Boku, Inc. · LSE:BOKU

Boku — FY2021 Earnings Presentation

25 slides from Boku's earnings presentation, Mar 29, 2022

  1. Slide 1: 2021 Full Year Results

    2021 Full Year Results 29 March 2022 Jon Prideaux Keith Butcher

  2. Slide 2: Presentation Team

    Presentation Team Jon Prideaux, CEO Keith Butcher, CFO CEO since 2014 Director from 2017, CFO from 2019 Formerly EVP at VISA and Formerly CFO of LSE listed Deputy CEO at Secure Trading payments companies DataCash and Paysafe © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku

  3. Slide 3: Highlights

    Highlights

  4. Slide 4: Highlights

    Highlights • Growth in Revenues, EBITDA, Profit and Cash • Profitable, cash generative, with sticky, recurring revenues • Disposal of Identity: now pure-play Payments • Strong relationships with the world’s largest digital merchants • Continuing strength in Direct Carrier Billing (DCB) • Expansion o

  5. Slide 5: 2021 results

    2021 results

  6. Slide 6: Boku - 2021 Results - Group

    Boku - 2021 Results - Group • Group revenues up 23% to $69.2m (2020: $56.4m) • Payments $62.1m; Identity $7.1m • Group Adjusted EBITDA up 31% to $20.0m (2020: $15.3m) • Constant currency - revenues and EBITDA both $2.3m higher • Net Profit before Tax: $4.4m (2020: $17.3m loss). • Sale of Identity di

  7. Slide 7: 2021 results – Payments division

    2021 results – Payments division • Payments Revenues up 21% to $62.1m (2020: $51.2m) • Payments Adjusted EBITDA up 19% to $22.9m (2020: $19.2m) • Constant currency: revenues/EBITDA c.$2.3m higher (c.$1.6m in H2) • TPV c.$360m higher (c.$250m in H2) • Total Payment Volume (TPV) up 18% to $8.2bn (2020

  8. Slide 8: 2021 Results – Payments division

    2021 Results – Payments division • Full suite of launches in 2021 • Various business lines: DCB, Bundling, eWallets and RTP • Key merchants: Amazon, DAZN, Epic Games, Facebook, Google, Microsoft, Netflix, Riot Games, Sony, Spotify, and Tinder • Fastest growth in LPMs • Investment in 2021, continuing

  9. Slide 9: Updates

    Updates

  10. Slide 10: Boku Identity: Results and Disposal to Twilio

    Boku Identity: Results and Disposal to Twilio • Revenues: $7.1m +37%; Reduced EBITDA loss: $2.9m • Deal closed 28 February 2022 for $32.3m • $26.2m received on closing • $6.5m held for 18 months – against possible future claims • Invest some of proceeds into M1ST Payments network • Outstanding term

  11. Slide 11: Russia/Ukraine impact - Payments

    Russia/Ukraine impact - Payments • Limited Exposure • Boku operates in 91 countries • No merchants domiciled in Russia, Belarus or the Ukraine. • No active bank accounts domiciled in Russia • No employees/infrastructure in Russia, Belarus or the Ukraine • Financial impact • Termination of all settle

  12. Slide 12: Strategy

    Strategy

  13. Slide 13: A new world of payment outside card rails

    A new world of payment outside card rails Most ecommerce doesn’t use cards, esp. outside the west... but it’s not easy to get right. Fragmented – multiple brands per country Poor Withholding subscription taxes support Problems Poor Need for Approval Payment rates Licences Settlement and FX © 2023 Bo

  14. Slide 14: A Big Opportunity

    A Big Opportunity Global eCommerce $12 Trillion c. 15% growth Opportunity: ~$6 Trillion Digital Commerce $600 Billion c. 10% growth Opportunity: ~$90 Billion Current TPV $8 Billion © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc. 14

  15. Slide 15: Mobile First Payment Network

    Mobile First Payment Network One Connection to Reach up to 7 Billion Accounts Back Office Payment Methods Front Office Fraud Back Office Direct Carrier Billing Payment On-File Payment Panel Tokenized for Recurring No-API integration to Prevent purchase Disputes, Refunds & (1-tap) & Subscriptions sup

  16. Slide 16: Global Online Payments Market

    Global Online Payments Market Boku provides merchants with the most global and mobile-first payment options Generalist PSPs Specialist PSPs Global Giants (Highly-established players) Global Merchant Focus (delivering mobile-first consumers) $10bn market cap $5B valuation $43B acquisition $12B market

  17. Slide 17: Why Boku?

    Why Boku? Reach Breadth of Offering More issuers reaching more Acquisition: One tap enrol, Bundling users in relevant countries Retention: Smart retry, Boku Spark Quality Performance Direct integrations Better Approval and Renewal rates Support for subscriptions Faster Transactions Merchant control

  18. Slide 18: Trusted by Leading Merchants

    Trusted by Leading Merchants DCB, Wallets, Real Time Payments and Bundling App Stores Video Streaming Music Streaming Advertising SaaS Software Console Gaming Gaming © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc. 18

  19. Slide 19: Growth

    Growth Sales Efforts Average merchant reaches 10% of the network New merchant pipeline New Verticals New Countries Inorganic SaaS Software Large Population Capability B2B Digital markets opened by LPMs & consolidation New Issuers Wallets • Real Time Payments • Local cards • Vouchers © 2023 Boku Inc.

  20. Slide 20: Growth in users and volumes on the Boku platform

    Growth in users and volumes on the Boku platform © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc. 20

  21. Slide 21: Growth in Monthly Users of eWallets

    Growth in Monthly Users of eWallets Fast growth in eWallets • 7bn end user accounts (42% are eWallets/RTP) in expanded M1ST payments network • 10X increase in MAUs from eWallets and Real Time Payments • eWallet and RTP Customers – global companies: • digital advertising, • streaming music/video, • g

  22. Slide 22: Summary and Outlook

    Summary and Outlook Strong Growth in 2021 supports focus on M1ST in 2022 2021 Summary • Disposal of Boku Identity for $32.3m • Immediately accretive • 23% Revenue Growth to $69.2m • 31% EBITDA Growth to $20m • Maiden Full year net profit before tax $4.4m • Strong growth across all payment metrics, e

  23. Slide 23: Boku helps the world's largest companies to acquire, monetize and retain mobile-first consumers

    Boku helps the world’s largest companies to acquire, monetize and retain mobile-first consumers © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc.

  24. Slide 24: 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

  25. Slide 25: Slide 25

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