PensionBee (PBEE) , an online pension provider, updated markets on trading for the nine months ended 30 September 2023, reporting continued growth of its customer base driven by its marketing investment, coupled with high customer retention rates that pushed revenues up 33%.
Customer numbers continued to grow in the period, increasing 28% year on year, with Assets under Administration increasing by 40% to £3.9bn. Trailing 12-month revenue increased 32% to £22 million, while revenue in the 9-month reported period increased 33%.
Adjusted EBITDA improved to a loss of £9 million from an £18 million loss the previous year, driven by revenue growth and cost efficiencies. Improvement in the adjusted EBITDA margin demontsrates a clear path to profitability by the end of 2023. PensionBee continued to maintain a strong cash balance of £12.5m.
As well as remaining on track for continued growth and adjusted EBITDA profitability by the end of 2023, the company has set its sights on pursuing a c.2% market share target of a £700bn UK transferable pensions market over the next 5-10 years, translating to a revenue ambition of approximately £150m.
Romi Savova, CEO of PensionBee, commented: "We are pleased to have continued growing our customer base throughout the year, helping more and more consumers to become Pension Confident. Our customers prioritise their retirement savings, ensuring they can keep track of their pensions by consolidating them and topping up their contributions. As a result, we have continued growing our Assets Under Administration and Revenue. We are confident in the delivery of ongoing Adjusted EBITDA profitability by the end of the year, marking an important milestone in PensionBee's corporate trajectory."
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Continued success for PensionBee highlights the clear demand for its customer-focused proposition. Operating in the £1 trillion market for Defined Contribution pension assets, PensionBee has grown rapidly through its direct-to-consumer marketing activities, creating a household brand name for the mass market.
PensionBee’s levels of recurring revenue are underpinned by its approach to customer fees, with fee rates reducing as the pension plans grow, leaving scope to focus on product innovation and improving customer service.
In 2023, product innovation came in the form of new features being added to the platform, including improvements to enable customers to access and find pension education content and a new online tax relief calculator, encouraging customers to make the most of their pension contributions ahead of the tax year-end.
PensionBee’s customer-focused proposition leaves it well positioned for long-term growth,
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