The
publicly-listed payments company Boku (LSE: BOKU), has released its unaudited
interim results for the first half of 2023. The company reported a significant
uptick in revenues, largely fueled by the adoption of Local Payment Methods
(LPMs) and robust transaction volumes from major global merchants. However, the
net income nosedived from $28 million to $2.3 million. The
announcement included news of the CEO, Jon Prideaux’s upcoming retirement.
The
company’s revenues soared 26% to reach $38.2 million in the first half of
2023, compared to $30.3 million in the same period last year. When adjusted for
constant currency fluctuations, the revenue growth rate was even higher at 32%.
This growth was primarily driven by increased transaction volumes from the
company’s key global merchants.
A
significant portion of the revenue increase came from Local Payment Methods
(LPMs), which contributed $7.2 million, marking a surge of 350% from $1.6 million
in H1 2022. This leap was attributed to the launch of 15 new LPMs and their subsequent
adoption by major merchants.
The company’s
adjusted EBITDA also rose 28% to $12.2 million. This was achieved while
continuing to invest in Boku’s mobile-first payment network. The Group’s profit
after tax stood at $2.3 million, which is a decrease from the previous year that included the profit from the sale of Boku’s Identity division. The plunge
from $28 million in the same period last year appears significant, but
investors have not taken it into account, as the company’s shares have risen by
over 3.5% to 147 pence on Tuesday morning.
Share price of Boku. Source: Yahoo Finance
“I am
delighted with Boku’s performance in the first half and that strong performance
has continued in the second half. All parts of the business are performing
well, and ahead of our internal budget at the time of the capital markets day
earlier this year,” said Jon Prideaux, the CEO of BOKU.
Boku
reported a cash balance of $113.9 million as of 30 June 2023, which is a significant
increase from $67.8 million in the previous year. The company remains
debt-free, with an average daily cash balance of $105.8 million in June 2023. This is up from $63.3 million in June 2022.
Operational Milestones and
Future Outlook
The company
witnessed an increase of 32% in monthly active users, reaching 61.2 million in June 2023.
Additionally, 32.7 million new users made their first payment or bundling
transaction with Boku in the first half of the year. Total Payment Volume (TPV)
also rose 16% to $5 billion.
Local
Payment Methods continued to be a strong growth driver, with the number of LPMs
connected to Boku’s network increasing to 40 in 17 countries. Monthly active
users of eWallets and Account to Account solutions surged 122% to over 4.7
million.
“The triple
digit growth from wallets and account to account payments
now means that these
newer payment methods have come from next to nothing this time last year to
account for nearly 20% of our revenue. We traded at record levels in July and
August. It is undeniable that our strategy is working well,” added Prideaux.
Prideaux’s Upcoming
Retirement
As
previously disclosed on July 4, 2023, Jon Prideaux is set to step down as the CEO
at the end of the year on 31 December 2023. He will continue to serve on the
Board in a non-executive capacity. Stuart Neal, who previously held the
position of the Chief Financial Officer (CFO) at Boku, will assume the role of the
CEO from 1 January 2024.
“As I
prepare to move from an executive to a non-executive position, I have strong
conviction that the Company will continue on this growth path under Stuart’s
leadership. With more merchants poised to adopt the newer payment methods and
strong momentum from existing live connections, the full year picture is
looking very healthy,” Prideaux concluded.
The existing CEO has been reflecting on his tenure at Boku, highlighting the company’s impressive
growth. He noted that the annual Total Payment Volume (TPV) skyrocketed from
under $100 million to a $10 billion run rate. Additionally, the average number
of monthly active users had surged from 1.4 million to over 60 million, and monthly
transactions processed had climbed from around 2 million to exceed 100 million.
Prideaux
emphasized that business is a collective effort and credited his team for the
company’s success. He expressed confidence that the talented individuals he has been working with will continue to propel the company forward under Stuart Neal’s
leadership. Prideaux believes that the ultimate test of a CEO’s effectiveness
is how the company performs after his departure.
The
publicly-listed payments company Boku (LSE: BOKU), has released its unaudited
interim results for the first half of 2023. The company reported a significant
uptick in revenues, largely fueled by the adoption of Local Payment Methods
(LPMs) and robust transaction volumes from major global merchants. However, the
net income nosedived from $28 million to $2.3 million. The
announcement included news of the CEO, Jon Prideaux’s upcoming retirement.
The
company’s revenues soared 26% to reach $38.2 million in the first half of
2023, compared to $30.3 million in the same period last year. When adjusted for
constant currency fluctuations, the revenue growth rate was even higher at 32%.
This growth was primarily driven by increased transaction volumes from the
company’s key global merchants.
A
significant portion of the revenue increase came from Local Payment Methods
(LPMs), which contributed $7.2 million, marking a surge of 350% from $1.6 million
in H1 2022. This leap was attributed to the launch of 15 new LPMs and their subsequent
adoption by major merchants.
The company’s
adjusted EBITDA also rose 28% to $12.2 million. This was achieved while
continuing to invest in Boku’s mobile-first payment network. The Group’s profit
after tax stood at $2.3 million, which is a decrease from the previous year that included the profit from the sale of Boku’s Identity division. The plunge
from $28 million in the same period last year appears significant, but
investors have not taken it into account, as the company’s shares have risen by
over 3.5% to 147 pence on Tuesday morning.
Share price of Boku. Source: Yahoo Finance
“I am
delighted with Boku’s performance in the first half and that strong performance
has continued in the second half. All parts of the business are performing
well, and ahead of our internal budget at the time of the capital markets day
earlier this year,” said Jon Prideaux, the CEO of BOKU.
Boku
reported a cash balance of $113.9 million as of 30 June 2023, which is a significant
increase from $67.8 million in the previous year. The company remains
debt-free, with an average daily cash balance of $105.8 million in June 2023. This is up from $63.3 million in June 2022.
Operational Milestones and
Future Outlook
The company
witnessed an increase of 32% in monthly active users, reaching 61.2 million in June 2023.
Additionally, 32.7 million new users made their first payment or bundling
transaction with Boku in the first half of the year. Total Payment Volume (TPV)
also rose 16% to $5 billion.
Local
Payment Methods continued to be a strong growth driver, with the number of LPMs
connected to Boku’s network increasing to 40 in 17 countries. Monthly active
users of eWallets and Account to Account solutions surged 122% to over 4.7
million.
“The triple
digit growth from wallets and account to account payments
now means that these
newer payment methods have come from next to nothing this time last year to
account for nearly 20% of our revenue. We traded at record levels in July and
August. It is undeniable that our strategy is working well,” added Prideaux.
Prideaux’s Upcoming
Retirement
As
previously disclosed on July 4, 2023, Jon Prideaux is set to step down as the CEO
at the end of the year on 31 December 2023. He will continue to serve on the
Board in a non-executive capacity. Stuart Neal, who previously held the
position of the Chief Financial Officer (CFO) at Boku, will assume the role of the
CEO from 1 January 2024.
“As I
prepare to move from an executive to a non-executive position, I have strong
conviction that the Company will continue on this growth path under Stuart’s
leadership. With more merchants poised to adopt the newer payment methods and
strong momentum from existing live connections, the full year picture is
looking very healthy,” Prideaux concluded.
The existing CEO has been reflecting on his tenure at Boku, highlighting the company’s impressive
growth. He noted that the annual Total Payment Volume (TPV) skyrocketed from
under $100 million to a $10 billion run rate. Additionally, the average number
of monthly active users had surged from 1.4 million to over 60 million, and monthly
transactions processed had climbed from around 2 million to exceed 100 million.
Prideaux
emphasized that business is a collective effort and credited his team for the
company’s success. He expressed confidence that the talented individuals he has been working with will continue to propel the company forward under Stuart Neal’s
leadership. Prideaux believes that the ultimate test of a CEO’s effectiveness
is how the company performs after his departure.
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- Source: https://www.financemagnates.com//fintech/boku-inc-soars-high-with-26-revenue-boost-amid-ceos-exit/
