REG - Bango PLC - Trading Update

BangoAnnouncement

24/01/2023 07:00

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RNS Number : 6126N  Bango PLC  24 January 2023

Bango PLC

("Bango")

FY 2022 Trading Update and Notice of Results

 

Bango (AIM: BGO), the global platform for data-driven commerce, provides an
update on trading for the twelve months ended 31 December 2022, ahead of
announcing 2022 Full Year Results on 28 March 2023.

Financial Highlights (USD)

 ·   Revenue up 59% to $32.9M (FY21 $20.7M).
 ·   Annual recurring revenue (ARR) in December 2022 was $5.0M, 5x higher than
     December 2021.
 ·   Gross Profit was 80% due to increase in Audience revenue and short-term higher
     cost of sales from some DOCOMO Digital business. Gross margin will return to
     normal levels (>90%) in 2024.
 ·   End User Spend (EUS) $5.6B (FY21 $4.1B). Run rate EUS exiting 2022 was
     $8.6B.
 ·   Adjusted EBITDA* of at least $4.1M (FY21 $6.1M), in line with expectations,
     including the initial negative contribution from the DOCOMO Digital
     acquisition as expected.
 ·   $11M of the planned $21M cost synergies from the acquisition of DOCOMO Digital
     executed. The acquisition remains on track to deliver $10M of incremental
     Adjusted EBITDA in 2024.
 ·   Cash at 31 December 2022 of $9.7M (30 June 2022: $5.7M).

 

* Adjusted EBITDA is earnings before interest, tax, depreciation,
amortization, share based payment charge and exceptional items.

 

Operational Highlights

 ·   Acquisition of DOCOMO Digital, in August 2022, adds significant scale to
     Bango, including an additional $3.5B EUS, $16M annual revenue and over 100 new
     customers.
 ·   Migration from the legacy DOCOMO Digital system to the Bango Platform is
     underway.

     Strong positive feedback from customers, creating new sales opportunities.
 ·   44 new organic merchant customers including McAfee, HBO, Paramount, NFL and
     Duolingo, as well as the major win in June of the 'Global Tech Leader'. These
     merchants can now offer their products to all the operators connected to the
     Bango Platform.
 ·   New Platform deals with T-Mobile, Televisa Univision and Liberty Global
     alongside Verizon +Play launch in Dec 2022 drove ARR growth. Strong pipeline
     of new platform deals to close during 2023.
 ·   Long-term strategic agreement with NTT DOCOMO (the world's largest provider of
     direct carrier billing) for integration of global merchants into Japan.
 ·   Growing demand for Bango Audiences in typical sectors like gaming and more
     broadly with e-commerce retailers such as Adidas.

 

Paul Larbey, CEO of Bango, said:

"2022 was a transformational year for Bango. We acquired a significant
competitor, with a high-quality customer base, doubling the size of our
business and accelerating our growth plans by more than two years. We added
more merchants to the Platform than in any previous year, including the
unnamed 'Global Tech Leader', underscoring our position as a vital technology
provider to the world's largest online companies and app stores. Bango is now
the number one telco integrations partner for both Amazon and Google.

Strong ARR growth was delivered by our market-leading digital vending machine
proposition adopted by leading telcos including T-Mobile US and Liberty
Global, boosted by the launch and expansion of services with existing
customers, such as Verizon +Play and BT.

In 2022, Bango Audiences broke new ground in the campaigns of global consumer
brands like Adidas, alongside the growing number of games and other app
developers. Headwinds in the advertising market mean marketers are under more
pressure than before to achieve a return on their ad spend, increasing the
demand for Bango purchase behavior targeting.

The Bango growth engine is strong. The breadth and quality of our customers
and products create a business momentum that easily absorbs bumps in the road
like adverse currency trends and the general economic climate. Our Platform
investment strategy has simplified the move of the DOCOMO Digital business
into Bango, enabling us to capitalize on new opportunities, while delivering
financial and operational synergies ahead of our plan.

Opportunities across the Bango business continue to grow as telcos and
merchants increase their focus on acquiring, retaining, and monetizing users.
With more partners connected to the Platform than ever before, the unique
value of the Bango Platform continues to grow. The acquisition of DOCOMO
Digital has solidified our leading position with merchants such as Amazon and
Google and significantly expanded the pool of end user spend data available to
create Bango Audiences.

We enter the year with a rich pipeline of opportunities that make me very
confident this strong growth will continue in 2023 and beyond."

The information contained within this announcement is deemed by Bango to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. Upon the publication of this announcement, this inside
information is now considered to be in the public domain. The person
responsible for making this announcement on behalf of Bango is Paul Larbey,
Chief Executive Officer.

 

Contact Details:

 

 Bango PLC                                             Liberum Capital
 Tel. +1223 617 387                                    Tel. +44 20 3100 2000
 E. investors@bango.com (mailto:investors@bango.com)

 Paul Larbey, CEO                                      Edward Mansfield
 Matt Garner, CFO                                      Kate Bannatyne
 Anil Malhotra, CMO                                    Will King
 Rebecca Jamieson, IR

 

 

About Bango

 

The world's largest online merchants, including Amazon (NASDAQ: AMZN), Google
(NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT), use Bango technology to acquire
more paying users.

Bango has developed unique purchase behavior technology that enables millions
more users to buy the products and services they want, using innovative
methods of payment including carrier billing, digital wallets and subscription
bundling. Bango harnesses this purchase activity into valuable marketing
segments, called Bango Audiences. Merchants use these audiences to target
their marketing at paying customers based on their purchase behavior. Better
targeting increases spend through the Bango payments business, in turn
generating more data insights, creating a powerful virtuous circle that drives
continuous growth. Everyone connected to the Bango Platform thrives as the
virtuous circle grows.

Bango, the technology behind every payment choice. For more information,
visit www.bangoinvestor.com (http://www.bangoinvestor.com/)

 

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