PensionBee Group (PBEE) H2 2024 earnings summary

Executive summary

• Achieved adjusted EBITDA breakeven at the group level in 2024, with the U.K. business profitable and the start of global operations, including U.S. market entry.

• Expanded into the U.S., increasing addressable market to over $22 trillion and covering 85% of the global DC market.

• U.K. business saw strong brand awareness, product innovation, and industry-leading customer service, while U.S. operations established key partnerships and launched a native app.

• Reached GBP 6 billion in assets under administration (AUA), with strong growth driven by net inflows and high retention rates.

• Achieved group profitability a decade after founding, with continued revenue and margin growth.

Financial highlights

• Group revenue rose 39% year-over-year to £33.2m, with a 53% CAGR since IPO and U.K. revenue margin stable at 0.64%.

• AUA increased 34% year-over-year in 2024 to £5,841m, driven by net inflows and high retention rates (>95%).

• Gross inflows increased 14% to over GBP 1.3 billion; average incoming account size rose from GBP 16,000 to GBP 20,000.

• Adjusted EBITDA improved from £(8.2)m in 2023 to £0.4m in 2024; profit before tax loss narrowed to £(3.1)m.

• U.K. cost base remained flat, with technology costs up only 3% while revenue grew 44%.

Outlook and guidance

• 2025 guidance targets revenue above £30m and continued adjusted EBITDA profitability.

• Medium-term (3–5 years): targeting group revenue above GBP 100 million and adjusted EBITDA margin of ~20%, with U.K. as primary contributor.

• Long-term (5–10 years): targeting over GBP 250 million in revenue and ~50% adjusted EBITDA margin, with U.K. and U.S. contributing more equally.

• U.S. business expected to generate a small loss in 2025 as investment continues, with increased marketing support from State Street.

• Cash balance of ~£35m supports further U.K. scaling and U.S. investment.