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, reflecting revenue growth and disciplined cost management.

• Net loss for the period was $4.1M, impacted by higher amortization and non-recurring tax costs from the DOCOMO Digital acquisition.

• DVM customer base expanded, including entry into financial services, new contracts with major partners like Uber and Disney+, and a major European telco contract extension.

Financial highlights

• Total revenue rose 19% year-over-year to $24.1M; DVM, Audiences & One-Off revenue up 63% to $7.7M.

• ARR reached $12.9M, up from $5.6M in 1H 2023; net revenue retention at 159%.

• Adjusted EBITDA increased to $4.0M; net loss for the period was $4.1M, compared to $4.3M loss in 1H 2023.

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

• Net debt was $5.1M at 30 June 2024, reflecting R&D investment; first $1M NHN loan repayment completed.

Outlook and guidance

• Revenue, EBITDA, and cash generation are on track for the full year, in line with market expectations.

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

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

• H2 expected to contribute 55-60% of annual revenues due to seasonality (Black Friday, Christmas, etc.).

• Targeting a return to positive net cash position in FY25; NHN loan to be fully repaid by mid-2026.