Slide 1: 2019 Full Year Results
2019 Full Year Results 26 March 2020 Jon Prideaux Keith Butcher © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc.
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 © 2019 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku
Slide 3: Highlights
Highlights © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 3
Slide 4: Boku 2019 Highlights
Boku 2019 Highlights Group Financials* Identity division • Group Revenue: $50.1m up 42% (2018: $35.3m) • Acquisition of Danal Inc for $25.1m (8.6% of Boku) • Adj. EBITDA $7.4m • Billable transaction growth +45% • Cash balances at year end: $35.6m (2018: $32.2m) • Revenue growth +26% at $6.7m, mostly
Slide 5: Group Financial Performance
Group Financial Performance © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 5
Slide 6: 2019 Financial Highlights
2019 Financial Highlights Group Financials* • Group Revenue: $50.1m up 42% (2018: $35.3m) • Payments revenue $43.5m* (2018: $35.3m) • Identity revenues up 23% to $6.7m • Adj. Group EBITDA $7.4m* • Payments EBITDA up 100% to $12.7m* • Identity EBITDA losses reduced to $5.3m (2018: $6.3m loss) • Cash
Slide 7: Income Statement
Income Statement 2019 2018 Boku Income Statement by segment for 12 months to 31 December 2019 Payments Identity Total Payments $’000 $’000 $’000 $’000 Fee Revenue* 43,473 6,675 50,148 35,275 Cost of sales (1,641) (3,922) (5,563) (2,512) Gross Profit 41,831 2,754 44,585 32,764 Administrative Expenses
Slide 8: Income Statement (continued)
Income Statement (continued) 2019 2018 Boku Income Statement by segment for 12 months to 31 December 2019 Payments Identity Total Payments $’000 $’000 $’000 $’000 Operating Profit/(loss) 5,780 (6,664) (884) (2,415) Finance income 56 0 56 53 Finance expense (432) (35) (467) (631) Profit/(Loss) before
Slide 9: Balance Sheet
Closing Balance Sheet ($000’s) 2019 2018 Balance Sheet Non-current assets Property, plant and equipment 3,512 286 Intangible assets 46,819 22,466 Deferred income tax assets 1,826 254 Total non-current assets 52,157 23,006 Current assets Balance sheet and cash balances strong Trade and other receivab
Slide 10: Average Monthly Cash Balances
Average Monthly Cash Balances *Average Cash Balances for November 2019 include the daily cash balances for Boku Identity Inc (US and Ireland of $234K ). © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 10
Slide 11: Payments Financial Performance
Payments Financial Performance © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 11
Slide 12: Payments: TPV Feeds into Revenue Growth…
Payments: TPV Feeds into Revenue Growth… © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 12
Slide 13: …Stable Expenses Drive Operating Leverage
…Stable Expenses Drive Operating Leverage © 2020, 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 © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 14
Slide 15: Identity: Transaction Growth Starting to Feed Into Revenue
Identity: Transaction Growth Starting to Feed Into Revenue © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 15
Slide 16: Business Update: Boku Payments
Business Update: Boku Payments © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 16
Slide 17: 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 © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 17
Slide 18: Growth: add more carrier connections for our Merchants
Growth: add more carrier connections for our Merchants 2019 connections primarily adding new carriers to lower margin merchants Can be exploited by higher margin merchants in 2020 and beyond Merchants are sticky – recurring revenues Some new merchants (eg Tencent, AWA) DCB offering is a customer acq
Slide 19: … drive predictable growth in users on the Boku platform
… drive predictable growth in users on the Boku platform © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 19
Slide 20: …and increasing levels of TPV
…and increasing levels of TPV © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 20
Slide 21: Boku Platform: Connecting Merchants to Carriers and Alternative Payment Methods
Boku Platform: Connecting Merchants to Carriers and Alternative Payment Methods • 26 connections • 12 carriers • 4 countries • 190+ carriers • 62 countries • 1bn subscribers Illustrative list of carriers & eWallets. No claim made about specific networks • 10 mobile wallets • 9 countries • >1.4bn end
Slide 22: Payments: Mobile Wallets – progress and plan
Payments: Mobile Wallets – progress and plan Why Mobile Wallets and International Merchants need Boku • Mobile Wallets: Good LOCAL merchant coverage, but want international • Merchants: Too costly to implement dozens of new connections – reuse Boku connection • New merchants – non DCB merchants can
Slide 23: Business Update: Boku Identity
Business Update: Boku Identity © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 23
Slide 24: Identity: 2019 Update and 2020 Priorities
Identity: 2019 Update and 2020 Priorities 2019 2020 • Despite supply challenges, • Maintain US Revenues US Business grew 26% to $6.7m • Grow non-US revenues à Build and reduced losses to $5.4m Out Global Carrier Identity Network • Sales resources rebalanced • Refined Product Set focused out of US à
Slide 25: Identity Products
Identity Products © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 25
Slide 26: Identity Customers and Distributors
Identity Customers and Distributors © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 26
Slide 27: Identity Coverage Expanding Rapidly
Identity Coverage Expanding Rapidly One connection = carrier x product New launches in • India • Indonesia • France • Switzerland © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 27
Slide 28: Boku's Competitive Advantage
Boku’s Competitive Advantage Scale 190 Carrier Network Global Merchants Boku scale player Building Carrier network Boku exclusive DCB has taken >$100m relationship with world’s EBITDA positive and 10 years largest merchants Limited competition 190 carriers Proven ability to rollout Operational geari
Slide 29: Covid-19 Impact
Covid-19 Impact © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 29
Slide 30: Covid-19 – Boku is Resilient
Covid-19 – Boku is Resilient Supply Company Configuration • Digitally delivered • Most employees already had • Unaffected by lockdown remote working experience • One or two merchants with minimal • Limited impact on ability to deliver budgeted revenue may be affected negatively (eg DAZN) Demand Impl
Slide 31: Sector by Sector Impact
Sector by Sector Impact Higher driven by self isolation / social distancing © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc.
Slide 32: Sector by Sector Impact
Sector by Sector Impact © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc.
Slide 33: Europe: Covid-19 Impact
Europe: Covid-19 Impact © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc.
Slide 34: Korea: Covid-19 Impact
Korea: Covid-19 Impact © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc.
Slide 35: Other Asian Markets: Covid-19 Impact
Other Asian Markets: Covid-19 Impact Little apparent effect in advanced East Asia Some evidence of uplift in other South East Asian Markets © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 35
Slide 36: Middle East: Covid-19 Impact
Middle East: Covid-19 Impact © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc.
Slide 37: Identity: No Discernable Covid-19 Impact
Identity: No Discernable Covid-19 Impact Cumulative Billable Transactions © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 37
Slide 38: Covid-19 – Boku is resilient
Covid-19 – Boku is resilient Financial Sales / Business Development • Reforecast: reconfirm existing guidance • Some trade shows have been cancelled: • Cash monitoring processes instituted affects prospecting • Most activity switched to digital channels • 2020 revenue impact limited Payments Identit
Slide 39: Conclusion and Outlook
Conclusion and Outlook © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 39
Slide 40: 2019 Summary and 2020 Outlook
2019 Summary and 2020 Outlook 2019 results • Significant payments growth and progress on Identity 2020 Outlook • Payments • Continued strong Revenue growth, enhanced by corona impacts • E-wallets – significant potential market opportunity • Identity • Substantial market opportunity • Growth in Inter
Slide 41: 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 42: eooku
eooku Mobile Transactions Made Simple