Release Date: September 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MoneyHero Ltd (MNY, Financial) reported a 26% year-on-year growth in its core online financial comparison business.
- Singapore posted an impressive 68% year-on-year growth to USD9 million.
- Revenue from insurance products increased by 89% year-on-year to USD2.2 million, now contributing 11% of group revenue.
- The company processed 970,000 banking and insurance applications in the first half of 2024, marking a 100% year-on-year growth.
- MoneyHero Ltd (MNY) was named the personal finance tech of the year at the Asia fintech awards, 2024.
Negative Points
- Adjusted EBITDA loss increased to negative USD9.3 million for Q2 2024, up from negative USD6.4 million in Q1 2024.
- The Philippine business decreased by 16% year-on-year due to reduced volume with key clients.
- Taiwan business saw a marginal decrease of 4% year-on-year to USD1.4 million due to the pause of product offerings from several key clients.
- Increased operating costs due to additional expenses associated with being a public company.
- Provider constraints in Taiwan and the Philippines impacted short-term financial performance.
Q & A Highlights
Q: The figures reported today indicate the full year results should be H2 weighted. What are some of the levers you can pull to achieve the USD100 million revenue target and what is underpinning your confidence in achieving that target?
A: We focus on organic growth opportunities, especially during the tax loan season in our markets. We also see increased budget allocations from banking acquisitions towards the end of the year. Our insurance vertical is optimized for a seasonal spike in travel insurance demand. Additionally, our B2B business, Creatory, is expanding. Investments in data, technology, and a new mobile app will help drive revenue growth.
Q: What was the rationale for the Money from acquisition? And more broadly, how should we think about inorganic growth strategy going forward?
A: We aim to consolidate the market rather than compete directly. Our acquisition strategy focuses on data integration, technology enhancements, revenue expansion, and operational efficiencies. We prioritize partnerships and collaboration over competition, as demonstrated by our recent transaction in Malaysia and the acquisition of Seedly in Singapore.
Q: How are you leveraging AI, the ShopHero app, and the Creatory platform to improve approved application conversion rates? Are there any KPIs we should look to measure success against this?
A: AI is used to drive efficiencies across content generation, customer service, and decision-making processes. The ShopHero app will enhance user experience and engagement. Creatory is expanding its content creator base and strategic partnerships. Key KPIs include application conversion rates, traffic engagement, and user retention metrics.
Q: What would your guidance be for the FCF burn in FY24?
A: We are not providing specific guidance for free cash burn in FY24. However, we expect EBITDA loss to be reduced to between USD5 million to USD6 million this quarter. We aim to reach adjusted EBITDA profitability on a monthly basis by year-end through optimized marketing investments, streamlined operations, and efficiency improvements.
Q: Which markets will drive revenue growth in the next two years?
A: Our core markets, Singapore and Hong Kong, will remain the largest revenue drivers, with insurance being the fastest-growing vertical. We also see strong growth potential in the Philippines and have strategic plans for Taiwan. Creatory, our B2B business, and our insurance engine are also expected to contribute significantly to long-term growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
