MoneyHero Group narrows loss by 78% despite 1% revenue drop in FY2024, driven by higher insurance and wealth revenue
SINGAPORE: Personal finance aggregation and comparison platform MoneyHero Group managed to cut its net loss by 78% to US$37.8 million (S$49.36 million) for the full year of 2024, narrowing from US$172.6 million the previous year, despite a 1% drop in revenue for 2024 to US$79.5 million.
Net loss for the full year 2023 included US$143.4 million in non-operating costs, mainly from share-based payments for the Bridgetown Holdings merger, finance costs, and changes in the value of financial instruments.
The group, also a digital insurance brokerage provider in Greater Southeast Asia, managed to narrow its losses when it shifted to high-margin products in the second half of 2024 (H2 2024) to boost profitability, according to its press release on Wednesday (April 30).
For the full year of 2024, the group's insurance revenue grew by 40% year-on-year (YoY) to US$8.2 million, now accounting for 10% of the total revenue, compared to just 7% last year. Revenue from wealth products also jumped by 138% to US$8.5 million, driven by growth in stock and bank account products.
In the fourth quarter of 2024 (Q4 2024) alone, insurance revenue rose by 10% YoY to US$2.1 million, making up 14% of total revenue, up from 7% in the same period last year. Wealth revenue jumped by 195% to US$2.4 million, contributing 15% of the total revenue, compared to just 3% in the same period the previous year.
While adjusted EBITDA loss in Q4 2024 narrowed to US$2.9 million from US$4.6 million a year earlier, it widened to US$23.7 million for the full year, compared to US$6.8 million in 2023.
Total operating costs and expenses, excluding net foreign exchange differences, increased by 3% YoY to US$114.9 million for the year 2024, largely due to higher advertising and marketing expenses.
As of Dec 31, 2024, the group had a debt-free balance sheet with US$42.5 million in cash and cash equivalents.
In addition, the group's monthly unique users reached 6.2 million in Q4 2024, while the number of MoneyHero Group members who received tailored product information and recommendations grew 42% YoY to 7.5 million.
Approved application volumes also rose 21% to 767,000, driven by growth in the company's insurance products.
MoneyHero Group's CEO Rohith Murthy said, 'Looking ahead to 2025, we will maintain our focus on scaling high-margin verticals, particularly insurance, while continuing to tighten cost controls and simplifying workflows. We are actively working on deploying AI-powered customer service tools designed to significantly reduce inquiry volumes and achieve higher first-contact resolution rates. Additionally, we are piloting generative AI solutions to accelerate and scale content production efficiently.'
The group's interim CFO Danny Leung added, 'We expect adjusted EBITDA to consistently improve, building on the significant progress we made during the fourth quarter. With margins steadily improving, we are well-positioned to drive growth momentum heading into 2025, strengthening our confidence to generate positive adjusted EBITDA on a quarterly basis in the second half of 2025.' /TISG
Read also: CLAS reports 4% YoY gross profit increase for Q1 FY2025
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