MoneyHero (MNY) Q1 2025 Earnings Call June 13, 2025 08:00 AM ET Speaker0 Good day, and thank you for standing by. Welcome to Money Hero Group First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to turn the call over to your speaker today, Ms. Jiaqinga Chang. Thank you. Please go ahead. Spe ...

MoneyHero (MNY) Q1 2025 Earnings Call June 13, 2025 08:00 AM ET Company Participants None - ExecutiveRohith Murthy - CEO & DirectorDanny Leung - Interim CFO & Group Finance DirectorWilliam Gregozeski - President & Director of Research Conference Call Participants None - Analyst Operator Good day, and thank you for standing by. Welcome to Money Hero Group First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, ther ...

Adjusted EBITDA loss improved by 49% YoY to US$(3.3) millionImproving revenue mix with high-margin insurance and wealth revenue accounting for 25% of revenue, up 11 pp YoYCost of revenue fell by 55% YoY and accounted for 44% of revenue, down 20 pp SINGAPORE , June 13, 2025 (GLOBE NEWSWIRE) -- MoneyHero Limited (Nasdaq: MNY) (“MoneyHero” or the “Company”), a leading personal finance aggregation and comparison platform, as well as a digital insurance brokerage provider in Greater Southeast Asia, today announc ...

通过此次合作，MoneyHero用户可以比较更多元化的理财产品，包括由OSL等受香港证监会监管的平台 提供的数字资产账户产品，以及保险、股票和银行账户等理财产品，帮助用户做出更全面和明智的金融 决策。随着香港对数字资产的兴趣与日俱增，市场对多元化金融解决方案的需求日益旺盛。根据香港证 监会辖下投资者及理财教育委员会(IFEC)的数据，在2023年有8%的香港零售投资者投资于虚拟资产及 相关产品，较2019年的1%有显著增长。另有11%的零售投资者表示有意投资相关产品。此次MoneyHero 和OSL的合作，正在积极回应这一趋势，满足市场和投资者对数字资产日益增长的需求和兴趣。 MoneyHero首席执行官Rohith Murthy表示："我们非常高兴与OSL达成策略合作，OSL是亚洲受规管数 字资产领域的领军企业。这次合作充分体现我们作为大东南（002263）亚地区大多数银行首选的数字获 客伙伴的独特优势，并将这一优势延伸至数字资产市场。我们致力于以可靠且透明的方式，为用户提供 全面的金融解决方案以及新兴资产类别的投资机会。OSL在监管合规及机构专业能力方面的优势，为我 们进军该领域提供了强而有力的支持，我们 ...

Core Insights - MoneyHero Limited has announced a strategic collaboration with OSL Group to expand its digital asset wealth product offerings in Hong Kong, aiming to enhance financial wellbeing for consumers [1][2][3] Company Overview - MoneyHero Limited operates as a personal finance aggregation and comparison platform, as well as a digital insurance brokerage provider in Greater Southeast Asia, with operations in Singapore, Hong Kong, Taiwan, and the Philippines [4] - The company had over 290 commercial partner relationships as of December 31, 2024, and approximately 6.2 million Monthly Unique Users for the three months ended December 31, 2024 [4] Industry Trends - There is a growing interest in digital assets in Hong Kong, with 8% of retail investors having invested in virtual assets in 2023, up from 1% in 2019, and 11% showing intention to invest [2] - The collaboration addresses the increasing demand for diversified financial solutions in the region [2] Strategic Collaboration - The partnership allows MoneyHero users to compare digital asset account products from leading SFC-licensed platforms like OSL, alongside traditional financial products [2][3] - OSL is recognized as a leader in the regulated digital asset space in Asia, providing valuable support for MoneyHero's expansion into this sector [3] Regulatory Compliance - OSL Group is dedicated to providing regulatory-compliant financial services and has a comprehensive suite of regulated services, including OTC brokerage and custody solutions [5][6] - The collaboration emphasizes the importance of accessible and regulated pathways to digital assets for sustainable industry growth [3]

Core Insights - MoneyHero Limited has announced a strategic partnership with RCBC, a leading credit card issuer in the Philippines, to integrate RCBC's credit card products into its digital platform, enhancing consumer access to financial products [1][2]. Group 1: Company Overview - MoneyHero Limited is a leading personal finance product comparison platform and digital insurance brokerage in Southeast Asia, operating under the NASDAQ ticker MNY [1]. - The company has a presence in markets including Singapore, Hong Kong, Taiwan, and the Philippines, with a diverse brand portfolio that includes MoneyHero, SingSaver, Money101, Moneymax, and Seedly [2]. - As of December 31, 2024, MoneyHero collaborates with over 290 business partners and has more than 6.2 million monthly unique users [2]. Group 2: Partnership Details - The partnership aims to expand MoneyHero's credit card product coverage in the Philippines and solidify its position as a preferred digital customer acquisition partner for regional banks [1]. - RCBC's credit card business has shown significant growth, with credit card receivables increasing by 48% and the number of circulating cards rising by 21% in 2024, indicating strong market demand [2]. - The collaboration will leverage MoneyHero's digital transformation expertise and RCBC's growth momentum in consumer finance to enhance user experience and promote a more inclusive digital financial ecosystem [1][2]. Group 3: RCBC Overview - RCBC is a leading financial services provider in the Philippines, offering a wide range of banking and financial products, including traditional banking, investment banking, micro-lending, retail credit, remittances, leasing, foreign exchange trading, and securities brokerage [3]. - RCBC is part of the Yuchengco Group of Companies, one of the oldest and largest corporate groups in Southeast Asia [3]. Group 4: RCBC Bankard Services Corporation - RCBC Bankard Services Corporation manages RCBC's credit cards, personal loans, and merchant payment solutions, focusing on innovative cashless payment solutions and diverse value-added services [4].

Core Insights - MoneyHero Limited has announced a strategic partnership with Rizal Commercial Banking Corporation (RCBC) to integrate RCBC's credit card products into MoneyHero's digital platform, enhancing financial service accessibility for Filipinos [1][2][3] Company Overview - MoneyHero Limited operates as a personal finance aggregation and comparison platform, as well as a digital insurance brokerage in Greater Southeast Asia, with a presence in Singapore, Hong Kong, Taiwan, and the Philippines [4] - The company had over 290 commercial partner relationships and approximately 6.2 million Monthly Unique Users as of December 31, 2024 [4] Partnership Details - The partnership aims to expand MoneyHero's credit card offerings in the Philippines, positioning it as a leading digital acquisition partner for banks in the region [2] - RCBC's credit card business has shown significant growth, with credit card receivables increasing by 48% and cards in force rising by 21% in 2024 [3] Strategic Goals - The collaboration is expected to improve customer experience and promote a more inclusive financial ecosystem by leveraging MoneyHero's digital conversion expertise and RCBC's consumer finance growth [2][3] - The partnership aligns with MoneyHero's mission to simplify financial choices for consumers and support bank partners in driving digital acquisition [3]

Core Viewpoint - MoneyHero Limited is set to release its first quarter 2025 results on June 13, 2025, and will hold a conference call to discuss these results [1] Group 1: Company Overview - MoneyHero Limited operates as a personal finance aggregation and comparison platform, as well as a digital insurance brokerage in Greater Southeast Asia [3] - The company has a presence in Singapore, Hong Kong, Taiwan, and the Philippines, with a brand portfolio that includes MoneyHero, SingSaver, Money101, Moneymax, and Seedly [3] - As of December 31, 2024, MoneyHero had over 290 commercial partner relationships and approximately 6.2 million Monthly Unique Users across its platforms [3] Group 2: Financial Communication - The conference call to discuss the first quarter results will take place at 8:00 a.m. EDT on June 13, 2025 [1] - Investors can access the call via a registration link for the webcast or audio conference [2] - A replay of the webcast will be available on the Investor Relations website for 12 months following the event [2]

Membership and User Engagement - As of December 31, 2024, MoneyHero Group had approximately 7.5 million members across Singapore, Hong Kong, Taiwan, and the Philippines[27] - In 2024, the company recorded over 1.7 million applications for financial product purchases and over 0.7 million approved applications, compared to the same figures in 2023[28] - User data indicates a total of 7,784,000 active users, representing a 15% increase compared to the previous quarter[35] - The platforms averaged over 5.2 million page views per month in 2024[28] - The company published over 180 articles per month on its blogs in 2024[28] Financial Performance - Revenue for the years ended December 31, 2022, 2023, and 2024 was US$68.1 million, US$80.7 million, and US$79.5 million, respectively[30] - The company reported a loss of US$49.4 million, US$172.6 million, and US$37.8 million for the years ended December 31, 2022, 2023, and 2024, respectively[30] - Revenue for the year ended December 31, 2024, was $79,511,000, a decrease of 1.4% compared to $80,671,000 in 2023[42] - Operating loss increased to $40,192,000 in 2024 from $30,026,000 in 2023, reflecting a higher cost structure[42] - Total comprehensive loss for 2024 was $34,037,000, significantly improved from $173,451,000 in 2023[42] Revenue Sources - In 2024, internet leads generation and marketing service income accounted for approximately 89.5% of total revenue, down from 94.0% in 2023[30] - Approximately 39.8%, 33.4%, 8.4%, 17.6%, and 0.9% of total revenue in 2023 was generated from Singapore, Hong Kong, Taiwan, the Philippines, and Malaysia, respectively[66] - Over 60% of total revenue in 2022, 2023, and 2024 was derived from credit card products[73] - Insurance commission income was reported as $1.7 million, $3.4 million, and $5.2 million in 2022, 2023, and 2024, representing 2.4%, 4.2%, and 6.5% of total revenue respectively[74] Market Presence and Expansion - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by the end of the next fiscal year[35] - The company has provided guidance for the next quarter, expecting revenue to be in the range of 1,100 to 1,150 million USD, which would indicate a growth of approximately 5% to 10%[35] - New product launches are anticipated to contribute an additional 200 million USD in revenue over the next fiscal year[35] - The company has reported a significant increase in revenue, with a total of 1,043 million USD for the latest quarter, reflecting a growth of 10% year-over-year[35] Compliance and Regulatory Risks - The company is facing regulatory uncertainties regarding foreign investments, particularly concerning cash transfers from Hong Kong to Mainland China[37] - The company has emphasized the importance of compliance with PRC regulations, which could impact its financial operations and overall business strategy[37] - The company is subject to various legal, accounting, and compliance expenses as a public entity, which may increase if it no longer qualifies as an "emerging growth company"[61] - Non-compliance with data protection laws in various jurisdictions, such as the EU GDPR and Singapore's PDPA, could result in fines up to 10% of annual turnover for organizations exceeding S$10 million[97] Operational Challenges - The company continues to face risks related to economic conditions and competition in the Southeast Asian market, which may impact future performance[51] - The company must continuously adapt to market trends and evolving user preferences to maintain competitiveness[82] - The company faces increasing scrutiny from regulators regarding data privacy and security, particularly in the U.S. and Europe, which may impact its operations[107] - The company may face significant legal and operational challenges in Hong Kong, affecting the ability to serve legal processes and conduct investigations[209] Financial Stability and Cash Flow - Net cash flows used in operating activities were $24,888,000 in 2024, compared to $17,043,000 in 2023, indicating increased cash burn[44] - Cash and cash equivalents at the end of 2024 were $42,522,000, down from $68,641,000 at the end of 2023[44] - Current assets decreased to $78,282,000 in 2024 from $106,947,000 in 2023, indicating a reduction in liquidity[43] - Total liabilities decreased to $32,656,000 in 2024 from $35,963,000 in 2023, reflecting improved financial stability[43] Strategic Investments and Acquisitions - The company is exploring potential acquisitions to bolster its product offerings, with a budget of up to 300 million USD earmarked for this purpose[35] - The company plans to increase investments in new product offerings and technologies, acknowledging the inherent risks involved[87] - Acquisitions or strategic investments may not yield intended benefits and could disrupt business operations, impacting financial condition[141] Intellectual Property and Legal Risks - The company has 63 registered trademarks, with significant intellectual property held in Singapore and Hong Kong, which are set to expire between March 2026 and March 2035[160] - The company may face challenges in enforcing its intellectual property rights in regions with less robust protections compared to the United States[161] - The company is subject to various legal and regulatory risks, including compliance with anti-money laundering and anti-corruption laws, which could adversely impact its operations[167] Market and Economic Conditions - The COVID-19 pandemic has negatively impacted the global economy, affecting user creditworthiness and demand for the company's products and services[113] - The company may face material adverse effects on its business, financial condition, and results of operations due to unpredictable government measures related to COVID-19 and other public health threats[114] - Political and economic instability in Hong Kong may adversely impact the company's results of operations[188] Nasdaq Compliance - As of April 7, 2025, the company received a bid deficiency notice from Nasdaq regarding non-compliance with the minimum bid price requirement, with a deadline to regain compliance by October 6, 2025[221] - The company must achieve a closing bid price of at least US$1.00 for a minimum of 10 consecutive business days to regain compliance with Nasdaq[221] - The company may consider implementing a reverse share split to regain compliance with Nasdaq's listing requirements if necessary[221]

Financial Data and Key Metrics Changes - Adjusted EBITDA loss improved to $2.9 million in Q4 2024, a significant improvement from losses of $6.4 million in Q1, $9.3 million in Q2, and $5 million in Q3 [5][6] - Gross margin expanded by 25 percentage points year over year, while net loss narrowed to $18.8 million from $94.3 million during the same period last year [6][12] - Total revenue fell by 40% year over year to $15.7 million, primarily due to a strategic pivot towards high-margin products [12] Business Line Data and Key Metrics Changes - Insurance revenue grew by 40% to $8.2 million in 2024, now accounting for a double-digit share of total revenue [7] - Wealth revenue surged by 138% to $8.5 million in 2024, driven by strong demand for investment products [7] - Revenue from insurance products increased by 10% year over year to $2.1 million, accounting for 14% of total revenue [12] Market Data and Key Metrics Changes - Registered members reached 7.5 million, up 42% year on year, indicating strong user engagement [6] - Approved applications grew by 21% year over year to 767,000, reflecting increasing user trust [6] Company Strategy and Development Direction - The company aims to achieve $100 million in revenue in 2025 and generate positive adjusted EBITDA in the second half of the year [6] - Focus on diversifying revenue mix towards high-margin products, lowering operating expenses, and improving operational efficiency [5][8] - Strategic pillars include consumer pull, conversion expertise, operating leverage, strong provider partnerships, and insurance brokerage [7][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in regaining top-line growth momentum and highlighted the importance of strategic partnerships and technology investments [6][9] - The company is committed to becoming an AI-first organization, with initiatives underway to enhance customer service and automate workflows [9][50] - Management believes the stock is undervalued and expects the market to recognize the strength of the business model and operational performance [60] Other Important Information - The company has a debt-free balance sheet with $42.5 million in cash, providing a strong foundation for future growth [9] - Significant restructuring has led to a 45% reduction in employee-related expenses, optimizing the cost structure [42] Q&A Session Summary Question: What is the company's strategy to lower acquisition costs and leverage the growing membership base? - The company is focusing on customer segmentation and personalized marketing to lower customer acquisition costs, leveraging the growing registered member base for deeper engagement and monetization [19][20] Question: How much is insurance revenue expected to contribute for FY 2025? - While specific revenue guidance is not provided, insurance is expected to become a more meaningful driver in 2025, supported by new product offerings and enhanced customer experiences [22][23] Question: What is the capital allocation strategy given the current cash position? - The company maintains a disciplined approach to capital allocation, ensuring liquidity for operations while exploring growth opportunities that align with high-margin products and technology partnerships [27][28] Question: Which markets are expected to drive growth in 2025? - Singapore and Hong Kong are identified as mature markets for investment, while the Philippines and Taiwan present significant growth potential through enhanced conversion strategies and partnerships [30][32] Question: What impact has the reorganization had on cost structure and margins? - The restructuring has optimized the cost base, resulting in a significant reduction in employee-related expenses and improved adjusted EBITDA loss [41][42] Question: How are advertising and marketing expenses expected to change going forward? - Marketing expenses increased in 2024 due to targeted growth opportunities, but the company plans to maintain disciplined spending while optimizing campaigns for better ROI [45][47] Question: What are the plans for AI and automation? - The company is embedding AI into workflows to enhance operational efficiency, with initiatives in customer service and content creation already showing positive results [50][51] Question: How does the company plan to leverage the Nasdaq listing? - The Nasdaq listing has enhanced credibility and provided flexibility for growth initiatives, with a focus on executing the efficiency strategy to drive revenue growth and profitability [59][60]