MoneyHero Limited Class A Ordinary Shares Q2 FY2025 earnings call

Key Points - Rohith Murthy:

• Set goal to reshape MoneyHero for durable, profitable growth, prioritizing quality over quantity. Q2 shows plan working with revenue mix shifting to higher-margin verticals, cost of revenue down, and adjusted EBITDA losses improving.
• Focus on four key areas:
  • Insurance and wealth, including digital asset space: Auto insurance scaling in Hong Kong and Singapore with real-time pricing, travel insurance now 3-click purchase with higher completion rates; wealth marketplace broadened with regulated collaborations like OSL.
  • Provider partnerships: MoneyHero Best of Awards in Singapore attracted over 170 clients, strengthening partner relationships and monetization.
  • AI integration: Operationalizing AI in rewards, approval, yield intelligence, and AI-assisted service, lowering CAC per approved application, improving approval quality, and raising first contact resolution.
  • Cost discipline: Tight operating expenses while modernizing technology stack, driving operating leverage.

Danny Leung:

• Revenue mix shifted to higher-margin verticals: Insurance revenue grew from 11% to 14% of total revenue year-over-year, wealth from 11% to 13%, while credit cards ticked down. Insurance and wealth contributed 27% of group revenue in Q2, up from 22% same period last year.
• Cost of revenue declined 34% year-over-year to 51% of revenue. Operating expenses fell 37% year-over-year, with savings across advertising, technology, employee benefits, and G&A. Profitability improved with net income of $0.2 million in Q2 vs net loss of $12.2 million same quarter last year, and adjusted EBITDA loss narrowing.

In Q2, MoneyHero generated $18 million in revenue. Adjusted EBITDA was a loss of $1.95 million. Cost of revenue was 51% of total revenue. Insurance and wealth contributed around 27% of total group revenue. Year-over-year, revenue was down 13%, but sequentially, revenue grew by over 20% from Q1 to Q2. Cost of revenue declined 34% year-over-year, landing at 51% of revenue. Operating expenses, excluding net foreign exchange differences, fell 37% year-over-year to $20.6 million.

• H2 guidance reflects continued growth and aim for positive adjusted EBITDA in H2 2025. Expect similar sequential revenue growth as Q2 to Q1. Driven by new bank and insurer actions, insurance scaling, and fixed fee programs.
• Long-term objective: Clear path to achieving 5% to 10% adjusted EBITDA margins by 2026-2028, driven by market leadership, improved revenue mix, renewal economics in insurance, recurring wealth monetization, and AI-enabled operating leverage.

Q: William Gregozeski asked about AI initiatives, including cost savings, revenue generation, and depth of AI use.

A: Rohith Murthy discussed AI in customer support (automating 70%-80% of inquiries, 24/7 coverage, lower service cost per case), AI competitive intelligence platform (cutting manual research time by 90% for pricing and rewards decisions), WhatsApp AI code agent for auto insurance in Singapore (testing for conversion lift), and AI media creation (aiming for 70%-80% reduction in creative production spend).

Q: William Gregozeski asked about 2026 growth drivers, insurance plans, and wealth/crypto updates.

A: Rohith Murthy discussed wealth and crypto as adjacencies with regulatory-first partner-led economics, partnerships like with OSL in Hong Kong. For insurance, focus on expanding supply depth, streamlining journeys with AI, and tightening unit economics. For 2026, focus on scaling higher-margin verticals, conversion rate improvements, provider partnerships, and selective expansion in digital assets.

Q: Unknown Analyst asked about initiatives to resolve revenue to last year's level and factors in EBITDA improvement.

A: Ka Yip Leung responded that revenue decline was strategic to prioritize quality, sequential growth from Q1 to Q2 shows momentum. Factors in EBITDA improvement include mix shift to higher-margin products, unit economics and cost discipline (cost of revenue down, operating expenses down), and narrowed adjusted EBITDA loss and positive net income.