Second quarter revenue of US$20.7 million, up 24% Year-Over-Year
SINGAPORE - Media OutReach Newswire - 20 September 2024 - MoneyHero Limited (Nasdaq: MNY) ("MoneyHero" or the "Company"), a market leading personal finance and digital insurance aggregation and comparison platform in Greater Southeast Asia, today announced financial results for the quarter ended June 30, 2024.
Management Commentary:
Rohith Murthy, Chief Executive Officer, stated "I am pleased to report that MoneyHero Group delivered another strong quarter, with revenue increasing by 24% year-over-year to US$20.7 million. This performance underscores our position as the leading personal finance aggregator in the region. We have achieved significant market share gains, highlighted by a 68% year-over-year surge in revenues in Q2 2024 in Singapore, primarily driven by credit card and insurance product demand. With 970,000 banking and insurance applications facilitated in the first half of 2024, our leadership is evident, and we see substantial opportunities for continued growth in this fragmented industry.
Our strategic focus on operational efficiency is already delivering positive results, with Adjusted EBITDA losses expected to narrow next quarter. We still anticipate achieving Adjusted EBITDA profitability on a monthly basis within Q4 2024, supported by targeted actions to streamline operations, optimize marketing spend, and enhance overall efficiency. Our disciplined approach, which includes our recent headcount reduction and implementation of AI-driven processes, is creating significant operating leverage across the business.
We are transitioning our focus from purely driving traffic growth to prioritizing monetizable traffic that leads to conversions and applications. This strategic shift has already resulted in a 50% increase in approved applications, highlighting our capability to convert higher-value traffic into measurable outcomes while optimizing growth.
We are also rolling out innovative new capabilities, including a redesigned mobile app, a new car insurance vertical, and enhanced UX/UI across our platforms. These initiatives are expected to boost customer engagement and drive higher-margin revenue streams. With a robust membership base of 6.5 million, we are strategically positioned to cross-sell and upsell, unlocking greater value from our existing user base.
Our capital position remains robust, allowing us to pursue strategic investments and explore M&A opportunities to further consolidate our leadership. The recent exit from Malaysia as an operator, while retaining a strategic stake, reflects our commitment to focusing on high-growth regions and forging value-maximizing partnerships.
As we pivot toward driving Adjusted EBITDA improvements, our focus on efficiency and higher-margin products such as personal loans, insurance, and advertising revenue, will be critical drivers of profitability. While we have faced challenges in certain markets, we have taken corrective actions and anticipate a return to strong growth. We estimate that MoneyHero will achieve positive Adjusted EBITDA in the fourth quarter of 2024, positioning us to deliver sustainable, long-term value for our shareholders."
Hao Qian, Chief Financial Officer, added: "In Q2 2024, MoneyHero's strategic expansion generated solid growth in approved applications, which resulted in 24% year-over-year revenue growth, reaching over US$20.7 million. We've made strong market share gains, particularly in our core markets, as we continue to expand across Greater Southeast Asia. However, our investments in strategically expanding customer acquisition, brand building, technology re-platforming, and data infrastructure contributed to a loss of US$(12.2) million and an Adjusted EBITDA loss of US$(9.3) million for the quarter. During the second quarter, we remained committed to executing our growth strategy, with a goal to accelerate key verticals and further extend our market share leadership. The primary drivers behind the increase in our operating and Adjusted EBITDA losses include:
- Strategic Investments: We prioritized growth through increased investments in branding, customer acquisition, data and technology, aimed at capturing new customers and building infrastructure for future profitability
- Provider Constraints: In Q2, several providers in Taiwan and the Philippines paused new card acquisitions due to significant platform migrations, which temporarily impacted our financial performance. We expect acquisition volumes to normalize in Q3 as these migrations near completion. Additionally, the exit of a key provider from several of our markets had a notable effect on both revenue and profitability. To offset this, we've invested in expanding other providers' products and diversified into new verticals. We anticipate that the revenue and profitability impact from this provider's exit will be largely mitigated by Q3 and Q4, with minimal effect anticipated moving forward.
- Increased Operating Costs: Total operating costs rose year-over-year, largely due to additional expenses associated with being a public company, including audit fees, D&O insurance, and IR/PR-related fees.
Looking ahead, we expect a narrowing of our Adjusted EBITDA loss in the second half of 2024, with margins having started to recover in early Q3 and continuing to improve throughout the year. We have initiated a comprehensive review of our organizational structure, which began with our recent reorganization announcement, and we expect it to be completed by the end of Q3. This will create a more streamlined and cost-efficient operation. We expect to reach Adjusted EBITDA profitability on a monthly basis by year end, as we have been focusing on efficiency and optimizing the returns on our growth investments."
Second Quarter 2024 Financial Highlights
- Revenue increased by 24% year-over-year to US$20.7 million in the second quarter of 2024
- Online financial comparison platforms revenue increased by 26% year-over-year to US$17.8 million
- Creatory, MoneyHero's B2B business, revenue increased by 13% year-over-year, contributing 14% of Group revenue in the second quarter of 2024, as compared to 16% in the prior year period
- Revenue by markets:
- Singapore revenue increased by 68% year-over-year to US$9.0 million in the second quarter, with the strongest growth coming from the credit card and insurance verticals
- Hong Kong revenue increased by 19% year-over-year to US$7.3 million in the second quarter, with the strongest growth coming from the other banking verticals
- Philippines revenue decreased by 16% year-over-year to US$2.9 million in the second quarter, largely due to reduced volumes with a key client as it completes system and database migration post-acquisition
- Taiwan revenue decreased by 4% year-over-year to US$1.4 million in the second quarter due to paused product offerings for certain key clients
- Revenue from insurance products increased by 89% year-over-year to US$2.2 million in the second quarter of 2024, contributing 11% of Group revenue, as compared to 7% in the prior year period
- Total operating costs and expenses increased to US$34.4 million in the second quarter of 2024 from US$25.5 million in the prior year period, driven primarily by increased investment in marketing and customer acquisition as part of the Company's strategy to expand market share and increase brand awareness
- Loss for the period decreased to US$(12.2) million in the second quarter of 2024 from US$(68.6) million in the prior year period
- Adjusted EBITDA loss increased to US$(9.3) million in the second quarter of 2024 from US$(0.6) million in the prior year period
- As of June 30, 2024, the Company had a debt-free balance sheet with US$56.5 million in cash and cash equivalents
Second Quarter 2024 Operational Highlights
- Monthly Unique Users decreased by 17% year-over-year to 7.7 million in the second quarter of 2024
- MoneyHero Group Members, to whom we can provide more tailored product information and recommendations, grew by 53% year-over-year to 6.5 million as of June 30, 2024 due to membership growth across all markets
- Approved Application volumes increased by 50% year-over-year in the second quarter to 211,000, driven by strong growth in the Company's credit card and insurance products
Business Outlook
- For the third quarter of 2024, the Company expects its Adjusted EBITDA losses to narrow and be between US$5-6 million. This expectation reflects the Company's current and preliminary view on the market and operational conditions, which is subject to change.
Capital Structure
The table below summarizes the capital structure of the Company as of June 30, 2024:
| Share Class | Issued and Outstanding |
| Class A Ordinary | 28,227,579[1] |
| Class B Ordinary | 13,254,838 |
| Preference Shares | 2,407,575 |
| Total Issued Shares | 43,889,992 |
| Employee Equity Options | 1,020,697[2] |
| Issued Class A Ordinary Shares Underlying Employee Equity Options | (521,630)[3] |
| Total Issued and Issuable Shares[4] | 44,389,059 |
| Summary of financial / KPI performance | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||
| 2024 | 2023 | 2024 | 2023 | ||
| (US$ in thousands, unless otherwise noted) | |||||
| Revenue | 20,674 | 16,650 | 42,849 | 34,553 | |
| Adjusted EBITDA | (9,336) | (593) | (15,775) | (892) | |
| Clicks (in thousands) | 2,274 | 1,993 | 4,568 | 3,877 | |
| Applications (in thousands) | 476 | 409 | 970 | 784 | |
| Approved Applications (in thousands) | 211 | 140 | 416 | 260 | |
| Revenue breakdown | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| US$ | % | US$ | % | US$ | % | US$ | % | ||
| (US$ in thousands, except for percentages) | |||||||||
| By Geographical Market: | |||||||||
| Singapore | 9,018 | 43.6 | 5,380 | 32.3 | 17,963 | 41.9 | 10,939 | 31.7 | |
| Hong Kong | 7,266 | 35.1 | 6,095 | 36.6 | 14,982 | 35.0 | 11,736 | 34.0 | |
| Taiwan | 1,424 | 6.9 | 1,481 | 8.9 | 2,826 | 6.6 | 3,805 | 11.0 | |
| Philippines | 2,938 | 14.2 | 3,496 | 21.0 | 6,917 | 16.1 | 7,627 | 22.1 | |
| Malaysia | 28 | 0.1 | 197 | 1.2 | 161 | 0.4 | 445 | 1.3 | |
| Total Revenue | 20,674 | 100.0 | 16,650 | 100.0 | 42,849 | 100.0 | 34,553 | 100.0 | |
| By Source: | |||||||||
| Online financial comparison platforms | 17,760 | 85.9 | 14,077 | 84.5 | 35,818 | 83.6 | 28,911 | 83.7 | |
| Creatory | 2,914 | 14.1 | 2,574 | 15.5 | 7,030 | 16.4 | 5,642 | 16.3 | |
| Total Revenue | 20,674 | 100.0 | 16,650 | 100.0 | 42,849 | 100.0 | 34,553 | 100.0 | |
| By Vertical: | |||||||||
| Credit cards | 12,734 | 61.6 | 11,945 | 71.7 | 28,159 | 65.7 | 25,023 | 72.4 | |
| Personal loans and mortgages | 2,577 | 12.5 | 2,154 | 12.9 | 5,874 | 13.7 | 4,491 | 13.0 | |
| Insurance | 2,178 | 10.5 | 1,154 | 6.9 | 4,005 | 9.3 | 2,421 | 7.0 | |
| Other verticals | 3,185 | 15.4 | 1,396 | 8.4 | 4,810 | 11.2 | 2,618 | 7.6 | |
| Total Revenue | 20,674 | 100.0 | 16,650 | 100.0 | 42,849 | 100.0 | 34,553 | 100.0 | |
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| (in millions, except for percentage) | |||||||||
| Monthly Unique Users | |||||||||
| Singapore | 1.3 | 16.9% | 1.7 | 18.6% | 1.4 | 17.1% | 1.8 | 19.3% | |
| Hong Kong | 1.1 | 14.4% | 1.5 | 15.6% | 1.1 | 13.9% | 1.5 | 16.6% | |
| Taiwan | 2.2 | 28.5% | 2.7 | 29.2% | 2.1 | 26.2% | 2.5 | 28.1% | |
| The Philippines | 3.0 | 38.5% | 3.2 | 33.9% | 3.3 | 40.8% | 3.0 | 32.7% | |
| Malaysia | 0.1 | 1.7% | 0.3 | 2.7% | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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