Bango plc · LSE:BGO
Bango — H1 2018 Earnings Presentation
18 slides from Bango's earnings presentation, Sep 18, 2018
Slide 1: Bango 1h2018 results presentation
Bango 1h2018 results presentation 18 September 2018 Ray Anderson, CEO and co-founder Rachel Elias-Jones, CFO Anil Malhotra, CMO and co-founder Version | © 2018 Bango PLC | bango.com
Slide 2: Business highlights
Business highlights Payment business • New Amazon Prime billing integration, live in the USA, Europe and Asia • New customer Pandora, a $1.3Bn music streaming service, chose the Bango Platform for mobile operator launch in USA • Added new Google Play routes in Africa and South America • Upgrade pipe
Slide 3: Financial review 1h2018
Financial review 1h2018 Rachel Elias-Jones, CFO
Slide 4: Bango business model
Bango business model Developers Marketing platforms Developer marketing spend Mobile operator Consumers Developer End User revenue Spend 4
Slide 5: Audiens Customer Data Platform (CDP) revenue model
Audiens Customer Data Platform (CDP) revenue model Data owners use Audiens to segment and monetize their data across all digital advertising channels. SaaS model Data reselling model • Retain data for own use • Sell data to third parties through Audiens for revenue share • Monthly license fee to Aud
Slide 6: Financial highlights
Financial highlights 1h2017 1h2018 Unaudited Unaudited £m £m End User Spend 92.31 219.96 138% growth Sources of revenue Payment 1.71 2.22 Data 0.00 0.42 Total revenue 1.71 2.64 54% growth Operating costs (2.72) (3.30) In-line with forecasts Loss after tax (1.75) (1. 92) Cash 5.56 5.88 Sufficient to
Slide 7: Operational costs £3.3m (1h2017: £2.7m)
Operational costs £3.3m (1h2017: £2.7m) Investment in data business - Audiens integration £0.7m - Sales and marketing Other costs and research £0.6m £0.6m Other costs and research - Upgrade tools for operators - Wallets and payment systems Sales and marketing £1m £1m Sales and marketing - Increasing
Slide 8: EUS and path to profitability
EUS and path to profitability 3 • Growth in EUS 2.5 ‒ 1h2018: £219.96m 2 £m 1.5 (1h2017: £92.31m) 1 • Renegotiated key contracts with 0.5 selected customers: 0 1H2017 Payment revenue Payment cost Data revenue 1H2018 Data cost ‒ accelerate EUS growth ‒ drive more revenue in FY2019 250 200 • Bango Pla
Slide 9: Business review and outlook
Business review and outlook Ray Anderson, CEO and co-founder
Slide 10: Bango Platform - digital, retail, resale and bundling
Bango Platform - digital, retail, resale and bundling Customers buy directly from Customers buy directly from Customers buy indirectly via app store or in-app retailer store resellers product or service Apps, in-app content, latest movie rentals, Physical goods Movie or music subscriptions, buy-to-k
Slide 11: Drivers of continued high growth
Drivers of continued high growth Data business More sales to • Audiens Customer Data consumers Platform Unique info • Bango Unleashed developer drives marketing actions • Bango Boost conversion rate optimization Reach Win more leading consumers merchants Payment business • App store upgrades to Bang
Slide 12: Upgrade success on major operator
Upgrade success on major operator Data driven developer marketing Bango Boost action applied 2X more sales for Upgrade from direct game app to Bango Platform through Over 15% Google Play increase in EUS Over 60% increase in EUS 12
Slide 13: Upgrade opportunity - New revenue stream for operators
Upgrade opportunity - New revenue stream for operators $100m Spend <$6m $70m $35m $12m Developer revenue Developer marketing Spend with MNO, targeted with Bango $15m <$6m DCB revenue $18m DCB revenue $15m Google Profit per year 13
Slide 14: Proven success in new user acquisition and in-app monetization
Proven success in new user acquisition and in-app monetization Google Play karaoke app in Indonesia Result Conversion rate of free to premium users 9x Target Offer Mechanic Expected audience 50% VIP Text message with outcome Top paying users in subscription for link to download Increase in last 12 m
Slide 15: Audiens CDP – growing data business
Audiens CDP – growing data business Boosting customer performance with the Recent power of data customer wins DoubleClick Adform AppNexus Adwords Facebook First party customer CHANNELS data collected by Audiens CDP Analyzed using Audiens tools CUSTOMER DATA Monetized as required Sales Email Cookies
Slide 16: Summary and outlook
Summary and outlook Strong delivery Confident outlook • EBITDA positive • Increasing physical and digital sales with Amazon • Key contracts set to deliver P aym ent… greater EUS and revenue in • Growth in recurring future subscription revenues • Continuing stable cost base, • $4bn EUS pipeline of wi
Slide 17: Q&A
bango Q&A
Slide 18: Profit and Loss - Appendix
Profit and Loss - Appendix 1h2017 1h2018 Unaudited Unaudited £m £m End user spend 92.31 219.96 138% growth Total revenue 1.71 2.63 Operating costs including non- (2.72) (3.30) In-line with forecasts recurring Depreciation & Amortization (0.69) (0.84) In-line with forecasts Share based payment charge