Boku, Inc. (LON: BOKU), the world’s leading independent direct carrier billing company, has today provided the following unaudited trading update for the twelve months ended 31 December 2018.
The Group saw continued growth in all key metrics during 2018:
· Revenue for 2018 is expected to be in the range of US$34.8 million to US$35.3 million (2017 US$24.4 million); representing growth in excess of 40% on 2017
· Adjusted EBITDA* for the full year ended 31 December 2018 is projected to be in line with or modestly exceed market expectations
· Total Processed Value** of US$3.6 billion for 2018 was 109% up on 2017 (US$1.7 billion)
· 13.5 million Monthly Active Users of the Boku platform in December 2018 (December 2017: 8.0 million)
· The Company held approximately US$32.3 million in cash at 31 December 2018 (31 December 2017: US$20 million). The average daily cash balance – a measure which smooths out the effect of carrier and merchant payments, was US$24.4 million in December 2018 (December 2017: US$19.2 million)
· The company successfully completed the acquisition of Danal Inc. as planned on 31 December 2018 and has signed a Memorandum of Understanding with Danal Co. Ltd of Korea, the former majority shareholder of Danal Inc., for further co-operation between the two companies
* Adjusted EBITDA: Adjusted for IPO costs, stock option expenses, Forex gains/losses and Exceptional items
** TPV is the US$ value of transactions processed by the Boku platform
Jon Prideaux, Boku, Inc. CEO, commented:
“We are delighted that 13.5 million people chose to use Boku as their preferred payment option for making purchases of digital content in December 2018, once again proving that Boku is a highly effective method of acquiring new paying users on behalf of our clients.
Helping our customers to acquire new users, combined with the fact that an increasing number are returning to make repeat transactions, has driven triple digit growth rates in the processed volume (TPV) across our platform to US$3.6 billion in 2018.
At peak, the Boku Platform handled around 220 transactions per second during the second half of 2018- a new record. Processing this volume, at this level, with broadly flat costs, re-emphasises our position as the scale player within our market and has helped us to project that our Adjusted EBITDA* for the year will meet or modestly exceed market expectations.
Looking ahead, we are delighted to have closed the acquisition of Danal Inc. in December, allowing us to extend our existing carrier connection skills across a materially larger market. The signature of a Memorandum of Understanding with Danal Co. Ltd of Korea, the former majority shareholder of Danal Inc., is also a positive sign for 2019.
With all of our KPIs flashing green, we look forward to reporting on our audited results and updating on Mobile Identity.”