Boku Inc. Soars High with 26% Revenue Boost amid CEO's Exit

by Damian Chmiel
  • Boku Inc. reveals revenue increase to $38.2 million in H1 2023.
  • The mobile payment provider also announced the CEO, Jon Prideaux's retirement at the end of the year.
Jon Prideaux, the CEO of Boku
Jon Prideaux, the CEO of Boku. Source: YouTube
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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.

Boku Reports Higher Revenue but Visibly Lower Profit after Tax

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
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.

Boku Reports Higher Revenue but Visibly Lower Profit after Tax

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
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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