Slide 1: 2018 H1 Results Update
2018 H1 Results Update September 2018 © 2017, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc.
Slide 2: Forward-looking statements
Certain statements in this document are forward-looking statements. The forward-looking statements include statements typically containing words such as “intends”, “expects”, “anticipates”, “targets”, “plans”, “projects”, “estimates” and words of similar import. These statements are based on current
Slide 3: Highlights
Highlights © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc. 2
Slide 4: Highlights – H1 2018 (vs H1 2017)
Highlights – H1 2018 (vs H1 2017) Financial • $5.3m improvement in Adjusted EBITDA – H1 2018: +$2.5m – H1 2017: ($2.8m) • Net Loss of $0.68m (H1 2017: $6.8m) • Revenue up 66% to $16.9m (H1 2017: $10.2m) • $30.7m Gross cash (2017: $20m) – Average daily cash balance: $23.1m (2017: $19.2m) KPIs • Total
Slide 5: Financial Results
Financial Results © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc. 4
Slide 6: Adjusted EBITDA Performance
Adjusted EBITDA Performance $000’s H1 2018 H1 2017 Mvt Revenue 16,906 10,207 6,699 66% Cost of sales (1,279) (1,050) (229) (22%) Gross profit 15,627 9,157 6,470 71% Administrative expenses (15,681) (14,361) (1,320) (9%) OPERATING LOSS (54) (5,204) 5,150 99% Operating loss analysed as: Adjusted EBITD
Slide 7: Reduction In Accounting Losses
Reduction In Accounting Losses $000’s H1 2018 H1 2017 Mvt Operating loss (54) (5,204) 5,150 99% Finance income 23 8 15 188% Finance expense (527) (1,220) 693 57% Loss before tax (558) (6,416) 5,858 91% Tax (expense)/credit (122) (146) 24 16% Net Loss for the period attributable to equity holders of
Slide 8: TPV Growth Feeding into Revenue
TPV Growth Feeding into Revenue © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc. 7
Slide 9: $2.5m Positive Adj. EBITDA Continues Improving Trend
$2.5m Positive Adj. EBITDA Continues Improving Trend *Adjusted Operating Expenditure = Administrative expenses adjusted to exclude depreciation and amortisation, share option expense, foreign exchange gains and losses and exceptional items (which include IPO costs). © 2018, Boku Inc. All rights rese
Slide 10: Expenses Under Control
Expenses Under Control • Gross Margin: 92.4% in H1 18 (91% average across 2017) • H1 18 CoGS pulled up slightly by strong Settlement model performance • H1 18 Opex includes $0.6m investment in Boku Mobile Identity *Adjusted Operating Expenditure = Administrative expenses adjusted to exclude deprecia
Slide 11: Balance Sheet
(Unaudited) (Audited) Closing Balance Sheet ($000’s) Non-current assets H1 2018 Dec-17 Balance Sheet Property, plant and equipment 335 410 Intangible assets 24,046 25,799 Investments 125 – • Closing cash balances $30.7m (from Deferred income tax assets 689 714 Total non-current assets 25,195 26,923
Slide 12: Strategy and Outlook
Strategy and Outlook © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc. 11
Slide 13: Boku: Recruiting and Retaining the Right Users
Boku: Recruiting and Retaining the Right Users Illustrative list of carriers. No claim made about specific networks © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc. 12
Slide 14: Boku’s Products
Boku’s Products © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc. 13
Slide 15: Strategic Relationships
Strategic Relationships Facebook Sole DCB Aggregator #1 Social Network Sony Sole DCB Aggregator #1 Console Microsoft Official DCB Aggregator #2 Console Spotify Primary DCB Aggregator #1 Music Streaming Netflix Sole DCB Aggregator #1 Video Streaming Riot Games Sole DCB Aggregator #1 Grossing PC Game
Slide 16: Boku Platform Processing Capacity Increased
Boku Platform Processing Capacity Increased Migration to new data centre and investment in new infrastructure has further increased capacity to >600 transactions / second, without material increase in costs © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mob
Slide 17: Growth in Underlying Market and Broader Distribution…
Growth in Underlying Market and Broader Distribution… © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc. 16
Slide 18: … drive predictable growth in users on the Boku platform
… drive predictable growth in users on the Boku platform Monthly Active Users on Boku Platform © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc. 17
Slide 19: …and increasing levels of TPV
…and increasing levels of TPV © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc. 18
Slide 20: New Payments and Identity Merchants
New Payments and Identity Merchants © 2018, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku,’ and ‘Pay by Mobile’ are registered trademarks of Boku, Inc.
Slide 21: Outlook
Outlook • Encouraging trading so far this year: – TPV: YTD Aug-2018: $2.2bn +140% (YTD Aug-2017 $0.9bn) – MAU: YTD Aug-2018: 11.3m +105% (YTD Aug-2017: 5.5m) • Full year: – Continued substantial growth in TPV and revenue in line to meet recently updated market expectations • Product Development focu
Slide 22: Slide 22