Slide 1: 2020 Full Year Results
2020 Full Year Results 16 March 2021 Jon Prideaux Keith Butcher
Slide 2: Presentation Team
Presentation Team Jon Prideaux, CEO Keith Butcher, CFO CEO since 2013 Formerly CFO of LSE listed Formerly EVP at VISA and payments companies Deputy CEO at Secure Trading DataCash and Paysafe © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Bok
Slide 3: Highlights
Highlights © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc.
Slide 4: Boku Trading Highlights
Boku Trading Highlights Financial • Operating leverage: EBITDA more than doubled Payments • TPV up 38% to $6.9 billion • Monthly Active Users up 48% to 28.8m • Acquisition of Fortumo consolidates the market • Despite COVID-19, record number of new Boku Account launches at 69 (2019: 42) Identity • Di
Slide 5: 2020 Financial Highlights
2020 Financial Highlights Group Financials • Group Revenue: $56.4m up 20% (2019: $46.8m*) • Payments Revenue: $51.2m (+27%) (2019: $40.2m*) • inc. $4.5m Fortumo revenues • Identity revenues $5.2m – coronavirus impacted • Adj. Group EBITDA up 108% to $15.3m (2019: $7.4m) • Payments EBITDA up 52% to $
Slide 6: Average Daily Cash Balances (by month)
Average Daily Cash Balances (by month) © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 6
Slide 7: Payments
Payments © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 7
Slide 8: Boku Payments division 2020 Highlights
Boku Payments division 2020 Highlights Boku Fortumo Total 2019 2020 Financials $’000 $’000 $’000 $000 Revenue 46.8 4.4 51.2 40.2 Payments Revenue: $51.2m (+27%) (2019: $40.2m*) • $46.8m Boku Payments revenues (2019: $40.2m*) Cost of sales (1.3) (0.3) (1.7) (1.6) • $4.4m Fortumo revenues Gross margin
Slide 9: Payments: TPV Drives Revenue
Payments: TPV Drives Revenue Acquisition of Fortumo Inc., consolidated from 1st July 2020 Revenue: $51.2m up 27% (2019: $40.2m*) • Inc. $4.5m Fortumo TPV up 37% to $6.9bn (2019: $5.0bn) • Fortumo $114m Monthly Active Users up 48% to 28.8m (2019: 17.8m) • 4.6m MAUs from Fortumo Take rates stronger in
Slide 10: Payments: Stable Costs Drive Operating Leverage
Payments: Stable Costs Drive Operating Leverage Payments Adj. EBITDA up 51% to $19.2m • Includes Fortumo $1.5m • Boku Payments $17.7m (+51%) Adj Opex/CoGs $32.1m - increased by Fortumo in H2 • Boku Payments $29.1m (+6%) • Fortumo $3.0m (H2 only) EBITDA up 51% to $19.2m • Improved by COVID-19 impact
Slide 11: Boku Platform: Mobile Transactions Made Simple
Boku Platform: Mobile Transactions Made Simple Merchants Boku Platform Carrier Identity Network Carrier Billing Network eWallet Network * MSISDN: Mobile Station International Subscriber Directory Number or the mobile number © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’
Slide 12: Boku’s Competitive Advantage
Boku’s Competitive Advantage Scale 200+ Carrier Network Global Merchants Boku market leader player Building Carrier network Boku exclusive DCB has taken >$100m relationship with world’s Limited competition and 10 years largest merchants Operational gearing 200+ carriers Proven ability to rollout glo
Slide 13: Payments customers: six of the world’s seven largest companies
Payments customers: six of the world’s seven largest companies © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 13
Slide 14: Growth: add more carrier connections for our Merchants
Growth: add more carrier connections for our Merchants New connections in 2020 build on implementations from prior years More Settlement model merchant launches Merchants are highly sticky–recurring revenues Some new merchant launches DCB offering is a customer acquisition tool *Carriers with transa
Slide 15: … drive predictable growth in users on the Boku platform
… drive predictable growth in users on the Boku platform © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 15
Slide 16: …and increasing levels of TPV
…and increasing levels of TPV © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 16
Slide 17: Boku and Fortumo Future Focus
Boku and Fortumo Future Focus Commercial c. 400 active Merchant accounts c. 100 active Merchant accounts Lower volume, higher take rate Higher volume, lower take rate Mostly Settlement model Mostly Transaction Model Merchant marketing expertise Global Merchant sales expertise Technical Highly config
Slide 18: Wallets
Jumping to the big pond. Wallets © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 18
Slide 19: Seen from the Big Pond, DCB is a niche of a niche
Seen from the Big Pond, DCB is a niche of a niche E-Commerce: $2.4tn New Customers 15% New paying users from Boku 85% Pay by other means Furniture and Appliances $325bn (3) Consumer Electronics $375bn (3) Food and Personal Care $410bn (3) Toys, Hobbies and DIY $518bn (4) Fashion $664bn (6) Digital C
Slide 20: Mobile Wallets are a big deal
Mobile Wallets are a big deal Wallets are already the primary way to pay online - their growth is coming at the expense of cards Wallets 44.5% of checkout Wallets expected to be 61% of checkout by 2025 © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trade
Slide 21: Wallet Go To Market Approach
Wallet Go To Market Approach Target Customers How we win 1. Cross-sell to existing digital merchants Better Product 2. Add new non-digital merchants, with: • More mobile wallet coverage • Cross border sales than traditional PSPs • Limited Wallet coverage • Optimised User experience • Dedicated Payme
Slide 22: Wallets Growing Fast From a Small Base
Wallets Growing Fast From a Small Base Merchant Case Study: Carrier Billing and Wallets compared Benefits of Wallets: • More users of a mainstream payment method leads to higher volumes • Higher Average Transaction Values (ATV) • Lower fees for merchants Results • Wins vs. Adyen and Worldpay with ma
Slide 23: Identity
Identity © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 23
Slide 24: Boku Identity
Boku Identity Products Identity Coverage Boku Verify verify user supplied information to streamline signup and reduce fraudulent accounts Boku Authenticate verify the user device to eliminate account takeover © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registere
Slide 25: Identity: Building the Network and Reducing Losses
Identity: Building the Network and Reducing Losses • $5.2m revenues -- lower on COVID-19 and US Carrier supply impact • EBITDA losses reduced to $3.9m (2019: $5.3m) • Impairment of goodwill $20.8m • International network expanded to 200+ carriers in 60 countries • Re-established as Technical provide
Slide 26: Conclusion
Conclusion © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 26
Slide 27: 2020 Summary and 2021 Outlook
2020 Summary and 2021 Outlook 2020 results • Strong Revenue growth (20%) and EBITDA growth (100%+) • Driven by Payments (Organic growth and acquisition of Fortumo) • Challenging year for Identity, but progress on operational (supply/contract wins) Payments outlook • Benefit of being market leader sh
Slide 28: Our Values
Our Values Things might not happen as planned. Stay calm, alter course and move on. Trust and respect each other. Encourage others to do the same. Welcome others’ opinions and ideas. We’re all on the same team. We are building a great big global mobile platform. Aim for (modest) world domination. ©
Slide 29: Appendices
Appendices © 2021, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 29
Slide 30: Income Statement 2020
Income Statement 2020 2020 2019 Boku Income Statement by segment for 12 months to 31 December 2020 Payments Identity Total Payments Identity Total $’000 $’000 $’000 $’000 $’000 $’000 Fee Revenue* 51,231 5,171 56,402 43,473 6,675 50,148 Cost of sales (1,669) (3,256) (4,925) (1,641) (3,922) (5,563) Gr
Slide 31: Income Statement 2020 (continued)
Income Statement 2020 (continued) 2020 2019 Boku Income Statement by segment for Payments Identity Total Payments Identity Total 12 months to 31 December 2020 $’000 $’000 $’000 $’000 $’000 $’000 Operating Profit/(loss) analysed as: Adjusted EBITDA** 19,176 (3,908) 15,268 12,687 (5,284) 7,403 Deferre
Slide 32: Balance Sheet
2020 2019 Closing Balance Sheet Non-current assets $’000 $’000 Balance Sheet Property, plant and equipment 3,771 3,512 Intangible assets 65,559 46,819 Balance sheet and cash balances strong Deferred income tax assets 483 1,826 Total non-current assets 69,813 52,157 • Cash balances increased at year
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