Bango (BGO) H2 2024 earnings summary

Executive summary

• Delivered double-digit revenue growth in FY 2024, with group revenue up 16% year-over-year to $53.4M and a 139% increase in adjusted EBITDA to $15.3M, reflecting operational leverage and disciplined cost management.

• Digital Vending Machine (DVM) segment saw strong momentum, with annual recurring revenue (ARR) up 59% to £14 million ($14M), net revenue retention at 125%, and DVM revenue up 28%.

• Nine new DVM deals were signed in 2024, expanding the customer base to 27, with 24 generating ARR and 110 content providers connected.

• The DOCOMO Digital acquisition integration is largely complete, with 98% of acquired traffic migrated to the platform, transforming the payments business into a significant cash engine.

• Loss for the year narrowed to £-3.7 million ($3.7M), a £5 million improvement from FY 2023, reflecting improved profitability.

Financial highlights

• Group revenue grew 16% year-over-year; three-year CAGR just under 40%.

• Adjusted EBITDA rose 139% to £15.3 million ($15.3M); EBITDA margin improved to just under 30%.

• Core transactional business gross margin remains high at ~90%, though overall gross margin diluted by low-margin routes.

• Core administrative expenses reduced by £7 million ($7.1M) year-over-year; headcount rationalized from 360 to an expected 200 in 2025.

• Net debt improved to £1.8 million ($1.8M), a £2.2 million reduction from FY 2023.

Outlook and guidance

• Expecting profitability at the bottom line from FY 2026 onwards, with FY25 revenue and profitability in line with expectations and FY26 adjusted EBITDA projected $1M higher.

• DVM segment on track for high double-digit revenue growth in 2025, with strong sales pipeline and momentum.

• R&D CapEx to reduce further in 2025 and 2026, targeting 20% of sales by 2026.

• Efficiency initiatives to deliver £2–3 million in core admin savings in 2025 and £1 million in 2026.

• Significant cash generation expected in FY 2026, supported by reduced CapEx and upgraded EBITDA guidance.