Stephen Wong

Stephen Wong asked about initiatives MoneyHero Group plans to undertake to restore year-over-year revenue levels, given the Q2 decline, and requested clarification on the factors contributing to the improved net loss and EBITDA year over year.

Answer

Interim CFO & Group Finance Director, MoneyHero, Danny Leung, explained that the Q2 revenue decline reflects a strategic reset prioritizing quality, noting sequential growth of over 20% from Q1. He outlined plans to scale higher-margin verticals like insurance and wealth (targeting 28-30% of H2 revenue), deepen member engagement through initiatives like Credit Hero Club and AI-assisted journeys, and leverage commercial momentum from fixed-fee programs. Mr. Leung attributed the improved net loss and EBITDA to three key drivers: a mix shift towards higher-margin products (insurance and wealth at 27% of Q2 revenue, up from 20% YoY), enhanced unit economics and cost discipline (cost of revenue improved to 51% from 67% YoY, operating costs down 37% YoY), and the resulting narrowing of adjusted EBITDA loss to $2 million from $9.3 million a year ago, with positive net income of $0.2 million.

Stephen Wong asked about initiatives MoneyHero plans to undertake to restore revenue to previous year's levels, given the year-over-year decline in Q2. He also inquired about the specific factors contributing to the improved net loss and EBITDA despite consistent revenue drops.

Answer

Interim CFO Danny Leung explained that the Q2 revenue decline was a strategic decision to prioritize revenue quality, noting sequential growth of over 20% from Q1 to Q2. He outlined initiatives to restore growth, including scaling higher-margin verticals like insurance and wealth (targeting 28-30% of H2 revenue), deepening member engagement through programs like Credit Hero Club, leveraging AI-assisted journeys, and capitalizing on commercial momentum with fixed-fee programs. Regarding improved profitability, Mr. Leung cited three main drivers: a mix shift towards higher-margin products (insurance and wealth now 27% of revenue, up from 20% YoY), enhanced unit economics and cost discipline (cost of revenue improved to 51% from 67% YoY, operating costs down 37% YoY, with AI contributing to efficiency), and the resulting narrowing of adjusted EBITDA loss to $2 million and positive net income of $0.2 million.

Stephen Wong asked about MoneyHero's initiatives to restore year-over-year revenue growth, noting the Q2 decline despite sequential Q1 to Q2 growth. He also sought clarification on the specific factors contributing to the year-over-year improvement in net loss and adjusted EBITDA, given the consistent revenue drops.

Answer

Danny Leung, Interim CFO of MoneyHero, explained that the year-over-year revenue decline was a deliberate strategic reset to prioritize revenue quality and unit economics, while sequential growth of over 20% from Q1 to Q2 indicates returning momentum. He outlined initiatives to restore growth, including scaling higher-margin verticals like insurance and wealth (targeting 28-30% of H2 revenue), deepening member engagement with programs like Credit Hero Club, and leveraging AI-assisted journeys and commercial momentum from fixed-fee programs. Regarding improved profitability, Mr. Leung attributed it to three main drivers: a mix shift towards higher-margin products (insurance and wealth at 27% of Q2 revenue, up from 20% a year ago), improved unit economics and cost discipline (cost of revenue down to 51% from 67% year-over-year, operating costs down 37%), and the embedding of AI to scale throughput with flat headcount. He highlighted that these structural changes led to a narrowed adjusted EBITDA loss of $2 million and a net income of $0.2 million in Q2.