Boku, Inc. · LSE:BOKU
Boku — H1 2024 Earnings Presentation
29 slides from Boku's earnings presentation, Sep 24, 2024
Slide 1: Half Year Results
Half Year Results for the period ended 30 June 2024 24 September 2024 Stuart Neal Rob Whittick
Slide 2: To be the world's best localised payments partner
To be the world’s best localised payments partner for global commerce To simplify global expansion for our merchants by providing seamless access to the world’s most popular payment methods © 2024 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku
Slide 3: Presentation Team
Presentation Team Stuart Neal, CEO Rob Whittick, CFO © 2024 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc.
Slide 4: Financial Highlights
Financial Highlights
Slide 5: Maintaining the growth trajectory HoH
Maintaining the growth trajectory HoH TPV Take Revenues Adjusted MAU Own Cash +16% Rates + 24% EBITDA +30% growth (+26% CER) + 7% (+30% CER) + 18% © 2024 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc.
Slide 6: More customers – more volume
More customers – more volume Monthly Active Users (millions) 90.0 +30% • Strong growth in Monthly Active Users (MAUs) in June-24 80.0 70.0 up 30% to ~80m HoH (June-23: 61.2m) 60.0 o Increase of 86% to 8.8m of MAUs for digital wallets and 50.0 40.0 Account to Account (A2A) 79.6 67.4 30.0 46.4 52.5 61
Slide 7: More volume driving continued record revenue growth
More volume driving continued record revenue growth Revenue ($ millions) CER • Revenues grew 24% HoH to $47.3m – up $9.1m on H1-23 +30% 50.0 +24% • On a CER basis this is a 30% increase HoH 45.0 • We would expect the seasonality in the business to continue in 40.0 H2-24 35.0 47.3 44.5 38.2 30.0 33.5
Slide 8: Driving Adjusted EBITDA growth
Driving Adjusted EBITDA growth Adjusted EBITDA ($ millions) 15.0 +18% • Adjusted EBITDA increase of 18% HoH to $14.2m • Adjusted EBITDA margin of 30.1% broadly in line with prior 13.0 year (H1-23: 31.6%) 14.2 11.0 13.6 • We expect to maintain Adjusted EBITDA margin above 30% 12.1 11.5 11.0 9.0 2022-
Slide 9: Cash generation is increasing from our operations
Cash generation is increasing from our operations "Own" Cash Balances ($ millions) • Boku’s ‘own’ cash increased to $75m 80 +38% • Boku remains debt free 70 60 • The $10m RCF facility matured on 17 September 2024 and 50 was not renewed. The facility remained undrawn 40 30 70.4 75.2 • $1.6m spent on
Slide 10: Strategy Recap
Strategy Recap
Slide 11: Boku's global network aggregates Local Payment Methods in 90+ countries
Boku's global network aggregates over 300 Local Payment Methods in 90+ countries Global Local Cards Card-linked Digital A2A DCB Wallets Wallets A payment card, linked to Account-to-Account Direct Carrier Billing Debit the user's bank account A digital wallet that acts A digital wallet that holds a p
Slide 12: Boku's global network simplifies LPM acceptance for the world's leading brands
Boku’s global network simplifies LPM acceptance for the world’s leading brands • Single integration • Single contract • Single settlement • Unified reporting • Standard functionality © 2024 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc.
Slide 13: Boku is targeting the global e-com market, worth $10.6tn by 2028
Boku is targeting the global e-com market, worth est. transaction value of $10.6tn by 2028 59% of transaction value will happen using Local Payment Methods Ecommerce transaction value 2023-2028F (%) Change in share of ecommerce value 2023-28F (%) 10% 4% 2023 $6.4 trillion 8% 2% 8% 1% 20% 6% 1% 4% 11
Slide 14: Business Update
Business Update
Slide 15: Continued progress against key growth drivers
Continued progress against key growth drivers Continued development of • 10 new payment methods launched across 6 countries the LPM network • Over 50 connections across 35 issuers in 34 countries went live Deliver Account to Account • A2A live in Poland (Blik), Indonesia and Vietnam (A2A) payments f
Slide 16: Continued progress against key growth drivers
Continued progress against key growth drivers • Bundling programs continue to grow with major merchants Marketing via LPMs • Distribution partners expanded to non-carrier incl. bank & cable TV companies Add new verticals and use • Now live in Travel, online prepaid advertising cases – incl. online t
Slide 17: A World Class Leadership Team
A World Class Leadership Team Best of both worlds: Adding to existing Boku leadership talent by attracting world class executives from the market ESTABLISHED TEAM Stuart Neal, CEO NEW HIRES Adam Lee Mark Stannard Chief Product Officer Chief Business Officer Vic Rodgers Rob Whittick Paul Jarrett Chie
Slide 18: Summary & Outlook
Summary & Outlook Business update Outlook • Monthly user numbers continue to demonstrate • July and August consecutive record revenue strong demand on the Boku network months • Ongoing LPM network expansion • Material merchant launches scheduled • Foundations laid for best in class treasury for H2 (
Slide 19: Our Values
Our Values itted to the long-term gro' COLLABORATE Welcome others opinions and ideas uilding a great big global mobile Wea pla for m. Aim for (modest) world domination eboku
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Slide 21: Appendix: Boku Overview
Appendix: Boku Overview
Slide 22: Boku is a US payment technology company that has built the leading global network
Boku is a US payment US & UK HQ 450+ employees H1-24 TPV MAU technology company that has in over 30 $5.8B 79.6M built the leading global network countries +26% CER +30% of localized payment solutions tailored to the needs of leading Coverage Record H1-24 Adjusted global brands +300 LPMs Revenue EBIT
Slide 23: 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 24: Boku's mission is to simplify global expansion for our merchants
Boku’s mission is to simplify global expansion for our merchants by providing seamless access to the world’s most popular payment methods. We select and integrate the most popular payment methods to create localized solutions that are tailored to the requirements of specific verticals and merchants…
Slide 25: 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 26: 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 continuous improvement and Settlement operational excellence Optimization User • Working with issuers and • FX strategy acquisition strategy merchants to maximise • Horizon scanning • Optimiza
Slide 27: Condensed consolidated statement of comprehensive income
Condensed consolidated statement of comprehensive income *The prior period to 30 June 2023 has been restated to exclude the fair value gain on warrants from administrative expenses. Further details can be found in note 2. © 2024 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ i
Slide 28: Condensed consolidated statement of financial position
Condensed consolidated statement of financial position © 2024 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc. 28
Slide 29: Slide 29