MoneyHero Limited Warrants Q4 FY2023 earnings call

• Rohith Murthy introduced himself as the new CEO and outlined MoneyHero Group's three core businesses: Comparison (with P2C personal finance marketplaces and licensed insurance brokering in some markets), Community (Seedly), and Creatory (B2B brand). - The platform is built on five pillars: consumer pool, conversion expertise, insurance brokerage, strong partner relationships, and operating leverage. - In Q4, strong revenue growth was seen across regions, with Creatory and insurance being key growth drivers. - For 2024, aim to hit $100 million in revenues, with aggressive marketing campaigns in Singapore and Hong Kong, expecting margin expansion in the second half of 2024 driven by improved conversion rates, deeper market penetration, and product diversification. - Leveraging AI tools to streamline operations and increase efficiencies, and strengthened the leadership team with recent promotions and new hires. - MoneyHero is well - positioned to capitalize on long - term tailwinds in fintech including dynamic market growth, technological adoption, demographic shifts, insurance penetration, market dominance, and consumer trust. - Shaun Kraft discussed the strong financial position with a debt - free balance sheet and $69 million in cash and cash equivalents as of December 31st, 2023, and the impact of listing - related expenses on the P&L, focusing on adjusted EBITDA as the profitability metric. - Member base growth is critical for adding scale and diversifying revenue towards higher margin products.

In the fourth quarter of 2023, group revenues reached $26.4 million, a 53% year - on - year increase. Core business online financial comparison grew by 44% YOY. Creatory, the B2B business, grew by 117% YOY and contributed 17% to group revenue. Singapore grew 94% YOY to $12.1 million, Hong Kong grew 46% YOY to $8.4 million, Philippines grew 64% YOY to $3.9 million, and Taiwan showed a 103% increase from the previous quarter despite a 22% YOY decline. Revenue from insurance products increased by 106% YOY in Q4. For full year 2023, revenue was $80.7 million, an 18% year - on - year increase. Adjusted EBITDA loss improved from negative $15.6 million in 2022 to negative $6.8 million in 2023, with adjusted EBITDA margin improving from negative 23% in 2022 to negative 8.5% in 2023. Member base grew 41% in 2023 from 3.8 million to 5.3 million.

• Aim to hit $100 million in revenues in 2024. - Aggressive marketing campaigns in Singapore and Hong Kong will continue through the first half of 2024, with margin expansion expected in the second half of 2024. - Anticipate operating at adjusted EBITDA profitability on a quarterly basis beginning in the second half of 2024 and expanding into 2025. - Normalized adjusted EBITDA margins expected to be in the range of 5% to 10% within the next 12 to 18 months. - Continue to use the strong cash position to expand through organic efforts (insurance business, Creatory, AI - enabled cost efficiencies) and explore strategic acquisitions and investments.

Q: What impact will the Creatory business have on the revenue model?

A: Creatory is a unique B2B business that constructs an ecosystem of content creators and channel partners to monetize through the platform. It has quickly become a critical component, enhancing scale and reach, gathering data insights, managing payouts profitably, strengthening brand presence, and forming channel partnerships.

Q: Has the company raised enough capital to fulfill its operating expense requirements for the next three years?

A: Absolutely, with a strong balance sheet of $69 million cash at the end of 2023 and no debt, and a proven track record of managing profitability levers, there is no need to raise capital for the foreseeable future.

Q: Can you give an idea of what updated offering launches in 2024 for Hong Kong and Singapore might entail and how AI is being integrated?

A: In Singapore, launched ShopHero app which aggregates deals and uses AI to process and standardize brand content, and plans to roll out in Hong Kong. Leveraging Gen AI and large language models for user interaction improvements, with developments to be announced in six to eight weeks.

Q: Could you discuss a bit further the margin range provided?

A: Focus on core business growth, enhancing margins through increased direct traffic, better conversion rates, strategic partnerships, scaling general insurance offerings which will contribute to revenue mix, and diversifying revenue streams with high margin businesses, aiming for normalized adjusted EBITDA margin range of 5% to 10% in 12 - 18 months.

Q: What sort of levels do you expect to grow the insurance business to as a percentage of group revenue?

A: Expect insurance sales to account for a significant portion of total revenues, reaching double digits within the next 12 to 18 months.

Q: Which of your current revenue streams you anticipate will be the biggest growth drivers in the coming three years?

A: Core aggregation business (cards and personal loan applications), insurance commissions, Creatory, advertising revenue, and renewal revenue stream from insurance are expected to be key growth drivers.

Q: Are there any new revenue models you're considering?

A: Not explicitly mentioned in detail in the provided transcript, but the existing diverse revenue streams and strategies are being leveraged for growth.