Boku, Inc. · LSE:BOKU
Boku — H1 2021 Earnings Presentation
28 slides from Boku's earnings presentation, Sep 7, 2021
Slide 1: Interim Results for the half year ended 30 June 2021
Interim Results for the half year ended 30 June 2021 7th September 2021 Jon Prideaux Keith Butcher
Slide 2: Presentation Team
Presentation Team Jon Prideaux, CEO Keith Butcher, CFO CEO since 2014 Formerly CFO of LSE listed Formerly EVP at VISA and payments companies Deputy CEO at Secure Trading DataCash and Paysafe © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Bok
Slide 3: Boku 2021 Interim Results Highlights
Group Boku 2021 • Revenue and EBITDA ahead of original market expectations Interim Results Payments • Launches in H1 2021 with major merchants for DCB, bundling and Wallets Highlights • Google, Netflix, Spotify, Amazon, Riot Games, Epic Games, DAZN, and Tinder • 68 merchant/wallet combinations in 9
Slide 4: Financial Performance
Financial Performance 4
Slide 5: Interim results 2021 - Group
Interim results 2021 - Group Group Financials • Revenue: up 38% to $34.2m (H1 2020: $24.7m) • organic revenue growth 21% • organic cost growth 12% • Fortumo results included from 1st July 2020 • EBITDA up 61% to $10.3m (H1 2020: $6.4m) • Operating Profit increased to $2.3 million for H1 2021 (H1 202
Slide 6: Interim results 2021 - Group
Interim results 2021 - Group • Average daily cash balance - $38.0m in June 2021 (June 2020: $25.7m) • Group cash of $48.6m at 30 June 2021 (30 June 2020: $36.2m*) • $11.25m of the $20m debt used to acquire Fortumo paid down • $3.0m of the revolver and $0.9m of the term loan paid down since the year
Slide 7: Payments – strong growth
Payments – strong growth Payments division • Revenues increased by 40% to $30.7m (H1 2020: $22.0m) o Organic revenue* growth of 20% to $26.3m (H1 2020: $22.0m) excluding Fortumo revenues acquired 1 July 2020 • Payments Adj. EBITDA up 33% to $11.2m (H1 2020 $8.4m*) • H1 2021 take rate 0.77% - stable
Slide 8: Payments – strong growth
Payments – strong growth Payments division – H1 highlights • 29.7m Monthly Active Users ("MAU") – up 46% v H1 2020 • Organic growth 28% (excluding Fortumo) • Total Payment Volume (TPV) up 29% to $4.0bn (H1 2020: $3.1bn) • Regulated payment capabilities expanded to 49 countries • Boku now authorized
Slide 9: Fortumo earnout
Fortumo earnout Acquired 1 July 2020 Total Consideration • Highly accretive deal based on EBITDA • 12-month earnout period, based on challenging multiples paid EBITDA targets, ended 30 June 2021. • Initially run as standalone operation • Payout of $5.4m escrow by 5 October 2021 • Going Forward • Dis
Slide 10: Identity: Improving performance in H1
Identity: Improving performance in H1 • Revenues up 30% to $3.5 million (H1 2020: $2.7 million) • Adj. EBITDA losses reduced to $0.9m from H1 2020 ($2.3m loss) • H2 costs expected to increase as further investment is made. • Identity connections added in Spain, Italy and Indonesia, together with a s
Slide 11: Group Operating Leverage
Group Operating Leverage Note: Underlying Cost growth 12%, underlying EBITDA growth 34% © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc. 11
Slide 12: Strategy Update
Strategy Update
Slide 13: The stage is set for unprecedented growth in eCommerce
The stage is set for unprecedented growth in eCommerce But relying on the traditional cards playbook will not reach these new consumers Global Middle Class has They have smartphones Mobile-First Payments doubled and is expanding & don’t have credit cards are essential 70% 25% 160M 10% 60% 50% 20% Cr
Slide 14: Mobile payment acceptance is critical to eCommerce, but acceptance is a big challenge
Lack of standards Mobile payment Local tax collection Fragmented payment methods acceptance is critical to Mobile Payment eCommerce, Settlement acceptance challenges Payment & FOREX Licensing but acceptance is a big challenge Complex Rapidly technical changing integrations market © 2023 Boku Inc. Al
Slide 15: The M1ST Network simplifies mobile payment acceptance
The M1ST Network simplifies mobile payment acceptance An integrated approach, inspired by the card schemes, removes significant friction Reach mobile-first consumers with the payments they use • 5.7 billion mobile payment accounts accessible • 330+ payment methods in 90 countries • Mobile Wallets, D
Slide 16: Boku delivers Mobile-first consumers to the world's largest brands
Boku delivers Mobile-first consumers to the world’s largest brands Trusted today by six of the seven most valuable companies in the world Mobile Apps Streaming Video Music Streaming #2 App Store #1 Streaming Video #2 Streaming Video #1 Music Streaming Official DCB Provider Sole DCB Provider Official
Slide 17: Boku's M1ST Payments Network – Case Studies
Boku’s M1ST Payments Network – Case Studies Boku delivers new users and more successful transactions Wallets and DCB are additive Source: Boku Data Data from multiple merchants aggregated to show general effect © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registe
Slide 18: Payment Methods are eager to join Boku's M1ST Network
Payment Methods are eager to join Boku’s M1ST Network Boku provides access to global brands, know-how & scale • Payment providers want access to brands like Amazon, Facebook, Google, etc. • Reaching global merchants is critical for payment method growth • Boku works with payment method providers to
Slide 19: Boku Has Broad Payments Capabilities
Boku Has Broad Payments Capabilities No capability Regulated Payments (49 markets) Transaction capability (89 markets) Regulated Payments: Countries where Boku is authorised to provide regulated payment services for international merchants and, where necessary, holds, directly or indirectly, the req
Slide 20: Boku's Mobile-First Payments Platform
Boku’s Mobile-First Payments Platform PaaS provides merchants with required functionality along with plug & play payment types M1ST Payments Network Front-End Functionality Direct Carrier Billing Payment On-File Payment Panel M1ST API Tokenized for Recurring No-API integration to support Fully integ
Slide 21: Boku's Mobile Identity Suite
Boku’s Mobile Identity Suite Using mobile operator data to seamlessly secure online services Verify – Customer Onboarding Authenticate – Secure Account Access Verify your address using one of the methods below • Instant authentication maximizes sign-on conversion rate • PIN-less authentication reduc
Slide 22: Global Online Payments Market
Global Online Payments Market Boku provides merchants with the most global and mobile-first payment options Generalist PSPs Specialist PSPs Global Giants (Highly-established players) Global Merchant Focus (delivering mobile-first consumers) $15B market cap $5B valuation $43B acquisition $28B market
Slide 23: Boku has key assets in place
Boku has key assets in place to deliver the market potential of M1ST Established Unique multi- Robust scalable Payment methods relationships with jurisdictional regulatory technology with years of with 330 connections 500 customers globally infrastructure uninterrupted expansion in 89 countries 3 ye
Slide 24: Proven Growth Strategy
Proven Growth Strategy Wide & Deep Land & Expand Plug and Play Build the M1ST Recruit customers Investment to simplify payments network to with unique onboarding, contain the payment capabilities, expand expansion, operations, types that deliver footprint through clearing and settlement mobile-first
Slide 25: Summary and Outlook
Summary • Strong performance in Payments across DCB, Bundling and Wallets • Staking out a position as a specialised PSP in bigger Summary Local Payment Method processing market and • Return to growth in Identity business, driven by international success Outlook Outlook • Remain on track to deliver r
Slide 26: Boku helps the world's largest companies acquire, monetize and retain mobile-first consumers
Boku helps the world’s largest companies to acquire, monetize and retain mobile-first consumers © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc.
Slide 27: Our Values
We're committed to the long-term growth of our customers, even if it costs us more in the short run. 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 s
Slide 28: Slide 28