Bango PLC (AIM:BGO, OTCQX:BGOPF) CEO Paul Larbey joins Proactive's Stephen Gunnion with details of the company's 2023 financial performance.
The company reported revenue growth of 62%, reaching over $46 million. The increase was primarily driven by its innovative Digital Vending Machine (DVM) product and the full-year impact of the Docomo Digital acquisition.
The Docomo Digital subsidiary, acquired from NTT DoCoMo, has notably enhanced Bango's payments business, contributing to a 78% increase in Annual Recurring Revenue (ARR), which now stands at $8.8 million. The company's DVM technology, which enables major content providers like Amazon, Disney, and Netflix to offer subscription services through telecommunication partners, has been a key growth driver. In 2023, Bango signed nine new DVM contracts and added 33 new merchants, now boasting over 90 on its platform.
However, the company faced challenges, falling $6 million short of market expectations due to delayed revenues and unexpected items from the Docomo acquisition. This impacted EBITDA, which was lower than anticipated. Larbey attributed this to a combination of delayed customer launches and unforeseen costs related to the Docomo acquisition.
Despite these setbacks, Larbey remains optimistic about 2024, citing the company's strong foundation and growth potential in the subscription economy. With a focus on executing new contracts and leveraging the DVM product, Bango aims to capitalize on the expanding market for subscription services. Larbey's vision positions Bango as a key player in the evolving digital landscape, offering promising opportunities for investors and partners alike.
