During the first half of 2023, global data-driven commerce platform Bango PLC (AIM:BGO, OTCQX:BGOPF) demonstrated robust performance with a solid 88% increase in revenue, totalling US$20.3mln (£15.7mln) against US$10.8mln in 2022.
This was in line with the AIM-listed company's expectations.
Revenue growth was largely driven by the Bango Digital Vending Machine (DVM), which saw a 64% rise in annual recurring revenue (ARR) to US$5.6mln compared to US$3.4mln the previous year.
Bango remains on track to achieve its target of US$10M ARR by the end of 2023.
Notably, the group secured new DVM contracts in the first half, including partnerships with BenefitOne and two major US telecommunications companies, one of which ranks among the top five operators.
These new contracts are expected to contribute to ARR in the second half of 2023. The Bango DVM now enables digital subscription services for three out of the top five US operators, serving an impressive 61% of US consumers.
In terms of underlying earnings, the company expects a figure of -$400,000 for the first half compared to US$2.9mln in 2022, attributed to integration costs associated with the merger with DOCOMO Digital.
However, progress on the integration has been positive, with actions already underway to deliver US$19mln of the US$21mln cost synergies that have been guided.
Bango's gross profit margin remained strong at 90%.
As of the end of the reporting period, the company had net cash of US$13.4mln, up from US$9.5mln on 31 December 2022.
Chief executive Paul Larbey commented: "Bango made great progress in the first half of the year with 88% revenue growth, demonstrating the momentum in the business.
“Traction of the Digital Vending Machine is clear, particularly in the US market, with a further two key US wins. Fast DVM growth means recurring, multi-year SaaS revenue is becoming an increasing proportion of the Bango revenue mix.
“The high-profile launch of Verizon +Play in March sets a clear standard for super bundling globally and I am excited by the deals we have in the pipeline."