Bango Plc · LSE:BGO
Bango — FY2017 Earnings Presentation
23 slides from Bango's earnings presentation, Mar 13, 2018
Slide 1: Bango FY2017 results presentation
Bango FY2017 results presentation Ray Anderson, CEO Rachel Elias-Jones, CFO Anil Malhotra, CMO 13 March 2018 Version | © 2018 Bango PLC | bango.com
Slide 2: Operational highlights in FY2017
Operational highlights in FY2017 Significant developments with new partners • Launched Direct Carrier Billing (DCB) for physical goods in Japan for Amazon • Three Google Play routes upgraded to Bango Platform, providing case studies for future migrations • Amazon Prime Video in India on largest oper
Slide 3: Financial review FY2017
Financial review FY2017 Rachel Elias-Jones, CFO
Slide 4: Bango revenue model
Bango revenue model $10.00 purchase from store (EUS) * Tax is zero in this case Price displayed is EUS + relevant taxes Merchant Developer revenues $7.00 Store fee $1.30 (example) $0.20 Bango fee = Bango revenue Payment provider Important: Payment provider fees, Bango fees, store fee (e.g. MNO) $1.5
Slide 5: Financial highlights
Financial highlights FY2016 FY2017 Audited Audited £m £m End User Spend 132.29 271.36 105% growth Sources of revenue End user 2.41 4.08 70% growth Platform fees 0.21 0.07 Total revenue 2.62 4.15 Operating costs (5.04) (5.72) 14% increase Loss after tax (4.41) (3.43) Strong cash balance reassures Cas
Slide 6: Operational costs
Operational costs £1.1m £1.5m Capitalized R&D Capitalized R&D £1.5m R&D R&D £1.5m - DCB for physical goods - Resale technology Sales and marketing £1.6m Sales and marketing £2.0m - Increasing market share - Migrations to Bango Platform - Investing in resale roll-out Running the business Running the
Slide 7: EUS and path to profitability
EUS and path to profitability 9 300 • EUS revenue grows rapidly 8 in-line with EUS 250 7 • Operational costs as expected EUS Revenue and Costs / £m ‒ Increased investment 6 200 in R&D and sales EUS / £m 5 150 • EBITDA positive in November 4 and December 2017 3 100 • Moving closer to cash generation
Slide 8: Business review
Business review Ray Anderson, CEO
Slide 9: The Bango Platform strategy
The Bango Platform strategy More sales to consumers Unique info drives actions Reach Win more leading consumers merchants Collect more data Add payment partners 9
Slide 10: Strong progress in 2017
Strong progress in 2017 1. Growing platform momentum: EUS more than doubled for third year running More routes, more content, more consumers 2. Launch of retail commerce: Amazon in Japan 3. Stable operational costs: Investment in software enabled increase to over £5Bn/yr EUS with existing capacity 4
Slide 11: EUS shows success for Bango customers
EUS shows success for Bango customers 1. Doubling of EUS for the third year running 9 300 2. Growth of Google Play routes 8 250 7 EUS Revenue / £m 3. New Google Play routes 6 200 incl. three upgraded to Bango Platform EUS / £m 5 150 4. Amazon DCB Retail launch into Japan 4 3 100 5. New services laun
Slide 12: Stable Opex – High tested capacity
Stable Opex – High tested capacity 1. Well equipped datacenters 5 2. Extensive Ops automation 4 3. Skilled 24/7 operational team 3 4. Relentless streamlining of software systems and supplier costs 2 5. Huge excess capacity to handle 1 expected growth with stable Opex 0 2015 2016 2017 Cost /£m Capaci
Slide 13: Data drives success for Bango powered merchants
Data drives success for Bango powered merchants 1. Bango Boost driving sales growth 2. Upgrades to Bango from direct connections or integrators shows rapid benefits 3. Before and after data now used in Bango sales and marketing 4. Pressure from developers to convert routes to Bango to increase sales
Slide 14: Outlook
bango Outlook Ray Anderson, CEO
Slide 15: 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 16: 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 17: Focus for 2018 - 2019 EUS growth
Focus for 2018 - 2019 EUS growth 1. Google Play growth: More Google Play MNO wins Continue roll-out of Bango Boost More than 38 MNOs in sales pipeline (>$3Bn EUS) upgrade from direct or integrator to Bango 2. More retail commerce: Support Amazon in Japan New countries and new merchants 3. More digit
Slide 18: Sales and marketing activity
Sales and marketing activity 1. LATAM – emerging £1.5m R&D: Self serve and localization +XX - Merchant onboarding - Route onboarding 2. Korea / Asia £2.0m Sales and marketing +YY - Local experts 3. Audiens - Leverage interest in Audiens - Strong merchant partnerships £2.3m Operating costs - stable 4
Slide 19: Jan 2018: Bango acquires Audiens SRL
23 Jan 2018: Bango acquires Audiens SRL Audiens technology • Cloud based Customer Data Platform (CDP) that collects, organizes and analyzes data and builds customized audience segments to make available to advertisers • Strong commercial partnerships and key integrations • Direct synergy with Bango
Slide 20: Audiens brings new customer markets to Bango
Audiens brings new customer markets to Bango More sales to consumers Unique info drives actions Reach Win more leading consumers merchants Collect more data Add payment partners 20
Slide 21: Summary and outlook
Summary and outlook Strong delivery Confident outlook • Increased EUS 108% y.o.y • On track to double to £271.4m End User Spend in 2018 EUS grow th Annualized run rate £465m • Industry leaders choosing to m om entum … • grow their sales with Bango exiting Feb 18 • November and December • Platform ha
Slide 22: Supplementary
bango Supplementary
Slide 23: Profit and Loss - Appendix
Profit and Loss - Appendix FY2016 FY2017 Unaudited Unaudited £m £m End user spend 132.29 271.36 105% growth Total revenue 2.62 4.15 In line with EUS growth Operating costs including non- (5.42) (5.78) As expected recurring Depreciation & Amortization (1.47) (1.59) Amortization increasing due to acqu