Boku shares rose following improved trading on Investing.com.

Investing.com – Shares of Boku (NASDAQ:BOKU) rose 1.8%, beating the consensus despite a foreign exchange headwind as the company issued strong FY24 business updates.

The mobile payments company reported 20% growth in constant currency total payment volume (TPV), beating the apparent Alpha consensus by 3%. Revenue beat expectations with a 13% jump, which represented a 19% increase in constant currency terms.

Commenting on the results, Jeffries said, “While we’re a touch below our estimates (on FX), we see the results putting the stock on track to meet our expectations in 2025. The stock should be on this print.”

Boku’s positive performance was due to the expansion of monthly active users (MAUs), which rose 33 percent to 88 million, driven by new users through account-to-account (A2A) and digital wallets. Adjusted EBITDA exceeded forecasts by 14%, to approximately $17 million, reflecting a strong margin of 33%. Operating expenses rose modestly by 11 percent, enabling the company to maintain strong profitability ratios.

The company ended 2024 on a strong note, continuing its momentum from the first half of the year. Growth was mainly driven by local payment methods (LPM), with significant user growth in digital wallets and A2A services.

Despite facing a 400 basis point foreign exchange impact, mainly due to the weakening Japanese yen and strengthening US dollar, Boku was able to secure popular LPM contracts including Amazon (NASDAQ: ) in Japan and Meta (NASDAQ: ) in Nigeria. These developments are expected to enhance Boku’s platform capacity and encourage further growth.

In the second half of the year, Boku’s revenues rose 19 percent in constant currency, to more than $52 million, and beat consensus by 13 percent. This increase was driven by LPM growth of approximately 64%, while Direct Carrier Billing (DCB) increased by approximately 8%.

The company’s TPV for the year grew by 23% in constant currency. It grew to about $12.4 billion, with total revenue up 24 percent to $99 million. Adjusted EBITDA stood at approximately $31.5 million, or a margin of 31.7%, an improvement over last year.

Principal cash reserves improved, ending the year at $80 million, up from $75 million at the end of June, including $9 million spent on stock purchases in the second half of the year. For the full year, share repurchases totaled $10.7 million, or 4.7 million shares.

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