Pensionbee Share Discussion Threads

[babbler] 04/3/2024 07:43

Nice. Won't happen until late 2024 but transformational when it does.

[edmonda] 25/1/2024 13:32

"Growth still strong, adjusted EBITDA turns positive in Q4" - new report from Equity Development:

In March 22, our initiation note was titled A pensions fintech starting to look like a Rocketship. Since then, market, investor and consumer confidence have been rocked by geopolitical events and deteriorating economic conditions. But despite that, PensionBee has delivered. What’s more, it has moved into profitability on an adjusted EBITDA basis within the timeframe targeted at its Apr 21 IPO.

Over FY23 (to 31 Dec 23), 46k net new invested customers (ICs) were added (ICs + 25% to 229k), £1.3bn of AUA were added (AUA +44% to £4.4bn, net inflows +£857m, market movements +£464m), and revenue grew 35% to £23.8m. It was a continuation of an already-impressive growth story.

As scale benefits continue, adj. EBITDA improved from -£19.5m in FY22 to -£8.4m in FY23 and was positive in Q4 (>£0.5m). The business maintains a healthy cash position of £12.2m and does not envisage further equity raises. Our fundamental valuation remains 150p per share.

[arlington chetwynd talbott] 21/11/2023 17:50

hTTps://www.telegraph.co.uk/money/pensions/private-pensions/jeremy-hunt-pension-reform-workers-choose-scheme/

[hedgehog11] 31/10/2023 16:36

The company looks on track for EBITDA profit by the end of the year (albeit looks like they reduced marketing to ensure they achieve it). Cash burn looks like it will not be an issue and should have plenty left in the bank assuming profitability through 2024, growth still looks strong and they have a lot of money under their control from which they make a lot of revenue and would be of high value to a buyer. Is there anything holding investors back here because the current price doesn't look to expensive for a company with their growth rate?

[melody9999] 04/9/2023 11:36

When Equity say:
Net cash remains solid at £14m with no new cash raising envisaged.

They do not mention that a year ago net cash was £29M.
Saying that cash burn was £15M in the year would be more informative.

[kemche] 31/8/2023 10:07

"Investor interest in PBEE shares has continued to ramp up"

Okaaaaaay!

[edmonda] 31/8/2023 07:41

"Profitability in sight with investor interest building"

Interims to 30th June 2023 show invested customers reaching 211k, with 28k added over H1-23 (+15%) and 52k y-o-y (+33%). Assets Under Administration was up £678m over H1 (+22% over 6m, +38% y-o-y), reaching £3.7bn, with £469m added from net client inflows and £210m from investment performance.

Encouragingly, increasing brand awareness and sophisticated data-driven marketing has resulted in ‘cumulative cost per invested customer’ continuing to decline (H1-22: £260; H1-23: £247). This has, in turn, resulted in strong growth continuing but with lower marketing spend (£12m spend in H1-22 v £7m in H1-23 whilst gross inflows were up 6%).

Revenue grew 32% to £10.9m (H1-22: £8.3m) with adjusted EBITDA trajectory (H1-22: -£14.9m; H1-23: -£7.9m) continuing on track to be positive in FY24, a target set at the 2021 IPO. Operational leverage continues with invested customers per staff member increasing from 919 in H1-22 to 1,026 in H1-23. Net cash remains solid at £14m with no new cash raising envisaged.

Investor interest in PBEE shares has continued to ramp up (see front page graph), and our fundamental valuation remains 150p per share.

Link to research report:

[edmonda] 20/7/2023 11:41

Growth on track, as is target of profitability in FY24

New note here:

Invested customers reached 211k on 30 June 23, with 28k added over H1-23 (+15%) and 52k y-o-y (+33%). Assets Under Administration was up £678m over H1 (+22% over 6m, +38% y-o-y), reaching £3.7bn, with £469m added from net client inflows and £210m from positive investment performance.

This progress is on track to meet our previous growth targets and confirms that PensionBee continues to gain market share in the £700bn UK transferable pensions market (it is aiming for a 2% share of this market i.e., 1m customers, in the next 5-10 years).

They remain on track to be adjusted EBITDA (H1’22: -£15m; H1-23, -£8m) positive in FY24, a target set back at the 2021 IPO.

Our forecasts remain unchanged, as does our fundamental value of 150p per share which is now 100% above the current share price of 75p.

[strollingmolby] 20/7/2023 09:52

Outlook

The Board remains confident in PensionBee's potential for continued growth and profitability, due to 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 at the time of the 2022 full year results. Its strong cash balance of GBP14m leaves it well-placed to pursue a c.2% market share target of the substantial GBP700bn UK transferable pensions market over the next 5-10 years, resulting in a long-term potential revenue opportunity of approximately GBP150m.

The Company remains on track to further reduce Cost per Invested Customer, expecting to achieve ongoing Adjusted EBITDA profitability by the end of 2023 and profitability for the full year 2024. PensionBee expects to achieve long-term EBITDA margins in excess of 50%, driven by the scalability of its technology platform. This is supported by the Company's continued positive momentum in its trading performance and growth in key metrics such as customer growth and AUA.

[strollingmolby] 20/7/2023 09:50

PensionBee Group plc ('PensionBee' or the 'Company'), a leading online pension provider, today announces a trading update for the six months ended 30 June 2023.

Highlights

-- Strong continued customer growth, with Invested Customers having increased by 33% year on year to 211,000 (June 2022: 159,000).
-- Assets under Administration increased by 38% year on year to GBP3,704m (June 2022: GBP2,676m), underpinned by strong Net Inflows from new and existing customers.
-- Successful launch of LifeSearch partnership with initial positive customer demand.
-- Commitment to continuous product innovation and outstanding customer service contributed to sustained high Customer Retention Rate of c.97%.
-- LTM Revenue increased by 30% to GBP20m (June 2022: GBP16m) and first half Revenue increased by 32% to GBP11m (June 2022: GBP8m).
-- Adjusted EBITDA of GBP(8)m (June 2022: GBP(15)m), reflecting continued progress towards profitability.
-- On track to achieve ongoing Adjusted EBITDA profitability by the end of 2023 and profitability for the full year 2024.

[melody9999] 20/3/2023 11:00

Had a quick listen to the presentation. Does not fill me with confidence these guys have a control over their costs.

When the FD talks about brand awareness, marketing etc rather than costs and profitability, its a red flag.

Cash reduced from £44M to £21M at 2022 y/e. That must be c £16M now. These guys are burning cash fast. Expect a dilutionary cash call before long.

My interest in PBEE was provoked by my holding in XPS.... think I'll stay put.

[kalai1] 16/3/2023 16:02

PensionBee Group plc posted FY22 results this morning. Revenue increased by 38% to £17.7m (2021: £12.8m), adjusted EBITDA loss was £(19.5)m up from £(16.4)m reflecting continued investment in growth, statutory Loss before Tax was £(22.4)m. Assets under Administration increased by 17% year on year to £3.0bn (2021: £2.6bn), driven predominantly by strong net flows from new and existing customers. The Invested Customer base increased by 56% year on year to 183,000 (2021: 117,000). So the business is growing solidly but is not yet delivering a profit, nor will it anytime soon. Share price is down around 40% from the generous IPO price in Q2 2021, but valuation still looks stretched with PS ratio over 14x and comfortably bottom decile for the sector. PBEE looks like a company with a lot of potential for the long run, but is still way too expensive. Monitor for now...

...from WealthOracle

[paleje] 16/3/2023 11:53

Well there's your answer, Terminator01.

[edmonda] 16/3/2023 11:09

Growth and delivery driving strong investor interest (new note from Equity Development)

Research report & audio summary:

In FY22 (to 31 Dec 22) PensionBee continued to rapidly grow, despite market falls, and gain market share (page 2) in the structurally growing £700bn target market of transferable DC pensions (page 12). Invested customers grew 56% to 183k, AUA 17% to £3.03bn (net inflows +£863m, market movements -£424m), and revenue 38% to £17.7m. Adjusted EBITDA started to ‘turn the corner’ towards profitability and is forecast to turn positive on a monthly basis by the end of 2023. The net cash position is robust at £21m with no new cash raising envisaged.

We also flag the encouraging jump in investor interest in PBEE shares - especially after its Jan 23 trading update which showed the path to profitability was on track - with the recent price rise accompanied by strong volumes. On top of its fundamentals, PensionBee’s inclusion in the FTSE All-Share and FTSE SmallCap indices from 20 Mar 23 should be another positive for the share price.

PensionBee’s customer acquisition growth path compared to incumbents indicates it is rapidly gaining market share. In H2 of 2022, it added 24k net new invested customers (H2-22 annualised growth rate of 30%):
• This was more than double the total number of net new D2C platform clients (pension and other clients) added by AJ Bell (10k, which translated to an H2-22 annualised growth rate of 7%).
• And it was only a little less than the total number of net new clients (pension and other clients) added by the UK’s largest D2C investment platform, Hargreaves Lansdown (HL), which added 31k (an H2-22 annualised growth rate of 4%), and much higher than HL’s new pension accounts (13k net new SIPP accounts and 16k ISA and other accounts).

Our forecasts remain unchanged, as does our fundamental value of 150p per share.

[terminator101] 16/3/2023 07:15

How is this loss making fluff worth more than 12 times revenue?

[edmonda] 20/2/2023 13:15

Save the Date - 17th March (11am) FY Results - investor presentation with Q&A

Sign up to register here:

PensionBee Group plc, a leading online pension provider, will be conducting an investor presentation covering the company's Full Year results for the period to 31st December 2022.

The online presentation will be hosted by Romi Savova, founder & CEO, and Christoph Martin, CFO.

This event will take place at 11.00am on Friday 17th March.

The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.

[arlington chetwynd talbott] 28/1/2023 13:23

Is anyone else concerned about their increasingly faddish range of investment options and the way in which they seem to be actively promoting them? What if folk who switch into one of those options, say out of the low cost tracker option, find themselves significantly poorer down the line? Are they just going to put up with that, having been actively encouraged to switch (did anyone else get the Impact Plan email)?

[paleje] 20/1/2023 08:07

Nobody seems interested. Too boring perhaps:) Building nicely imo, brand name recognition established, increasing market share, profit not far away. Good summary from ED, thanks edmonda.

[edmonda] 20/1/2023 07:49

New research note link post year end trading update:

PensionBee’s trading update covering FY22 (to 31 Dec 22) shows continuing strong growth, despite large market falls during the period, and continuing market share gains. Invested customers grew 56% y-o-y to 183k (31 Dec 21: 117k), while AUA grew 17% to £3.03bn (31 Dec 21: £2.59bn) with net inflows of +£863m and market movements of -£424m. Net inflows were particularly impressive, with PensionBee’s net inflow rate far higher than incumbents, and the absolute size of its net inflows not far off the pension inflows of the largest incumbent platforms. Revenue increased 38% y-o-y to c£18m (FY21: £12.8m).

Adjusted EBITDA has started to ‘turn the corner’ towards profitability. In FY21 it was -£16.4m, in H1-22 -£14.9m and in H2-22 -£5m (FY22 -£19m). Management have reiterated confidence in achieving +ve adj. EBITDA on a full-year basis in FY24, the target set at the time of PensionBee’s IPO (Apr 21). Further evidence of operating leverage has been reported with the number of invested customers per staff member increasing 31% (970 vs. 743).

Our top-line forecasts have been revised downwards in line with FY22 actuals and reduced marketing spend guidance, but this is offset to a degree by reduced cost guidance - our fundamental valuation reduces slightly from 160p to 150p.

[edmonda] 20/10/2022 14:50

Q3 client growth impressed with invested customers up 9% in the quarter and 68% y-o-y. On updated forecasts our fair value reduces slightly to 160p per share, still materially above current levels.

Read new research note/hear summary below:

[edmonda] 26/9/2022 09:38

New detailed research report post H1 results (Equity Development), full link here:

"Guidance re-iterated, positive adj. EBITDA by end-23"

Brief summary of report: PensionBee’s H1-22 results confirm the momentum of its growth journey as it continues to disrupt the pensions market and drive the consolidation of UK consumers’ multiple pension pots. Its most fundamental growth driver, the number of invested customers1, grew 72% y-o-y to 159k on 30 Jun 22 from 92k on 30 Jun 21 (+36% over H1 from 117k on 31 Dec 21) and remains on track to meet our forecast of 200k by the end of FY22. Impressive marketing agility was evident. The data platform was used to rapidly refine targeting towards a younger audience, with older consumers less likely to take decisions during the market volatility during H1.

[wall street trader] 16/8/2022 12:38

think my chart is stuck lol

[wall street trader] 09/8/2022 10:54

My chart says rebound to a quid from here

[bg23] 26/7/2022 14:40

Unfortunately, I think its a poor product aimed at the 'low hanging fruit' type of client.

it has an appeal but will never be more than a tiny part of a large consolidating market. I'd be surprised if it remains independent for more than a single economic cycle, but I certainly wouldn't be a buyer on the hope that it gets bought out.

overhyped at listing, unlikely to ever reach maturity in its own right

i'd avoid.