Bango PLC (AIM:BGO, OTCQX:BGOPF) chief executive officer Paul Larbey sat down with Proactive's Stephen Gunnion to discuss the company's 2023 financial performance and the strategic vision moving forward.
SG: Paul, 2023 has been a remarkable year for Bango with revenue growth of 62% to reach over US$46 million. Could you shed some light on the key factors that drove this impressive growth?
PL: 2023 was indeed a transformative year for us. Our revenue surge was primarily fueled by two major factors. Firstly, our Digital Vending Machine (DVM) product has been a game-changer, resonating well with major content providers like Amazon, Disney, and Netflix. Secondly, the full-year impact of our acquisition of Docomo Digital significantly bolstered our payments business.
SG: How has the purchase of Docomo Digital impacted Bango's business, especially in terms of Annual Recurring Revenue?
PL: It has notably enhanced our payments business, contributing to a remarkable 78% increase in our Annual Recurring Revenue (ARR), which now stands at US$8.8 million. This acquisition has been integral in fortifying our market position and expanding our revenue streams.
SG: With the success of your DVM technology and the addition of new contracts and merchants, what challenges did Bango face in 2023, and how have these impacted your financial outcomes?
PL: While we celebrated many successes, we also faced some challenges. We fell short of market expectations by $6 million, primarily due to delayed revenues and some unexpected costs linked to the Docomo acquisition. These factors impacted our EBITDA, which was lower than anticipated. The delays in customer launches and unforeseen costs from the acquisition were significant contributors to this shortfall.
SG: Looking ahead, what is your outlook for 2024, and how do you plan to address these challenges while capitalizing on the opportunities in the subscription economy?
PL: Despite the setbacks in 2023, I'm optimistic about 2024. We're building on a strong foundation and are well-positioned to capitalize on the growing market for subscription services. Our focus will be on executing new contracts and fully leveraging our DVM product. We aim to solidify Bango's position as a key player in the evolving digital landscape, offering promising opportunities for both investors and partners.