PensionBee Group plc 4Q 2023 Results Announcement (8147A)
24 Enero 2024 - 10:30AM
UK Regulatory
TIDMPBEE
RNS Number : 8147A
PensionBee Group plc
24 January 2024
PensionBee Group plc
Incorporated in England and Wales
Registration Number: 13172844
LEI: 2138008663P5FHPGZV74
ISIN: GB00BNDRLN84
Wednesday 24 January 2024
PensionBee Group plc
Trading Update for the twelve months ended 31 December 2023
Successful strategy drives strong performance for 2023
Adjusted EBITDA Profitability achieved for Q4 2023
PensionBee Group plc ('PensionBee' or the 'Company'), a leading online pension provider, today
announces a trading update (unaudited) for the twelve months ended 31 December 2023.
Highlights
* Strong continued customer growth, with Invested
Customers having increased by 25% year on year to
229,000 (December 2022: 183,000).
* Assets under Administration increased by 44% year on
year to GBP4.4bn (December 2022: GBP3.0bn),
underpinned by strong Net Inflows from new and
existing customers.
* Customer Retention Rate remained >95%, driven by
customer satisfaction and continuous product
innovation.
* Revenue increased by 35% to GBP24m (2022: GBP18m),
with Annual Run Rate Revenue having increased by 44%
to GBP28m (2022: GBP20m).
* Adjusted EBITDA of GBP(8)m (2022: GBP(20)m) improved
by 57% year on year, driven by strong Revenue growth
and cost efficiencies across the business.
* Adjusted EBITDA profitability achieved in Q4 2023,
with positive Adjusted EBITDA Margin of 8% as
compared to (98)%, (50)% and (17)% in Q1, Q2 and Q3
respectively.
PensionBee delivered strong growth across all of its key performance indicators, with Assets
under Administration ('AUA') increasing by 44% to GBP4.4bn. The Company has seen excellent
momentum in the growth of its customer base, adding approximately 46,000 new Invested Customers
across the year, taking the overall Invested Customer base to 229,000. This demonstrates the
continued success of its data-led, multi-channel customer acquisition approach and highlights
the clear demand for its customer-focused proposition.
Revenue grew by 35% year on year to GBP24m as a result of strong Net Inflows from new and
existing customers, with the Annual Run Rate Revenue increasing by 44% to GBP28m(1) . The
Company's sustained high Customer Retention Rate and AUA Retention Rate, both >95%, have continued
to drive recurring Revenue.
Continued Advancement of Strategic Goals
The Company's GBP9.7m marketing investment across the year, bringing the cumulative marketing
investment since inception to GBP55m, has driven sustained brand awareness and customer acquisition.
PensionBee's brand awareness activities for the year have been centred on cost-effective channels
such as radio, television and sports sponsorship. This approach has been accompanied by continued
investment in performance channels such as search and social media, with data-led insights
driving decision-making. Cost per Invested Customer ('CPIC') has continued to demonstrate
a downward trajectory with the achievement of an In-Period CPIC for 2023 of GBP212(2) , highlighting
the Company's marketing capability and efficiency of spend.
PensionBee has continued to innovate, to meet the needs of its customers and support their
engagement. It has continued to provide customers with helpful tools they need to plan for
their retirement, such as its tax relief, state pension and inflation calculators, and the
introduction of in-app withdrawals has enabled customers at retirement age to pay themselves
a salary through retirement. The award-winning Pension Confident Podcast was also made available
within the app, making it easy for customers to directly access valuable content on the go.
The importance that the Company places on delivering outstanding customer service has been
evidenced through the achievement of a 4.6 Excellent Trustpilot rating from approximately
10,000 Trustpilot reviews, and consistently rapid response times on phones and live chat.
PensionBee has continued to invest in the scalability of its technology platform through internal
automation, efficiency, security and pension transfer improvements to support productivity,
as demonstrated by a 15% improvement in productivity.(3) The Company continued to prioritise
security and its customers' cyber safety, through its successful ISO27001 re-certification,
the onboarding of a new 24/7 security operations centre and the implementation of mandatory
two-factor authentication for all customers.
Outlook
The Board remains confident in PensionBee's potential for continued growth and profitability,
due to a combination of the strength and stability of its existing customer base, together
with its ability to attract new customers that generate growth in recurring Revenue through
its scalable technology platform.
The Company is pleased to reiterate the guidance previously provided, with an ambition to
pursue a c.2% market share target of the substantial GBP700bn UK transferable pensions market
over the next 5-10 years, translating to a Revenue ambition of approximately GBP150m.
The Company remains on track to further reduce Cost per Invested Customer, expecting to achieve
Adjusted EBITDA profitability for the full financial year of 2024, having successfully achieved
Adjusted EBITDA profitability for the fourth quarter of 2023. PensionBee expects to achieve
long-term EBITDA Margins in excess of 50%, leveraging the scalability of its technology platform
and maintaining its high quality service. This is supported by the Company's continued positive
momentum in its trading performance and growth in key indicators, such as Invested Customers
and AUA.
Romi Savova, CEO of PensionBee, commented:
"We are pleased to have substantially grown our customer base throughout the year to approximately
230,000 with GBP4.4bn of Assets under Administration, helping these customers prioritise and
engage with their retirements.
As we approach 10 years since inception, we have reached a pivotal point in our corporate
journey - the achievement of Adjusted EBITDA profitability across the fourth quarter of 2023.
Looking forward, we are confident in the continued growth of the business and the delivery
of profitability for the full year 2024, as we continue to help more and more consumers become
Pension Confident."
Analyst, Investor and Press Presentation
There will be a webcast presentation for analysts, investors and press on Wednesday 24 January
at 5:00pm UK (GMT) / 12:00pm US (EST). Please contact press@pensionbee.com if you would like
to attend.
Alternatively you can register and access the webcast with the following links:
Webcast Link: Webcast for video presentation
Conference Call Link: Conference call for Q&A
Financial Summary
As at Period End
Dec Dec Dec YoY change
2021 2022 2023
------ ------ ------ -----------
AUA (GBPm)(4) 2,587 3,025 4,350 44%
-----------
AUA Retention Rate (% of AUA)(5) >95% >95% >95% Stable
-----------
Invested Customers (thousands)(6) 117 183 229 25%
------ -----------
Customer Retention Rate (% of IC)(7) >95% >95% >95% Stable
------ -----------
Cost per Invested Customer (GBP)(8) 246 248 241 (3)%
------ ------ ------ -----------
Realised Revenue Margin (% of AUA)(9) 0.64% 0.63% 0.64% +1bp
------ ------ ------ -----------
Over the 12-month Period Ending
Dec Dec Dec YoY change
2021 2022 2023
-------- ------- ------ -----------
Revenue (GBPm)(10) 13 18 24 35%
-------- ------- ------ -----------
Cost Base (GBPm) (29) (37) (32) (13)%
-----------
Adjusted EBITDA (GBPm)(11) (16) (20) (8) 57%
-----------
Adjusted EBITDA Margin (% of Revenue)(12) (129)% (110)% (35)% 75ppt
-----------
Over the 12-month Period Ending
Dec Dec Dec YoY change
2021 2022 2023
------- ------- ------ ------------
Opening AUA (GBPm)(4) 1,358 2,587 3,025 17%
------ ------------
Gross Inflows (GBPm) 1,099 1,060 1,174 11%
------------
Gross Outflows (GBPm) (145) (197) (318) 61%
------------
Net Inflows (GBPm) 955 863 857 (1)%
------------
Market Growth and Other (GBPm) 275 (424) 464 n/m
------------
Closing AUA (GBPm)(4) 2,587 3,025 4,350 44%
------------
Over the 3-month Period Ending
Q4 Q4 Q4 YoY change
2021 2022 2023
------- ------ ------ ------------
Revenue (GBPm)(10) 4 5 7 39%
------- ------ ------ ------------
Adjusted EBITDA (GBPm)(11) (5) (1) 1 n/m
------------
Adjusted EBITDA Margin (% of Revenue)(12) (118)% (25)% 8% 33ppt
------------
Notes
* ppt is the absolute change in percentage.
1 Annual Run Rate ("ARR") Revenue is calculated using the Recurring
Revenue for the relevant month multiplied by 12.
--------------------------------------------------------------------------
2 In-Period CPIC is defined as the marketing costs for the relevant
period divided by the number of Invested Customers for that
same period.
--------------------------------------------------------------------------
3 Invested Customers per Staff Member calculated using LTM average
for total workforce. Management information as at 30 December
2023.
--------------------------------------------------------------------------
4 Assets under Administration ('AUA') is the total invested value
of pension assets within PensionBee Invested Customers' pensions.
It measures the new inflows less the outflows and records a
change in the market value of the assets. AUA is a measurement
of the growth of the business and is the primary driver of Revenue.
--------------------------------------------------------------------------
5 AUA Retention measures the percentage of retained PensionBee
AUA from Transfer Outs over the average of the trailing twelve
months. High AUA retention provides more certainty of future
Revenue. This measure can also be used to monitor customer satisfaction.
--------------------------------------------------------------------------
6 Invested Customers ('IC') means those customers who have transferred
pension assets or made contributions into one of PensionBee's
investment plans.
--------------------------------------------------------------------------
7 Customer Retention Rate measures the percentage of retained
PensionBee Invested Customers over the average of the trailing
twelve months. High customer retention provides more certainty
of future Revenue. This measure can also be used to monitor
customer satisfaction.
--------------------------------------------------------------------------
8 Cost per Invested Customer ('CPIC') means the cumulative advertising
and marketing costs incurred since PensionBee commenced trading
up until the relevant point in time divided by the cumulative
number of Invested Customers at that point in time. This measure
monitors cost discipline of customer acquisition. PensionBee's
desired CPIC threshold is GBP200-GBP250.
--------------------------------------------------------------------------
9 Realised Revenue Margin is calculated by using the last twelve
months of Recurring Revenue over the average quarterly AUA held
in PensionBee's investment plans over the period.
--------------------------------------------------------------------------
10 Revenue means the income generated from the asset base of PensionBee's
customers, essentially annual management fees charged on the
AUA, together with a minor revenue contribution from other services.
--------------------------------------------------------------------------
11 Adjusted EBITDA is the profit or loss for the period before
taxation, finance costs, depreciation, share based compensation
and transaction costs.
--------------------------------------------------------------------------
12 Adjusted EBITDA Margin means Adjusted EBITDA as a percentage
of Revenue for the relevant period.
--------------------------------------------------------------------------
Contacts
PensionBee press@pensionbee.com
Becky O'Connor
Laura Dunn-Sims
About PensionBee
PensionBee is a leading online pension provider, making pension management easy for its customers
while they save for a happy retirement.
PensionBee helps its customers combine their old pension pots, make flexible contributions,
invest in line with their goals and values and make withdrawals from the age of 55 (increasing
to 57 in 2028). PensionBee offers a range of investment plans, including fossil fuel free
and impact investing options, from some of the world's largest asset managers.
Operating in the GBP1 trillion market of Defined Contribution pension assets, PensionBee has
grown rapidly through its direct-to-consumer marketing activities, creating a household brand
name for the mass market.
The Company has c.GBP4.4bn in Assets Under Administration and 229,000 Invested Customers as
at 31 December 2023. PensionBee has consistently maintained a Customer Retention Rate in excess
of 95% and an Excellent Trustpilot rating from more than 10,000 customers, reflecting its
commitment to outstanding customer service.
PensionBee is admitted to trading on the Premium Segment of the London Stock Exchange's Main
Market (LON:PBEE).
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