Bango Reports Strong Revenue Growth and Improved EBITDA in FY24 Results
Why we think this is good
Bango has demonstrated significant progress in FY24, with total revenue growing 16% to $53.4M and Adjusted EBITDA more than doubling to $15.3M. The company's Digital Vending Machine (DVM) business is gaining traction, with 9 new customers added in 2024 and 6 more in early 2025. Annual Recurring Revenue has shown impressive growth of 59%, reaching $14.0M. While the company still reports a net loss, it has narrowed considerably from the previous year. The secured financing from NHN and NatWest strengthens Bango's balance sheet and provides flexibility for future growth. The outlook for FY25 and FY26 is positive, with expected EBITDA improvements and planned efficiency initiatives. However, some challenges remain, such as the optimization of certain high-cost routes and the ongoing process of migrating DOCOMO Digital traffic. Overall, the company's strong revenue growth, improved profitability metrics, and positive future outlook support a GOOD sentiment rating.
Key Points
- Total revenue increased by 16% to $53.4M
- Adjusted EBITDA more than doubled to $15.3M
- Annual Recurring Revenue grew by 59% to $14.0M
- 9 new DVM customers added in 2024, 6 more in early 2025
- Net loss narrowed from $8.8M to $3.7M
- Secured enhanced loan facility from NHN and $15M RCF from NatWest
- Expects FY25 Adj. EBITDA in-line with consensus
- Anticipates modest increase to Adj. EBITDA vs consensus in FY26
- Planned reduction in R&D capital expenditure
- Ongoing optimization of high-cost routes acquired from DOCOMO Digital
Summary
Bango PLC has reported strong financial results for FY24, with total revenue increasing by 16% to $53.4M and Adjusted EBITDA more than doubling to $15.3M. The company's Digital Vending Machine (DVM) business is showing significant growth, with 9 new customers added in 2024 and 6 more in early 2025, including expansion in the US market and entry into South Korea. Annual Recurring Revenue grew by 59% to $14.0M, indicating strong customer retention and expansion. While the company still reports a net loss, it has narrowed from $8.8M to $3.7M. Bango has also strengthened its financial position by securing an enhanced loan facility from NHN and a $15M Revolving Credit Facility from NatWest. The outlook for FY25 and FY26 is positive, with expected EBITDA improvements and planned efficiency initiatives. However, the company faces some challenges in optimizing certain high-cost routes and completing the migration of DOCOMO Digital traffic.