MoneyHero Q1 2025 Earnings Report

MoneyHero EPS Results

• Actual EPS: -$0.10
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

MoneyHero Revenue Results

• Actual Revenue: $363.72 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

MoneyHero Announcement Details

• Quarter: Q1 2025
• Date: 6/13/2025
• Time: Before Market Opens
• Conference Call Date: Friday, June 13, 2025
• Conference Call Time: 8:00AM ET

MoneyHero (NASDAQ:MNY) operates as a personal finance company. It engages in operation of online financial comparison platforms and related services. The company offers its products under Money Hero, SingSaver, Money101, MoneyMax, CompareHero, Seedly, and Creatory brands. MoneyHero Limited operates in Singapore, Hong Kong, Taiwan, the Philippines, Malaysia, and Thailand. The company was founded in 2014 and is headquartered in Singapore.

MoneyHero Q1 2025 Earnings Call Transcript

Key Takeaways

• Management reaffirmed a clear path to positive adjusted EBITDA in the latter half of 2025, with Q4 2024 losses already narrowed to $2.9 million and continued momentum into Q1.
• The company has materially diversified its revenue mix, with wealth and insurance now representing 25% of total revenue (up 11 pp year-over-year) and personal loans at 17%, reducing lower-margin credit card share to 57%.
• First-quarter revenue fell 35% year-over-year to $14.3 million due to a strategic pullback in paid marketing aimed at prioritizing higher-quality, higher-margin business.
• Operational efficiency initiatives, including AI‐driven automation and targeted marketing, drove a 26% year-over-year reduction in operating expenses and cut cost of revenue to 44% of sales.
• With $36.6 million in cash, no debt, and a disciplined capital allocation policy, the company is prepared to pursue only value-accretive M&A while broadening investor engagement.

Presentation

[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, there will be a question and answer session. Please be advised that today's conference is being recorded.

[Operator]

I would now like to turn the call over to your speaker today, Ms. Jiaqinga Chang. Thank you. Please go ahead.

[Executive]

Hi, everyone. Good morning, and good evening, and welcome to Money Hero's first quarter twenty twenty five earnings conference call. Joining me on the call today are Rohit Murthyu, CEO and Danny Leung, Interim CFO. Our earnings release was issued earlier today and is now available on our IR website as well as via global newswire services. Before we begin, I would like to remind you that today's call will include forward looking statements made under the Safe Harbor provisions of The U.

[Executive]

S. Private Securities Litigation Reform Act of 1995. Please refer to the Safe Harbor statement in our earnings press release, which applies to this call. In addition, please note that today's discussion will include both IFRS and non IFRS financial measures for comparison purpose only. For a reconciliation of these non IFRS measures to the most directly comparable IFRS measures, please refer to our earnings release and SEC filings.

[Executive]

Our monetary reference will be in United States dollars, unless otherwise stated. Lastly, a webcast replay of this conference call will be available on our IR website. I will now turn the call over to Rohit, CEO of Money Hero Group. Please go ahead.

[Rohith Murthy, CEO & Director at MoneyHero]

Thank you, Georgina. Hello, everyone, and thank you for joining us today to discuss Money Hero Group's first quarter twenty twenty five financial results. I'm pleased to report that we are executing strongly on our profitability roadmap. We remain on track to achieve positive adjusted EBITDA in the latter part of the second half of twenty twenty five, a key milestone marking our transition to a self sustaining profitable growth trajectory. Our Q4 twenty twenty four results already reflected this ongoing transition, achieving the best quarterly performance since going public with adjusted EBITDA loss narrowing to just 2,900,000.0.

[Rohith Murthy, CEO & Director at MoneyHero]

This momentum has continued into Q1 as we sharpen our focus on higher quality revenue and operational efficiency. Our gross margins are also improving substantially, driven by deliberate initiatives we executed over the past year. We reduced low ROI paid marketing, enhanced the user experience and interface, and diversified revenue streams into higher margin verticals like wealth and insurance. As a result, our unit economics are significantly stronger today than a year ago. While top line revenue in Q1 fell year on year due to a strategic pullback in aggressive marketing spend, this was an intentional trade off to prioritize revenue quality over volume.

[Rohith Murthy, CEO & Director at MoneyHero]

We are encouraged to see this strategic pivot already yielding results with improving profitability. Our net loss has narrowed considerably in Q1 as adjusted EBITDA continues to improve quarter after quarter. We are building a leaner, more profitable business with the goal of hitting $100,000,000 revenue for full year 2025 and delivering positive adjusted EBITDA during the latter part of the year. In short, our path to profitability has never been clearer, and we are executing with discipline to accelerate it. Now let me turn to our Q1 operational performance and the progress we've made across our business lines.

[Rohith Murthy, CEO & Director at MoneyHero]

A core part of our strategy is diversifying our revenue mix towards higher margin verticals, and we're already seeing tangible results with wealth and insurance verticals contributing approximately 25% of our total revenue in Q1, an increase of 11 percentage points Y o Y and growing quickly. These verticals are now meaningful contributors to our top line and are driving gross margin expansion. We expect their growth to continue outpacing other segments, supporting our $100,000,000 revenue target for 2025. Importantly, this diversified revenue mix is also improving our profitability without sacrificing growth opportunities. It's growth with quality.

[Rohith Murthy, CEO & Director at MoneyHero]

Now credit card remain the large largest revenue driver, contributing 57% of our total revenue in q one, down from over 70% in previous years and reflecting successful diversification. This business is becoming more efficient and strategic, performing stronger on lower spend and generating higher profitability per unit. Credit cards continue to be a core customer acquisition engine, bringing in a steady flow of new users and re engage existing ones. Our deep partnership with leading banks, including Citi, HSBC, Standchart, BPI, RCBC, among many others, not only fuel our credit card business, but also allow us to broaden product engagement into wealth and lending products. In other words, customers who come to us for credit cards today can also choose investment accounts, personal loans or insurance down the line, increasing their lifetime value.

[Rohith Murthy, CEO & Director at MoneyHero]

So while the credit card share of revenue has moderated, it remains absolutely vital. It's now a more optimized, strategic platform for broader growth. Our insurance segment is building significant momentum, particularly in car insurance. As a licensed digital broker, this high margin vertical is made even more compelling with our new end to end purchase journey launched in partnership with Boltec in Hong Kong. Customers can now compare real time quotes and purchase car insurance policies directly on our platform and avoid getting redirected to party sites and industry in Hong Kong.

[Rohith Murthy, CEO & Director at MoneyHero]

The result is a smoother user experience that drives higher conversion rates and generates recurring revenue through policy renewals. We are it said we now essentially own the entire customer journey for car insurance. Early results are very promising with increased traffic and conversions in the car insurance funnel. We're excited about scaling this model to other insurance products and markets. Insurance overall is scaling nicely for us and now represents about 13% of revenue, and it continues to climb with strong unit economics that bolster our margin profile.

[Rohith Murthy, CEO & Director at MoneyHero]

Our personal loans business is another growth pillar, accounting for roughly 70% of revenue in Q1 and reflecting robust expansion as we help more users secure personal loans and other financing. A big development here is our upcoming Credit Hero Club launch in Hong Kong during the half of the year in partnership with TransUnion. Building on the successful pilot last year, the Credit Hero Club will offer consumers free credit scores, credit monitoring, and personalized financial product recommendations. While leveraging TransUnion's credit data, we can tailor product offers to each user's profile, such as showing them credit cards or loans they're more likely to be approved for. This personalization is expected to drive higher approval and conversion rates for our lending partners while helping consumers make smarter choices.

[Rohith Murthy, CEO & Director at MoneyHero]

Essentially, we're using data data and AI to benefit everyone. Customers get better offers and enhanced transparency, and bank gets more qualified, engaged borrowers. We anticipate the Credit Hero Club will not only deepen customer engagement, but also boost our lending revenues. It's a great example of how we are innovating products to fuel growth in a margin accretive way. Geographically, I want to highlight the progress we are making in The Philippines, an important market for us.

[Rohith Murthy, CEO & Director at MoneyHero]

Last year, our operations faced headwinds when a major banking partner exited the market, impacting our revenue. We took swift action to recalibrate our strategy, and I'm pleased to report a recovery is underway. In the past couple of months, we've signed strategic partnerships with two of the top banks in the country, PPI and RCBC, which significantly expand the range of products we offer there. In short, we've replenished and even enhanced the product supply after the partner exited. These new partnerships reinforce our position as the go to digital customer acquisition channel for banks in The Philippines and expect to start seeing our performance improve there in the half of the year as these offerings gain traction.

[Rohith Murthy, CEO & Director at MoneyHero]

It's a great example of how we can rebound from challenges by leveraging our regional scale and relationships, our ability to partner with leading financial institutions that remains a competitive advantage across all our Now beyond our high quality revenue growth, operational efficiency has been a major focus for us and is also a key driver for improving our margins. We have embraced an AI strategy across the organization to automate processes, reduce costs, and enhance productivity. Over the past few quarters, we have been implementing AI and machine learning solutions across everything from customer service to product development. For instance, intelligent chatbots and self-service tools have been deployed and are significantly reducing manual customer service or customer support inquiries, improving the efficiency of content creation, and also helping us optimize our marketing spend. Over the past year, our operating expenses have come down substantially as a result, including a 26% Y o Y reduction in employee related costs.

[Rohith Murthy, CEO & Director at MoneyHero]

I want to stress that these efficiency gains go beyond cost cutting. They are driving better overall results. Our product and engineering teams are more productive than ever, rolling out new features fast with the help of AI driven coding and testing tools. Our content and marketing teams are also personalizing at scale using AI insights. All of these mean we can scale our business without a proportional rise in headcount or expenses.

[Rohith Murthy, CEO & Director at MoneyHero]

We are essentially doing more with less, which is a key reason we remain confident about reaching breakeven in the coming quarters. Alongside improving operational efficiency is our focus on building a high performance company culture. In Q4 last year, we rolled out a broad based RSU program, effectively making most Moneyhero employees shareholders. Our goal is for the team to think and act like owners because they truly are owners. This initiative has energized the team, fostering a stronger sense of accountability and long term commitment.

[Rohith Murthy, CEO & Director at MoneyHero]

Every team now has a skin in the game, aligning incentives to deliver results for shareholders. I firmly believe that a culture of aligned incentives and personal ownership will drive better execution. Through this RSU program, we are investing in our people and reinforcing that when Money Hero succeeds, we all succeed. This approach will also help us attract and retain top talent and ensure that our internal motivation supports our ambitious growth objectives. Let me touch on capital allocation and how we are thinking about shareholder value.

[Rohith Murthy, CEO & Director at MoneyHero]

We expect continued market evolution and consolidation in the months ahead. As a well capitalized market leader with $36,600,000 in cash and no debt, We are in a strong position to capitalize on opportunities in a highly disciplined manner. We remain focused on maintaining shareholder value and currently we have no plans for equity funded M and A while our stock trades below what we believe to be its intrinsic value. That said, if the right opportunity arises to consolidate the market inorganically, we'll evaluate it, but only when it aligns with our long term strategy and value creation goals. Finally, we are broadening investor engagement to improve our visibility and re establish credibility in the market.

[Rohith Murthy, CEO & Director at MoneyHero]

Now since our listing, our stock liquidity has been below our expectations. We are actively working to expand our shareholder base and meet with sell side analysts to improve coverage and raise awareness of our growth story. This quarter, we onboarded a new investor relations partner to strengthen our communications and targeting efforts. As our performance improves, we expect increased analyst coverage. We are also engaging with long term investors, including family offices and smaller funds in our regions to share the Money Hero story and invite them to join us on our growth journey.

[Rohith Murthy, CEO & Director at MoneyHero]

Additionally, we strengthened our corporate development and strategy team to better communicate our growth strategy to the market and explore strategic partnerships that can unlock value. The key message here is that we are not only improving our internal fundamentals, but also proactively working to reestablish our visibility and credibility in the public markets to ensure the investment community clearly recognizes the value and growth potential of Money Hero. Now before I conclude, let me reiterate the key takeaways and our vision going forward. We are at a pivotal moment and have taken the hard but necessary steps to transform our business over the past year, focusing on higher margin revenue, lowering our cost base and innovating our product offerings. These efforts position us for sustainable growth and profitability.

[Rohith Murthy, CEO & Director at MoneyHero]

We expect to hit positive adjusted EBITDA during the later part of the year and from that point onward, we expect to expand our bottom line as our revenue ramps towards our $100,000,000 target. Our strategy is clear: maintain leadership in our core categories such as credit cards aggressively grow new verticals like insurance, wealth and lending that boost margins, and leverage technology including AI and data to drive efficiency and superior user experiences. Looking at our performance over the past two quarters with improving margins, growing higher quality revenue streams and a sharply narrowed loss, it's clear the strategy is already yielding results. Looking ahead to the rest of 2025 and beyond, we are confident that Money Hero will emerge as one of the most profitable and trusted personal finance platforms in the region with a unique ecosystem of product and partnerships, as well as a strong brand presence in our markets. With our renewed focus on operational excellence and ROI, we can capitalize on growth opportunities without deepening our cash burn.

[Rohith Murthy, CEO & Director at MoneyHero]

Importantly, we remain accountable stewards of capital, both in how we invest for growth and how we approach shareholder returns. I want to thank our team members for their incredible effort and alignment with our mission to drive this transformation. I also want to thank our shareholders for their continued support and patience. We are committed to delivering the value we expect and deserve. The management team and I are laser focused on executing quarter by quarter, and we believe the best days for Money Hero are ahead of us.

[Rohith Murthy, CEO & Director at MoneyHero]

We are building a business that can grow robustly, generate cash, and create long term value for our investors. With that, I will now turn the call over to Danny Leung, our interim CFO. Thank you, Rohit.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

Good day, everyone. Our Q1 results demonstrate continued progress in executing the strategic pivot we initiated in the second half of twenty twenty four. This quarter was less about chasing top line growth and more about improving the quality of our revenue, reducing cost base and positioning the business for sustainable profitable growth. While revenue declined 35% year over year to 14,300,000.0, reflecting a strategic pivot to reduce marketing spend and focus on higher quality and margin products. Our revenue mix substantially improved it.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

High margin protocols now account for a large proportion of total revenue. With personal loans increasing from 15% to 17%, insurance growing from 8% to 13%, and wealth doubling to 12%. Further reducing our reliance on lower margin credit cards, which decreases 13 points to 57%. This improving revenue mix directly contributed to a significant expansion in gross margin. As cost of revenue dropped by 55% year over year to account for just 44% of revenue, validating the effectiveness of our strategy.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

Our cost discipline and operational efficiency initiatives directly support this. Operating expenses declined 26% year over year in Q1, driven by deliberate reduction across paid marketing, technology spend, employee costs, and general and administrative expense. These ain't just one offcut. They will form a new foundation for our operational cadence going forward. The changes have reset our cost structure and allow us to run a far more efficient business.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

AI hasn't driven this reduction, but is now helping us maintain this lean cost base as we scale, especially across customer service and content operations. This is also having a material impact on our bottom line. Net loss narrowed sharply to $2,400,000 from $13,100,000 a year ago, more than 10,000,000 of improvement. Adjusted EBITDA loss also improved significantly year over year to 3,300,000.0, underscoring a clear path towards sustainable profitability. Looking forward, we expect sequential improvements in adjusted EBITDA throughout 2025.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

Our goal is to achieve positive adjusted EBITDA during the later part of the year. And we remain confident that our ability to achieve that. We have no debt and ended the quarter with $36,600,000 in cash, giving us the flexibility to fund growth and consider capital return options in a disciplined way. In short, Q1 proves that our strategy is working. We are building a stronger foundation, improving unit economics and driving towards sustainable profitability with a more durable capital efficient business model.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

That concludes our prepared remarks for today. I'll now turn the call over to the operator to begin the Q and A session. Operator, please go ahead.

[Operator]

Thank you. We will now begin the question and answer session. Quinbreech Global. Please go ahead.

[William Gregozeski, President & Director of Research at Greenridge Global LLC]

Rohit. Good quarter. I had a question on the OSL announcement you just made the other day. Can you talk more about the partnership with them and kind of how you see the entrance into the digital asset space for the company?

[Rohith Murthy, CEO & Director at MoneyHero]

Sorry, was, your question was not that clear, but I think I heard about your about our partnership with OSL and digital asset space. Is that correct?

[William Gregozeski, President & Director of Research at Greenridge Global LLC]

Yeah. Yeah. Because if you can talk more about the partnership with them and then your plans for that space.

[Rohith Murthy, CEO & Director at MoneyHero]

Absolutely. Look. This announcement, we believe, actually marks a very exciting and important step for us. We're we're really strategically exploring the digital asset space. Now digital assets are increasingly, I think, viewed alongside traditional insurance, stock, and banking products, also offering, like, enhanced user experiences.

[Rohith Murthy, CEO & Director at MoneyHero]

There's greater product diversification and and and and new monetization opportunities for our platform. So I think we offer a unique value proposition as a leading digital acquisition partner for a majority of banks in the region, and we want to replicate this and expand this into the digital asset ecosystem as well. And and this also, I wanna point out, it directly aligns with our focus on expanding higher margin verticals, including wealth products. Now on a personal note, I I've been very closely studying companies like Strategy and MetaPlanet that have been, like, successfully they have implemented digital asset strategies, and subsequently, they've delivered impressive stock performance. And and for me, their examples highlight the potential, you know, shareholder value that can be unlocked to well consider moves that Money Hero can make into the space.

[Rohith Murthy, CEO & Director at MoneyHero]

Now while we've not yet made any definitive decisions regarding any additional investments, we are we remain proactive and open minded. And given our strong cash position, and as you can see, a very disciplined capital allocation approach, We are actively evaluating strategic opportunities in digital assets. We're carefully assessing the risks, the potential benefits, and and also the alignment with our with our long term objectives.

[William Gregozeski, President & Director of Research at Greenridge Global LLC]

Okay, great. Thank you. And then on the cost of revenue that fell quite a bit, you had really nice margin improvement. Can you talk about if that's margin range you expect going forward as you get to that 100,000,000 revenue or if the cost structure is going to change at all as you scale up?

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

Sure. I'll take that question. So the meaningful reduction in our cost of revenue from 14,100,000.0 down to 6,400,000.0 year over year, this represent a decrease from 64% to just 44% of revenue. It is a direct result of a carefully executed strategy designed for sustainable profitability rather than a mere short term cost cutting. Now, let me break down exactly how we have achieved this.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

we have dramatically optimized our rewards and promotional programs, reducing our spending in this area by over 50% year over year. Critically, we've accomplished this while maintaining robust conversion rate. This efficiency gain was possible because we now leverage a large engaged member base of over 8,000,000 users. By employing a fast data analytics and target AI driven strategy, we ensure incentives reach the right users at precisely the right time, significantly improving ROI. we have intentionally shift our revenue mix towards higher margin, higher quality verticals like insurance and wealth management.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

These segments now contributed roughly 25% of total revenue, an increase of 11 points year over year. And they offer inherently better unit economics. For example, our recently launched car insurance products in Singapore and Hong Kong now only offers period user experience with real time price comparison, but they also create predictable recurring revenue through annual policy renewals for us. Regarding potential impact on our top line growth, Yes, in the immediate terms, we have accepted a trade off, prioritizing quality and margin expansion over rapid, less profitable volume growth. But this decision is strategic and deliberate.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

By emphasizing profitability and sustainability now, we are laying the groundwork for stronger and more predictable long term growth. In short, while our near term revenue growth might be more measured, we are confident that this disciplined approach positions us far better in the long run. Our focus on high margin recurring revenue streams, such as insurance renewal and wealth products means we are building lasting customer relationships and sustainable growth engines that compound value up year after year. Thank you.

[William Gregozeski, President & Director of Research at Greenridge Global LLC]

Thanks. And then on the operating structure, you touched on the AI integration in the prepared remarks. What kind of increases do you expect on the operating costs as you scale to that 100,000,000 revenue?

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

Yep. Okay. Let me take this question as well. The significant improvement we have delivered in our operating cost structure are indeed fundamental to how we will run the business moving forward. To put this clearly, our recent cost reduction with advertising and marketing down 25%, technology expense down 56%, employee expense reduced by 26%, and general administrative costs down 8% year over year are not temporary measures.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

They represent a structural reset to a leaner, more disciplined and sustainable operating model. Now, as we aim to significantly accelerate our revenue growth, particularly in the second half of twenty twenty five, we do anticipate some incremental increase in operating costs. However, importantly, this cost will grow at a far slower rate than revenue. Our technology infrastructure, data platform, and operational processes are now decided to scale efficiently. This means we can accommodate substantial increases in transaction volume and user engagement with our proportionally higher expenses, enabling significant operating leverage.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

We are also strategically directing investment towards high margin verticals like insurance and wealth management, areas crucial to our profitability and margin expansion strategy. Investments here and investments here not only booster our revenue mix, but also contribute directly to healthier long term profitability and recurring revenue streams. Additionally, our adoption of AI driven automation across key business processes such as customer service, content generation, and operational workflows further enhance our ability to scale profitably. This automation reduce many tasks, boost productivity and elevates customer experience, allowing us to maintain quality and trust while efficiently managing cost growth. Ultimately, our disciplined approach ensures that any incremental cost we take on is intentional and directly tied to profitable growth initiatives.

[Danny Leung, Interim CFO & Group Finance Director at MoneyHero]

By maintaining this balance of strategic investment and rigorous cost discipline, we are confident we can achieve our ambitious revenue target, deliver expanding margins, and create sustainable long term value for our shareholders and customers alike.

[William Gregozeski, President & Director of Research at Greenridge Global LLC]

Alright. That's all I have. Thank you.

[Operator]

Thank you. Thank you for the questions. One moment for the next question.

[Analyst]

Yeah.

[Operator]

Next question comes from the line of Nikki Yidankow from Avenue. Please go

[Analyst]

ahead. Yeah. Thank you. Your gross margin have improved year over year. What were the biggest driver of that margin expansion, and how sustainable are we going forward?

[Rohith Murthy, CEO & Director at MoneyHero]

Yes. Let me take this. Our gross margin expansion has been a deliberate outcome of the strategic choices we we we made starting mid twenty twenty four. And I would like to point out, like, three core drivers to it. Number one is our revenue mix shift.

[Rohith Murthy, CEO & Director at MoneyHero]

We've reduced our reliance on low margin verticals like credit cards, which, as we pointed out, now represents 57% of our revenue. It's down from 70%. And we are scaling and have scaled high margin segments like insurance and wealth, which now contributes 25 of our revenue. These, structurally, they carry better unit economics. That's number one.

[Rohith Murthy, CEO & Director at MoneyHero]

Number two is our cost of revenue optimization. We significantly reduced our rewards and fulfillment costs primarily by improving targeting of our promotional spend and economics. Now as a clear market leader, we no longer face direct competitive pressures requiring us to maintain high reward spending. Also, as the leading digital acquisition partner for majority of the banks in the region, we also offer a unique value proposition with our ability to secure favorable bespoke offers and more attractive commercial trusts. We also reduced our reliance on paid marketing, and this is benefiting from stronger organic traffic growth driven by content investments, SEO optimizations, and an improved data platform.

[Rohith Murthy, CEO & Director at MoneyHero]

And the point is our product and UX improvements. Our enhancements to UI and UX and funnel performance have improved conversions, allowing us to drive the same or better outcomes with less spend. Now a good example is our recently launched three click travel insurance flow, which has significantly reduced friction and also improved customer, you know, conversions. Now looking forward, we believe these gains are sustainable. Our margin profile will continue to benefit from growth in recurring and advisory driven verticals like insurance, wealth and lending. We've rebuilt the business with efficiency in mind, and that margin leverage is now coming through consistently.

[Analyst]

Okay. Thank you for your explanation. Can you elaborate on the earning traction you are seeing from the partnership in car insurance? And how meaningful is this to your long term recurring revenue strategy?

[Rohith Murthy, CEO & Director at MoneyHero]

Absolutely. The partnership with Boldtack is strategically significant and transformative for our insurance business, and let me spend some time just breaking this down clearly. Number one is the massive market opportunity. When you think about car insurance, it's mandatory in both Singapore and Hong Kong. Yet today, many consumers will still default to policies sold directly through car dealerships, and these are often at significantly high prices.

[Rohith Murthy, CEO & Director at MoneyHero]

So that's a massive opportunity for us to help users compare and find the right protection and saving hundreds of dollars in the process. The is, which I mentioned is an industry and a market innovation. Now, historically, the insurance purchase journey across our region has been quite cumbersome. Believe it or not, there's no real time pricing, very poor digital experiences, and a complicated fulfillment process. So what we've launched with BOLTEC in Hong Kong and Singapore is genuinely unique and market leading.

[Rohith Murthy, CEO & Director at MoneyHero]

A fully embedded end to end digital experience that provides real time price quotes and a seamless on platform purchase. I mentioned the the early results are encouraging. The initial traction has actually exceeded our expectations. The conversion rates are significantly higher than the previous funnel. And I think the strong unit economics allows us to confidently drive more volume into this funnel, knowing that the economics are working well.

[Rohith Murthy, CEO & Director at MoneyHero]

This is partnership also strategically enables us to now build a book of recurring revenue through the policy renewals, significantly increasing the lifetime value per customer over time. And importantly, these insurance customers also demonstrate higher propensity to explore and purchase across our broader financial products catalog. And this also again further boosts our customer lifetime value. The this you know, I've I've spoken about this in the past, our our bill our buy over bill strategy. And this partnership actually aligns perfectly with the strategy where we can leverage world class technologies rather than building everything in house.

[Rohith Murthy, CEO & Director at MoneyHero]

Now Boltec is a global leader in in insurance technology, and, you know, we share a common investor. So we benefit directly from their technology, their expertise, and an accelerated go to market capability. We are also exploring the possibility of leveraging Boltex insurance license in Taiwan. You know, are a licensed broker in the other three markets. So this gives us an opportunity to also look at insurance in Taiwan to support further growth.

[Rohith Murthy, CEO & Director at MoneyHero]

And finally, we're collaborating with Boltec to launch embedded insurance products. An example would be device protection for all the attractive rewards we offer. And this further expands monetization, but also a better customer engagement opportunity. So in short, this Voltech partnership is not merely a tactical initiative. It's a strategic step change in our insurance business that's driving both immediate and a sustained margin accretive growth.

[Operator]

Thank you for the questions. Our next question comes from Vincent Chen from Securities. Please go ahead.

[Analyst]

Hi. Hi. This is Vincent from USmart. Thank you for taking the call. So congrats on the strong results on first quarter.

[Analyst]

I have a quick question regarding the Credit Hero Club partnership. Could you elaborate on that strategic value of the TransUnion collaboration? Also, particularly how it enhances your monetization potential and and the user engagement metrics.

[Rohith Murthy, CEO & Director at MoneyHero]

Absolutely. Thank you, Vincent. Now Credit Hero Club is a core part of our strategy. Firstly, to deepen user engagement, enhance the approval rates, and improve our monetization, especially in lending and credit cards. Now while partnering with TransUnion and and and with the users' concerns, we now gain access to real time credit data, and this will allow us to make personalized recommendations based on the user's actual credit profiles, not just their stated preferences.

[Rohith Murthy, CEO & Director at MoneyHero]

And and this is powerful for several reasons. Firstly, higher approval rates. Users are now matched precisely with products that they're more likely to be approved for, and this significantly boosts our conversion rates both for our Money Hero and our financial partners. Number two is an increased user retention and engagement. Now credit monitoring, score tracking, and financial insights helps us transform from just a one time comparison destination into a trusted financial platform that users revisit regularly.

[Rohith Murthy, CEO & Director at MoneyHero]

The other thing is just rich data and and and very tailored cross selling. The credit profiles now provide a wealth of data and insights that we can leverage to tailor recommendations across our entire product portfolio, including insurance and wealth products. And again, this deepens our engagement and enhances our user satisfaction. And finally, you know, higher quality and just higher lifetime value users, users who actively monitor the check and work on improving their credit scores typically represent higher quality customers with greater lifetime value. They tend to engage more deeply across our platform.

[Rohith Murthy, CEO & Director at MoneyHero]

And again, this drives higher monetization over time. So again, strategically, the Credit Hero Club now shifts us towards a logged in and a data driven engagement model, and this positions Money Hero again for recurring monetization. It unlocks new premium product opportunities, be it financial coaching or prequalified lending, and and just meaningfully expands the lifetime customer value.

[Analyst]

Okay. Thank you. And a follow-up question on the industry consolidation. So, given the consolidation trends we've observed in the mature markets, developed markets like in The UK, US, so how do you view the competitive landscape evolution in Southeast Asia in SEA? And with the current your current market position, your leading market position and strong balance sheet, what's your capital allocation strategy regarding both the shareholder returns and also other strategic moves, potential m and a opportunities, something like that.

[Rohith Murthy, CEO & Director at MoneyHero]

Great question, Vincent. Now, I've spent a lot of time, as you've mentioned, studying successful businesses in UK and US, and I fully expect the financial aggregation market to evolve along the similar path, just like those mature markets you mentioned like UK and US. Now a bit of history. A decade ago, this region was crowded with multiple smaller platforms, now many of which have since exited or consolidated. Today, Money Hero has clearly emerged as the dominant market leader.

[Rohith Murthy, CEO & Director at MoneyHero]

Our revenues are roughly three times that of our nearest competitor, and we see the scale driven gap continuing to widen. Now given the current market conditions, with many fintech startups facing cash constraints and difficulty raising funds, we expect this consolidation trend to accelerate. We believe there will be attractive opportunities ahead, you know, as smaller or distressed players look for strategic partnership or exits. You're right with our strong cash position and a debt free balance sheet and a significant regional footprint. We are the only ones in Hong Kong, Singapore, and Taiwan.

[Rohith Murthy, CEO & Director at MoneyHero]

Moneyro is uniquely positioned to capitalize on these consolidation opportunities. And additionally, when you think about it, our strategic partnerships such as Bold Tech and Insurance, TransUnion and Credit, we're really trying to further strengthen this entire ecosystem that gives us both the scale as well as the technological advantage that no other regional player can replicate. But I want to be clear, we are very highly disciplined. Yes. We have, you know, the cash on hand, but we are very closely watching for opportunities that can enhance our market leadership, that can expand our product capabilities, or that can further improve our margin profile.

[Rohith Murthy, CEO & Director at MoneyHero]

Any potential move must be strategically compelling. It must be clearly accretive and synergistic with our core business. We do see this evolution as a as a natural next stage for our industry, and I do believe we are very well placed financially, strategically, and operationally to lead and benefit from this next phase of growth.

[Operator]

Thank you for the questions. At this time, we have no more questions from the line. Allow me to hand the call back to Rohit for closing remarks.

[Rohith Murthy, CEO & Director at MoneyHero]

Thank you all for those great questions. And and thank you for the entire Moneyhero team for for all the hard work. I'm really pleased, as I mentioned, with the q one results, and I look forward to be back to share with the q two results in the coming months. Have a great evening wherever you are. Thank you.

[Operator]

That does conclude today's conference call. Thank you for your participation. You may now disconnect your

Participants

Executives

• Rohith Murthy, CEO & Director
• Danny Leung, Interim CFO & Group Finance Director

Analysts

• Executive
• William Gregozeski, President & Director of Research at Greenridge Global LLC
• Analyst