MoneyHero Q4 2023 Earnings Call Transcript

Quartr
Provided by Quartr
April 29, 2024

There are 6 speakers on the call.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to Money Hero Group 4th Quarter 2023 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 Please be advised that today's conference is being recorded. I would like now to turn the conference over to Chad Bickdoray's Strategic Finance Lead.

Operator

Please go ahead.

Speaker 1

Thank you, Michelle. Hello, everyone. Good morning or good evening depending on where you are. My name is Chadmik Durai, and I am Strategic Finance Lead for Money Hero Group overseeing our Investor Relations activities. We're excited to have you join us for Money Hero Group's Q4 and full year 2023 earnings conference call.

Speaker 1

Today, we have with us Rohit Moorthy, our CEO and Sean Craft, our CFO and COO. Let's start with a few friendly reminders. First off, you can find detailed results in our earnings release located in the Investor Relations section of our website. Also, we are recording today's webcast, so don't worry if you miss anything. A replay and a transcript will be posted on our website under the Investor Relations section.

Speaker 1

A heads up during this call, we'll discuss some future projections and expectations for our business. Keep in mind, these forward looking statements are based on what we currently expect and are subject to risks and uncertainties that could cause our actual results to differ. We also encourage you to look at our earnings release and SEC filings for a detailed discussion of these risk factors. Remember, these forward looking statements reflect our views today, and we are not obligated to update them unless required by law. Also, we'll talk about some non IFRS financial measures today.

Speaker 1

For a reconciliation of non IFRS financial measures to the most directly comparable IFRS metric, please see our earnings press release. And one last thing, all monetary references will be in United States dollars unless we state otherwise. Shortly, I will introduce our CEO, Mr. Rohit Muthi. For many of you, this will be your first introduction to Rohit as CEO.

Speaker 1

He was recently promoted to CEO of Money Hero Group this past February. Rohit is the longest serving executive at Money Hero Group, having joined the company in 2015 and has occupied numerous pivotal leadership roles, most recently serving as our Chief Business Officer. Under his guidance, Rohit has spearheaded the development and growth of 2 of our flagship brands, Sig Saver, Singapore's leading personal finance comparison platform and Create3, our groundbreaking B2B brand. His extensive leadership across product and technology has significantly enhanced our core platform and operations. Moreover, his broad expertise in strategic planning, product development, operational excellence and digital transformation makes him the ideal leader to propel Money Hero Group into its next phase of growth.

Speaker 1

Under Rohit's direction, Money Hero is strategically poised to amplify its market dominance by concentrating on core business growth, expanding our insurance offerings and diversifying our business model. Rohit is dedicated to harnessing advanced technology and data analytics to streamline customer experiences and increase operational efficiencies. Additionally, he's deeply committed to fostering a vibrant organizational culture that attracts top talent and fosters professional development. With Rohit at the helm, we are set to intensify our commitment to innovation, customer satisfaction and strategic expansion. And now it is with great pleasure that I introduce Mr.

Speaker 1

Rohit Moorthy, CEO of Money Hero Group. Over to you, Rohit.

Speaker 2

Thank you, Chad. Good morning. Thank you for joining us today. I'm Rohit Moorthy, CEO of Money Hero Group. This is an exciting call as it marks my first earnings announcement in my new role.

Speaker 2

Having been with Monero since day 1, this is a tremendous moment for me and I'm pleased to share our results with you. Before we delve into details, I want to extend a warm welcome to everyone, especially those joining us for the first time. I also want to take a moment to outline how Money Hero Group is being realigned under my direction and highlight the unique characteristics that set us apart. Money Hero Group operates 3 core businesses across 5 key markets in Greater Southeast Asia. Our first core business, comparison, is behind the market's largest B2C personal finance marketplaces, offering leading brands and products ranging from credit cards and personal loans to insurance solutions.

Speaker 2

In 3 of our 5 markets, Singapore, Hong Kong and the Philippines, we also operate as licensed insurance brokers. Our 2nd core business, Community, includes Singapore's largest personal finance community and brand, Seedly. Lastly, Create3, our innovative B2B brand connects hundreds of content creators and channel partners to financial products and institutions. When looking at our business model, it is important to note that our platform is built on 5 key pillars. 1st pillar, consumer pull.

Speaker 2

Our revenues are primarily from inbound consumers in an industry that usually relies on either trusted brand recognition or aggressive sales tactics. Consumers have shown they repeatedly trust us and come to our platforms to research and choose from a wide range of products, supported by high quality content and the best incentives. Additionally, given our strong balance sheet, we've also pursued an aggressive strategy to gain market share in our core markets. 2nd pillar, conversion expertise. We specialize in converting digital inquiries, thanks to our superior UX and UI, which guides consumers seamlessly through the product selection process.

Speaker 2

3rd, insurance brokerage. As a licensed broker in many of our markets, we drive direct insurance policy purchases on our platform, continually announcing the purchasing process. This segment is a major growth driver for our future revenue. 4th, strong partner relationships. We maintain a high quality book of customers for our financial partners for many of whom we are the largest digital acquisition channel.

Speaker 2

And finally, 5th, operating leverage. Our business model allows us to scale efficiently with a significant portion of our revenue flowing directly to the bottom line. Over the past couple of years, we have been able to dial these various levers more precisely to drive top line growth or improved bottom line growth. This provides us greater flexibility as we constantly assess the broader competitive market and the strategies we determine to pursue. Now going on to the Q4 performance highlights.

Speaker 2

Now turning to our performance in the Q4 last year, which was our strongest quarterly revenue performance to date, with group revenues reaching $26,400,000 representing a 53% increase year on year. Our core business, online financial comparison grew by 44% YOY and Creatry, our B2B business, grew by an impressive 117 percent YOY, contributing 17% to the group's revenue compared to only 12% in the prior period. Our revenue growth has been impressive across all regions. Singapore grew 94% yoy to $12,100,000 Hong Kong grew 46% YOY to $8,400,000 Philippines grew 64% YOY to $3,900,000 and Tiguan showed a recovery with 103% increase from the previous quarter despite a 22% Y o Y decline. Our strategic focus on insurance paid off with revenue from insurance products increasing by 106% Y o Y in Q4 aligning with our ambition to become the preferred destination for insurance discovery and purchase.

Speaker 2

Now as we look towards 2024, we are confident we will hit $100,000,000 in revenues for the first time, a feat that is unmatched by any emerging fintech aggregator that is disrupting traditional financial product distribution in the APAC region. This ambitious target is supported by our ongoing aggressive marketing campaigns in our core markets of Singapore and Hong Kong, which we began last quarter. These efforts are aimed at significantly enhancing our market penetration and brand recognition in these key markets. This aggressive strategy has resulted in compressed margins last quarter, which will continue through the first half of twenty twenty four, but we anticipate margin expansion heading into the second half of twenty twenty four. We firmly believe that this strategy is a solid investment into our long term growth.

Speaker 2

This margin expansion will be driven by improved conversion rates, deeper market penetration and the product diversification into higher margin non credit card verticals, which should start contributing more significantly to our bottom line. Sean will elaborate upon these points shortly. We will continue to strategically diversify our business model throughout 2024 by expanding our high margin business Creatry and advertising revenue streams further expanding margins. Our focus remains on enhancing the user experience on our platforms, making it easier and more intuitive for our users to navigate and purchase financial products. This includes building off the impressive growth of our insurance offerings, developing comprehensive end to end purchase journeys that not only meet but exceed customer expectations.

Speaker 2

Additionally, our partnership strategies continue to grow and evolve with market dynamics. We are co creating unique products and offerings with our financial partners. These new offerings will not only strengthen our relationships, but also help improve our profitability. I'll also add that we continue to leverage new AI tools that help streamline operations and increase our enterprise wide efficiencies. We're very excited about this technological advancement and how it can enable us scale more effectively, enhancing our operating leverage.

Speaker 2

To spear at these initiatives that are targeted towards our long term growth, we have strengthened our leadership team with recent promotions and strategic new hires, including a Chief Commercial Officer for the group and a Managing Director for Philippines. We're also excited to soon be announcing our new CFO as well as the new Group Head of Operations and a new Group Head of Marketing, all of whom will bring strong enterprise level experience, fresh perspectives and diverse expertise towards our ambitious goals. Now looking at the big picture for Money Hero, our business is well positioned to capitalize on significant long term tailwinds in the Fintech arena. Number 1, dynamic market growth. We operate in attractive growth markets where the penetration of digital channels for personal finance product distribution remains low, but is growing quickly.

Speaker 2

We estimate the revenue opportunity for both online and offline product distribution at around $9,000,000,000 plus and are at the forefront of expanding digital channels share of the pie. Number 2, technological adoption. The rapid adoption of mobile phones and the internet has mainstreamed online businesses opening up vast opportunities for our services. Number 3, demographic shifts. The increasing prominence of middle and upper class families who are aspirational and seeking a wide range of financial products presents a growing market for our offerings.

Speaker 2

Number 4, insurance penetration. With online insurance sales penetration still low in our markets but growing rapidly, we see a substantial opportunity for growth. We are well positioned to capture this emerging market and significantly increase our footprint. Number 5, market dominance. This advantageous position enables us to effectively capture and expand our market share.

Speaker 2

And number 6, consumer trust. We stand out among Fintech players by providing consumers with trusted optimal choices of financial products, ensuring a convenient and hassle free experience. Now before I hand the call over to Sean for the financial highlights of our full year 2023, I want to personally thank him for his exceptional leadership and dedication throughout our journey from a startup to a U. S. Listed company on NASDAQ.

Speaker 2

His contributions have been invaluable and with this being his final earnings call with the company, I want to wish him on behalf of everyone at Money Hero all the best in his future and doers. Thank you once again for your trust and support. I look forward to discussing our detailed financial results and answering any questions you may have. But with that, I'm now turning the call over to Sean Croft, our CFO and COO.

Speaker 3

Thanks, Rohit. Good day, everyone. After the successful closing of our T SPAC transaction in Q4 of last year, Money Hero Group finds itself in an exceptionally strong financial position today and is well situated to further strengthen its market leading positions across Greater Southeast Asia. Overall, we saw a significant acceleration of our business growth in the second half of twenty twenty three across multiple markets. And as Rohit mentioned, we are making strategic investments that will enable us to execute on the ever growing opportunities in the digital distribution of financial product space across our markets.

Speaker 3

As of December 31, 20 20 3, Money Hero had a debt free balance sheet with $69,000,000 of cash and cash equivalents. Our cash is being deployed to scale our business, expand our member base, invest into our product and technological capabilities and excess cash not currently needed to support monthly working capital needs is earning 5% plus interest rates with our banking partners. To note, as of December 31, 2023, we had 42,000,000 shares issued and outstanding as well as approximately 2,900,000 employee options outstanding, bringing our fully diluted share count to approximately 45,000,000. This excludes warrants, which are currently out of the money. For the exact share counts, please refer to the press release.

Speaker 3

Turning to our financial results. Given that the de SPAC closed in Q4 and our financials presented today for Q4 2023 and the full year 2023 are now on a consolidated basis. The listing transaction came with significant one time non recurring non operational expenses that hit our P and L in 2023. This resulted in a significant headline net loss for the period of $173,000,000 However, it is important to take these listing related accounting items into consideration when reviewing the underlying profitability of the business. And therefore, we focus on our adjusted EBITDA as the relevant profitability metric.

Speaker 3

There is a detailed bridge from the net loss to the adjusted EBITDA in our earnings release. In the Q4 of 2023, Money Hero delivered 53% year over year revenue growth to $26,400,000 We realized significant growth in Singapore, up 94% year on year and Hong Kong, up 46% year on year, where we have increased our customer acquisition strategy and are focused on further strengthening our already dominant market positions. Our Philippines business also performed very well, up 64% year over year. And our Taiwan business showed improvement after a challenging first half of twenty twenty three, with revenue increasing 103% from the Q3 of 2023. Our B2B business, Creatory, also continues to show strong growth and increasing contribution to the group, with 4th quarter revenue increasing 117% year over year to $4,600,000 which represents 17% of group revenue.

Speaker 3

And of course, insurance remains our fastest growing product vertical with 4th quarter revenue increasing 106% year over year to 1,900,000 dollars For the full year 2023, revenue was $80,700,000 an increase of 18% year over year. Growth rates started to pick up in the second half as discussed. Those that increase in growth rates in the second half of the year was driven by stronger investments into the business after improving profitability in the second half of twenty twenty two and first half of twenty twenty three, which resulted in slower top line growth, but a significantly improved profitability profile of our business during that period of time. From a profitability standpoint, for the full year 2023, our adjusted EBITDA loss improved from negative $15,600,000 in 20.22 to negative $6,800,000 in 2023. This represents an adjusted EBITDA margin improvement from negative 23% in 2022 to negative 8.5% in 2023.

Speaker 3

On a quarterly basis in the Q4 of last year, our adjusted EBITDA loss increased to negative $4,600,000 from negative $2,500,000 in the same period of 2022 at a negative margin of 17.6%. The primary drivers of the increased loss for the 4th quarter are: 1st, increases in direct costs to accelerate customer acquisition as well as competitive pricing tactics to increase market share in select markets, as Rohit mentioned earlier. Given our strong balance sheet, we now find ourselves in an enhanced position to expand our market share and plan to continue to do so through the first half of twenty twenty four and beyond. This strategy has led to a 41% increase in our member base in 2023, going from 3,800,000 members in 2022 to 5,300,000 in 2023. Building our member base is critical for us to add scale, create growth opportunities and diversify our revenue base towards higher margin products and will aid in strengthening our profitability going forward.

Speaker 3

And second, the second factor increasing the loss in the Q4 of last year is increases in our expense base as a listed company, which we estimated approximately $2,500,000 a year. As a result of our strategic investments, we expect adjusted EBITDA loss to remain a bit elevated for the first half of twenty twenty four, but expect margins to expand again in the second half of twenty twenty four. We anticipate operating at adjusted EBITDA profitability on a quarterly basis beginning in the second half of twenty twenty four and continuing to expand into 2025. On a normalized basis, we expect our adjusted EBITDA margins to be in the range of 5% to 10% within the next 12 to 18 months. Critically, our business model at scale has proven to be highly cash generative with significantly higher margins, which we believe we can achieve over time.

Speaker 3

Looking forward, we will continue to prudently use our cash our strong cash position to expand our footprint. We see this in 2 distinct paths. First, through organic efforts such as our insurance business, Creatory, our B2B business and the streamlining of costs with efficiency gains in using AI. 2nd, by continuing to and investments that are in line with our long term goals. We believe that there is ample opportunity for consolidation in our emerging industry and we aim to lead the way.

Speaker 3

These two strategies will aid us in scaling both our market share and top line growth for the years to come. Lastly, I would like to thank the Board of Directors, our leadership team, all our stakeholders and my family. This has been an opportunity of a lifetime to help build MoneyGuru into the leading player that it is today, and I'm extremely grateful for having. Me. With that, I thank you for your attention today and turn it over to the operator to take any questions.

Operator

Thank Our first question comes from Nirgunan Karachaban with Alethia. Your line is now open.

Speaker 4

Thank you, gentlemen, for a fantastic set of results. I have two questions. 1st and foremost, what impact will the Creatry business have on the revenue model? The second is that has the company raised enough capital to fulfill its operating expense requirements for the next 3 years?

Speaker 2

Thank you. I'll take the first question. What impact will Creatory business have? Now, Creatory is our very unique and innovative B2B business and it's pivotal in constructing the largest ecosystem of content creators and channel partners who essentially monetize their influence through our platform. As digital content consumption surges on social media platforms like Instagram and TikTok, we are observing a significant increase in engagement and ever growing number of these influential content creators specializing in niche topics.

Speaker 2

And this trend has led to a dynamic expansion in the audience and the impact of these creators. Recognizing this opportunity early on, actually even before the pandemic, we began collaborating with many content creators to help them generate income through their creative outputs. Create3 provides a robust platform and it's a dedicated brand for these creators. It allows them to easily access and promote relevant finance products, personal finance products to the audiences, educate the audiences and in return earn commissions whenever their followers engage with these offers. I think it's important to take away from today's earnings that Creatory has quickly become a critical component of our business, enhancing our scale and reach across diverse audience segments.

Speaker 2

This platform not only helps us gather valuable data and insights, but also allows us to manage payouts with greater profitability compared to say traditional paid channels such as Google or Facebook. Our relationships with creators who often have highly engaged and loyal audiences also help strengthen our own brand presence and marketing reach. Additionally, as part of our Creativity platform, we are also forming channel partnerships with major super apps and service providers eager to integrate personal finance products into their services and monetize their platforms. In just over 2 years, CreateFree has started contributing significantly to our financials, now representing a growing double digit percentage of our revenue. And as we continue to invest in and expand Creativity, we anticipate even greater growth as we tap further into the addressable market.

Speaker 2

Importantly, Money Heroes Creatory is filling a unique niche that does not exist elsewhere in our market and providing a platform for the region dedicated to empowering content creators to monetize through personal finance products. Sean, you can take a second.

Speaker 3

Yes. So coming back to your second question around whether the company has raised sufficient capital to fill its operating needs. Absolutely, it has. We currently have a very strong balance sheet with $69,000,000 of cash at the end of 2023 and no debt anymore. While we do still require a portion of that cash to fund operational needs today, we do not have any need to raise capital for the foreseeable future.

Speaker 3

I'd say additionally, we have a proven track record of effectively managing the profitability levers in the past and are executing a strategy as outlined by Rohit earlier when he discussed kind of his 5 key pillars underlying our platform. That will enable us at Numero to drive stronger profitability and margins at that scale.

Operator

The next question comes from Milo Bussell with Edison Group. Your line is open.

Speaker 5

Hi, guys. Congratulations on a great set of results and thanks very much for the presentation. So you've mentioned previously some updated offering launches in 2024 for Hong Kong and Singapore. So could you give an idea of what these might entail and how AI is being integrated within these? More broadly, how is AI being integrated within your business?

Speaker 5

And are you seeing any issues arising from competitors using AI? My second question is on profitability. Very good that you've made progress this year, and it's good to hear that you expect to be profitable in 2024. Could you I mean, could you discuss a bit further the margin range that you provided today? And then my third question is on insurance, which is obviously displaying very strong growth, but remains a relatively small share of total revenue.

Speaker 5

So what sort of level do you expect to grow the insurance business to as a percentage of group revenue? Thanks very much.

Speaker 2

Sure. Let me start first with the first question, the exciting one about AI. Now I want to take us back to 3 of our the pillars I mentioned, the 5 pillars, this consumer pull, conversion expertise and operating leverage. And as we look at these three pillars, our focus remains on being the 1st choice for consumers when it comes to personal finance and in fact lifestyle savings too. So, let me just delve into some specific updates on how we are integrating AI across our operations.

Speaker 2

In Singapore, we recently launched a brand new cutting edge mobile app, Shop Hero. Now, this app with this app, consumers can interact with financial products and lifestyle offers. What we're doing is essentially we're aggregating deals and offers by category and geolocation. So with this Shop Hero app, consumers can not only maximize their savings now with the right credit cards, but also engaged on a daily basis. So I think this frequent engagement is important for us because it allows us to gather very valuable behavioral data and insights.

Speaker 2

And these insights are going to be crucial as we refine our own offerings. Now this is where AI comes in because we harness AI and machine learning to process and standardize brand content, ensuring that the offers that we display on the app are accurately categorized and they're presented in a timely manner. The other additional benefit and key aspect of Shop Hero is what I spoke about is our business model diversification because through this app now we are essentially opening new advertising revenue streams for our financial partners. And I think this is going to be part of our broader strategy to evolve from just being an acquisition channel, but also tapping into our partners' marketing budgets. This app is live in Singapore and we plan to roll this app next in Hong Kong this year.

Speaker 2

The other aspect of AI which is super interesting is our goal to convert as many of nearly 9,000,000 users into active sort of product holders. So to do this, we are also leveraging the latest advancements in Gen AI and large language models, CLLM models. I think these technologies, I firmly believe, are set to transform how we interact with our users, making our platforms more intuitive, more responsive. We should be announcing these developments in this area within the next 6 to 8 weeks. So please stay tuned.

Speaker 2

And I think at a higher level, at an enterprise wide level, this is something that I'm very much kicking off, which is a comprehensive transformation initiative within the Money Hero Group so that we can identify and embed the right AI tools across our various functions, be it engineering, be it marketing, customer service, operations. This transformation effort is aimed at enhancing the productivity and operational efficiency. By automating all these routine tasks and really optimizing all the complex processes, AI will enable our teams to focus more on strategic activities, while we drive better outcomes supporting the pillar Amit talked about, which is our operating leverage pillar. I think your second question was around profitability, so and the margin range. Look, I think when we look at our profitability, we are on track to be adjusted EBITDA positive on a quarterly basis in the second half of this year.

Speaker 2

Our focus remains firm on core business growth, particularly the credit card and lending product verticals and these contribute significantly to our revenue. We are enhancing our margins through increased direct traffic, better conversion rates and strategic partnerships that now include exclusive and co created products. The other thing is we are actively scaling our general insurance offerings, be it travel, home, domestic helper, pet and motor insurance. While these segments will typically start with lower margins, they substantially enhance our net present value through robust future renewal streams and these will contribute positively to our revenue mix. And finally, I did speak about diversifying our revenue streams with high margin businesses, be it Createry and then the advertising revenues and these will also directly bolster our bottom line.

Speaker 2

I think with these strategies in place, we are confident in achieving a normalized adjusted EBITDA margin range of 5% to 10% within the next 12 to 18 months. I think your last question was around insurance and what sort of levels do we expect. Now, insurance is the growth of insurance is something we're very excited about and we remain bullish on the future opportunities in the space, which is why we're actively working on this space every day. Now following 2023, insurance has become now one of our fastest growing segments. And we are a licensed insurance broker I mentioned.

Speaker 2

We offer a variety of essential insurance products, travel, motor that I spoke about and even health and life insurance. I mean, these products are really critical for consumers to protect against potential losses, which is always an imminent threat. So I think with this in mind, Money Hero, we understand that buying insurance is a significant decision and it's driven by the need to manage these potential financial risks. This is not let's face it, this is not a happy or an impulse purchase. So knowing that insurance isn't straightforward and it requires a serious time commitment and understanding from our consumers, the need to educate our consumers is our top priority.

Speaker 2

We are really committed to providing clear useful information to help them see the value of investing in insurance now for future benefits, which is why we want Money Hero to be the 1st place people think of when they consider buying insurance. We are already seeing a strong growth in areas like travel insurance and we're really encouraged by the strong growth opportunities in other insurance marketplaces. So, we're really dedicated to making the buying process smooth and straightforward for our consumers. I think importantly, the one point is our growth in insurance is only getting started. I mean, looking ahead, we expect our insurance sales to account for a significant portion of our total revenues, reaching double digits within the next 12 to 18 months.

Operator

Please stand by for the next question. The next question comes from Ishan Majandar with Batista Research. Your line is open.

Speaker 1

Hi, Roy. Thank you so much for the wonderful presentation. I have a 2 part question. Which of your current revenue streams you anticipate will be the biggest growth drivers in the coming 3 years? And the second part is, are there any new revenue models you're considering?

Speaker 2

Thank you, sure. I think when we look at our diverse platform and revenue streams, they're already in place and each of them are experiencing growth. And we've sort of very meticulously structured this to maximize our expansion and strengthen our position. So what do I mean by that? Number 1, our core aggregation business.

Speaker 2

When you look at us, our foundational revenue stream, it comes from cards and personal loan applications and this is something we are committed to continue to expand our market share and we also have an opportunity to improve our conversion rates here And we do this by optimizing our user journeys, leveraging tech, data. So that way we sort of maintain that competitive edge. So that's our core aggregation business. Number 2, insurance commissions. As I mentioned, we're a licensed insurance broker.

Speaker 2

Our role in the insurance sector forms now a very substantial and expanding segment of our business. And with insurance commissions, we are able to now generate steady uncapped revenue through these commissions. Every time a policy is sold and this is also bolstered by like the diverse partnerships we have with insurers across our various product lines. 3 that we've spoken about, Creat3. Creat3 is really our distinctive B2B platform and by really engaging these content creators and channel partners, we now are able to access new audiences.

Speaker 2

Strong engagement from these creators and these creators have a lot of followers. The very interesting aspect of this business is also that we actively set favorable take rates and this expands our reach across diverse demographics. Number 4, advertising revenue. I spoke about the Shopee Row app. Now, we are trying to really harness the extensive user base and the digital assets that we have to offer now advertising opportunities to external brands.

Speaker 2

And these are high margin revenues. Good thing is this not only diversifies our income streams, but it also sort of enhances the utility and reach of our platform. Not to mention now we're going to be delivering substantial value to our partners and stakeholders. And finally, I think with insurance and as an licensed insurance broker, we're going to be generating a renewal revenue stream. We're going to be earning renewal commissions and that will now give us a continuous recurring revenue stream.

Speaker 2

I think this is just going to be very crucial in products like motor insurance, where we know we have annual switches who typically represent a large segment of our consumer base. So I think overall when I look at these diverse revenue strategies that we have, it not only is now creating a unique sort of competitive moat that we have, but I firmly believe these are going to be the key drivers of our growth. And more importantly, what these strategies ensure is that we remain adaptable and we remain ahead of the curve in our sector.

Operator

I show no further questions at this time. I would now like to turn the call back to Rohit for closing remarks.

Speaker 2

Well, I really want to thank you all for your time today. And yes, as Sean mentioned, we will be publishing all the results. Thank you.

Operator

This concludes today's conference call. Thank you for your participation. You may now disconnect.

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Key Takeaways

  • Money Hero delivered Q4 2023 revenues of $26.4 M, a 53% increase year-over-year, driven by strong growth across all core markets.
  • Create3 B2B platform grew 117% year-over-year in Q4, contributing 17% of group revenue and highlighting successful diversification into higher-margin segments.
  • Insurance product revenues rose 106% year-over-year in Q4, aligning with the company’s ambition to be the preferred destination for insurance discovery and purchase.
  • Management targets $100 M in revenues for 2024, with marketing-driven margin compression in H1 and anticipated adjusted EBITDA profitability in H2 2024 and normalized 5–10% margins within 12–18 months.
  • As of December 31, 2023, Money Hero is debt-free with $69 M in cash and equivalents, funding aggressive market share expansion without need for additional capital.
AI Generated. May Contain Errors.
Earnings Conference Call
MoneyHero Q4 2023
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