Slide 1: 2018 Results Update
2018 Results Update March 2019 © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc.
Slide 2: Highlights
Highlights © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 2
Slide 3: Highlights
Highlights Financial • Revenue up 45% to $35.3m (2017: $24.4m) • Adj. EBITDA $6.3m vs. 2017 adj. EBITDA loss $2.3m • Net Loss of $4.3m down 85% (2017: $28.1m) • mostly non cash share based compensation expenses inflated by share price at time of grant • $32.3m Gross cash at year end (2017: $20.2m) •
Slide 4: Financial Results
Financial Results © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 4
Slide 5: TPV Growth Feeding into Revenue
TPV Growth Feeding into Revenue © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 5
Slide 6: Expenses Under Control
Expenses Under Control Gross Margin: improved from 91% to 93% *Adjusted Operating Expenditure=Administrative expenses adjusted to exclude depreciation and amortization, share option expenses, foreign exchange gains and losses and exceptional items (which include IPO costs). © 2019, Boku Inc. All rig
Slide 7: Adjusted EBITDA a positive $6.3m
Adjusted EBITDA a positive $6.3m Gearing in action *Adjusted Operating Expenditure=Administrative expenses adjusted to exclude depreciation and amortization, share option expenses, foreign exchange gains and losses and exceptional items (which include IPO costs). © 2019, Boku Inc. All rights reserve
Slide 8: Financial Performance
Financial Performance $000’s 2017R 2018 Mvt • Continued strong Revenue Revenue 24,412 35,275 10,863 44% growth • CoGS reducing as % Revenue Cost of sales (2,265) (2,512) (247) (11%) demonstrating benefits of scale Gross profit 22,147 32,764 10,616 48% • Gross margins up to 93%, Gross Profit signific
Slide 9: Reduction In Net Loss
Reduction In Net Loss $000’s 2017 R 2018 Mvt Operating loss (9,000) (2,416) 6,584 73% Finance income 18 53 35 194% Finance expense (19,558) (631) 18,927 97% Loss before tax (28,540) (2,994) 25,546 90% Tax (expense)/credit (129) (1,339) (1,210) (938%) Net Loss for the period attributable to equity ho
Slide 10: Cashflow
Cashflow • The company is now generating cash • Closing balances are strong at $31.1m (excl. $1.3m of restricted cash) • Financing in 2017 reflects funds raised at IPO © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 10
Slide 11: Balance Sheet
Closing Balance Sheet ($000’s) 2017 R 2018 Balance Sheet Non-current assets Property, plant and equipment 410 286 Intangible assets 25,799 22,466 Deferred income tax assets 714 254 Total non-current assets 26,923 23,006 • Balance Sheet remained strong Current assets • Cash balances increased to $32.
Slide 12: Growth Strategy
Growth Strategy © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 12
Slide 13: Mobile: A New Computing Paradigm
Mobile: A New Computing Paradigm © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 13
Slide 14: © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a
© 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 14
Slide 15: Boku Platform: Mobile Transactions Made Simple
Boku Platform: Mobile Transactions Made Simple Illustrative list of carriers. No claim made about specific networks Note: MSISDN: Mobile Station International Subscriber Directory Number or the mobile number © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered
Slide 16: Boku Platform: Can Support Multiple Industries
Boku Platform: Can Support Multiple Industries © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 16
Slide 17: Boku Platform: Robust and Scalable
Boku Platform: Robust and Scalable Reliable 2018: zero unplanned outages High Capacity Peak of 220 transactions per second Fast Average latency less than 3 seconds Room to grow Can process triple existing load © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a register
Slide 18: Growing Sources of Competitive Advantage
Growing Sources of Competitive Advantage Scale Carrier Network Global Merchants Scale acquired on Building Carrier network Proven ability to contract one application has taken >$100m with and rollout transferable to another and 10 years global merchants © 2019, Boku Inc. All rights reserved • PROPRI
Slide 19: Payments and Customer Acquisition for Digital Content
Payments and Customer Acquisition for Digital Content © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 19
Slide 20: Boku's Payment and Acquisition Products
Boku’s Payment and Acquisition Products © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 20
Slide 21: Boku Payment: Strategic Relationships
Boku Payment: Strategic Relationships DCB Provider #2 App Store © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 21
Slide 22: Growth in Underlying Market and Broader Distribution…
Growth in Underlying Market and Broader Distribution… Source: Ovum 2018 © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 22
Slide 23: … drive predictable growth in users on the Boku platform
… drive predictable growth in users on the Boku platform Monthly Active Users on Boku Platform © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 23
Slide 24: …and increasing levels of TPV
…and increasing levels of TPV © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 24
Slide 25: Customer Verification for Mobile Transactions
Customer Verification for Mobile Transactions © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 25
Slide 26: Identity Market Overview
Identity Market Overview © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 26
Slide 27: Boku + Danal = Boku Identity
Boku + Danal = Boku Identity © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 27
Slide 28: Boku Identity Strategic Relationships
Boku Identity Strategic Relationships © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 28
Slide 29: Boku Identity: Two Business Models
Boku Identity: Two Business Models Transaction: Charge per transaction Monitor: Charge per user • Verify phone number • Device ownership • Match Customer • Active / inactive name/address • Number swap • Provide Subscriber profile data © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENT
Slide 30: Identity Growth Drivers
Identity Growth Drivers Carrier data is valuable and in huge demand Revenue growth is constrained by sales resource and carrier supply Massive increase in sales and account management • Establishment of Account Management function to expand existing relationships • Tripling of direct sales resource
Slide 31: Identity Non Financial KPIs
Identity Non Financial KPIs © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 31
Slide 32: Outlook
Outlook © 2019, Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL. ‘Boku’ is a registered trademark of Boku, Inc. 32
Slide 33: Boku will grow Revenues and reduce Concentration Risk in 2019
Boku will grow Revenues and reduce Concentration Risk in 2019 In 2019, Boku will operate as a multi-product business with a broader set of customers: • Group Revenue to be at least $52m • 15-20% of revenue to come from Identity • Strong Gross Margins • Payments to remain at 93% • Identity to improve
Slide 34: Outlook
Outlook Encouraging 2M Trading: Payments • TPV: 2M-2019: $741m +58% (2M-2018 $470m) • MAU: 2M-2019: 13.6m +61% (2M-2018: 8.4m) • DAU: >1M DAU for the first time ever in February! Identity • Monitored Numbers 2M-2019: 65.4m +439% (2M-2018: 12.1m) • Billable Transactions 2M-2019: 46.8m +85% (2M-2018:
Slide 35: 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 payment network. Aim for (modest) world domination. ©
Slide 36: Mobile Transactions Made Simple
eooku Mobile Transactions Made Simple