Bango plc · LSE:BGO
Bango — H1 2017 Earnings Presentation
18 slides from Bango's earnings presentation, Sep 19, 2017
Slide 1: Bango 1h2017 results presentation
Bango 1h2017 results presentation 19 September 2017 Ray Anderson, CEO and co-founder Rachel Elias-Jones, CFO Anil Malhotra, CMO and co-founder Version | © 2017 Bango PLC | bango.com
Slide 2: Highlights
Highlights Launched Direct Carrier Billing (DCB) for Amazon in Japan • Sophisticated application of DCB to support Amazon shopping experience • Only Bango technology can manage required level of complexity • Significantly increases the range of goods available to purchase through Bango Platform New
Slide 3: Financial review 1h2017
Financial review 1h2017 Rachel Elias-Jones, CFO
Slide 4: Bango revenue model
Bango revenue model $10.00 purchase from store (EUS) * Tax is zero in this case Price displayed is EUS + relevant taxes Merchant Developer revenues $7.00 Store fee $1.30 (example) $0.20 Bango fee = Bango revenue Payment provider Important: Payment provider fees, Bango fees, store fee (e.g. MNO) $1.5
Slide 5: Financial highlights
Financial highlights 1h2016 1h2017 Unaudited Unaudited £m £m End user spend 46.17 92.31 100% growth Sources of revenue End user 0.77 1.65 114% growth Platform fees 0.08 0.06 Total revenue 0.85 1.71 Operating costs (2.49) (2.72) In-line with forecasts Loss after tax (2.67) (1.75) Cash 7.24 5.56 Suffi
Slide 6: Operational costs
Operational costs Capitalized R&D £0.5m £0.7m Capitalized R&D R&D £0.7m £0.6m R&D - DCB for physical goods - Jarvis integration tool and IoT Sales and marketing £0.9m £1.1m Sales and marketing - Increasing market share - Migrations to Bango Platform Running the business £1.1m £1m Running the busines
Slide 7: User experience in Amazon Japan retail
User experience in Amazon Japan retail 1 2 3 4 Customer selects Customer selects Payment is Order is goods to buy using confirmed confirmed carrier billing 7
Slide 8: EUS and path to profitability
EUS and path to profitability • Growth in EUS 6 400 ‒ 1h2017: £92.31m 350 (FY2016: £132.29m) 5 Annualized EUS exiting the half year / £m 300 • Termination of BilltoMobile routes with low growth potential EUS Revenue and Costs / £m 4 250 • Amazon, Google and Microsoft 3 200 activations will bring mor
Slide 9: Business review and outlook
Business review and outlook Ray Anderson, CEO and co-founder
Slide 10: Drivers of continuing high growth
Drivers of continuing high growth More content • First DCB launch for Amazon, biggest online retailer, opens-up vast retail opportunity • Expanding beyond smartphones – consoles, TV, in-car, IoT More payment routes • Many new billing routes for major merchant partners across EMEA, Americas and Asia
Slide 11: Market leader
Market leader App store Android platform Market leading stores Product type deployments Samsung Asia Google Play Physical Amazon Europe Windows Store Digital Google Australia Amazon Streaming North America Games South America Africa 11
Slide 12: Delivering on platform strategy
Delivering on platform strategy Evolved 5th generation platform technology to enable DCB for Chosen by Amazon to launch first physical goods – opportunity for use of DCB in retail store – capacity IoT, AI and other devices to scale retail with further launches Platform strategy Bango Boost v2 launch
Slide 13: Massive operational leverage
Massive operational leverage 1. Bango Platform transaction capacity tested to over £5Bn/year 2. Platform headroom anticipates significant growth 3. Additional EUS generates revenue which drops through to gross profit 13
Slide 14: Summary and outlook
Summary and outlook Strong delivery Confident outlook • Increased EUS 100% y.o.y • Activation of new routes to £92m for the half year including further migrations EUS grow th Annualized run rate over • Expanding range of products m om entum … • and services £400M exiting Aug 17 • EUS growth on stabl
Slide 15: Q&A
bango Q&A
Slide 16: The Bango pedigree
The Bango pedigree Powering the major app stores: • Number 1 for app store carrier billing • Founded in 1999 to enable effective collection of mobile payments • Chosen by the world’s leading app stores and mobile operators Powering leading payment providers: • Bango technology delivers a superior us
Slide 17: Profit and Loss - Appendix
Profit and Loss - Appendix 1h2016 1h2017 Unaudited Unaudited £m £m End user spend 46.17 92.31 100% growth Total revenue 0.85 1.71 Operating costs including non- (2.64) (2.72) In-line with forecasts recurring Depreciation & Amortization (0.81) (0.69) In-line with forecasts Share based payment charge
Slide 18: The power of the platform - Appendix
The power of the platform - Appendix Bango Bango Platform Platform Bango for for Dashboard merchants MNO & PP & Bango Boost App Developers & Publishers - Game Producers 4 Major Stores Engagement Global merchants Platforms Messaging – HTML5 1 Bango Platform Insights Authentication Payment Data 3 MNO