Delivered robust revenue and adjusted EBITDA growth while strategically investing in future business growth
Expecting medium term organic revenue growth exceeding 20% (CAGR) and adjusted EBITDA margin of greater than 30% accreting from 2026
Boku Inc. (LON:BOKU), a global network of localised payment solutions, has announced its audited results for the year ended 31 December 2024 (“FY 2024”).
| Financial Highlights | FY 2024 | FY 2023 | % change |
| $’000 | $’000 | ||
| DCB Revenue | 73,322 | 66,100 | +11% |
| Other LPM Revenue | 25,951 | 16,620 | +56% |
| Total Revenue | 99,273 | 82,720 | +20%& +24% at CER1 |
| Adjusted EBITDA1 | 31,412 | 25,799 | +22% |
| Adjusted EBITDA Margin1 | 31.6% | 31.2% | +4bps |
| Operating Profit | 6,156 | 9,716 | -37% |
| Cash Balances | 177,333 | 150,859 | +18% |
| Average Cash Balances1 | 153,941 | 131,665 | +17% |
| Own Cash1 | 80,249 | 72,919 | +10% |
Financial Highlights
| · | Total Group revenues increased organically by 20% to $99.3 million (FY 2023: $82.7 million), or c.24% on a constant exchange rate basis.1 |
| · | Direct Carrier Billing (“DCB”) 2 revenues grew by 11% to $73.3 million (FY 2023: $66.1 million), representing 7% growth in DCB payments2 and c.50% growth in DCB bundling2. |
| · | Revenue from other Local Payment Methods (“LPMs”) 2 – Digital Wallets2 and Account to Account schemes (“A2A”) 2 – increased by 56% to $26.0m (FY 2023: $16.6m) accounting for 26% of total revenues (FY 2023: 20%). Other LPM revenue contributed 27% of total revenues in H2 2024, increasing to 30% by the end of 2024. |
| · | Adjusted EBITDA1 increased by 22% to $31.4 million (FY 2023: $25.8 million), reflecting an adjusted EBITDA margin1 of 31.6% (FY 2023: 31.2%). This is in line with our commitment to deliver an adjusted EBITDA margin of above 30% while we continue to undertake important investment initiatives in both our product offering and delivery capability to support future business growth. |
| · | Operating profit of $6.2 million (FY 2023: $9.7 million). Reduction in operating profit, despite a $5.6m increase in adjusted EBITDA, primarily due to increases in foreign exchange revaluation losses on non-USD balances (largely JPY) and share based payment expenses driven by increases in both the number of awards granted, to a growing number of staff, and the Boku share price. |
| · | A fair value loss on the Amazon warrants of $3.4m was recognised (FY 2023: fair value gain of $0.1m) reflecting increases in the Boku share price. |
| · | Interest income increased to $3.7 million (FY 2023: $1.9 million) due to higher average cash balances and more funds being placed on interest bearing and/or longer-term deposits. |
| · | Total Group cash increased by 18% to $177.3 million at 31 December 2024 (31 December 2023: $150.9 million). Average cash balances 1 during the year increased by 17% to $153.9m (2023: $131.7m). The Group remains debt free. |
| · | Boku’s own cash 1 increased by 10% to $80.2 million at 31 December 2024 (31 December 2023: $72.9m). This balance includes the impact of repurchasing 4.7 million shares in the year at a cost of $10.7m and the receipt of $3m from Danal relating to the exercise of warrants granted upon acquisition. Excluding these items Boku’s underlying own cash1 increased by 21% in the year. |
Operational Highlights
| · | Monthly Active Users (“MAUs”) 2 of the Boku platform in December 2024 increased by 29% to 87.1 million (December 2023: 67.4 million). |
| · | 83.1m new users made their first payment or bundling transaction through the Boku platform during the year (FY 2023: 66.1 million). |
| · | Total Payment Volumes (“TPV”) 2 reached $12.4 billion, up 18% from $10.5 billion in FY 2023. On a constant exchange rate basis1 this represents a c.23% increase year on year. |
| · | Continued strong growth in other LPMs with new users increasing by over 50% year on year. |
| · | Boku completed more than 100 new connections across various jurisdictions, demonstrating our capability to link our issuer network with the world’s largest global tech giants. |
| · | Highlights during the year include Boku’s first e-commerce launch in Japan together with the addition of BLIK as a form of payment in Poland. The latter represented our first LPM connection for one of the world’s largest merchants, extending our already strong DCB relationship. |
| · | Take rate2 increased by 1 basis point to 0.80% reflecting a growing percentage of our business coming from LPMs with higher take rates (FY 2023: 0.79%). |
| · | Continued investment in scaling systems and people with key senior hires in the year including three new executives adding significant depth and scale to the existing team. |
Current Trading and Outlook
We have started 2025 strongly and have a healthy and increasing pipeline of opportunities. Consequently, the Board expects greater than 20% revenue growth in FY25, significantly exceeding current consensus3 expectations, with an adjusted EBITDA margin of greater than 30%.
In addition, while annual growth rates may vary, we are expecting organic revenue growth exceeding 20% on a compound annual growth rate (CAGR) basis over the medium term. We are also expecting an adjusted EBITDA margin exceeding 30% with progressive accretion from 2026 as we benefit from the operational leverage generated by our ongoing investments. The future is bright as we continue on our journey to becoming the world’s best localised payments partner for global commerce.
1 These represent alternative performance measures (APMs) for the Group. Refer to the APM section at the end of this announcement for a summary of APMs used, together with their definitions.
2 For a full list of definitions and abbreviations used by the Group, refer to the Glossary at the end of this announcement.
3 FY 2025 Consensus as of Monday 17 March 2025 is Revenue $109.6m and adjusted EBITDA $36.0m.
Stuart Neal, Chief Executive of Boku, commented, “Boku’s strong financial health and positive momentum reaffirms our position as a leader in Local Payment Methods (LPMs). With robust organic revenue and adjusted EBITDA growth, we continue to invest in capabilities that will drive future business expansion. Our deepening partnerships with global tech giants highlight the growing need for them to offer broader payment options to consumers beyond traditional payment cards. By consistently delivering for these merchants at scale with reliability, compliance, and innovation, we have strengthened our role as a key partner in their own market expansion. We are excited to be on the path to becoming the world’s best localised payments partner for global commerce.”
Board Update
The Board is committed to orderly and structured succession planning. Given the current Chair, Dr Richard Hargreaves is approaching nine years in office the Board has agreed to commence an initial search for a new Chair. Dr Hargreaves has agreed to remain as Chair until a suitable successor is identified and appointed to the Board
Analyst Briefing
The Company’s management will be hosting a presentation for analysts today at 9.30 a.m. GMT. Those analysts who wish to attend the briefing and have not already registered should contact Florence Staton at [email protected] or on +44(0)20 3934 6636.
Chair’s Statement
As our Annual Report demonstrates, Boku has continued its strong momentum, delivering impressive growth in revenue, adjusted EBITDA and cash, with operating profit seeing a modest decline in the year. Boku has also enhanced its global footprint and broadened its capabilities in Local Payment Methods (LPMs) to support the world’s leading digital merchants. These are achievements of which the Boku team can be very proud.
During the year, we significantly strengthened and expanded the management team and made considerable investment in the future development of LPMs which is where we expect to see much of our future growth. As stated elsewhere in this report, our overall goal is to become the world’s best localised payments partner for global commerce. An ambitious but, we believe, achievable goal.
Leadership, Governance and Shareholder Engagement
As anticipated in my report last year, 2024 was a year of significant transition. Having now had over a year in post as CEO, I am thrilled to confirm that Stuart Neal’s return to Boku (having previously been CFO at the time of the IPO and then CEO of the Identity division which we sold in 2022) has been a great success. He has deep sector and institutional knowledge, strategic acumen, and leadership experience – all of which are needed as we continue down our ambitious growth path.
We have also strengthened our leadership team by welcoming Rob Whittick (Chief Financial Officer), Vic Rodgers (Chief People Officer), and Paul Jarrett (Chief Treasury and Banking Officer). Their expertise, acquired at much larger companies, will be instrumental as Boku scales to become the world’s best localised payments partner for global commerce.
Our Board has eight directors, two are executives and six are non-executives (four of whom the Board considers to be independent). I believe the Board has the right mix of industry expertise, regulatory knowledge, and strategic insight to support Boku’s ambitious expansion plans.
I have been privileged to be one of Boku’s non-executive directors since before our IPO and to have played my small part in Boku’s development over nearly nine years. In the UK, that is generally seen as the time limit beyond which a non-executive’s, independence is questioned. With this in mind, I have notified the Board of my intention to retire from the Board once we have found a suitable replacement. The Board has set a demanding specification for this role and finding the right person with the appropriate skillset and experience for the next phase of growth at Boku is seen as more important than the timing. We have commenced an externally facilitated search process and will update the market at the appropriate time on progress.
Compliance in all we do remains central to our operations, and we continue to strive for the highest standards of regulatory adherence and risk management. We also welcome the recent revisions to the QCA Corporate Governance Code. Ahead of its due date we have adopted the recommended practice of submitting all directors for annual election by shareholders at the AGM.
We are also acutely aware of the challenges facing the London public markets – and AIM in particular. Limited share liquidity is an issue facing most companies quoted in London, and to help ease the impact on our own liquidity and where we consider shares to be undervalued we have established a share buyback plan which our cash generation allows us to do. I am also very pleased to see that the last Budget did not completely remove the Inheritance Tax planning benefits of investing in the AIM market, even though the benefit was reduced.
We have worked hard on shareholder engagement. Our shareholders mainly come from the UK, Europe and the USA and Stuart Neal and Rob Whittick have regularly met with institutional shareholders and prospective shareholders. I am always available to speak to any shareholder or analyst. We are pleased that our shareholders have given us strong support and encouragement as our growth plan continued to develop.
Investing for Scale and Future Growth
To support our ambitious expansion, in addition to our strengthened leadership team, we have invested heavily in technology, automation, finance and compliance. Ongoing enhancements to our platform include improving levels of straight-through processing, global treasury capabilities, and real-time cross-border money movement, all of which are critical for handling higher transaction volumes efficiently.
As part of our ambitious growth plan and following shareholder consultation the Board asked for, and received, shareholder approval of an additional long-term incentive scheme for the executive management team. This Stretch Restricted Share Unit (SRSU) Plan is designed to reward exceptional shareholder value growth between March 2024 and the date on which the results announcement for the 2027 financial year is released (expected to be March 2028) with a holding period until vesting, in two instalments after which they convert into common shares. They will only start to vest if the share price reaches 541.2p (GBP) or more and they are capped at a share price of 902p (GBP). We appreciate our shareholders’ valuable input in shaping the final plan, ensuring it aligns with our long-term goals while incentivising exceptional performance from which all stakeholders will benefit.
Commitment to Culture
Boku’s success is driven by its people and culture. We have a diverse workforce spread around the world and I am proud of the dedication and innovation they continue to display. Despite significant operational expansion and leadership transitions, our team has embraced change with passion and agility. It is worth noting that our largest customers include many of the largest US technology companies who are some of the most demanding customers we could have, so the team’s commitment to exemplary customer service is crucial to our success. That, in turn, offers the team high levels of work satisfaction which, I believe, is one reason why they show such dedication and enthusiasm.
Looking Ahead – An Exciting Future
Boku has had a great year, with strong financials, a growing market presence and a powerful strategic vision.
As we move through 2025, our focus and investment will be aligned with our five growth pillars:
| · | Grow core and develop new revenue streams |
| · | Drive product innovation |
| · | Increase operational efficiency |
| · | Strengthen compliance and risk management |
| · | Be a great place to work |
The Board remains highly confident in Boku’s future and its ability to capitalise on the ongoing transformation in global payments.
Finally, I would like to express my gratitude to our employees, executive team, board members, and shareholders for their continued support and commitment. Boku is on an exciting journey, and I am proud to be part of it.
Richard Hargreaves
Non-Executive Chair
18 March 2025
Chief Executive Officer’s Report
As I reflect on my first year as Boku CEO, I must say that I am pleased with the progress that we have made against our multi-year journey to become the world’s best localised payments partner for global commerce. We delivered strong financials with continued organic revenue growth together with solid and sustained adjusted EBITDA margin, whilst also investing meaningfully in core capabilities that will pave the way for the company to grow substantially over the coming years. The company is in robust financial health, is cash generative and has capacity to self-fund future growth.
We have once again been proud to support many of the world’s largest tech giants, as they continue to grow their businesses into new markets and penetrate deeper into existing ones, by allowing them to offer greater payment choice to consumers. These days, merely offering Visa and MasterCard as a method of payment will not necessarily enable all consumers in a market to pay for your products/services.
Throughout 2024, these existing merchants continued to deepen their partnerships with us, expanding their access to consumers by offering more Local Payment Methods (LPMs) via the Boku network. This sustained growth reflects the trust we have built through consistent execution, reliability, and a seamless payment experience. Our ability to deliver at scale, coupled with our commitment to compliance and innovation, has reinforced our position as a key partner for these industry leaders as they extend their reach in existing and new markets.
It is a pivotal time for the Payments industry, where payment methods previously referred to as “alternative” are now breaching into the mainstream.
I recently wrote an article about how the piano top life raft, a parable first floated (excuse the pun) by American architect Buckminster Fuller in the 1900s is a useful analogy for the way the payments industry is changing. The piano top parable goes like this: imagine you’re shipwrecked and adrift on the ocean. The ship’s grand piano floats by. You grab onto it, and it keeps you afloat. From that moment on, because the piano top saved your life, it becomes your go-to life raft.
The traditional plastic card-based payment systems that have dominated global commerce for 50 years are like the piano top life raft. They did a great job, but now there is a wave of new rafts tailored to modern businesses and their customers.
In today’s world of global commerce, a range of LPMs, including Digital Wallets, Account to Account (A2A) payments and Direct Carrier Billing (DCB), designed initially for facilitating payments domestically, have flooded the scene offering greater convenience and opportunity.
Boku is therefore benefiting from three concurrent tailwinds relating to LPMs:
| i. | the rapid consumer adoption of LPMs across all continents (i.e. phones and not plastic) |
| ii. | the repatriation of payment systems by central banks away from Visa and MasterCard domination a “pull” from larger global merchants who want to get paid cheaper and faster, avoiding the multi-lateral |
| iii. | interchange fees and other associated scheme fees of the card processors. |
At Boku, we have been anticipating that these trends would unfold for many years as we have steadily been adding more LPMs to our original network of DCB connections. These LPMs help our merchants to grow their businesses into new markets and cross-border. Our global network now incorporates over 250 LPMs, including increasingly popular payment methods in Italy (Satispay), Poland (BLIK), India (UPI), Nigeria (NIBSS) among many others. The Company is at an inflection point as the rapid growth in Digital Wallet and A2A payment adoption becomes a progressively meaningful part of our business.
It is pleasing to see how the slick, tokenised checkout experience for DCB remains a popular way to buy digital content in many countries and consequently continues to show good growth in mature markets such as Taiwan, Japan, Germany, UK and Switzerland. We are also seeing adoption momentum in newer markets in the Middle East where a short-term, interest free line of credit to consumers (provided by Mobile Network Operators) is proving popular in markets such as Saudi Arabia and Iraq.
During the year we added capability to support online retail (e-commerce), a market with more complex dynamics and requirements to that of digital. In the world of e-commerce, the demands on the payment provider are greater and include processing significant volumes of refunds and handling the split between authorisation of a payment at the time of order and capture of the funds at the time of despatch. The ability for Boku to bring LPMs into the broader world of online retail gives us the right to play in an addressable market that is predicted to be valued at >$10 trillion by 2028 (source: Juniper research1).
With this added functionality, Boku now supports cross-border payments not only for digital streaming subscriptions and gaming (note – not gambling), but also broader e-commerce, online advertising, subscription software and online travel.
It is because of this sizable market opportunity that we are making necessary ongoing investments into scaling internal processes as well as upgrading systems, adding increased product functionality and introducing a global treasury and banking capability. These investments in automation will continue throughout 2025 and will deliver the potential to process larger transaction volumes at higher velocity across our platform. We will also be able to automate the segregation of funds to ensure we continue to meet regulatory requirements, increase levels of automation within the reconciliation and settlement of money flows in and out of our growing network of global banking partners and exchange currencies real time all over the world.
Our investment in scaling systems is being matched by scaling efforts with our people, having added significantly to the talent pool during 2024, combined with ongoing expansion of the licensing, risk management, compliance and finance functions – all key and necessary components for being a scale global payments player. During 2024, three new executives were added to the Boku leadership team: Rob Whittick, Chief Financial Officer (formerly NatWest), Vic Rodgers, Chief People Officer (formerly AO.com) and Paul Jarrett, Chief Treasury & Banking Officer (formerly Zepz). These new additions to the exec table have added a huge amount of depth and scale experience to the existing leadership team.
Clearly, achieving all the above would not be possible without the collective talent, passion and hard work from every Boku employee from around the world. Despite our relatively small size, our organisation spans the globe, with over 450 employees in over 30 countries. We know how to be truly global – executing at pace for our merchants, with a clear global approach matched by local knowledge and expertise. This exceptional team have embraced a huge amount of change over the past 18 months, with changes at the leadership table, and increased ambition and growth agenda, culminating in our newly articulated Vision to become the world’s best localised payments partner for global commerce.
Whilst we grow and scale, adding organisational rigour, process and governance become increasingly important, but we actively fight to preserve the vibrant culture that has successfully enabled Boku to reach this point.
Looking Ahead To 2025 And Beyond
Looking ahead, our strategy will revolve around five core pillars-growing revenues, product innovation, driving operational efficiencies, maintaining a robust risk and compliance framework, and being a great place to work. Within these there are three material vectors of growth for Boku over the coming years:
| · | Continuing to be a strategic growth partner to our existing global merchants, helping them fulfil their own global expansion ambitions, by connecting them to more LPMs across more markets. This expansion will include launching PIX in Brazil during 2025 and leveraging our recently obtained cross-border permissions for UPI in India. We will continue to add new capabilities in MENA and be a partner of choice for LPMs in our heartlands of APAC and Europe. |
| · | Attracting new global and regional enterprise merchants to the network by introducing direct sales capacity and/or partnering up to grow our presence in the wider market. We hugely value our existing merchant base – names to die for – and we also see potential to attract more big names to our network. The value of LPMs is not simply attractive to the very largest companies. |
| · | Creating margin opportunity by adding new functionality to our product offering, for example helping merchants repatriate funds cross-border from difficult places will add value over and above core payment processing. It is surprising how even some of the largest global companies struggle with money movement cross-border. Having the right entities, licenses, banking partners and “know how” in the right places will be a differentiating factor for Boku going forward. |
We have started 2025 strongly and have a healthy and increasing pipeline of opportunities. Consequently, the Board expects greater than 20% revenue growth in FY25, significantly exceeding current consensus2 expectations with an adjusted EBITDA margin of greater than 30%.
In addition, while annual growth rates may vary, we are expecting organic revenue growth exceeding 20% on a compound annual growth rate (CAGR) basis over the medium term. We are also expecting an adjusted EBITDA margin exceeding 30% with progressive accretion from 2026 as we benefit from the operational leverage generated by our ongoing investments. The future is bright as we continue on our journey to becoming the world’s best localised payments partner for global commerce.
We look forward to presenting our progress and outlining the next phase of our growth strategy during our upcoming Capital Markets Day on 2 June 2025 of which we will share details in due course.
1 Boku & Juniper Research, 2024. 2024 Global Ecommerce Report. Available at
2 FY 2025 Consensus as of Monday 17 March 2025 is Revenue $109.6m and adjusted EBITDA $36.0m.
Stuart Neal
Chief Executive Officer
18 March 2025
