Earnings Call: H2 2021

Mar 18, 2022

Hello, I'm Romi Savova, CEO of PensionBee. It is a pleasure to welcome you to our preliminary results presentation. For those of you who are new to the PensionBee story, we are a leading online pension provider in the U.K. We exist to make pensions simple so that everyone can look forward to a happy retirement. We enable our customers to combine their pensions into one new online plan with money managed by the world's largest asset managers. We aspire to build a lifetime relationship with our customers, generating predictable and scalable revenue streams for our company and for our investors. Many of you will have joined us for our trading update in January, and so will be familiar with the excellent results we delivered for the 2021 financial year. In addition to a brief recap of those results, which saw us achieving triple digit revenue growth, we will update on our strategic positioning for 2022. First, I will provide an update on the market and competitive environment, sharing some insights about market size from the Office for National Statistics and our performance in the pension consolidation market relative to platforms and robo-advisors. My colleague Jasper, our Chief Marketing Officer, will then elaborate on our customer acquisition plan, while our Chief Design Officer, Matt, will demonstrate our pension-related product priorities for the first half of 2022. Our Chief Technology Officer, Jonathan, will provide an update on our technology estate. Finally, our Chief Financial Officer, Christoph, will share some more detailed financial information that illustrates our excellent retention rate, our cohort growth, and the resilience of our revenue, which is a core feature of our business model, alongside our excellent growth prospects. Turning to a recap of our financial results for 2021. Our assets under administration increased to GBP 2.6 billion, reflecting a compound annual growth rate of about 100%. That is a doubling in size every year for the period since 2018. Our invested customer base exceeded 117,000, and we maintain a healthy pipeline of over 650,000 registered customers, underscoring the growth story of PensionBee. Thanks to our predictable revenue model and high retention rate of over 95%, the growth in assets has translated into similar growth in revenue. Our annual run rate revenue increased to GBP 16 million. Our revenue for the year increased to GBP 13 million, reflecting a growth rate in excess of 100%. One of the core reasons our business is able to scale so rapidly is the sheer size of the market opportunity in the U.K. In January 2022, the Office for National Statistics posted an update on pension wealth in Great Britain, confirming that the overall defined contribution pension market stood at GBP 1 trillion over the 2018 to 2020 period. Importantly, the ONS now provides one consolidated and detailed data extract to allow us to quantify the size of the pension consolidation market opportunity for PensionBee, which consists of the primary types of pensions transferred by our customers to the PensionBee personal pension. That is preserved defined contribution pensions and active personal pensions. Based on the ONS market size estimate in the 2018 to 2020 period, there was over GBP 700 billion in assets within the pension consolidation market. While PensionBee continues to grow rapidly, as at the end of 2021, it still only held 0.4% market share, leaving ample opportunity for further growth. Within this enormous target market, PensionBee's customer offering continues to resonate with consumers. The latest competitive market data from Boring Money, which assesses the quality of prominent platforms and robo-advisors, shows that PensionBee's quality of digital experience, customer service, and overall value for money is substantially above those of the average competitor. Indeed, PensionBee scores highly owing to the unique nature of its online pension consolidation offering, which is differentiated to those of other personal pension providers. In recognition of our differentiated customer offering, we received five Boring Money awards in early 2022, including Overall Best Buy for Pensions. Our differentiated offering is well recognized in the consumer market, as demonstrated by the growing brand awareness of PensionBee. Our prompted brand awareness now stands at about 25%, demonstrating a healthy year-on-year increase of 44%. While we continue to make strides through our marketing activities, there is still ample opportunity for us to continue growing into a household name with brand awareness in the 80s. Of course, when it comes to growth, we seek to demonstrate our competitive advantage through results. Growth figures for AUA and customers continue to indicate that PensionBee is growing substantially more quickly than platform and robo-advisor peers. You will now hear from our CMO, Jasper Martens, who will expand on our strategy to maintain this excellent growth momentum. Thank you, Romy. Hi, I am Jasper, CMO at PensionBee. I am excited to share our customer acquisition plans for the year. PensionBee's marketing strategy in 2022 will largely be a continuation of what we did in 2021, alongside some extra activities where we have identified opportunities to effectively expand our reach. There are three key pillars for PensionBee's marketing strategy for 2022. One, accelerate our customer growth and marketing spend while monitoring the cost per invested customer. Cost per invested customer will rise in the first half of this year as we accelerate spend rapidly and subsequently decline towards the end of the year, as we reap the benefits of the growth in invested customers. We will use our top three channels, TV, out of home, and paid search. With the help of our new data platform, we will optimize within these channels and between them. Two, broadening our customer appeal even more with specific product marketing campaigns. Earlier, Romy pointed out that the addressable market for PensionBee in the U.K. is vast. At the same time, PensionBee's product is designed to appeal to a broad audience. Whether you are 18 or 80, PensionBee could be your new pension provider. Product innovations such as our mainstream fossil fuel free pension and easy contributions through open banking technology have paved the way for us to penetrate further into the pension consolidation market, attracting eco-conscious consolidators and self-employed individuals. Highlighting these specific innovations will make PensionBee irresistible for an even bigger audience, thereby driving customer growth. Three, building trust and customer reach through a strong media presence and our educational campaigns. With our own in-house press office, we work with journalists, influencers, and pension experts. It's one of the best ways to build a trustworthy brand and reach as many customers cost effectively as we possibly can. We are increasingly introducing more educational content campaigns far beyond blogs and guides. Two great examples are our Pension Confident Podcast and our Pension Academy video series with Patricia Bright, reaching thousands of extra pension savers who want to engage with pensions in a simple manner. With 2022 off to an excellent start in growing new customers, we're looking forward to implementing our plan for the rest of the year. I would now like to hand over to my colleague, Matt, our Chief Design Officer, who will walk you through our product plans. Thank you, Jasper. Hello, I'm Matt, PensionBee CDO, and I'm looking forward to showing you some of the exciting new features we're developing in 2022. Products and design at PensionBee continues to stay at the industry forefront. By developing the features our customers want in line with our business objectives, we've been able to continue to grow our customer base, increasing the amount customers are saving and improving efficiency, keeping our customers happy and our retention strong. A particular focus for PensionBee has been to grow our customer base of over 50s. We've recently launched in-app withdrawals, a first of its kind feature in the U.K., with the aim of attracting customers with larger pension pots and therefore AUA. After making the customer aware of important factors associated with withdrawing from their pension, we present them with an overview of their available funds and the ability to withdraw from their tax-free and or taxable cash as a one-off payment or as regular income. After ensuring they understand the risks involved in drawdown, they simply enter their bank account details and confirm. In addition to growing our customer base, we're growing our share of wallet. To that end, we're introducing relevant and contextual content based on customer actions and profiles into our products. By drip-feeding targeted relevant content, we can help people manage their pension at the same time as improving their financial literacy in line with our vision and growing AUA through increased contributions alongside open banking and transfer of additional pensions to PensionBee. We've also prioritized features that provide scalability through reduced friction at points traditionally requiring manual intervention via the customer services team. By empowering customers to self-serve, we are reducing the time it takes them to complete tasks without requiring exponentially more staff members to support them with our growing functionality. Specifically, we've redesigned the top level view customers see within the product to provide them with improved at a glance understanding of their PensionBee pension. They will be able to see key information like the amounts they are projected to have at retirement and their plan's performance alongside their pension balance. We're providing an overview and breakdown of their pension, including all types of money coming into or out of their account. These figures can be filtered by timescale, including by tax year, for ease when filing end of year accounts. We have revised our product information architecture in response to our customers' feedback to make finding key information easier. We are improving our customers' understanding of their pension by surfacing more of the underlying factors that affect it, such as the types of industries companies invest in. These improvements are expected to reduce some of our top inbound queries, reducing the need to answer emails, live chats, and phone calls, while delighting our customers with engaging and informative insights into their investments. I will hand over to our Chief Technology Officer, Jonathan, for a technology update. Hello, I am Jonathan, PensionBee's CTO. It is very nice to be speaking with you today. Thank you, Matt, for taking us through the plans for our products. Technology reaches into the heart of all aspects of PensionBee's business. The technology strategy for 2022 is designed to continue underpinning the business's growth trajectory and provide the capabilities we need for expansion. To that end, we have four main areas of focus for the year ahead. The first area is scalability. In order to support the company's growth, we are ensuring that our technology is prepared to support 1 million customers and beyond. We are making investments in scale testing, architecture, infrastructure optimization, and other areas that will continue to take advantage of the global cloud platforms PensionBee is built on. In addition, our data platform will be increasingly important as a capability for the business as it grows, used across multiple departments to improve analysis, decision-making, and budget allocation. The second area of focus is increasing our operational leverage through continued investments in automation. The two graphs on the right-hand side of the slide show two different ways that we look at the effects of automation on the business's productivity. We measure both the ratio of invested customers to average employees over a year, and also the commonly used ratio of revenue to average employee count. On both measures, our productivity is continuing to increase, and we are pursuing further investments in process automation to help us exceed GBP 100,000 of revenue per employee. We are putting a lot of work into enabling pension transfers to proceed without requiring any human action, as it is hugely beneficial for productivity. We are also investing in tooling to make our software engineers more productive, such as taking advantage of Salesforce's new SFDX toolkit. The third area we are looking at is the ongoing strengthening of our information security management system and operational processes. We were certified to the ISO 27001 information security standard in January 2021 and completed our first surveillance audit in November. We are now investing in the tools and business processes necessary to ensure that secure operations and effective service management continue as we grow the customer base and the size of the team. This is building on a solid track record of operational performance. For example, our technology platform has exceeded our SLA of 99.9% uptime over 2021, and we have continued to run all of our infrastructure on public cloud providers. Finally, our fourth area of focus is our technology team. In a very competitive environment for technical talent, we are investing in training to ensure that team members grow personally and professionally, helping PensionBee to attract, develop, and retain exceptional talent. In summary, effective deployment of our technology is a core competitive advantage, and continued investments in our scalability, automation, security, and team will ideally position us for further growth. Thank you for your attention, and I will now pass over to our Chief Financial Officer, Christoph, to take you through our finances. Hello, I am Christoph, and a warm welcome to the financial parts of our preliminary results presentation. We continued to execute on our growth story in 2021 and delivered strong asset growth to GBP 2.6 billion of AUA. The AUA growth is driven by disciplined new customer acquisition and retention and growth of existing customer cohorts. Particular retention and growth of existing customer cohorts is key to generating lifetime value on the back of embedded growth, which fundamentally is recurring and compounding in nature over time. The layer charts on the left-hand side visually shows PensionBee's AUA growth drivers. In addition to new customer acquisition, which is shown as the very top dark orange layer, lifetime value generation of existing customer cohorts are evidenced by the layers beneath, which we continue to retain and grow. Particularly, the retention rate is crucially important to continue generating lifetime value over time. As you can see on the right-hand side of the page, we are pleased to report a customer retention rate of close to 97% for 2021, which in fact has also improved over the last few years. In summary, generating lifetime value on the back of recurring and compounding asset growth for existing customer cohorts is evident in, first, a high customer retention rate of circa 97%, which we show on this page, and second, continuous net inflows across all cohorts, which we will cover next. As communicated during our January trading update, we have grown our AUA base primarily with net flows from new and existing customers. We will report on new customer growth for the first quarter in April, but we are very pleased with the start of the year. For 2022, we expect to enjoy the fruits of new customer growth and also growth from existing customers. Today, we wanted to give further insights into the net flows from existing customers, which was GBP 226 million over 2021, and is circled in red on the left-hand side chart. On the right-hand side, we visualized cumulative net flows, excluding market growth, by customer cohorts in a stacked bar chart, and we show cumulative market growth separately at the top. The intention of this visualization is to drill down into the sources of the GBP 226 million of existing customer growth, as shown in the turquoise dotted box in the right-hand side chart. The GBP 226 million of net inflows are the sum of net inflows across the various customer cohorts. The point to note is that all customer cohorts delivered positive net inflows in 2021, even the very early cohorts acquired in 2016, 2017, and 2018. Again, for the avoidance of doubt, this does not include market growth, which is captured separately at the top of the chart. Seeing positive net inflows across all cohorts is a powerful point since it is evidence of our ability to generate lifetime value as we not only retain existing cohorts at a high retention rate of 97%, but also grow them. We are continuously receiving consolidation and contribution. Another consequence of this is that an ever-growing proportion of our AUA is already available from prior years' cohorts. This generates a predictable asset base and de-risks future AUA and recurring revenue growth. In conclusion, generating lifetime value on the back of recurring and compounding asset growth from existing customer cohorts is evident in, first, high customer retention rate of 97%, which we showed on the previous page. Second, continuous net inflows across all cohorts, which we covered on this page. We have turned asset growth into recurring and predictable revenue, thanks to our resilient contractual gross revenue margin, which remained at 69 basis points. From a cost-based perspective, we have demonstrated operating leverage in 2021 thanks to the scalability of the technology platform, and we have improved both profitability metrics in 2021. As already communicated in the past, we are guiding towards adjusted EBITDA profitability by the month of December 2023 and adjusted EBITDA before marketing profitability by the month of December 2022. In conclusion, we have converted asset growth into revenue growth thanks to the resilient contractual gross revenue margin, and we have generated operating leverage for the year with continued margin improvement expected for 2022. The majority of proceeds we raised during the IPO have been earmarked on marketing spend, and therefore close monitoring of the spend is critical, particularly as we expect to spend GBP 17 million to GBP 20 million in marketing in 2022. We will continue to invest in marketing and customer acquisitions throughout 2022, and we anticipate that marketing spend will be weighted towards the first half of this year, with cumulative CPIC declining strongly towards the end of the year, ensuring that annual CPIC remains within the target threshold. In summary, we utilized a methodological approach to marketing investments to ensure healthy growth, and we grew in a cost-disciplined way in 2021, and we continue to execute on our growth strategy in 2022. Customer acquisition costs are compared to the lifetime value to ensure we deploy marketing capital with an attractive return profile. The illustrative unit economics of the return over cost calculation with simplified assumption indicates that PensionBee deploys marketing capital with attractive returns of mid to high single-digit return multiples. I will now hand back to Romi to cover guidance and further updates. Thank you very much, Christoph. I am pleased to confirm our medium term and 2022 guidance. It would be remiss not to mention the impact Russia's invasion of Ukraine is having on the markets and on the world more generally. Like all companies, we will continue to monitor the situation. Our own exposure to Russia in terms of investments is minimal, in fact, rounding down to 0%. However, broader market volatility will impact AUA. It is still relatively early in the year, and our new customer growth since the start of the year has been exceptionally strong. We will keep a watchful eye and update further if there is reason to do so. I am also pleased to announce that we will make a further announcement regarding the transition to the Premium segment of the London Stock Exchange in April. Thank you for taking the time to join our presentation today. We take our first question from Paul Bryant from Equity Development. Please proceed. Thank you all. Interesting presentation. Question from me on flows from existing customers. You presented some new interesting data on slide 14, and it looks like there has been quite a big jump in flows from the 2020 cohort over and above the 2019 cohort, far bigger than the actual money they originally put in. The question is, could you give us an idea of the marketing efforts and spend you are putting into driving flows from existing customers? Kind of levers you can pull in that, and are there any kind of internal KPIs you use there, perhaps percent of existing customers contributing by direct debit, those sorts of things? Thanks. Yeah. Good morning, Paul. I am happy to take that one. I think on the first point around the net flows from the 2020 cohort in 2021, typically you can think about, is this the initial consolidation or a subsequent consolidation? What we see with a lot of those initial cohorts of 2016 all the way to 2019 that from customers who have completed their initial consolidation with us, that they then bring over subsequent pots into their PensionBee pots in addition to contribution that we see as well. What you have, in the 2020 cohort for the financial year 2021, is a few of those initial consolidations that would come in, particularly around customers that have been acquired at the end of the 2020 year. There you would see a little bit of a higher proportion of that net flows from existing customers to come from the initial transfer, so to speak. That explains why this number is proportionately a little bit higher to the flows you see from prior cohorts. Another question you asked around the KPI that we metric to ensure that existing customers to grow over time is the underlying cohort growth number of roughly 5% that we typically refer to. That is something that we monitor on an almost monthly basis across each monthly cohort to ensure that we see that flow to come in from existing clients. I hope that answers your question. Yeah. Anything on the kind of marketing efforts to encourage existing customers to start contributing or increase contribution? Yeah. Good morning, Paul. It is Romy here. I am happy to jump in there in terms of marketing to existing customers. We have pretty extensive email marketing campaigns, and we update our customers on a fairly regular basis, at least once a month, regarding new customer features that they may want to take advantage of. Of course, a primary example of that was the introduction of easy bank transfer, both on a one-off and recurring basis, which highlights back to our customers that it is very easy to make contributions within the app. Beyond marketing to them proactively, a lot of our customers enjoy digital accessibility to the pension. When they log into their app or into their online accounts, they can very easily see that it is simple to make a contribution in under 60 seconds. They proactively do that themselves just by finding the ability to do that within the technology estate. Hope that helps. Super. Thank you both. Hello, can you hear me? We can indeed. It is Greg here. I will ask a question. Morning, Greg. How is it? How are you doing? Good. Good surviving. Greg from KBW. In terms of the first quarter, I wonder if you could give us some color or, if it is possible, registered customer and investor customer growth. That is the first question. The second one is, I wonder if you could just give us some idea what the drivers or levers you will pull in 2022 to increase your revenue margin. Thirdly, I wonder if you could just talk about your feature or new feature in order to allow people post-retirement to extract money more easily. Thank you. Yeah. I am very happy to take those questions in order. We would have noted in the presentation, and you will have seen that we are very pleased with the growth so far delivered in the first quarter of the year. We expect registered customers to have grown around 20% for the quarter and invested customers at around 15% for the quarter, which is very much in line with our annual objectives, and also historically strong growth across the entire year. So very, very pleased with the development of the new customer growth in the first quarter. You will remember that we stated we intend to front-load a fair amount of our marketing expenditure into 2022. Indeed, we have been delivering on that exact trajectory, having followed the science behind our data model, and having reaped the benefits of the multi-channel approach to marketing across digital and across brand campaigns. I hope that everyone has seen our presence on digital channels, but also on radio, TV, and billboards across the country. We are very pleased with the execution of that marketing campaign, and the emerging results of that at the start of this year. On your second question regarding revenue margin, we are continuing to guide that margins will be in line with historicals and will remain very resilient. Indeed, we can continue to see that throughout the evolution of the financials into the first quarter. As you know, we are always on the lookout for new products as well. We updated last year that we have significant demand for an impact-oriented product, and we are in the process of searching for one. As you know, we like index-based investments, and this will be a substantially innovative new product that we would seek to bring to the market once it is available. On your third point, regarding withdrawals and making that easy for customers within the product. Our view is that within defined contributions, customers will withdraw their pensions. What makes for excellent service is that once they have decided to do that, making it easy for them to do so, making it intuitive, ensuring that they understand the progression of the expenditure and how long it will last them, and making sure that they can tax optimize to the extent possible. Our in-app withdrawal feature, which Matt modeled onto the presentation, and which you got the chance to see, very much takes those objectives into account. Of course, to us at PensionBee, from a revenue and profitability perspective, customers over the age of 50 typically transfer larger pension pots to PensionBee. Therefore, can continue to add substantially to the assets under administration base that we continue to grow at a very, very rapid pace. Does that answer your question? Yes. Just in the in-app withdrawal feature, when was that launched, and is there a card associated with that? We trial various things with the in-app withdrawal feature. We do have card functionality. We find that a lot of people prefer to do straight-through withdrawals. But yes, you could use a card. We are currently emphasizing that a little bit less. People are finding straight-through withdrawals to be substantially easier to use. Thank you. Thank you. We take our next question from James Allen of Liberum. Please go ahead. As a reminder, participants can also submit questions through the webcast page using the Ask a Question button. Morning, guys. Can you hear me okay? Yes, indeed. Brilliant. Three questions from me, if I can. Please could you elaborate on how you are targeting the female customer base, more proactively going forward, given the opportunity there? Second question, you mentioned a high employee retention rate. What is the current retention rate for the group? Thirdly, I noticed that where there have been a very small number of customers that have left a bad review on Trustpilot. You recently moved from kind of personalized responses, to their reviews to a more automated generic response. I was just wondering what the reason behind that was. Thank you. Thanks very much for your questions. I am happy to start on the first one, and I will hand the second one over to our CFO, and then I will come back on the third one. On the first question regarding the female customer base. We are very focused on growing pension savings for everyone in the U.K. In fact, our vision is to live in a world where everyone can look forward to a happy retirement. Due to historical reasons, women have often been excluded from retirement products, from pension products. That has to do with some very complex reasons around, of course, first and foremost, the gender pay gap, which persists into this day. But also the relatively unfair spreading of unpaid labor, including care between men and women. Over the past year, we have been conducting a lot of research around what we can do to change this. Predominantly, we are focused on raising awareness of the issues, but also proposing solutions around them, with those solutions focusing on women and men taking on equal paid and unpaid labor within their households. You can expect to hear a lot more from us on that campaign in the coming quarters. It is our belief that a pension provider who is incredibly understanding and aware of the reasons why women chronically have smaller pension pots, on average 38% less than their male counterparts, on why that pension provider should be the pension provider of choice. We intend on exploring further feature developments that can be specifically tailored towards women's experiences, including pension modeling that takes into account career gaps, which tend to be more prevalent amongst women to show and forecast the true impact of those breaks. I hope that answers your question. Christoph, if you could cover retention for us. Yes, I am very happy to. Thanks, James, for the question around retention. Generally speaking, around employee retention, that has remained exceptionally high. The number that we typically see in the data over the last few years is above 90% retention, which is obviously great to see that this remained at this high level. If you drill down into retention or attrition, you will see a little bit of a bias as expected on junior levels, we see a little bit of a higher attrition. If you look at more managerial or managerial levels that it actually decreases quite substantially. Overall, we are quite pleased with the retention rate of greater than 90% on the employee base. Thanks, Christoph. Now come back on the third point regarding review responses on Trustpilot. All of our reviews are responded to on a personal basis. We actually have people looking into our reviews and monitoring and aggregating the types of reviews that we are receiving. Over the course of the first quarter, given market volatility, we will have received negative reviews around performance, and that is related to global stock markets. Unfortunately, there is not much that we can respond around global stock markets because we do not control their direction of movement. The responses that we would post on Trustpilot very much will inform customers that these are long-term investments, that volatility is expected, and that pension can and do go up and down, and that is part of the risk-reward trade-off for growing a pension in the long term. In addition to the Trustpilot responses, however, we do have personal phone conversations in the back end with these customers so that they have the opportunity to engage and ask questions. Obviously, Trustpilot is not an interactive medium, so we believe that the personalized sort of conversation can also happen on the phone and in a more personal medium. We are fairly experienced with seeing market downturns and have experienced them in the past as well. As markets rebound, we expect customers to also come and revise their ratings, as we have seen in the past. In addition to that, we do expect them to have a better long-term understanding of the way that pensions behave. Indeed, what we have observed is that new time customers seeing their pension balance fluctuating for the first time will often be slightly alarmed. Customers that have been with us for longer periods of time are much more used to these fluctuations, so we rarely hear from them when market volatility knocks around. Hope that answers your questions. Great. Thanks very much. Thank you. Thank you. We take our next question from Andrew Watson of Singer Capital. Please go ahead. As a reminder, participants can also submit questions through the webcast page using the Ask Question button. Morning. Thank you very much for that. I appreciate the broader, more detailed run through this morning. It is just really to build on Greg's question around registered customer and invested customer growth. Clearly, there is more uncertainty in terms of geopolitical backdrop and headlines that people will just have been reading. Have you seen a change in engagement from registered customers and making that progress through to active and invested? I appreciate these are relatively short-term trends, but are you seeing any hesitation to click the big red button and to progress to invested? We are not really seeing a deviation in trend from historicals on that front. I think in the first quarter, what tends to impact registered to invested customer conversion is simply the time lag that it takes from the moment someone requests to transfer their pension to the moment that the pension is actually transferred. When we have periods of big marketing expenditure, the registered customer base tends to tick up quite significantly, and then the invested customer base follows through. The behavior that we are seeing is fairly in line with historicals. Perfect. Just obviously Q1 is tax year-end. Bearing in mind the segment of the market that you are focusing on, I appreciate that there is a trigger to put some more marketing effort in there. Given the thresholds that we will be talking about with these mass market consumers, can you just explain a little bit how you are tailoring the marketing around tax year-end and playing on certain messages to use the tax year-end as a trigger? Yeah. Tax year-end triggering is normally part of our email communications to the registered customer base, in the earlier parts of the year. It is really the type of trigger where people have been mulling, should I do it? The tax year-end can provide a good emphasis and a good push for them to do it. So it features quite heavily in our email marketing campaigns, our new customer campaigns and what you can see on paid search or on TV, radio, billboard, et cetera, is very much geared towards our core message of sorting out your pensions. Consumers already know that it is tax year-end without us having to necessarily remind them as part of the new marketing campaigns. Really we focus quite heavily on helping them to understand why PensionBee is the provider of choice, why we make it easy for them to consolidate, and they by association also know that therefore it's likely to be easy to contribute. Okay. So in terms of that email marketing, it's very simple in terms of tax year-end, use your allowances now, otherwise you're going to lose them. There isn't any more kind of nuances around the messaging than that. Yeah. That's pretty much it. It is a fairly simple transaction that they need to go through. A lot of our customers are also set up for regular contributions, and so the tax year-end, they tend to be less focused on optimizing it because they're optimizing throughout the year. In terms of our product positioning, we of course tend to feature regular contributions more prominently because they scale much more effectively over time than one-off contributions. That's really interesting. Can you tell me roughly how many of your invested customers are set up for regular contributions? Is that something you have to hand? Offhand, no. But we can come back to you offline on that. Okay, great. Thank you very much. You're welcome. We take our next question from Greg Patterson of KBW. Please go ahead. Apologies. I thought I was at the back of the queue, but I've quick three ones. One is, I wonder if you could quantify marketing spend in the first quarter. I was asked earlier on about do you have a number for assets under management at the end of the first quarter? Then, finally, new product features going to roll out in the second quarter. I'd be interested to hear what those are. Thank you. Yep. On the first set of questions, which is more detailed financial metrics on the first quarter, we'll be releasing those on the 21st of April. I think today we wanted to provide an overview of how it's going, sort of customer number wise, but we'll have the detailed numbers for you once we've gone through the quarter and closing process. So we do hope you'll join us for that at the end of the quarter. On the second point around new feature launches that you can expect to see from us, definitely more functionality on the open banking side, making it, again, easier for customers to get to those contributions, to recognize the value of those contributions. More optimization on the withdrawal side. You saw Max demonstrating some of the features that are coming through. We are delivering on a regular withdrawal feature that we're quite excited about and that customers have been asking for. So that is very much in progress. Then a fair amount around automation and straight-through processing of pension transfers, where we've been working in the background through the technology to reduce manual friction and to help customers get their pension transferred with as little friction as possible. How about there? Thank you. There are no further questions on the conference line. We will now address the questions submitted via the webcast page. We take our next question from Arésé Pollard of KBW. The question is, "Has high inflation hit this strong customer growth since the start of the year? Morning, Ari. Inflation in and of itself doesn't really impact customer growth. Inflation is more of a metric that we look to when we consider the impact of interest rate rises. What we can see rapidly emerging as a consensus in the global economy, and I think yesterday's rate action by the Fed emphasized that, is that investors want to see inflation come under control. It makes for a much more predictable economic environment. Even though the Fed did raise rates yesterday, I think the stability around the messaging of their plan has been well received. Fundamentally, the economy across the world, and especially in the U.S., remains exceptionally strong. We continue to see record levels of employment, which is really what's driving kind of the boost and the need to cool things down a little bit. Inflation is interesting to us as a measure of how central banks will respond and ultimately how the economy overall from a GDP perspective will respond. Thank you. We'll take our next question from Manjit Heer of Addin Partners email. Addin Partners. The question is, "Hi, Romy and the PensionBee team. Thank you for the presentation. Could you talk about what is the contractual revenue margin expecting going forward? What is the likely trend? Thank you. Christoph, would you like to take that one? Yes, of course. I would refer to the guidance that we provide in the presentation on page 19, where we guide to a revenue margin that is consistent with, so to speak, historical levels. We see a continuation of that resilient gross revenue margin to continue into the future, and that is why we put this on as one of our guidance on the top line revenue margin. Thank you. We take our next question from Jonathan Richards of Berenberg. "You stated that Q1 growth has been strong so far. Could you please an idea on numbers of new customers acquired since the start of the year? We expect quarter one growth of registered customers at around the 20% mark, and quarter one growth of invested customers at around the 15% mark. Thank you. We will take our last question from Philip Haggard of KBW. Regarding the split of flows from existing customers between new contributions and consolidation transfers, the seasoning patterns tendency to consolidate, should we understand this fades quite strongly after the 2, 3 years? Yeah. I am happy to take this one. I think what we see as cohorts mature and remain with us over longer periods of time is that we see both consolidation to come in and also customers to contribute. It is, I think, roughly equal when you look at the total size and maybe slightly higher in terms of consolidation, so to speak. Yeah, we see both, of course, to continue. When you look at the overall number, maybe a slightly higher flows from consolidation, but also very strong contribution as well. I hope that answers your question. Thank you. There are no further questions submitted via the webcast page. I will now hand back over to Romi Savova for closing remarks. Thank you very much. We are very pleased that you took the time to join us today. We look forward to engaging with everyone over the coming few days, and remain available for further Q&A. We will look forward to seeing you in April, otherwise. Thank you very much, everyone.