PensionBee Group plc

Incorporated in England and Wales

Registration Number: 13172844

LEI: 2138008663P5FHPGZV74

ISIN: GB00BNDRLN84

24 April 2024

PensionBee Group plc

Q1 2024 Trading Update

Successful strategy drives strong performance for Q1 2024

UK on track to achieve Adjusted EBITDA Profitability for FY 2024

PensionBee Group plc ('PensionBee' or the 'Company'), a leading online pension provider, today announces a Q1 trading update (unaudited) for the three months ended 31 March 2024.  

Highlights

Continued Advancement of Strategic Goals

The Company has continued to grow its brand and acquire customers efficiently, investing £3.6m in marketing across the first quarter of the year, bringing the cumulative marketing investment since inception to £59m. PensionBee's brand awareness activities for the quarter have been centred on cost-effective channels such as radio, television and sports sponsorship and partnerships. 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 of 3% year on year to £244, highlighting the strength of the Company's marketing capability and efficiency of spend, while brand awareness has increased to 55% from 50% in the previous quarter.³

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. The new checklist feature helps customers to identify and complete all the required steps to manage their pensions.

The Company has continued to prioritise the delivery of excellent customer service, evidenced through the achievement of a 4.6★ Excellent Trustpilot rating from approximately 10,500 Trustpilot reviews, and consistently rapid response times on phones and live chat.

PensionBee has continued with its ongoing investment in the scalability of its technology platform through internal automation, efficiency, security and pension transfer improvements to support productivity, as demonstrated by the achievement of an 18% improvement in productivity.⁴

Guidance and 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 for the UK: aiming to deliver sustained and high Revenue growth, pursuing c.2% market share of the £1.2 trillion transferable pensions market over the next 5-10 years, and looking to onboard 1 million Invested Customers, creating a long-term Revenue ambition of c.£150m.

Given its historical investment in its brand and technology over many years, and the achievement of ongoing Adjusted EBITDA profitability in the final quarter of 2023, the Company is poised to deliver Adjusted EBITDA profitability for the full year 2024, with an ambition to achieve long-term EBITDA margins of over 50%.

The recently announced proposed US expansion in partnership with a large, US-based global financial institution will see the US-based partner providing its expertise and substantial marketing funding to the US business. Correspondingly, PensionBee's financial contribution will be financed from the existing resources of PensionBee Group plc, and as a result the US business does not change the existing guidance in the UK.

Romi Savova, CEO of PensionBee, commented:

"We are pleased to have grown substantially over the first quarter, with Assets under Administration reaching approximately £5 billion, now helping 240,000 Invested Customers across the UK prioritise and engage with their retirements.

Looking forward, as we continue to execute on our strategy, we remain confident in the continued growth of the business and the delivery of profitability across the UK business for the full year 2024, as we continue to help more and more consumers become Pension Confident."

A copy of the Q1 2024 Trading Update and the Q1 2024 Results Presentation will be made available post-market close on 24 April 2024 for download at: pensionbee.com/investor-relations/results-and-reports. A recording of the presentation will follow.

There will be a webcast presentation for analysts, investors and press on Wednesday 24 April at 5:00pm UK (BST) / 12:00pm US (EST). Please contact [email protected] 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

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 UK Defined Contribution market which exceeds £1 trillion of 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 £4.9bn in Assets Under Administration and 240,000 Invested Customers as at 31 March 2024. PensionBee has consistently maintained a Customer Retention Rate in excess of 95% and an Excellent Trustpilot rating from more than 10,500 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).