- StashAway cut losses by 58% to $5.9M in 2023.
- Revenue grew 41% to $10.4M in Q2 2024.
- Profitability depends on balancing growth and investments.
StashAway, a Singapore-headquartered robo-investment platform, made significant strides in 2023 by cutting expenses and narrowing its losses.
However, this came at the cost of slower year-on-year growth, which dropped from 15.6% to 10.1%. The company, which also operates in Malaysia, Hong Kong, Thailand, and the Middle East, had to make trade-offs to achieve its financial goals.
Revenue rebound: a promising upturn
Despite the lagging growth, StashAway co-founder and CEO Michele Ferrario reports that revenue has picked up since Q3 2023, and this momentum has continued into 2024.
Based on Q2 2024 figures, StashAway’s annualized net revenue reached S$14.1 million (US$10.4 million), a 41% increase compared to Q2 2023.
Ferrario attributes this growth to improved equity market performance, the success of StashAway’s portfolios, and the popularity of its low-risk cash management products.
StashAway kept a tight lid on costs in 2023, with all line items falling in absolute numbers compared to 2022. The most significant cut was to marketing expenses, which dropped to almost 20% of 2022’s levels.
Despite reduced marketing spend, the firm continued growing in 2024, thanks to its previous investments in brand building.
As a result of these cost reductions, StashAway recorded adjusted EBITDA losses of US$5.9 million, a 58% improvement from 2022.
Profitability in sight
StashAway made a small profit on an EBITDA basis in Singapore – its first market – for the period between January and May 2024.
Ferrario claims that the company could achieve overall profitability at any time by reducing its investments. He believes that the opportunity in wealth management is much larger than what StashAway has captured so far.
The company’s future profitability will depend on how aggressively it invests in marketing, development, and expansion into new countries.
To read the original article: https://www.techinasia.com/stashaway-halves-losses-109m-grows-topline-10-2023
