MoneyHero Limited Warrants Q1 FY2025 earnings call

• Strategic Pivot: The company is executing strongly on its profitability road map, focusing on higher quality revenue over volume. It remains on track to achieve positive adjusted EBITDA in the latter part of the second half of 2025 and aims to hit $100 million revenue for full year 2025. • Business Line Progress: - Insurance: Partnership with bolttech in Hong Kong and Singapore for an end-to-end car insurance purchase journey has driven higher conversion rates and recurring revenue. Insurance now accounts for 13% of revenue. - Personal Loans: The upcoming Credit Hero Club in Hong Kong, in partnership with TransUnion, will offer personalized financial product recommendations to boost approval and conversion rates. - Credit Cards: Still a core customer acquisition engine, though its share of revenue has moderated to 57%, becoming a more optimized strategic platform. - Philippines: A recovery is underway with strategic partnerships signed with top banks BPI and RCBC after a major banking partner exit. • Operational Efficiency: The company has embraced an AI-first strategy to automate processes, reduce costs, and enhance productivity. Operating expenses were down 26% year-over-year in Q1, including a 26% Y-o-Y reduction in employee-related costs. • Corporate Culture: In Q4 2024, a broad-based RSU program was rolled out to align incentives and foster a sense of ownership among employees. • Capital Allocation: Well-capitalized with $36.6 million in cash and no debt, focused on maintaining shareholder value and evaluating M&A opportunities if they align with the long-term strategy.

In Q1 2025, MoneyHero Group's revenue was $14.3 million, a 35% year-over-year decline due to the strategic focus on higher-quality and higher-margin products. Credit cards remain the largest revenue driver, contributing 57% of total revenue in Q1, down from over 70% previously, but the business has become more efficient and generates higher profitability per unit. Personal loans accounted for approximately 17% of revenue in Q1, with the upcoming Credit Hero Club in Hong Kong expected to boost lending revenues. The Insurance segment, including car insurance, represented about 13% of revenue, with strong momentum driven by the partnership with bolttech in Hong Kong, which offers an end-to-end purchase journey and drives higher conversion rates. Wealth verticals contributed 12% of revenue in Q1, doubling year-over-year. High-margin verticals overall contributed approximately 25% of total revenue in Q1, an increase of 11 percentage points year-over-year, driving gross margin expansion.

• The company aims to hit $100 million revenue for full year 2025. • It expects to achieve positive adjusted EBITDA during the latter part of 2025. • Q1 net loss narrowed sharply to $2.4 million from $13.1 million year-ago, and adjusted EBITDA loss improved to $3.3 million, showing a clear path to sustainable profitability.

• Market competition and consolidation trends in the financial aggregation space could impact market share. • Execution risk in scaling new verticals like digital assets or ensuring sustained operational efficiency.

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

A: MoneyHero is strategically exploring the digital asset space, aiming to replicate its success as a digital acquisition partner for banks into the digital asset ecosystem. It aligns with the focus on higher-margin verticals. The company is actively evaluating strategic opportunities, assessing risk, benefits, and alignment with long-term objectives.

Q: On the cost of revenue and margin improvement, can you talk about margin range expected going forward as scaling to $100 million revenue and if cost structure will change?

A: The cost of revenue decreased from 64% to 44% of revenue due to the revenue mix shift to higher-margin verticals and optimization of rewards programs. Margin gains are sustainable due to growth in recurring and advisory-driven verticals. Near-term revenue growth is measured but strategic for long-term sustainable growth.

Q: On operating structure and AI integration, what increases in operating costs expected as scaling to $100 million revenue?

A: The company anticipates some incremental operating costs, but they will grow at a slower rate than revenue. There will be strategic investment in high-margin verticals and AI-driven automation to enhance productivity and customer experience while maintaining cost discipline. Incremental costs are tied to profitable growth initiatives.

Q: What were the biggest drivers of gross margin expansion and their sustainability?

A: Gross margin expansion was driven by the revenue mix shift to higher-margin verticals, cost of revenue optimization (reduced rewards and fulfillment costs, leveraged a large user base), and product/UX improvements (improved conversions with less spend). These gains are sustainable due to growth in recurring and advisory-driven verticals like insurance, wealth, and lending.

Q: Elaborate on early traction from bolttech partnership in car insurance and its meaning to long-term recurring revenue strategy?

A: The partnership with bolttech in Hong Kong and Singapore offers an end-to-end digital car insurance purchase journey, an industry-first innovation with real-time quotes and seamless on-platform purchase. Early results show higher conversion rates. It enables recurring revenue through policy renewals and boosts customer lifetime value as insurance customers explore broader financial products. The company is exploring expansion to other markets and embedded insurance products.

Q: Elaborate on strategic value of TransUnion collaboration in Credit Hero Club and monetization potential?

A: The Credit Hero Club with TransUnion provides real-time credit data for personalized product recommendations, driving higher approval and conversion rates. It enhances user engagement, retention, and monetization through tailored cross-selling across the product portfolio. It shifts to a data-driven engagement model, unlocking new premium product opportunities and expanding lifetime customer value.

Q: View on industry consolidation in Southeast Asia and capital allocation strategy regarding M&A?

A: The financial aggregation market is expected to consolidate like mature markets in the U.K. and U.S. MoneyHero is a dominant market leader with a strong cash position and debt-free balance sheet. It is positioned to capitalize on consolidation opportunities, but it is highly disciplined; any M&A must be strategically compelling, accretive, and synergistic with the core business.