Bango is a technology company focused on enabling our customers to acquire and retain more users and grow their revenues faster than they otherwise could. When their revenue grows, so does ours.
Bango has 3 core products:
Bango Payments – this is the longest running Bango product and currently generates the majority of Bango revenue. Bango Payments powers Direct Carrier Billing (charging something to a mobile phone bill) and Mobile Wallet payments for online merchants all over the world. Customers include; Amazon, Google, Microsoft etc. Bango charges 0.5-3% of the transaction value (we refer to this as End User Spend or EUS).
Bango Digital Vending Machine (DVM) – this is a newer product and is the fastest growth area in the business in the near-medium term. The Bango DVM enables telcos to offer ‘superbundles’ to their customers. A superbundle is the offer of tens and tens of subscription services all bundled to your telco bill. Think – Netflix, AmazonPrime, Xbox Game Pass, Duolingo, Peleton and many more, all charged to your mobile phone bill (and often at a discounted price for consumers!). Customers include; Verizon, BT, T-Mobile US etc. Bango charges the telco a SaaS license fee for this product which scales proportionally with the number of subscriptions redeemed.
Bango Audiences – this is also a relatively new product, Bango Audiences completed its first full year of trading in 2020. Using the payment data we collect in Bango Payments and via the DVM, the Bango Platform repackages this data in a way that is fully anonymized and compliant to create Bango Audiences. A Bango Audience is a pool of users with a proven propensity to spend on relevant goods & services. Bango Audiences are used by marketers to better target their ad campaigns and generate our customers between 2-9x greater return on their ad spend. Customers include; AppLovin, Adidas, HardRock, e-Toro etc. Bango charges 7-10% of the customer’s ad campaign spend for use of this product.
All 3 Bango products are powered by 1 single technology platform; the Bango Platform. Having a single platform makes it quick & simple for customers, they connect once and immediately have access to all the other customers connected to the platform, no need for multiple, time consuming and costly integrations. Imagine you are a merchant, and you want to monetize your product with multiple telcos across various geographies. Connecting once to Bango is easy, if you had to connect to 50+ different telcos individually, all with differing technical complexities, that is much less appealing!
In addition, having a single platform gives Bango a wholistic view, we don’t have siloed data, we see the whole picture, which is what enables Bango to create data insights that work so powerfully for our customers.
Bango is a high margin business – Bango Payments and Bango DVM are 99%+ margin. Bango Audiences has a cost of sales of up to 25%, as we revenue share a portion of Bango Audiences revenue back with the data owner (usually the telco). In FY22, the Bango gross profit margin was 91%.
Bango generated $28.5M of revenue in FY22 and has a 5-year revenue CAGR of 40%. Annual recurring revenue (which relates specifically to the Bango DVM) grew 5x in 2022 to $5M. EUS is another Bango KPI – it is indicative of the value of data Bango has to monetize via Bango Audiences. Bango exited 2022 with an EUS run rate of $8.6B.
Why Bango is winning in the market:
- Bango sits at the nexus of two huge growing markets, the telco services market and the e-commerce market. Bango has created a standard technology for the intersection of these two markets, enabling them to collaborate effectively, powering growth in both;
- The fact all Bango products are built on a single technology platform is a key differentiator and gives Bango a unique position in the market;
- With Bango, customers can scale quickly, maximize their revenue opportunity and get to market quickly, accessing customers they wouldn’t otherwise reach;
- Bango has unique , whole market data that nobody else does. The platform sees what users purchase from multiple merchants across multiple channels. Bango is able to use this data to power the growth of all our customers.
