Bitcoin price today: rises to $116.5k on Trump 401k order, altcoins rally
Investing.com -- Shares of Boku (NASDAQ:BOKU) climbed 5% following the company’s release of its financial results and optimistic guidance for 2025.
The mobile payments company reported a revenue growth outlook that exceeded analysts’ expectations, projecting over 20% currency-constant growth for the year ahead, suggesting revenues of more than $121 million.
Boku’s financial results revealed that while EBITDA came in $0.3 million lower due to FX revaluation losses and increased share-based compensation, the company’s core free cash flow (FCF) grew by 20% year-on-year (YoY) to $20 million in 2024.
The company also highlighted a significant year-on-year increase in new users for its Local Payment Methods (LPM) platform, with the number exceeding 20 million, marking a growth of over 50%.
Despite the impact of foreign exchange headwinds, amounting to a 400 basis point challenge for the year, and a headcount that reached approximately 470 employees, Boku’s core cash position remained robust at $80 million, following a share buyback program of around $11 million and partially offset by $3 million in warrants related to Danal.
Looking ahead, Boku’s new guidance for 2025 is approximately 6% above Visible Alpha consensus (VA cons). The company anticipates that its revenue will grow by more than 20% on a constant currency basis, which translates to revenues surpassing $121 million.
This growth is primarily driven by the ramp-up in LPM and stable Direct Carrier Billing (DCB) growth. Boku also expects to maintain an EBITDA margin above 30%, despite ongoing investments in its treasury product.
In terms of medium-term goals, Boku has set its sights on achieving a revenue compound annual growth rate (CAGR) of over 20%, which is notably higher than the consensus estimates of a 15% CAGR from 2024 to 2027. The company also aims to improve EBITDA margins starting in 2026 by 100-200 basis points per year, surpassing the consensus estimates of a 114 basis point increase per year through 2027.
Jefferies commented on the company’s outlook, stating, "We upgrade estimates modestly on post-2024 results and updated guidance/ambition driving our PT to 242p (was 234p)."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.