MoneyHero Limited Warrants Q2 FY2025 earnings call

When becoming CEO last year, the goal was to reshape MoneyHero for durable, profitable growth, prioritizing quality over quantity. Q2 showed the plan was working with revenue mix shifting towards higher-margin verticals, cost of revenue materially down, and adjusted EBITDA losses improving. Key business highlights included: Focus on insurance and wealth, including in the digital asset space, with auto insurance scaling in Hong Kong and Singapore with real-time pricing and end-to-end digital journeys, travel insurance as a 3-click purchase with higher completion rates, and wealth marketplace broadened via regulated collaborations like OSL. Provider partnerships strengthening the monetization engine, with MoneyHero Best of Awards in Singapore attracting over 170 clients. AI integration in operations with rewards, approval, and yield intelligence, and AI-assisted service going live in select scenarios, lowering CAC per approved application, improving approval quality, and raising first contact resolution. Unwavering cost discipline driving real operating leverage with tight operating expenses while modernizing technology stack and tools.

In Q2, MoneyHero generated $80 million in revenue. Adjusted EBITDA was a loss of $1.95 million. Cost of revenue accounted for 51% of total revenue. Insurance and wealth contributed approximately 27% of total revenue.

H2 guidance reflects continued growth and aim for profitability. Saw over 20% sequential revenue growth from Q1 and expects similar levels in H2. On track for adjusted EBITDA breakeven in the second half of 2025, driven by new bank and insurer actions, insurance invest scaling, and fixed fee programs. For the next 2 - 3 years, there's a clear path to achieving 5% to 10% adjusted EBITDA margins, driven by market leadership, improved revenue mix and quality, renewal economics in insurance, recurring wealth monetization, and AI-enabled operating leverage (these are objectives, not formal guidance).

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

A: Rohith Murthy responded that AI is embedded in acquiring, converting, and serving customers, with use cases like AI in customer support automating 70% - 80% of inquiries, an AI competitive intelligence platform cutting manual research time by approximately 90%, a WhatsApp AI code agent for auto insurance in Singapore in testing, and AI media creation and experimentation in development.

Q: Unknown Analyst asked about initiatives to resolve revenue to last year's level.

A: Ka Yip Leung replied that the revenue decline reflects strategic prioritization of revenue quality and unit economics, with sequential growth from Q1 to Q2, and plans to scale higher-margin verticals, deepen member engagement, and leverage commercial momentum.

Q: Unknown Analyst followed up on factors contributing to improvement in net loss and EBITDA.

A: Ka Yip Leung said it's due to mix shift to higher-margin products, unit economics and cost discipline, with cost of revenue improving and operating costs falling, and adjusted EBITDA loss narrowing