MoneyHero Limited Warrants Q4 FY2024 earnings call

• The company closed 2024 with robust financial and operational results, showing progress towards profitability. Adjusted EBITDA loss improved from previous quarters, gross margin expanded, and net loss narrowed.
• Focus on diversifying revenue mix towards high-margin products like insurance and wealth. Insurance revenue grew 40% in 2024, and wealth revenue surged 138%.
• Launched seamless end-to-end purchasing journeys in travel and car insurance. Implemented AI initiatives for customer service, content production, and workflow automation to improve efficiency and productivity.
• Lowered operating expenses through reorganization, streamlining operations, and reducing paid marketing and rewards spend.

In the fourth quarter of 2024, total revenue was $15.7 million, a 40% year-over-year decrease. Cost of revenue was $6.6 million, down 62% year-over-year. Adjusted EBITDA loss improved to $2.9 million, the best quarterly performance since going public. For product segments, insurance revenue in Q4 2024 was $2.1 million, accounting for 14% of total revenue, and full-year 2024 insurance revenue was $8.2 million, up 40% and accounting for a double-digit share of total revenue. Wealth revenue in Q4 2024 was $2.4 million, accounting for 15% of total revenue, and full-year 2024 wealth revenue was $8.5 million, up 138%. Registered members reached 7.5 million, up 42% year-on-year, and approved applications grew 21% year-over-year to 767,000.

• Target to achieve $100 million in revenue in 2025 and generate positive adjusted EBITDA in the second half of 2025.
• Expect adjusted EBITDA to consistently improve in 2025, with confidence in achieving positive adjusted EBITDA on a quarterly basis in the second half of 2025.

Q: What’s the company’s strategy to lower your acquisition costs and how do you plan to leverage the growing registered membership base?

A: Rohith Murthy mentioned using a centralized data platform for accurate customer segmentation to run personalized marketing campaigns, leveraging the growing registered member base through loyalty strategies like the Credit Club in Hong Kong, which enables personalized recommendations and improved conversion rates. Also, focusing on higher margin and recurring revenue verticals to boost customer lifetime value.

Q: What’s the insurance revenue expected to contribute for FY 2025 and what will be the key drivers?

A: Rohith Murthy stated insurance is expected to be a more meaningful driver in 2025. Key drivers include the real-time car insurance platform launch, simplified travel insurance with a three-click purchasing journey, embedded insurance opportunities, and cross-sell/upsell using customer insights from the data platform.

Q: Capital allocation strategy given cash position?

A: Danny Leung said the company will maintain robust liquidity to fund operations, place excess cash in conservative interest-bearing instruments, and actively seek growth opportunities aligned with strategy, such as bolt-on acquisitions, strategic talent addition, or technology partnerships.

Q: Impact of reorganization on cost structure and margins?

A: Danny Leung explained that restructuring led to a 45% year-over-year decrease in employee-related expenses through headcount reductions and role elimination. This optimized the cost structure, resulting in improved adjusted EBITDA loss and ongoing productivity gains expected in 2025.

Q: Advertising and marketing expenses going forward?

A: Danny Leung noted that marketing expenses were optimized in Q4 2024 with a 23% year-over-year decrease. The company will maintain disciplined spending, focus on high margin verticals, and optimize campaigns to improve ROI while balancing short-term and long-term gains.

Q: AI and automation plans?

A: Rohith Murthy discussed embedding AI in workflows, including AI-powered customer service to reduce inquiry volumes and improve first-contact resolution, generative AI for content production, and agentic AI for automating repetitive tasks to free up resources for strategic activities.

Q: Leveraging NASDAQ listing?

A: Danny Leung said the NASDAQ listing enhanced credibility, provided flexibility for M&A and talent attraction, and increased brand recognition. The company believes its stock is undervalued and remains focused on executing its strategy to have the market recognize its underlying strength.