MoneyHero Limited

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. 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 million 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're 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. 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 YOY 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 million revenue target for 2025. Importantly, this diversified revenue mix is also improving our profitability without sacrificing growth opportunities. It's growth with quality. Now, credit cards remain the largest revenue driver, contributing 57% of our total revenue in Q1. 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, Stanchart, 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. 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 Boltek in Hong Kong. Customers can now compare real-time quotes and purchase car insurance policies directly on our platform and avoid getting redirected to third-party sites and industry-first in Hong Kong. The result is a smoother user experience that drives higher conversion rates and generates recurring revenue through policy renewals. 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 are 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. 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 second 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. Essentially, we're using 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. Last year, our operations faced headwinds when a major banking partner existed in the market, impacting our revenues. 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 existed. 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 second half of the year as these offerings gain traction. It's a great example of how we can rebound from challenges by leveraging our regional scale and relationships ability to partner with leading financial institutions that remains a competitive advantage across all our markets 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 first 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% YOY reduction in employee-related costs. 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. 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 Money Hero 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. 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're thinking about shareholder value. continued market evolution and consolidation in the months ahead. As a well capitalized market leader with 36.6 million 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 fund at M&A and 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. 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're 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. Additionally, we strengthen 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. We expect to hit positive adjusted EBITDA during later part of the year and from that point onward we expect to expand our bottom line as our revenue ramps towards our 100 million 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're 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 in ROI, we can capitalize on growth opportunities without deepening our cash burn. 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 you 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. 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 Leong, our Interim CFO. Thank you, Rohit.

Good day, everyone. Our Q1 results demonstrate continued progress in executing the strategic pivot we initiated in the second half of 2024. 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 $14.3 million, reflecting a strategic pivot to reduce marketing spend and focus on higher quality and margin products, our revenue mix substantially improved it. 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. 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 cost, and general and administrative expense. These ain't just one-off cuts. 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. AI hasn't driven this reduction, but it's 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 2.4 million from 13.1 million a year ago, more than 10 million of improvement. Adjusted EBITDA loss also improved significantly year-over-year to 3.3 million, underscoring a clear path toward sustainable profitability. Looking forward, we expect sequential improvements in adjusted EBITDA throughout 2025. 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 $36.6 million 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. That concludes our prepared remarks for today. I'll now turn the call over to the operator to begin the Q&A section. Operator, please go ahead.

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