Boku Inc (LON:BOKU) saw continued strong growth in total payment volume (TPV) in H118, driving y-o-y revenue growth of 66% and a positive EBITDA margin of 15%. Stronger than expected H1 revenues have allowed Boku to increase investment in new product areas, with a current focus on Mobile Identity. We have raised our revenue forecasts for FY18–20 and assume the company continues to reinvest the upside in new growth areas.
Strong volume growth continues in H118
Boku saw a 153% increase in TPV y-o-y, from merchants adding new operator connections and existing connections seeing growth in digital content consumption. This translated to y-o-y revenue growth of 66% and an increase in EBITDA from a loss of $2.76m in H117 to $2.55m in H118. Operating expenses increased $1.2m y-o-y, with half the increase invested in increasing the capacity of the platform and the remainder invested in Boku Labs to fund the development of new products. Net cash (including restricted cash) increased from $17.7m at the end of FY17 to $28.4m at the end of H118. We have revised our forecasts to reflect stronger TPV and slightly higher take rates; we assume a large proportion of revenue upside is reinvested in product development.
To read the entire report Please click on the pdf File Below: