Slide 1: Audited Results for the year ended 31 December 2023
Audited Results for the year ended 31 December 2023 19 March 2024 Stuart Neal Keith Butcher
Slide 2: Presentation Team
Presentation Team Stuart Neal, CEO Keith Butcher, CFO Formerly Commercial Director at Director from 2017, CFO from 2019 Barclaycard and Vocalink PayByBankApp Formerly CFO of LSE listed payments Formerly CFO at Boku companies DataCash and Paysafe © 2024 Boku Inc. All rights reserved • PROPRIETARY AND
Slide 3: Financial Highlights
Financial Highlights
Slide 4: 2023 Full Year results – strong revenue growth
10.0 +178% 5.0 11.4 9.9 million 2023 Full Year results – strong revenue growth - 2019 (1.3) 2020 2021 4.1 2022 2023 -5.0 (17.3) -10.0 Revenue ($USD millions) -15.0 - 90 -20.0 Revenues $82.7m – up $18.9m (+30%) +33% constant currency • 33% growth in constant currency 80 +30% Adjusted EBITDA ($USD mil
Slide 5: Revenue growth translates into increased profitability
-20.0 +33% constant currency % Adjusted EBITDA ($USD millions) $82.7 million 30 Revenue growth translates 25 +27% into increased profitability 25.8 20 million Adj. EBITDA up 27% to $25.8m (2022: $20.3m) 15 3.75 • One-time all staff bonus paid $0.9m 22.9 10 19.2 20.3 • PWC audit adjustment $0.3m 5 12
Slide 6: Strong cash balances and growing interest income
Strong cash balances and growing interest income Group cash up to $150.9m at 31 December 2023 (31 December 2022: $116.5m ). • Boku ‘own’ cash; $70.4m • Targeted share buy-back programme • £6.8m GBP on purchasing 5.5m of own shares in 2023 • Debt free Interest income increased to $1.9m (FY22: $0.2m)
Slide 7: MAU growth drives TPV and revenue growth
50.2 43.4 10 19.2 20.3 20 MAU growth drives TPV and revenue growth 12.7 10 5 0 2019 2020 2021 2022 2023 - 2019 2020 2021 2022 2023 Monthly Active Users (millions) TPV ($USD billions) 12 Strong growth in Monthly Active Users (MAU) up 70 +29% 29% to 67.4m +18% 60 67.4 10 • MAU growth drives TPV growth
Slide 8: Strategy Update
Strategy Update
Slide 9: Unlock growth by freeing your customers to pay the way they want
Unlock growth by freeing your customers to pay the way they want, wherever they are in the world. Boku: Enabling borderless commerce through better payment choice © 2023 2024 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc.
Slide 10: Boku is a US payment technology company with the leading global network of localized payment solutions
Boku is a US payment US & UK HQ Annual TPV MAU technology company that 450 employees in 29 countries $10.5B 67.4M has built the leading global +19% +29% network of localized payment solutions tailored Coverage Annual Net to the needs of leading 300 LPMs Revenue EBITDA ~$26M global brands 77 Countrie
Slide 11: The global payments landscape is changing
The global payments landscape is changing Global Local Cards Card-linked Digital A2A DCB Wallets Wallets A payment card, linked to Account-to-Account Direct Carrier Billing A digital wallet that acts A digital wallet that holds a Debit the user's bank account payments move money allows users to make
Slide 12: Local Payment Methods continue to gain traction at the expense of global card schemes
Local Payment Methods continue to gain traction at the expense of global card schemes Global eCommerce Share of Checkout by Payment Type (Value, %) Against a backdrop of continued strong growth in 100% eCommerce, local payment methods continue to take 90% share from the global card schemes 80% Inter
Slide 13: Boku’s new report digs deeper into the global trends..
Boku’s new report digs deeper into the global trends.. • A2A payments gaining enormous traction, with share of volume and value of eCommerce transactions set to double by 2028 • Cards playing a smaller role, as local payment methods get greater traction • Digital wallets enjoying success, spurred on
Slide 14: Underlying themes driving a payment landscape in flux
and highlights some of the underlying themes driving a payment landscape in flux Who shapes the payment landscape and what they care about? Why is the traditional card model in relative decline? Merchants Consumers One Size Doesn’t Fit All •Reach • Ease of Use • Conversion • Security Local condition
Slide 15: The growing dominance of local payments creates huge challenges for merchants
The growing dominance of local payments creates huge challenges for merchants Local payment VS. ecosystem is complex and diverse: • c.500+ LPM choices and counting, including carrier billing, e-wallets and Cards LPMs A2A schemes • No standardization Low Diversity / Low Complexity High Diversity / Hi
Slide 16: Boku’s mission is to simplify LPM acceptance for the world’s leading brands
Boku’s mission is to simplify LPM acceptance for the world’s leading brands We select and integrate the most popular payment methods to create localized solutions that are tailored to the requirements of specific verticals and merchants… Selection criteria • Coverage and then encapsulate the • Popul
Slide 17: Core offering: supporting merchant’s end-to-end journey
Core offering: supporting merchant’s end-to-end journey 0. User Acquisition Innovative Partner Marketing programs to help acquire new paying customers Leveraging the strength of Boku’s 3. Collection & Settlement LPM network to create effective Industry leading network of licenses, entities & digital
Slide 18: Core offering: supporting merchant’s end-to-end journey
Core offering: supporting merchant’s end-to-end journey 5. Customer Success All underpinned by a culture of Merchant continuous improvement and operational excellence Settlement Optimization User Benefits • Working with issuers and • FX strategy acquisition • Horizon strategy • Optimized merchants t
Slide 19: Cross Border eCommerce is a $2 trillion opportunity, forecast to grow at 12.1% CAGR
Cross Border eCommerce is a $2 trillion opportunity, forecast to grow at 12.1% CAGR Global eCommerce Payments, Value ($m) Global x-border eCommerce Market Share, CAGR 12,000,000 (2023-28) Value ($m) 8.7% 10,000,000 8,000,000 Boku Domestic eCommerce 6.7% $2.2tn 0.5% 6,000,000 $10.5bn 4,000,000 c. $1
Slide 20: Drivers of Future Growth
Drivers of Future Growth Continued development of the LPM network Deliver Account to Account (A2A) payments for mobile commerce Marketing via LPMs Expand Banking and settlement capabilities – moving the money Add new verticals and use cases – incl. online travel, ticketing, on-demand services © 2024
Slide 21: Summary
Summary • Boku is uniquely positioned to benefit from the macro tailwind that is consumer adoption of Local Payment Methods • Cross-border eCommerce is a >$2tn market, growing at ~12% CAGR • Expansion of the Boku global LPM network to incorporate DCB, digital wallets and A2A is well under way • Near
Slide 22: Our Values
We're committed to the long-term growth of our customers, even if it costs us more in the short run. 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 s
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Slide 24: Appendices
Appendices
Slide 25: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income © 2024 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc. 25
Slide 26: Consolidated statement of financial position
Consolidated statement of financial position © 2024 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc. 26
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