Strong growth, customer acquisition costs fall
In Q3 of FY22 (to 30 Sep 22), customer growth continued to impress with invested customers* growing 9% in the quarter to 174k (30 Jun 22: 159k) and 68% y-o-y (30 Sep 21: 104k).Notably, the absolute number of new customers added in Q3 (15k), was almost as high as the largest D2C market incumbent, Hargreaves Lansdown (17k) and far more than AJ Bell (8k). This is even more impressive considering PensionBee only offers pension products.
We have updated our forecasts to account for current customer numbers and AUA levels (with the latter being negatively affected by market falls). Hence our revenue forecast for FY22 reduces from £18.8m to £17.7m. However, this is offset to a degree by reduced costs with PensionBee managing to maintain strong customer growth on lower marketing spend (it now expects to spend £17m in FY22 on marketing versus £19m in our previous forecasts).
The above, coupled with the re-introduction of the increase in corporation tax rate in 2023 results in our fundamental valuation reducing slightly to 160p per share, still materially above current levels.
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