PensionBee Group PLC on Wednesday said revenue in the third quarter of calendar 2024 soared 50% higher, as assets under management also surged 40% higher amid positive net flows from customers.

The London-based online pension provider said assets under administration were £5.5 billion on September 30, up 41% from £3.9 billion on September 30, 2023. This was underpinned by ‘strong’ net flows from new customers, which totalled £538 million in the year to September 30, and from existing customers, which totalled £153 million in the year to date.

Third-quarter revenue for the three months to September 30 was £9 million, rising 50% year-on-year from £6 million. Revenue for the first nine months of the year, ending September 30, was £24 million, 41% higher year-on-year from £17 million.

The group also swung to positive earnings before interest, tax, depreciation and amortisation of £1 million for the three-month period, from a loss of £1 million the year before.

Invested customers increased 17% to 260,000 from 223,000 in September 2023, which the company said was the product of ‘strong continued growth, demonstrated by PensionBee’s data-led, efficient customer acquisition approach and the strength of PensionBee’s household brand, with PensionBee’s prompted brand awareness reaching an all-time high of 58%’.

Chief Executive Officer Romi Savova said: ‘Our substantial growth has continued over the third quarter. As we continue to consistently execute on all elements of our strategy, having achieved two consecutive quarters of positive group adjusted Ebitda this year, we expect to deliver group breakeven on the same basis for the full-year 2024.

‘We are delighted to be expanding the reach of our award-winning customer proposition, innovative technology platform and unique marketing approach, having entered the US market, the world’s largest defined contribution pension market, in partnership with State Street Global Advisors Ltd. We are pleased to see a positive consumer response to our marketing approach and to have developed local features to facilitate easier rollovers. The opportunity we have ahead of us, to help millions of Americans enjoy a happy retirement, is transformational for the next decade of PensionBee’s growth.’

In addition, PensionBee announced on Thursday that it has raised £20 million through a placing announced on Wednesday, for which it issued 10.8 million shares at 185 pence each.

It intends to use the proceeds to accelerate investment in its US business, including increasing marketing expenditure on paid advertising channels, accelerating the development of localised product features, and pursuing employer opportunities to bulk transfer former employees’ accounts.

Shares in PensionBee were up 1.7% at 172.80 pence each in London on Friday afternoon.

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