Amber International Holding Ltd Q1 FY2025 earnings call

• Institutional adoption in the crypto space is picking up, with wealth management solutions revenue increasing. Amber Premium is focused on being a gateway for institutions into digital assets, developing tailored systems. - Key initiatives in Q2 include the launch of uMINT, a tokenized money market fund backed by UBS Asset Management, and rebranding Sparrow to Amber Premium Singapore. - A $100 million crypto ecosystem reserve has been established, with diversified investments in high-conviction coins like Bitcoin, Ethereum, Solana, and Binance coin, and strategic partnerships. - Integration of AI and DeFi through AgentFi, with MIA as the AgentFi ambassador, aiming to create advanced financial ecosystems bridging traditional and crypto solutions.

In the first quarter ending March 31, 2025, Amber International's total revenue was $14.9 million, a significant increase from $1 million in the same period last year. Revenue breakdown: Wealth management solutions contributed $9.9 million (66.4% of total revenue), execution solutions generated $2.7 million (18.1%), payment solutions were $0.8 million (5.4%), and marketing and enterprise solutions were $1.6 million (10.7%). Gross profit for the quarter was $11 million, up from $500,000 in the first quarter of 2024, with a gross profit margin of around 74% (up from 46% in the prior year). Operating income was $800,000 in Q1 2025 compared to an operating loss of $900,000 in Q1 2024. Net income was $900,000 vs. a net loss of $12 million in the same period last year. Client assets on the platform reached $1.28 billion, growing 11% year-over-year. KYC user base expanded by 22% to over 4600.

• For Q2 2025, revenue from Amber DWM's business is expected to be between $15.5 million and $17.5 million. - For the full year 2025, revenue from Amber DWM's business is anticipated to be in the range of $65 million to $75 million, driven by institutional adoption of digital assets, growth in the wealth management segment, and new product initiatives like uMINT.

Q: Expand on the $100 million crypto ecosystem reserve, including investment amount, diversification, and plans for investing in public digital currency treasury companies?

A: Steve Zhang stated the initial funding comes from the balance sheet, with strategic investments in NASDAQ-listed D5 Development Corp. Diversification includes high-conviction coins like Bitcoin, Ethereum, Solana, and partnerships with BNB fund. They are opportunistic and will observe ecosystem activity.

Q: On Q2 guidance, what's driving the meaningful quarter-on-quarter revenue increase?

A: Steve Zhang mentioned factors include healthy pick-up in token prices and volumes, growth in wealth management, newly opened accounts yet to contribute, and new initiatives like uMINT driving revenue mix.

Q: How is uMINT monetized by Amber?

A: Steve Zhang said it's both through earning a share on interest income from the money market fund and transaction fees/conversion fees from spending via the crypto card.

Q: Will the ecosystem fund include pre-token projects?

A: Terence Li stated the majority focuses on leading ecosystem tokens by market cap, but they may participate in early-stage projects, though not a meaningful portion of the strategic reserve.