Boku (BOKU) H1 2024 earnings summary

Executive summary

• Monthly active users increased 30% to 79.6m, driving strong growth in payment volumes and revenues, with 39.9m new users in H1 2024.

• Revenue rose 24% to $47.3m (GBP 47.3m), with adjusted EBITDA up 18% to $14.2m and margin above 30%, despite increased investment in scaling and product development.

• The business is expanding its network of local payment methods (LPMs), launching 10 new methods across six countries and over 50 new merchant connections.

• Strategic investments are being made in a real-time treasury platform and marketing via LPMs to support future growth.

• The company is entering new verticals, including online retail and travel, and expects continued momentum in H2.

Financial highlights

• Total payment volumes (TPVs) reached $5.8bn, up 16% half-on-half (26% at constant FX).

• Take rate increased to 0.81%, driven by a favorable business mix, especially in digital wallets.

• DCB product revenue grew 14% half-on-half to $35.4m; digital wallets and A2A up 64% to $11.9m, now 25% of total revenue.

• Cash balance increased to $148.5m, with 'own' cash at $75.2m and the business remaining debt-free.

• A small operating loss of $0.4m was posted, mainly due to accelerated amortization, share-based payments, and FX losses.

Outlook and guidance

• H2 expected to benefit from seasonality (Black Friday, Singles' Day, holiday season) and major merchant launches.

• Confident in achieving market expectations for the full year, supported by two consecutive months of record revenues and continued volume increases.

• EBITDA margin expected to remain above 30%, with potential for further margin accretion beyond 2025 as operational gearing improves.

• Management expects solid top-line growth for 2024, funding increased investment while maintaining Adjusted EBITDA margins broadly flat on 2023.