Shareholder Letter 2024

Dear Friends & Shareholders,

What a year it has been for Finary! In the past 12 months alone, we've achieved massive milestones that reinforce our trajectory towards an exciting future: 20,000 premium subscribers, €2.6 millions in annualized recurring run rate, over €30 million in crypto transactions, explosive growth in traffic with 2,5 million visitors, and a landmark 100,000 subscribers on our YouTube channel. Finary has truly become synonymous with personal finance.

This market remains predominantly offline, dominated by legacy players. At Finary, our mission is to dismantle the barriers preventing millions from investing. We are convinced that the digitization of financial services will enable better, cost-effective investments, all while providing tailored support. Imagine having a private banker right in your pocket.

We have the opportunity to become the go-to platform for personal finance, the "one-stop-shop" of our generation. Traditional banks and established players have taken note and are heavily investing in their tech to catch up. They may have brand recognition, unwavering customer trust, and seemingly limitless resources.

To win this race, we need to rapidly expand our offerings while delivering a unique customer experience. It won't be easy, but it is possible. This is why our team gets up every morning. We are on the dawn of a new era for personal finance.

The 4 Pillars of the Modern Investor

Since 2020, our vision has been to build a platform with three pillars: managing wealth, tracking budgets, and investing in the best opportunities. The goal? To save our clients time and money by leveraging technology.

This past year, we made significant strides by launching two more pillars: Budget and Investment. We also introduced a crucial fourth pillar, Education. Self-directed investments is the new norm, and understanding personal finance is a pre-requisite. We provide our customers with this knowledge.

A healthy budget is essential for a controlled investment strategy. Endorsed by our community, our new "Budget" section quickly became a benchmark. The automatic categorization of all banking and investment transactions provides a comprehensive view of your cashflows.  

Infinitely customizable through the creation of categories and smart rules, it has convinced many to switch from their usual budgeting apps. Today, "Budget" already generates 15% of our subscription revenue.

Our Investment platform launched quietly in July 2023. Our first product meets all the needs of a long-term crypto investor: a simple and beautiful interface, options for DCA or instant buying, wallet transfers, and the ability to earn passive income through yields.  

The timing was perfect, allowing us to capitalize significantly on the rising prices, the launch of the Bitcoin ETF, and the Halving.

Furthermore, we have continued to enhance our tracking pillar with new integrations, the holding mode, a complete overhaul of the web experience, and improvements in data quality.

Record-Breaking Figures

As I said in 2023 and I repeat now in 2024: my ambition is to build a profitable company. This past year has been remarkable for Finary:

• 300,000 members registered on the platform, a 50% increase in 12 months.
• Of these, 20,000 are subscribed to our Premium offerings. Subscription numbers have jumped by 72% since early 2024, and the pace is only accelerating.
• Annualized recurring run-rate has reached €2.6 million, and we’re on track to achieve triple digit year-over-year growth in 2024.
• We recorded €30 million in volume on Invest, equating to over 250,000 orders of buys, sells, and swaps.
• In the first quarter of 2024, 62% of Invest clients who made at least one order also subscribed to a Premium plan, underscoring the effectiveness of our cross-selling strategy.
• Our revenue diversification is accelerating, with Invest contributing 20% of March's revenue.

Financial literacy in France is poor, if not non-existent. Adding an education pillar aims to change that. We've focused all our marketing resources on creating high-value video content. In just one year, we've gone from novices to a reference point with over 10 million views (+5,000% in one year).

This channel has become an asset for the company: more than 120,000 subscribers (+2,300% in one year) follow our videos. Finary is now the fastest-growing French-speaking finance channel in the world, and YouTube has become our main acquisition channel. Traffic on Finary has also skyrocketed with over 300,000 monthly visitors.

This phenomenal growth has allowed us to cut all our paid marketing expenses, bringing us closer to profitability. We already surpassed 2023's revenue and are aiming for profitability in the 2024. Additionally, our cautious spending policy provides us with a comfortable cash position and multiple years of runway.

The Team

This phenomenal success story is the product of a team of 33 passionate individuals, and I am proud to be part of it. Excellence, speed of execution, and autonomy are the secrets that make our culture unique.  

Everything moves quickly, and it's not easy to invent products and uses that don't yet exist. We can't get everything right the first time, and some of our initiatives have ended in failure. That's the price of innovation.

We operate this way daily because it's the only way to challenge the status quo, to build a product that will still be discussed in 50 years, to create a legacy. By nature, a startup is an underdog against established players. Like David against Goliath, we use our strengths and ignore our weaknesses.

The team will continue to grow in the coming months, and we have many positions open. If you want to excel and have a positive impact on the lives of millions, contact us!

The Plan for 2024, and Beyond

In 2024, we're aiming for triple digit growth in revenue and achieving profitability. We'll continue to heavily invest in our four pillars with new integrations, improved data quality, and other surprises. For the first time, we will also offer advisory services powered by a team of Finary in-house wealth advisors and proprietary AI.

On the Invest side, we will continue to innovate by offering more investment products. These will be in line with Finary's DNA: simple, competitive fees and integrated with the rest of our ecosystem.

The pillars will be interconnected, making Finary the true "one-stop-shop" for your money.

Our current growth and prudent management of raised funds put us in a very comfortable position: a new fundraising round is currently not necessary. However, should this change, rest assured that I will do everything possible to allow thousands of clients to participate in this beautiful adventure once again.

Our roadmap is clear, but we must remain vigilant as we navigate the murky waters of fintech. Our hybrid model based on subscriptions and investments is promising, but still young.

The greatest wealth transfer in history is about to take place, and a new generation of investors will reap the benefits. It's up to us to capitalize on this opportunity to become the undisputed champion of personal finance.

Become an Actor in Your Investment

Investors often ask how they can help Finary. It's very simple:

• Become a Premium member: that's the best way to fund our upcoming innovations!
• Invest in crypto with us (and not with competitors) as an individual or with your company
• Talk about us to your family, friends, and colleagues

Thank you all for your passion and unwavering support. Writing this yearly letter makes me realize that Finary has far surpassed all my expectations, and we're only at the very beginning of the journey…

Let's make 2024 a year to remember!

‍

Mounir
CEO & Co-founder of Finary