LONDON: Boku Inc (AIM: BOKU), the leading global provider of localized payment solutions, has reported a significant surge in its annual revenues and user engagement for the year ended December 31, 2023.

Financial Growth:
Boku’s revenues climbed by 30% to $82.7 million, up from $63.8 million the previous year, marking a 33% increase on a constant currency basis. The company’s adoption of digital wallets and Account-to-Account (A2A) connections contributed to a 153% revenue increase in this sector alone, totaling $16.9 million.

The Adjusted EBITDA saw a healthy rise to $25.8 million, a $5.6 million increase from the restated $20.2 million in 2022, achieving an almost 32% margin. This growth comes despite the company’s strategic investments and the distribution of $0.9 million in one-time bonuses to staff in recognition of Boku’s exceptional performance.

Profit before tax from continuing operations soared by 178% to $11.4 million, with a net profit after tax of $10.1 million, excluding the profit from discontinued operations.

Robust Financial Position:
Boku’s total cash reserves stood at a robust $150.9 million at year-end, a significant increase from $116.5 million the previous year. The company also reported an average daily cash balance of $131.7 million in December 2023, reflecting a strong liquidity position.

Operational Highlights:
The company’s Monthly Active Users (MAUs) on the Boku platform reached 67.4 million in December 2023, a 29% increase from the previous year. Additionally, Boku facilitated the first payment transactions for 66.1 million new consumers throughout the year.

The Total Payment Volume (TPV) for 2023 was $10.5 billion, an 18% increase from $8.9 billion in 2022, with a 23% rise on a constant currency basis. The take rate improved to 0.79% in 2023, up from 0.72% in 2022, driven by higher rates from digital wallets and A2A connections.

Strategic Partnerships and Expansion:
Boku has successfully launched approximately 125 new payment options with key merchants such as Google, Meta, Microsoft, Amazon, Disney, Netflix, Spotify, Samsung, Sky, and EA Games. These launches are part of Boku’s strategy to expand its global network of localized solutions, with about half of these launches focusing on digital wallets and A2A connections.

The company’s disposal of its Identity division in February 2022 has allowed for a more focused approach on its Payments division, which is reflected in the strong financial and operational results of FY23.

Boku’s impressive performance in 2023 sets a new benchmark for the company and highlights the growing trend towards digital payment solutions worldwide.

Stuart Neal, Chief Executive of Boku, commented. “These results demonstrate that Boku is in strong financial shape and poised to fulfil its potential to grow significantly in the world of Local Payment Methods, which now represent two thirds of all global online payment volumes. It is testament to our focus on delivering for our customers, combined with a clear long-term strategy, that we are expanding the relationships with all of our key global merchants, beyond our Direct Carrier Billing (‘DCB’) product, to now incorporate Digital Wallets and Account to Account (‘A2A’) schemes across the globe. 2024 has started strongly and with deals that are already in place, we have the ability to double the business over the mid-term, as previously stated, with additional value to be created from expansion into new verticals. I am beyond excited at the potential for growth in this business as we create the global network for localised payment solutions.”