very well placed financially strategically and operationally to lead and benefit from this next phase of growth.
Operator: Thank you for the questions at this time. We have no more questions from the line.
Speaker Change: Thank you for the questions at this time, we have no more questions from the lines need to end the call back to Rohit for closing remarks.
Rohith Murthy: Allow me to hand the call back to Rohith for closing remarks. Thank you all for those great questions and thank you for the entire MoneyHero team for all the hard work. I'm really pleased as I mentioned with the Q1 results and I look forward to be back to share with the Q2 results in the coming months.
Speaker Change: Thank you all for those great questions and.
Speaker Change: And thank you for the entire money Euro team for all the hard work.
Speaker Change: I am really pleased as I mentioned with the Q1 results and I look forward.
Speaker Change: To be back to share with the Q2 results in the coming months.
Operator: Have a great evening, wherever you are. Thank you.
Speaker Change: Have a great evening wherever you are thank you.
Operator: That concludes today's conference call. Thank you for your participation.
Speaker Change: That does concludes today's conference call. Thank you for your participation you may now disconnect your lines.
Speaker Change: Okay.
Operator: Thank you for watching!
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].