Bango (BGO) H1 2024 earnings summary

Executive summary

• Revenue grew 19% year-over-year to $24.1M in 1H 2024, driven by strong Digital Vending Machine (DVM), Audiences, and One-Off revenue growth and steady transactional business.

• DVM annual recurring revenue surged 130% to $12.9M, reflecting rapid adoption, new customer wins, and increased subscription bundling.

• Adjusted EBITDA improved to $4.0M from a loss of $0.2M in 1H 2023, driven by revenue growth and disciplined cost management.

• DVM customer base expanded, including entry into financial services, new contracts with major partners, and marquee content providers like Disney+ joining the eDisti program.

• Net revenue retention for DVM reached 159%, highlighting strong upsell and customer stickiness.

Financial highlights

• Total revenue rose 19% year-over-year to $24.1M; DVM, Audiences & One-Off revenue up 62.5% to $7.7M.

• Transactional revenue increased 5.3% year-over-year (9.4% in constant currency); DVM business achieved >95% margins and zero customer churn.

• Adjusted EBITDA increased to $4.0M; net loss for the period was $4.1M, impacted by higher amortization and tax costs.

• Gross profit margin declined to 80.8% from 90.0% due to higher amortization and geographic mix, but DVM margins remain above 95%.

• Core controllable costs reduced by 10.8% year-over-year; R&D capitalization dropped 14.1% year-over-year and 22% sequentially.

Outlook and guidance

• Full-year results anticipated to be in line with market expectations, with strong DVM pipeline and high-margin growth expected to improve overall margins in 2H24.

• Margins projected to improve as DVM, with high gross profit, becomes a larger revenue share.

• On track to be net cash positive in 2025; NHN loan to be fully repaid by mid-2026.

• Continued cost reductions expected as DOCOMO migration completes and restructuring actions deliver further savings.

• Focus on expanding DVM customer base, growing existing customers through license tiers, and exploring new sectors such as banking and retail.