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Investing.com -- Boku stock jumped 6% after the company reported preliminary H1 results showing revenue growth of at least 37% in constant currency, driven by strong performance in its Local Payment Methods (LPM) segment and an upgraded full-year outlook.
The mobile payments company said H1 revenue reached "at least $63 million," exceeding analyst expectations of $57 million. Total (EPA:TTEF) Payment Volume (TPV) grew 26% in constant currency to over $7 billion, while the take rate improved 10% YoY to 90 basis points.
Boku’s LPM segment was particularly strong, growing approximately 90% to over $22 million and now representing more than 35% of total revenue. The company’s Direct Carrier Billing (DCB) business grew 16%, with the core DCB segment up 8%.
Adjusted EBITDA is expected to be "at least $21 million," representing a margin of approximately 33%. This includes $1.4 million in foreign exchange-related costs as the FX business becomes more significant. Excluding these costs, adjusted EBITDA would be $22.4 million with a 35.6% margin, substantially ahead of analyst estimates of $18.2 million.
The company’s cash position remained strong at approximately $87 million at the end of June, up from $80 million at the end of December, despite a $12 million share buyback program.
Following these results, Boku upgraded its 2025 guidance, now expecting revenue to grow in line with H1 on an underlying basis of 27%, implying full-year revenue of $126-127 million.
Jefferies analysts commented: "A strong H1 delivery and upgraded guidance show Boku continuing to execute well on its platform, with the ramp in new connections, resilience in DCB (bundling supportive), and take rate expansion showing quality in scaling. This, coupled with the FX business becoming material, strengthens our confidence in it achieving 2025 guidance and >20% CAGR medium-term ambition."
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