Edison Research: Strong trading update for Boku Inc

Mobile payment platform for digital content

Boku’s direct carrier billing platform offers an alternative customer acquisition route for digital content merchants. Use of Boku’s platform has boosted subscriber numbers for customers such as Spotify due to its ease of use. The company is well positioned to benefit from the growth of digital content, as well as from connecting its existing merchants to additional carriers in multiple countries. Today’s trading update confirms that there is strong and growing demand for the Boku platform and that the company has now reached EBITDA profitability on a run rate basis.

Scale play in direct carrier billing 

Boku is the largest independent provider of direct carrier billing (DCB) services. DCB is an alternative payment mechanism that enables consumers to pay for
(mainly) digital goods and services via their mobile phones, whether they are on a pre-paid or post-paid contract. Boku has an impressive roster of merchants already using its service, including Apple, Facebook, Google, Microsoft, Sony and Spotify. From the merchant’s perspective, offering DCB provides access to consumers that either do not have a credit or debit card, or prefer not to use them online. It can also provide a faster and simpler way to pay, removing friction in the payment process. Boku should benefit from market growth in digital content (eg music, games, video)
as well as growth in the number of carriers connected to each merchant.

Strong trading update

Boku has confirmed that trading further strengthened in Q417, and expects to report FY17 revenues of $24-24.5m (+40% y-o-y). The company processed transactions (TPV) worth $1.7bn in FY17 (H1 $0.6m, H2 $1.1bn), versus $544m in FY16. As lower margin transaction-based revenues are growing faster than higher margin settlement-based revenues, TPV growth outpaces revenue growth; despite this, the pace of TPV growth in the medium term should drive material revenue growth over FY18 and FY19. With positive adjusted EBITDA expected in H217, the company is well on the way to generating positive cash flows. Cash at the end of FY17 stood at $20m, providing ample funds to support the business until cash flow break-even and to fund development, whether internally or via acquisition.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
Boku Inc.

More articles like this

Boku Inc.

Boku CEO on target to double revenues in the medium term (LON:BOKU)

Boku’s Jon Prideaux discusses financial highlights, local payment methods, 50 new launches with new merchants in 27 countries, reaching over 7.5 billion end user accounts, and what can we expect to see from the group over the next year in this exclusive interview with DirectorsTalk.

Boku Inc.

Boku strong performance continues in H2 with revenues up 26%

Boku Inc (LON:BOKU), a leading provider of global mobile payment solutions, has announced the following unaudited interim results for the six months ended 30 June 2023. Group Highlights Financial Highlights ●     Revenues up 26% to $38.2m in H1 (H1 2022: $30.3m) and up

Boku Inc.

Boku, Inc. Results, Investor Webinar and Analyst Briefing

Boku Inc (LON:BOKU), a leading global mobile payments company, has stated that it will announce its results for the six months ended 30 June 2023 on Tuesday 26 September 2023. Analyst Briefing The Company’s management will be hosting a

Boku Inc.

Boku appoints Stuart Neal as Chief Executive Designate

Boku Inc (LON:BOKU), a leading provider of global mobile payment solutions, has announced that Jon Prideaux, the Company’s Chief Executive Officer, has informed the Board of his intention to retire from his role on 31 December

Boku Inc.

Boku H1 revenues expected to be at least $37.5m, up 24%

Boku Inc (LON:BOKU), a leading provider of global mobile payment solutions, has announced the following unaudited trading update for the six months ended 30 June 2023 Financial Highlights ·    Revenues for the half year ended 30 June 2023 expected

Boku Inc.

Boku extends share buyback programme

Boku Inc (AIM: BOKU), a leading provider of mobile payment solutions, has announced that its board of directors has approved an extension to the share buyback programme, which commenced on 7 July 2022, for a further

Boku Inc.

Boku AGM to be held on Wednesday 28 June 2023

Boku Inc (LON:BOKU), a leading provider of global mobile payment solutions, has announced that it has posted its notice of Annual General Meeting to stockholders. Copies of the notice of AGM and proxy form are available to

Boku Inc.

Boku: A new phase of faster growth (LON:BOKU)

Boku’s Jon Prideaux discusses highlights from their 2022 FY results, what’s driving growth, new customer wins and what we can expect in the next year in this exclusive interview with DirectorsTalk.