Bango PLC (AIM:BGO, OTCQX:BGOPF) delivered “extremely robust” full-year results, Berenberg said in a broker note on the data-driven commerce company.
“Not only were top-line metrics (sales and annualised recurring licence revenue) better than expectations, but end-user spend (EUS) grew by 74%, evidencing continued growth in payment processing and the expanding pool of data which Bango monetises through Bango Marketplace,” the broker said.
Berenberg drew encouragement from the fact that the strong sales growth was accelerated by growth in annualised recurring licence revenue with existing platform clients, and from Bango Audiences.
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The trends give the broker confidence in Bango’s outlook, especially with management’s time and capital now primarily focused on platform licences and Bango Marketplace.
“The effectiveness of search and social targeting has been lacklustre in recent years, and this will be amplified by recent regulation preventing advertisers from tracking a user’s activity online. Considering this, Bango Marketplace is fast becoming an indispensable targeting optimisation tool,” Berenberg said.
The broker stuck with its ‘buy’ rating and 300p price target after today’s results statement
“We remain optimistic about the future growth of Bango Marketplace for two key reasons: 1) Bango is producing exponential growth in engaged app developers, growing c45x in the last two years; and 2) Bango is leveraging its partnership with TikTok and Facebook to bridge the gap between app marketing and retail e-commerce marketing,” the broker concluded.