MoneyHero Limited Class A Ordinary Shares Q1 FY2025 earnings call

• Revenue mix shift: Focused on higher-margin verticals, reducing reliance on low-margin credit cards. High-margin verticals now make up a large proportion of total revenue.
• Operational efficiency: Embraced an AI-first strategy to automate processes, reduce costs, and enhance productivity. Operating expenses declined 26% year-over-year in Q1 due to cuts in paid marketing, technology spend, employee cost, and general and administrative expense.
• Culture initiatives: Rolled out a broad-based RSU program in Q4 2024 to align incentives and foster a sense of ownership among employees.
• Market progress: In the Philippines, recovery underway with new partnerships with top banks; exploring digital asset space with OSL partnership.
• Insurance segment: Bolttech partnership in Hong Kong and Singapore launched end-to-end digital car insurance purchase journey, driving higher conversions and recurring revenue through policy renewals.
• Personal loans: Upcoming Credit Hero Club launch in Hong Kong with TransUnion to offer personalized financial product recommendations, expected to drive higher approval and conversion rates.

In Q1 2025, the credit card segment remained the largest revenue driver, contributing 57% of total revenue, down from over 70% in previous years. The insurance segment now represents about 13% of revenue, with car insurance showing strong momentum due to the end-to-end purchase journey launched with bolttech in Hong Kong. The personal loans business accounted for roughly 70% of revenue in Q1. High-margin verticals (insurance, wealth, personal loans) together contributed approximately 25% of total revenue in Q1, an increase of 11 percentage points year-over-year. Wealth doubled to 12% of revenue, and personal loans increased from 15% to 17% of revenue, while insurance grew from 8% to 13% of revenue.

• Aim to hit $100 million revenue for full year 2025.
• Expect sequential improvements in adjusted EBITDA throughout 2025.
• Confident of achieving positive adjusted EBITDA in the latter part of 2025.

• Market evolution and consolidation: Potential challenges in a consolidating market.
• Digital asset exploration risks: Evaluating risks and alignment with long-term objectives when exploring digital assets.
• Dependence on partnerships: Risks associated with execution and outcomes of strategic partnerships like with OSL and bolttech.

Q: Can you talk more about the partnership with OSL in the digital asset space and plans for that space?

A: Rohith Murthy states they are strategically exploring the digital asset space, aligning with focus on higher-margin verticals, evaluating opportunities with strong cash position and disciplined capital allocation.

Q: On the cost of revenue and margin sustainability as scaling to $100 million revenue?

A: Ka Yip Leung explains cost of revenue reduction is from strategic shifts to higher-margin verticals and optimized rewards programs, and cost structure is designed for sustainable profitability with incremental costs tied to profitable growth initiatives.

Q: What were the biggest driver of gross margin expansion and how sustainable are they?

A: Rohith Murthy cites revenue mix shift, cost of revenue optimization, and product/UX improvements as drivers; believes gains are sustainable due to growth in recurring and advisory-driven verticals.

Q: Elaborate on early traction from bolttech partnership in car insurance and its strategic value?

A: Rohith Murthy mentions end-to-end digital experience in car insurance with bolttech has high conversion rates, drives recurring revenue through policy renewals, and boosts customer lifetime value across broader product catalog.

Q: Strategic value of TransUnion collaboration in Credit Hero Club and monetization potential?

A: Rohith Murthy says Credit Hero Club deepens user engagement, improves approval rates, and enhances monetization through personalized recommendations, leveraging TransUnion's credit data to tailor product offers.