Significant Gross Margin Improvement
Gross margins improved substantially due to strategic initiatives, including a reduction in low ROI paid marketing and a focus on higher-margin verticals. The cost of revenue dropped by 55% year-over-year, accounting for just 44% of revenue.
Diversification Towards High-Margin Verticals
Revenue from wealth and insurance verticals increased to approximately 25% of total revenue in Q1, an increase of 11 percentage points year-over-year. This diversification supports the $100 million revenue target for 2025.
Reduction in Operating Expenses
Operating expenses declined 26% year-over-year, with specific reductions in employee costs and marketing spend. This is attributed to the adoption of AI-driven automation and strategic cost management.
Improved Net Loss and Adjusted EBITDA
Net loss narrowed sharply to $2.4 million from $13.1 million a year ago. Adjusted EBITDA loss improved significantly, underscoring a clear path towards sustainable profitability.
Successful Partnerships and Strategic Initiatives
Strategic partnerships, such as with bolttech for car insurance and TransUnion for the Credit Hero Club, have been launched to enhance user engagement and drive growth in high-margin segments.