Bango plc · LSE:BGO
Bango — FY2016 Earnings Presentation
16 slides from Bango's earnings presentation, Mar 14, 2017
Slide 1: Bango FY2016 results presentation
Bango FY2016 results presentation Anil Malhotra, CMO and co-founder Rachel Elias-Jones, CFO 14 March 2017 Version 1.0 | © 2017 Bango plc | bango.com
Slide 2: Operational highlights
Operational highlights Acquisition of leading US Direct Carrier Billing (DCB) business BilltoMobile • Brings new customers to Bango Platform • Only processor of carrier billing transactions across all four major US MNOs Added new DCB routes, devices, content and services • First Google Play DCB laun
Slide 3: Financial review FY2016
Financial review FY2016 Rachel Elias-Jones, CFO
Slide 4: Typical app store DCB revenue split
Typical app store DCB revenue split $10.00 purchase from store (EUS) * Tax is zero in this case Price displayed is EUS + relevant taxes $7.00 Developer revenues $1.50 Payment provider fee (e.g. MNO) $1.30 Store fee (example) Important: Payment provider fees, Bango fees, store $0.20 Bango fee = Bango
Slide 5: Financial highlights
Financial highlights FY2016 FY2015 • EUS £132.29m (FY2015: £44.68m) Audited Audited ‒ 196% growth YoY £m £m End user spend 132.29 44.68 • Revenue on EUS £2.41m (FY2015: £0.84m) Sources of Revenue End user 2.41 0.84 • Stable cost base in line with forecasts • Acquired BilltoMobile Inc for £2.15m cash
Slide 6: Profit and loss and operational costs
Profit and loss and operational costs FY2016 FY2015 OPEX Audited Audited £m £m End user spend 132.3 44.7 Revenue 2.62 1.30 Cost of sales (0.01) (0.03) Total Margin 2.61 1.27 Operational breakeven point Operating costs (5.04) (4.41) Non-recurring items (0.38) - Adjusted LBITDA (2.81) (3.14) Depreciat
Slide 7: Cash
Cash • Cash at 31 Dec 2016 £5.69m (31 Dec 2015: £12.14m) • Cash used by operating activities £2.65m (FY2015: £3.23m) • £2.15m cash invested acquiring BilltoMobile • No significant acquisitions of PPE expected in FY2017 • Growing revenues on a controlled cost base will lead to decreasing cash burn in
Slide 8: EUS outlook
EUS outlook • Growth accelerating in line with expectations ‒ FY2016 EUS grew to £132.3m (FY2015: £44.7m) • New Google, Microsoft, and Samsung activations in FY2016 ‒ supported by Bango Boost will increase EUS in FY2017 • Strong pipeline of launches in FY2017 will build the EUS growth momentum 8
Slide 9: Business review and outlook
Business review and outlook Anil Malhotra, CMO and co-founder
Slide 10: Market opportunity: Need for universal payment method
Market opportunity: Need for universal payment method • Smartphones on track to take the internet to Use of smartphones vs Debit/Credit Cards 8.0 more than 7 billion people 7.0 • 1st generation internet payment methods are 6.0 Card Users not keeping pace 5.0 Smartphones Humans • New payment methods
Slide 11: Market opportunity: Android growth
Market opportunity: Android growth • In 2016, 4 out of 5 smartphones were Android (Gartner 2017, Worldwide Smartphone Sales to End Users by Operating System) • Android is an open platform for developers, advertisers, payment providers and OEMs • Major internet companies focus on Android • Apple and
Slide 12: Bango market leadership confirmed with 40% of app store carrier billing routes in 2016
Market leader Bango market leadership confirmed with 40% of app store carrier billing routes in 2016 Source: Progressive Equity Research estimates 12
Slide 13: App store DCB market leader: Key differentiators
App store DCB market leader: Key differentiators Bango Grid - Launch acceleration • App stores quickly, easily and cost effectively scale alternative payments globally using Bango Grid Bango Platform - Power of a platform • The range and diversity of app stores and billing routes transacting through
Slide 14: Significant EUS growth ahead – three key drivers
Significant EUS growth ahead – three key drivers 2. More routes • Dozens of new DCB routes 1. More spend currently being activated • Android dominating • Healthy pipeline of smartphone market opportunities around the • More consumers using DCB for world first time • Bango Boost growing DCB user 3. M
Slide 15: Summary and outlook
Summary and outlook Strong delivery Confident outlook • Increased EUS 196% y.o.y • Expectations for annualized to £132m EUS to double by Dec 17 EUS growth Growth in addressable user • Activation of new products and momentum… • services will accelerate EUS base to over 1.7bn • Cost base stable • EUS
Slide 16: The Bango pedigree
The Bango pedigree • Number 1 for app store carrier billing Powering the major app stores: • Founded in 1999 to enable effective collection of mobile payments • Chosen by the worlds leading app stores and mobile operators Powering leading payment providers: • Bango technology delivers a superior use