REG - PensionBee Group plc - Q1 2025 Results
23/04/2025 16:30
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RNS Number : 9172F PensionBee Group plc 23 April 2025
PensionBee Group plc
Incorporated in England and Wales
Registration Number: 13172844
LEI: 2138008663P5FHPGZV74
ISIN: GB00BNDRLN84
23 April 2025
PensionBee Group plc
Q1 2025 Results
Successful Strategy drives Strong and Resilient Financial Performance
PensionBee Group plc ('PensionBee' or the 'Company', together with its
subsidiaries the 'Group'), a leading online pension provider, today announces
a trading update (unaudited) for the quarter ended 31 March 2025.
Summary
· Invested Customers(1) increased by 14% year on year to 275,000
(Q1 2024: 240,000), demonstrating strong continued growth driven by the
Company's data-led, efficient customer acquisition approach and PensionBee's
consistent prompted brand awareness of 56%(2) (Q1 2024: 55%).
· Assets under Administration ('AUA')(3) increased by 20% year on
year to £5.8bn (Q1 2024: £4.9bn), underpinned by strong Net Flows from new
and existing customers and supported by strong Customer(4) and AUA(5)
Retention Rates of >95% (Q1 2024:>95%).
· Group Revenue for the quarter increased by 23% year on year to
£9.1m (Q1 2024: £7.4m). Group LTM Revenue increased by 34% to £34.9m (Q1
2024: £26.0m),(6) with Annual Run Rate Revenue increasing by 17% to £36.2m
(Q1 2024: £30.8m).(7)
· Group Adjusted EBITDA(8) improved to £(2.0)m for the quarter (Q1
2024: £(2.1)m) and PensionBee achieved breakeven(9) of £0.5m on a Last
Twelve Months (LTM) basis (LTM March 2024: £(5.3)m). Correspondingly, the
Group LTM Adjusted EBITDA Margin(10) improved to 1% (LTM March 2025: (20)%),
achieved through a combination of increased Revenue and operating leverage and
efficiencies driven by our scalable cost base and technology platform.
Romi Savova, CEO of PensionBee, commented:
"We are delighted to report a successful start to the year, marked by strong
Q1 results despite the challenging macroeconomic climate. The resilience of
our business model enabled us to achieve 20% annual growth in our Assets Under
Administration. This was supported by the continued engagement from our new
and existing customers, who actively transferred their old pensions and grew
their account balances with us through further transfers and contributions.
With market volatility driving increased consumer focus on financial security,
we remain committed to equipping our customers with the necessary support and
tools to navigate their retirements with confidence. Our customer focused
offering now supports 275,000 Invested Customers, furthering our longstanding
ambition to create a world where everyone can enjoy a happy retirement.
Looking forward, we will continue to execute on our US and UK strategies and
we remain confident in the continued growth of our business, and in delivering
ongoing Adjusted EBITDA profitability in the UK for the full year."
UK Business Highlights
Over the first quarter of 2025, PensionBee has continued to make advancements
against its strategic pillars, continuing to innovate to meet the needs of its
growing customer base, ensuring they have the tools they need for a happy
retirement.
● The Company began to accelerate its marketing spend in the first
quarter, with a focus on growing its Invested Customer base over 2025.
PensionBee's 'When your pension is in a good place, you're in a good place'
brand campaign was launched across television, radio and online channels. This
campaign, coupled with data-optimised performance marketing initiatives,
enabled the Company to onboard approximately 10,000 new Invested Customers
over the first quarter (Q1 2024: 11,000). The Company invested £4.1m (Q1
2024: £3.6m) in UK marketing across the first quarter of 2025, bringing the
cumulative UK marketing investment since inception to £68m. The initiatives
and investments of the first quarter have left the Company well positioned to
continue growing its Invested Customer base robustly in the second quarter of
the year.
● New automations were introduced across the entire technology
platform, including in areas related to transfers and withdrawals. As a
result, the Company generated a productivity improvement of 16% year on year
(Q1 2025: 1,369 Invested Customers / Staff Member vs. Q1 2024: 1,184 Invested
Customers / Staff Member).(12)
● The Customer Success Team was supported with the introduction of
'Beetrix' - an internal AI bot designed to serve BeeKeepers internally and
optimise their productivity. The Company is at an early stage of development
with efforts to enable Beetrix to eventually serve customers directly. Our
excellent 4.6★ Trustpilot rating(13) and Customer(4) and AUA Retention(5)
Rates of >95% highlight PensionBee's dedication to providing outstanding
service,(14) which is especially valuable in the current climate.
US Business Highlights
In 2024, PensionBee announced its expansion to the US, the world's largest
retirement market, in partnership with State Street. PensionBee's American
offering enables US consumers to consolidate old retirement accounts into a
new IRA, with investments powered by State Street.
Over the first quarter of 2025 we have been broadening and deepening the
foundations for long-term growth.
● PensionBee continued to build its brand awareness with a particular
focus on channels that facilitate national consumer reach, including social
media, public relations and search. As a result of its engaging content,
PensionBee's social media followership is increasing rapidly, with a total
following of 17,000(15) across YouTube, Meta, Tik Tok and LinkedIn.
● In addition to its direct-to-consumer marketing activities,
PensionBee has been advancing its Safe Harbor IRA, an employer-to-consumer
approach to growing the US customer base. PensionBee's Safe Harbor IRA became
available to employers through several major recordkeepers via a partnership
and technical integration with SS&C. PensionBee is actively promoting the
Safe Harbor IRA to consultants and a number of large and medium sized
employers, with evident strong interest for its consumer-friendly approach.
● Throughout the quarter, PensionBee launched several notable
functionality enhancements for customers, including a Roth IRA to complement
its Traditional IRA, the ability to make seamless new contributions and
certain transfer automations.
The US business will remain in its investment phase for the second quarter,
with a view to increasing marketing expenditure in the second half of 2025.
Group Financial Guidance Framework
As presented at the Capital Markets Day on 1 October 2024, the Company
reiterates its guidance framework:
Revenue Objectives:
● PensionBee has an ambition to reach >£100m of Group Revenue in
the short to medium term (by year 5).
● The Company's longer term (5 to 10 years) ambition is to exceed
£250m Revenue for the Group.
Profitability Objectives:
● PensionBee has an ambition to reach a Group Adjusted EBITDA Margin
of c.20% in the short to medium term (by year 5).
● The Company's longer term (5 to 10 years) ambition is to reach c.50%
Adjusted EBITDA Margin for the Group.
All guidance assumes relative market stability.
Group Financial Highlights
For the 3 or 12 month Period Ending
Group Metrics (unless otherwise stated) Mar-2024 Mar-2025 2024-25 YoY
Revenue (£m)(6) 7.4 9.1 23%
Adjusted EBITDA (£m)(8) (2.1) (2.0) 2%
Adjusted EBITDA Margin (% of Revenue)(10) (28)% (22)% 6ppt
LTM Revenue (£m)(6) 26.0 34.9 34%
LTM Adjusted EBITDA (£m)(8) (5.3) 0.5 n/m
LTM Adjusted EBITDA Margin (% of Revenue)(10) (20)% 1% n/m
For the 3 or 12 month Period Ending
Mar-2024 Mar-2025 2024-25 YoY
UK Revenue (£m)(16) 7.4 9.5 28%
UK Adjusted EBITDA (£m)(11) (2.1) (1.1) 50%
UK Adjusted EBITDA Margin (% of Revenue)(10) (28)% (11)% 17ppt
UK LTM Revenue (£m)(16) 26.0 36.5 40%
UK LTM Adjusted EBITDA (£m)(11) (5.3) 3.4 n/m
UK LTM Adjusted EBITDA Margin (% of Revenue)(10) (20)% 9% n/m
For the 3 month Period Ending
Mar-2024 Mar-2025 2024-25 YoY
US Revenue (£m)(6) nil nil n/m
US Adjusted EBITDA (£m)(8) nil (1.0) n/m
US Adjusted EBITDA Margin (% of Revenue)(10) nil n/m n/m
Group Non-Financial Highlights
As at Period End
Group Metrics (unless otherwise stated) Mar-2024 Mar-2025 2024-25 YoY
AUA (£m)(3) 4,857 5,820 20%
AUA Retention Rate (% of AUA)(5) >95% >95% stable at >95%
Invested Customers (thousands)(1) 240 275 14%
Customer Retention Rate (% of IC)(4) >95% >95% stable at >95%
UK Cost per Invested Customer (£)(17) 244 249 As guided
Revenue Margin (% of AUA)(18) 0.64% 0.64% Stable
Annual Run Rate Revenue (£m)(7) 30.8 36.2 17%
For the 3 month Period Ending
Group Metrics (unless otherwise stated) Mar-2024 Mar-2025 2024-25 YoY
Opening AUA (£m)(3) 4,350 5,841 34%
Gross Inflows (£m) 336 345 3%
Gross Outflows (£m) (101) (131) 29%
Net Flows (£m)(19) 235 214 (9)%
Market Growth and Other (£m) 272 (235) n/m
Closing AUA (£m)(3) 4,857 5,820 20%
For the 3 or 12 month Period Ending
Mar-2024 Mar-2025 2024-25 YoY
UK Revenue (£m)(16) 7.4 9.5 28%
UK Adjusted EBITDA (£m)(11) (2.1) (1.1) 50%
UK Adjusted EBITDA Margin (% of Revenue)(10) (28)% (11)% 17ppt
UK LTM Revenue (£m)(16) 26.0 36.5 40%
UK LTM Adjusted EBITDA (£m)(11) (5.3) 3.4 n/m
UK LTM Adjusted EBITDA Margin (% of Revenue)(10) (20)% 9% n/m
For the 3 month Period Ending
Mar-2024 Mar-2025 2024-25 YoY
US Revenue (£m)(6) nil nil n/m
US Adjusted EBITDA (£m)(8) nil (1.0) n/m
US Adjusted EBITDA Margin (% of Revenue)(10) nil n/m n/m
Group Non-Financial Highlights
As at Period End
Group Metrics (unless otherwise stated) Mar-2024 Mar-2025 2024-25 YoY
AUA (£m)(3) 4,857 5,820 20%
AUA Retention Rate (% of AUA)(5) >95% >95% stable at >95%
Invested Customers (thousands)(1) 240 275 14%
Customer Retention Rate (% of IC)(4) >95% >95% stable at >95%
UK Cost per Invested Customer (£)(17) 244 249 As guided
Revenue Margin (% of AUA)(18) 0.64% 0.64% Stable
Annual Run Rate Revenue (£m)(7) 30.8 36.2 17%
For the 3 month Period Ending
Group Metrics (unless otherwise stated) Mar-2024 Mar-2025 2024-25 YoY
Opening AUA (£m)(3) 4,350 5,841 34%
Gross Inflows (£m) 336 345 3%
Gross Outflows (£m) (101) (131) 29%
Net Flows (£m)(19) 235 214 (9)%
Market Growth and Other (£m) 272 (235) n/m
Closing AUA (£m)(3) 4,857 5,820 20%
Notes
* A ppt is a percentage point. A percentage point is the unit for the arithmetic
difference of two percentages.
* LTM refers to the last twelve months.
1 Invested Customers ('IC') means those customers who have transferred pension
assets or made contributions into one of PensionBee's investment plans and has
an active balance.
2 PensionBee prompted brand awareness tracker, April 2025. Prompted brand
awareness measured through a consumer survey asking 'Which of the following
have you heard of?' with respect to UK financial services brands.
3 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.
4 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.
5 AUA Retention Rate measures the percentage of retained PensionBee AUA from
transfers out 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 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. LTM Revenue refers to
the Revenue generated over the last twelve months.
7 Annual Run Rate ('ARR') Revenue is calculated using the recurring Revenue for
the relevant month multiplied by 12.
8 Adjusted EBITDA is the Operating Profit/(Loss) for the period before Taxation,
Finance Costs, Finance Income, Depreciation and Amortisation Expense,
Share-based Payments and Expansion Costs. LTM Adjusted EBITDA refers to
Adjusted EBITDA over the last twelve months.
9 The breakeven point is defined as the point at which PensionBee's total
revenue and other income equal approximately its total costs. At this point,
PensionBee is neither generating a material Adjusted EBITDA profit nor
incurring a material Adjusted EBITDA loss.
10 Adjusted EBITDA Margin means Adjusted EBITDA as a percentage of Revenue for
the relevant period.
11 UK Adjusted EBITDA includes Other Income of £0.4m arising from inter-company
transactions with PensionBee US. All inter-company transactions are calculated
on an arm's length basis. UK LTM Adjusted EBITDA refers to UK Adjusted EBITDA
over the last twelve months including Other Income of £1.6m arising from
inter-company transactions with PensionBee US.
12 Productivity, measured using Invested Customers per Staff Member is calculated
using an LTM average for the total workforce, including US and UK workforce.
As of 31 March 2025, the total workforce includes 189 UK employees, 7 Overseas
Contractors and 10 US employees.
13 Trustpilot score of 4.6★ out of 5 (based on 11,679 reviews) recorded as at
11 April 2025.
14 Customer response times of 13 seconds average live chat waiting time (of 5,055
live chats over Q1 2025), 52 seconds average phone waiting time (of 13,627
phone calls over Q1 2025) and 85% of email cases closed within <72 hours
(of 54,368 emails over Q1 2025).
15 Social media following includes Instagram followers, TikTok followers,
Facebook followers, YouTube subscribers and LinkedIn connections as of 22
April 2025.
16 UK Revenue in 2025 includes Other Income of £0.4m arising from inter-company
transactions with PensionBee US. All inter-company transactions are calculated
on an arm's length basis. Revenue growth YoY excluding Other income is 23%. UK
LTM Revenue refers to the UK Revenue generated over the last twelve months,
including Other Income of £1.6m arising from inter-company transactions with
PensionBee US.
17 UK Cost per Invested Customer ('CPIC') means the cumulative UK advertising and
marketing expenses incurred since PensionBee commenced trading up until the
relevant point in time divided by the cumulative number of UK Invested
Customers at that point in time. This measure monitors cost discipline of
customer acquisition. PensionBee's desired UK CPIC threshold is £200-£250.
18 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.
19 Net Flows measures the cumulative inflow of PensionBee AUA from consolidation
and contribution ('Gross Inflows'), less the outflows from withdrawals and
transfers out ('Gross Outflows') over the relevant period.
A copy of this Q1 2025 Results Announcement will be made available post-market
close on 23 April 2025 for download at: pensionbee.com/investor-relations.
Enquiries
Press
Steven Kennedy
press@pensionbee.com
+44 20 3557 8444
Analysts and Investors
investor@pensionbee.com
About PensionBee
PensionBee is creating a global leader in the consumer retirement market with
approximately £6 billion in assets on behalf of more than 275,000 customers.
Founded in 2014, we aspire to make as many people as possible pension
confident so that everyone can enjoy a happy retirement. We help our customers
to combine their retirement savings into a new online account, which they can
manage from the palm of their hand.
PensionBee accounts are invested by the world's largest investment managers,
collectively looking after more than $10 trillion in savings between them.
Each PensionBee customer has a personal account manager ("BeeKeeper") to guide
them through their savings and retirement journey. PensionBee has an
"Excellent" Trustpilot rating based on 11,700 reviews.
As a public company, we aspire to the highest standards in everything we do
because our customers deserve peace of mind. Our team of more than 200
professionals, based across the UK and New York, has one focus: you, our
customer.
PensionBee is listed on the London Stock Exchange (LON:PBEE).
Forward Looking Statements
Statements that are not historical facts, including statements about
PensionBee's or management's beliefs and expectations, are forward-looking
statements. The results contain forward-looking statements, which by their
nature involve substantial risks and uncertainties as they relate to events
and depend on circumstances which will occur in the future and actual results
and developments may differ materially from those expressly stated or
otherwise implied by these statements.
These forward-looking statements are statements regarding PensionBee's
intentions, beliefs or current expectations concerning, among other things,
its results of operations, financial condition, prospects, growth, strategies
and the industry and markets within which it operates.
These forward-looking statements relate to the date of these results and
PensionBee does not undertake any obligation to publicly release any revisions
to these forward-looking statements to reflect events or circumstances after
the date of the results.
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