Slide 1: Interim Results for the half year ended 30 June 2020
Interim Results for the half year ended 30 June 2020 © 2020, 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 © 2020 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku
Slide 3: Group Financial Performance
Group Financial Performance © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 3
Slide 4: Group Interim Results
Group Interim Results • Underlying Group Revenues up 9% to $24.7m (H1 2019 $22.7m*) o Payments - Underlying revenue growth +13.7% at $22.0m (H1 2019: $19.4m) o Identity revenue of $2.7m (H1 2019: $3.4m) • Adj. Opex flat at $16.0m (H1 2019: $16.3m) o Coronavirus savings - Group T&E/Identity headcount
Slide 5: Group Interim Results
Group Interim Results • Acquisition of DCB payments company Fortumo Holdings Inc ('Fortumo') completed on 1 July. o Financing: $25.1m placing funds plus $20.0m new debt facility (Citibank) • $10m term loan • $10m revolver • Group cash of $80.7m at 30 June 2020 o Included $44.5m of cash to pay for th
Slide 6: Payments Financial Performance
Payments Financial Performance © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 6
Slide 7: Payments - Interim Results - highlights
Payments - Interim Results - highlights • Underlying revenues increased by 13.7% to $22.0m (H1 2019 $19.4m*) • Coronavirus impact • Revenues - short term impact during lockdown primarily April/May • Opex – T&E savings - expected to continue in H2 • Payments Adjusted EBITDA $8.4m +45% (H1 2019 $5.8m*
Slide 8: Payments: TPV translates into Revenue Growth…
Payments: TPV translates into Revenue Growth… © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 8
Slide 9: Operating leverage drives EBITDA growth
Operating leverage drives EBITDA growth © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 9
Slide 10: Strategy
Strategy © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 10
Slide 11: Boku Platform: Mobile Transactions Made Simple
Boku Platform: Mobile Transactions Made Simple Merchants Boku Platform Carrier Identity Network Carrier Billing Network eWallet Network * MSISDN: Mobile Station International Subscriber Directory Number or the mobile number © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’
Slide 12: The Master Plan
The Master Plan * MSISDN: Mobile Station International Subscriber Directory Number or the mobile number © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 12
Slide 13: Grow Core Business, Invest for future growth
Grow Core Business, Invest for future growth E-Commerce: $2.4tn DCB 15-20% share of checkout Digital Content eWallets 40-60% share of checkout Digital Content Other merchant sectors Furniture and Appliances $325bn (3) Consumer Electronics $375bn (3) Mobile identity Food and Personal Care $410bn (3)
Slide 14: DCB Growth
DCB Growth Growth of existing connections Growth by adding new connections Take up of new users accelerated during lockdown © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 14
Slide 15: Growth in Monthly Active Users
Growth in Monthly Active Users © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 15
Slide 16: Growth in Total Payment Volume
Growth in Total Payment Volume © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 16
Slide 17: Growth by market consolidation: Fortumo
Growth by market consolidation: Fortumo The two most profitable players in the marketplace Cultural fit and strong management Compatible technical stacks Compatible market focus ➡ limited customer overlap Potential cost synergies both directions ➡ operations & supply-side Serving world’s largest dig
Slide 18: eWallets: a huge opportunity
eWallets: a huge opportunity Early data is promising Strong demand • Merchants can access DCB and multiple wallets through single API • eWallets want international merchants Early experience Nine eWallets Live • Four merchants now live across nine wallets in seven countries • Compared with DCB • Hig
Slide 19: Identity Interim Results
Identity Interim Results • Adjusted EBITDA loss reduced to $2.0m (H1 2019 $2.3m) • Revenues of $2.7m (H1 2019: $3.4m) • revenues and new sales impacted by coronavirus • Good progress on building out international carrier supply – now available with more than 200 carriers in 57 countries • Contract w
Slide 20: 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. 20
Slide 21: Latest Trading and Summary
Latest Trading and Summary © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 21
Slide 22: Latest trading and contract wins
Latest trading and contract wins Fortumo – Amazon Prime Wallets – Major Console Identity – Contract wins Wallets – Music Streaming © 2020, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 22
Slide 23: Summary
Summary Outlook: Reaffirm guidance for Revenue and EBITDA DCB Wallets • Operating leverage drives 45% increase • Launches with major merchants in KR and in underlying Payments EBITDA to $8.4m ID; Now live with nine wallets • Fortumo acquisition consolidates Boku’s More data by year end. leading posi
Slide 24: 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 25: Boku: Mobile Transactions Made Simple
eooku Mobile Transactions Made Simple