PensionBee Group (PBEE) Q3 2024 TU earnings summary

Executive summary

• Achieved strong growth in assets under administration (AUA), revenue, and invested customers in Q3 2024, with positive adjusted EBITDA for the second consecutive quarter, supporting full-year breakeven expectations.

• Expanded into the U.S. market with SEC registration and partnership with State Street Global Advisors, with initial live testing showing positive consumer response and ongoing development of local features.

• Continued investment in brand awareness, reaching an all-time high of 58% prompted awareness in the U.K., and maintained marketing efficiency with stable cost per invested customer.

• Invested customers grew 16% year-on-year to 260,000.

• Group revenue increased 37% year-on-year to £9m for Q3 2024; annual run rate revenue up 41% to £34m.

Financial highlights

• AUA reached £5.5 billion, up 41% year-on-year; annual run rate revenue at £34 million, also up 41% year-on-year; invested customers at 260,000, up 16% year-on-year.

• Revenue margin in Q3 2024 was 0.64%, supporting 41% year-on-year ARR growth and 40% last twelve months revenue growth.

• Net flows YTD: £538m from new customers, £153m from existing customers.

• Cash balance at £14.6m as of September 2024.

• Adjusted EBITDA margin improved to 9% in Q3 2024 from (17)% in Q3 2023.

Outlook and guidance

• Expecting group revenue above £30 million and breakeven profitability for 2024.

• Medium-term (3–5 years) target: revenue above £100 million and adjusted EBITDA margin of ~20%.

• Long-term (5–10 years) target: revenue above £250 million and adjusted EBITDA margin of ~50%.

• U.K. business to remain profitable and cash generative, with increased marketing spend planned to drive customer growth.

• Targeting group adjusted EBITDA breakeven for FY 2024.