Slide 1: 2019 Interim Results Update
2019 Interim Results Update September 2019 © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc.
Slide 2: Highlights
Highlights © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 2
Slide 3: 2019 Interim Results Highlights
2019 Interim Results Highlights Financial • Revenue up 39% to $23.5 million (2018 H1: $16.9m) • Adj. EBITDA up 69% at $4.3 million (2018 H1: $2.5 million) • $27.9m Gross cash at Jun-2019 (Dec-2018: $32.3m) • Monthly average cash balances $22.2m (Dec-2018: 24.4m) Payment KPIs • H1-2019 Total Payment
Slide 4: Group Financials
Group Financials © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 4
Slide 5: Strong Revenue Growth
Strong Revenue Growth © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 5
Slide 6: Group Financial Performance
Group Financial Performance $000’s 2019 H1 2018 H1 Mvt • Continued strong Revenue Revenue 23,531 16,906 6,625 39% growth Cost of sales (2,938) (1,279) (1,659) (130%) • CoGS increased as % Gross profit 20,593 15,627 4,966 32% Revenue due to Identity Administrative expenses (22,898) (15,681) (7,217) (
Slide 7: Group Financial Performance
Group Financial Performance Operating loss of $2.3m, up from $000’s 2019 H1 2018 H1 Mvt $0.1m in 2018, impacted by non- Revenue 23,531 16,906 6,625 39% cash items: Cost of sales (2,938) (1,279) (1,659) (130%) • Stock-incentives issued in Gross profit 20,593 15,627 4,966 32% (22,898) (15,681) (7,217)
Slide 8: Cashflow
Cashflow • Closing cash balances are strong at $26.1m (excl. $1.7m of restricted cash) • $2.8m of cash was generated from operations prior to movements in working capital • Working capital was negative in H1 following take-on of Danal inc and movements in Settlement flows • Financing reflects cash i
Slide 9: Balance Sheet
Closing Balance Sheet ($000’s) Jun-19 Dec-18 Balance Sheet Non-current assets Property, plant and equipment 4,396 286 Intangible assets 47,374 22,466 Deferred income tax assets 254 254 Total non-current assets 52,024 23,006 • PPE increased as a result of IFRS16 – Current assets Leases ($4.0m right-o
Slide 10: Payments Financial Performance
Payments Financial Performance © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 10
Slide 11: Payments: TPV Growth Feeding into Revenue
Payments: TPV Growth Feeding into Revenue $2.3Bn +47% $19.4m +15% © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 11
Slide 12: Payments: Reducing CoGS and Stable Underlying Operating Expense
Payments: Reducing CoGS and Stable Underlying Operating Expense $12.5m -4% $1m -17% © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 12
Slide 13: Payments EBITDA Growth Maintained
Payments EBITDA Growth Maintained $5.8mm +130% © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 13
Slide 14: Identity Financial Performance
Identity Financial Performance © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 14
Slide 15: Transaction Growth Starting to Feed Into Revenue
Transaction Growth Starting to Feed Into Revenue © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 15
Slide 16: Identity: Underlying Operating Expense and CoGS
Identity: Underlying Operating Expense and CoGS Reducing Opex, as sales resource tripled Improving gross margin 43% in H1-2019 (vs 27% H1-2018) © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 16
Slide 17: Identity Adj. EBITDA
Identity Adj. EBITDA Improving EBITDA Trend © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 17
Slide 18: Growth Strategy
Growth Strategy © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 18
Slide 19: Boku Platform: Mobile Transactions Made Simple
Boku Platform: Mobile Transactions Made Simple Illustrative list of carriers. No claim made about specific networks Note: MSISDN: Mobile Station International Subscriber Directory Number or the mobile number © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered
Slide 20: Growing Sources of Competitive Advantage
Growing Sources of Competitive Advantage Scale Carrier Network Global Merchants Scale acquired on Building Carrier network Proven ability to contract one application has taken >$100m with and rollout transferable to another and 10 years global merchants © 2019, Boku Inc. All rights reserved • PROPRI
Slide 21: Payments
Payments © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 21
Slide 22: Boku's Payment and Acquisition Products
Boku’s Payment and Acquisition Products © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 22
Slide 23: Boku Payments customers: some of the world's largest digital companies
Boku Payments customers: some of the world’s largest digital companies DCB Provider #2 App Store © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 23
Slide 24: Why do our Merchants use Boku?
Why do our Merchants use Boku? New Users We act like a payment company, but are hired to acquire and retain users Merchants need Lower CAC: Netflix spends $45 to recruit a new International subscriber • One Tap to Enrol improves conversion rates Lower Churn / Longer LTV • Phone numbers don’t expire
Slide 25: Growth: More Connections for Existing Merchants
Growth: More Connections for Existing Merchants Source: Ovum 2018 *Carriers with transactions LTM © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 25
Slide 26: Grabpay: Increase Share of Checkout through Mobile Wallets
Grabpay: Increase Share of Checkout through Mobile Wallets Who are Grab? • $14B valuation • Live: MY, SG, TH, VN, ID, CM, MM, PH • $1B annualised revenue run rate • 139 Million Downloads *DMR Business Statistics Why partner with Boku? Same challenges as carriers: • Fragmented • Limited territories •
Slide 27: … drive predictable growth in users on the Boku platform
… drive predictable growth in users on the Boku platform © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 27
Slide 28: …and increasing levels of TPV
…and increasing levels of TPV © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 28
Slide 29: Identity
Identity © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 29
Slide 30: Big Problems on Mobile
Big Problems on Mobile • Email is not a strong primary identity on Mobile • Data from Apps is unverified & not secure • Mobile Number is not enough (SIM Swap fraud / Recycling) • Fraud is migrating to mobile Merchants need a solution… © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENT
Slide 31: Leveraging our Platform to enter a new Market
Leveraging our Platform to enter a new Market • Our Payments business is based on Authentication + Charge • Unbundling this proven, international Authentication capability • Coupled with Danal assets creates a leading identity business © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDEN
Slide 32: Boku Identity Strategic Relationships
Boku Identity Strategic Relationships Banking Chase © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 32
Slide 33: Growth Strategy
Growth Strategy • Triple Sales Force • Enable Identity in new • Tokenised Identity markets + Confidence Score • Direct + Channels • Extend rollout across entire • Moving from data broker • USA, Europe, Asia Boku Network to Identity solutions • Sector-specific focus • Continue to add additional • Sin
Slide 34: Identity – Continuing Growth in Billable Transactions
Identity – Continuing Growth in Billable Transactions © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 34
Slide 35: Current Trading and Outlook
Current Trading and Outlook © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 35
Slide 36: Current Trading
Current Trading Payments TPV: $3.2bn 8M-2019 +46% (8M-2018: $2.2bn) MAU: 16.1m 8M-2019 +42% (8M-2018: 11.3m) Identity Billable transactions: 180m 8M-2019 +83% (8M-2018: 98m) Very strong pipeline of new deployments (>250 connections in the backlog) Merchant operational and deployment issues or delays
Slide 37: Outlook: Continuing Revenue and Adj. EBITDA Growth
Outlook: Continuing Revenue and Adj. EBITDA Growth Full year targets restated • $52m Revenue, gross margins 93% Payments, 40% Identity, Adj. EBITDA Growth 45%-50% • 45% of Revenue and 47% of EBITDA delivered in H1-2019 Second Half Outlook • Autumn Games release schedule • Year end seasonal peak • Ne
Slide 38: 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 39: eooku
eooku Mobile Transactions Made Simple
Slide 40: Net Loss Driven By Stock Option Expenses
Net Loss Driven By Stock Option Expenses $000’s 2019 H1 2018 H1 Mvt Operating loss (2,305) (54) 2,251 (4180%) Finance income 29 23 (6) -26% Finance expense (224) (527) (303) 58% Loss before tax (2,500) (558) 1,942 (348%) Tax (expense)/credit (77) (122) (45) 37% Net Loss for the period attributable t