Bango 2024 Full Year Results and Outlook

Financial Overview - Bango reported a total revenue of $53.4 million for FY24, representing a 16% increase from $46.1 million in FY23 [2] - Transactional revenue increased by 11% to $36.2 million, while DVM & One Off revenue rose by 28% to $17.2 million [2] - Annual Recurring Revenue (ARR) surged by 59% to $14.0 million, although net retention decreased to 125% from 137% [2] - Adjusted EBITDA more than doubled to $15.3 million, reflecting a 139% increase from $6.4 million in FY23 [2] - The company reported a loss after tax of $3.7 million, an improvement of $5.1 million compared to a loss of $8.8 million in FY23 [2] - Net cash position improved to ($1.8 million) from ($4.0 million) [2] Operational Highlights - Bango added 9 new Digital Vending Machine® (DVM) license customers, bringing the total to 27 by the end of 2024 [5] - The company connected 110 content providers to the DVM, up from 93 at the end of 2023 [5] - Bango launched Disney+ with Continente in Portugal within 12 weeks of initial contact [5] - The DVM is expected to deliver double-digit revenue growth in line with consensus [5] - 98% of traffic from DOCOMO Digital has been migrated to the Bango platform, with ongoing optimization of high-cost sales routes [5] Strategic Initiatives - Bango secured financing from NatWest and NHN, including a $15 million Revolving Credit Facility and an enhanced loan facility increasing by $2.85 million [12] - The financing is aimed at strengthening the balance sheet and providing flexibility for cost reductions [12] - The company plans to reduce R&D capital expenditure by $0.5 million in FY25 and $1 million in FY26 [12] - Bango's CEO highlighted the company's strong revenue growth and profitability increase, positioning it well within the global subscription economy [7][10] Market Position - Bango is the largest Direct Carrier Billing partner for the Google Play store and the sole provider of online DCB services to NTT DOCOMO Japan [9] - The DVM is becoming the standard platform for subscription bundling, serving 6 of the top 8 US communication service providers [8] - The company is well-positioned to benefit from the shift towards subscription-based services and indirect distribution models [8]