Bango Share Discussion Threads

[parob] 10/4/2024 10:32

If we do have institutions buying following the results then the recovery should gather pace.

[tsmith2] 10/4/2024 10:23

Want the spread to tighten..

[tsmith2] 10/4/2024 10:22

Want to spread to tighten.

[parob] 10/4/2024 10:19

Hopefully institutional buying.

[tsmith2] 10/4/2024 10:16

sorry v meaty buys at 120p

[rmillaree] 10/4/2024 10:10

amt

"Admin costs have gone from 20m to 44m since the acquisition. I would expect these to drop down to below 30m in 2025."

imho this sounds very optimistic viewpoint if those costs are not being replaced with other overheads - so optimistic i wont believe it till i have evidence there is broker note confirming 2025 will be "different level of profitability".

The reality is at present and for the next 12 months costs aints going down.

Note there was meant to be that kind of step change coming into 2024 - so i do get the logic here in "hoping" for an improvement . However i would expect if company was expecting $14 mil lfl improvement in that regard next year ON TOP OF other improvements like increasing turnover then i would expect they would have broker note cofnirming that expectation NOW - if they dont have broker note they really arent getting the message out or i would say its an assumtption being made that the company is noit themselves publicly stating. As mentioned previously so often cost saving here is eaten up with other stuff there 18-24 months down the line

[parob] 10/4/2024 09:13

Bouncing nicely off support at 116p which was previous resistance. Next leg up starts soon imo.

[amt] 10/4/2024 08:58

Do your own research, I bought SCE at 30p now worth 5p so nothing comes without risk

[vespasianthesubugest] 10/4/2024 08:42

Thanks AMT

[amt] 10/4/2024 08:35

Admin costs have gone from 20m to 44m since the acquisition. I would expect these to drop down to below 30m in 2025.
So 2025 could look like
Sales 65 GM 62 admin 30m contingency 7m Net profit 25m USD
Share price 5 quid on pe of 20. That would be very welcome. Might not happen but shows the potential.
Not many companies where its possible to make a realistic calculation like that.

[vespasianthesubugest] 10/4/2024 08:30

Thanks again. I'm no where near as savvy as you guys are with the numbers. One area i need to learn more in when i have time. I did buy a Buffet book and also a dummy's book on reading financial statements but not made much progress.

I seem to recall though they hinted that the cost of managing those DVM's was higher than they anticipated...or was it more generally managing customer accounts?

[amt] 10/4/2024 08:17

Once set up they both operate at over 90% Gross margin. So only costs are updates to software and new products which going forward will only apply to DVM since DCB will only require a little investment.
Appart from admin costs the main effort is on marketing and advertising.
The beauty of the model is that costs are fixed and with a 95% GM from 2025 all additional sales mostly drop down to profit. Hence if they can build DVM at about 40% growth per annum and DCB at 5% they get to 100m turnover in 5 years and thus 50m net profit.

[vespasianthesubugest] 10/4/2024 08:06

thanks amt. So they'll be spending a lot of capex on it but has low opex

[amt] 09/4/2024 22:12

DVM investing heavily.
DCB not much investment required

[vespasianthesubugest] 09/4/2024 20:15

So which is it; a) they're investing loads of cash into DVM or b) DVM needs little investment?

[hastings] 09/4/2024 17:17

I'd take Stocko info with a degree of caution. Algorithms are fine to a point, but!

[rmillaree] 09/4/2024 17:01

kaos3 - i have just taken my figures from Stockopedia. It may be that these figures are adjusted or perhaps might be out of date. When i loooked i had it in my head they had updated figures but cross checking i am not so convinced as the 2023 revenue figures dont match the accounts figures released - i have also noticed they have 2 brokers flagged so it seems like that data will need updating.

[6gr] 09/4/2024 16:50

I completely agree, DCB is now a huge cash cow business that will grow organically with little required investment in either sales or R&D.

DVM is an amazing business where Bango have already captured a huge part of the market and are becoming the dominant provider. The network effect here is strong, as many streamers/providers will not want to work with multiple firms, so are already just directing telco clients to Bango. The income potential is huge, just look at the big US telco contract where the 'lowest' tier is $2m pa, once they get people using it at scale they will climb to higher tiers.

Audiens is the dud of the bunch and has been for a long while. It was purchased for the technology, but never generated any significant revenue itself and should have been shut a long time ago. At least it's been done now.

[jasperlachat] 09/4/2024 16:36

Thanks Martin, nice summary.

[amt] 09/4/2024 16:21

Egrd1 I would say DCB has been a huge success. 32 million turnover with 95% margin on the Bango platform with about 10 billion EUS access to hundreds of millions of users and supporting the biggest telecoms companies in the world. 5% growth with virtually no further investment. Now out of that DVM already at 10 million per annum after 2 years.
Audiens yes, a disappointment but still might have potential further down the road but DVM is where the focus is now.
Businesses need to be dynamic and flexible and seize the opportunities.
Boku has similar EUS but is now focusing on Digital wallets and their business has taken off.

[kaos3] 09/4/2024 15:58

what would be their tax credit ... after all those years of loses/developments

why the projected diff profit vs after tax profit

cash is still king

sorry to be ignorant

[weblinkman] 09/4/2024 15:14

Ref "Where is R&D money invested?"

Pages 15,16,17 provide a lot of information on that topic.

[rmillaree] 09/4/2024 13:36

Cheers Hastings most approciated you taking the time to q

Thanks for that - onto a more positive note if they are only expecting just over 12% sales growth this year and have booked 20% growth in h1 - i would agree there ios posibility that the sales forecasts could perhaps be conservative. Whats really what we want to come in on costs and get some sort of beat on revenue and then everyone is happy. So lest hope thye have learnt their lesson. It shouldnt take too long for numbers to firm up ref curent year revenue expectations - so perhaps there is hope for good news on next trading update.

On the flip side if they only expect revenue growth of 12% and they booked 20% q1 that would suggest that growth is slowing down - at some stage though growth rates had to mederate but that would be a material slowdown below 12% growth to end up there come year end.

So hopefully cause for optimism here ref sales if you take glass half full plus viewpoint.

I will remain neutral and simply be guided what broker forecasts are for now.

ref the halving of brokers from 2 to 1 straight after the fact they have had to eat their words ref expectations - for £90 mill plus market cap growing strongly - seems an odd choice to sack broker to save a bit of cash - one would expect the hard work with brokers in onboarding them in the fisrt place ? is it normal to reduce brokers wehn everything is growing nicely?

[rmillaree] 09/4/2024 13:32

Cheers Hastings most approciated you taking the time to q

Thanks for that - onto a more positive note if they are only expecting just over 12% sales growth this year and have booked 20% growth in h1 - i would agree there ios posibility that the sales forecasts could perhaps be conservative. Whats really what we want to come in on costs and get some sort of beat on revenue and then everyone is happy. So lest hope thye have learnt their lesson. It shouldnt take too long for numbers to firm up ref curent year revenue expectations - so perhaps there is ho
pe for good news on next trading update.

On the flip side if they only expect revenue growth of 12% and they booked 20% q1 that would suggest that growth is slowing down - at some stage though growth rates had to mederate but that would be a material slowdown eblow 12% growth to end up there come year end.

So hopefully cause for optimism here ref sales if you take glass half full plus here.

I will remain neutral and simply be guided what broker forecasts are for now.

[egrid1] 09/4/2024 13:30

6gr "They are investing much more cash into the DVM business to grow"
What specifically are they investing all this cash in? The DVM is a developed system, what they are doing is looking to increase customers... They already have 3 of the major 5 US Telcos on board, along with many other major users...
What worries me is that Bango seem to buy business, but only ever break even on the return from that business, before pretty much exhausting the low hanging fruit and then having to pivot to the next big thing.
DCB
Audiens
and now the DVM?