Truecaller Ab Class B · OMXSTO:TRUE_B
Truecaller Ab Class B — FY2021 Earnings Presentation
33 slides from Truecaller Ab Class B's earnings presentation, February 2022
Slide 1: Year-end Report January-December 2021
Year-end Report January-December 2021 Alan Mamedi, CEO & Odd Bolin, CFO @truecaller, @alanmamedi
Slide 2: Agenda
Agenda 1. Quarterly highlights 2. Quarterly Product update 3. Financial performance 4. In summary 5. Q&A
Slide 3: Quarterly Highlights
Quarterly Highlights
Slide 4: Q4 Financial Highlights
Q4 Financial Highlights 301M 392.2M 196.2M Avg Monthly Active SEK net sales (185.7), ▲111% SEK adjusted EBITDA Users, MAUs (259), ▲16% growth (YoY) (76.1). Adjusted EBITDA increase (YoY) margin of 50.0% (41.0%) “We are proud to be a profitable and high growth tech company” 4
Slide 5: Q4 Business Highlights
Q4 Business Highlights Strong growth in consumer advertising, following continued growth in number of users in various geographies combined with an sequential improvement in ads revenue per user Truecaller for Business surpassed 1,000+ signed contracts with customers, marking a milestone for the new
Slide 6: Strong growth in user base; MAUs up 42M YoY
Strong growth in user base; MAUs up ▲42M YoY Monthly Active Users1 Daily Active Users1 (Millions) (Millions) ▲+16% % of 78% 78% 79% 79% 78% 79% MAUs ▲+19% 1. Figures represent period averages. 6
Slide 7: Incoming Calls to Truecaller users (Billions)
Incoming Calls to Truecaller users (Billions) ▲+16% Call volume Incoming call volume continues to grow and grew by ▲16% in Q4 compared to previous year and indicates a continued strong need of Truecaller. 7
Slide 8: Quarterly Product Update
Quarterly Product Update
Slide 9: Our Holistic Platform Enables a Trusted and Secure Communication Experience
Our Holistic Platform Enables a Trusted and Secure Communication Experience 1 2 For Consumers For Businesses All-in-one Help businesses grow communication suite by reaching their creating trust and customers effectively efficiency for more than 300 million active Select clients users India 9
Slide 10: Q4 Product Highlights
Q4 Product Highlights Truecaller 12 Premium Machine Learning Ads & Enterprise Launch of Truecaller Enhancements to Continued innovation Investments in AdTech 12 on Android Truecaller Premium through machine and Truecaller for learning Business 10
Slide 11: Improved user experience
Truecaller 12 | Truecaller Premium | Machine learning | AdTech & Truecaller for Business TRUECALLER 12 Improved user experience The latest version of Truecaller provides a more streamlined, user-friendly experience across the app on Android devices The fully redesigned user interface allows users to
Slide 12: More relevant information at a glance
Truecaller 12 | Truecaller Premium | Machine learning | AdTech & Truecaller for Business TRUECALLER 12 More relevant information at a glance A new profile view gives users the most important information on contacts and verified businesses, as well as opportunities to leave feedback on spammers to im
Slide 13: Video Caller ID
Truecaller 12 | Truecaller Premium | Machine learning | AdTech & Truecaller for Business TRUECALLER 12 Video Caller ID Video Caller ID gives users a more unique calling experience through personalized video greetings that can be self-recorded or selected from built-in templates 13
Slide 14: Enhancements to paid offering
Truecaller 12 | Truecaller Premium | Machine learning | AdTech & Truecaller for Business TRUECALLER PREMIUM Enhancements to paid offering Announce Call gives users information on who is calling through voice assistant without looking at their phone Advanced Caller ID was further developed with the l
Slide 15: Continued innovation to improve spam detection and messaging experience
Truecaller 12 | Truecaller Premium | Machine learning | AdTech & Truecaller for Business MACHINE LEARNING Continued innovation to improve spam detection and messaging experience The introduction of new machine learning- powered algorithms and predictive analytics models increases Truecaller’s abilit
Slide 16: Continued investment in AdTech platform
Truecaller 12 | Truecaller Premium | Machine learning | AdTech & Truecaller for Business CONTINUED INVESTMENT IN ADTECH PLATFORM Truecaller continues to invest in improving demand side liquidity, auction efficiency and supply side optimisations to drive ads revenue growth while providing more value
Slide 17: Scaling Truecaller for Business
Truecaller 12 | Truecaller Premium | Machine learning | AdTech & Truecaller for Business SCALING TRUECALLER FOR BUSINESS A number of operational improvements have been introduced in order to support the growing demand for Truecaller’s business solutions, including the launch of dedicated self-serve
Slide 18: Financial Performance
Financial Performance
Slide 19: Revenue
Revenue Total net sales SEKm • Strong net sales performance driven by: ▲+111% − Increase in monthly active users (MAU) in several markets − Continued growth in revenue-generating ad impressions per user − Positive trend for CPM rates, with extra seasonal impact in Q4 • Foundation set for continued g
Slide 20: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Other SEKm SEKm SEKm ▲+344% ▲+128% ▲+7% • Continued growth in number of ad • Increased ARPU due to growth in • Strong momentum for Truecaller impressions markets with higher price picture for Business, reaching a milestone of 1,000 registere
Slide 21: Gross profit
Gross profit • Gross margin improvement of 6.9% Gross profit & margin (%) YoY SEKm • Adtech improvements in Q3 driving a more intelligent bidding process • Gross margin improvements mainly coming from: − Sales via partners with lower fees, as well as partners that don’t report precise commission fig
Slide 22: Opex and adjustments
Opex and adjustments SEKm • Adj. EBITDA excludes non-recurring expenses related to IPO and synthetic option costs of SEK 20.8 m in Q4’21 - IPO expenses: SEK 18.7m - Revaluation of synthetic options: SEK 2.1m • Other external expenses consists of marketing, user acquisition, and other operational cos
Slide 23: Adjusted EBITDA
Adjusted EBITDA Adj. EBITDA and margin (%) SEKm • Adj. EBITDA margin increased by 9%- points YoY • Stronger improvement in adj YoY EBITDA margin compared to YoY Gross margin due to strong operational leverage, i.e revenues grow faster than employee costs • Improvement trend partly offset by increase
Slide 24: Cash flow
Cash flow • Free operating cash flow in 2021 includes a short-term investment of 150 MSEK in interest-bearing funds, which is being classified as capex. • Free cash flow for before financing activities for 2021, excluding the short- term investment was 419 MSEK. • Cash conversion ratio was 89%. 25
Slide 25: Financial targets
Financial targets FY2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY2021 Medium-term financial targets Targeting an average Net sales net sales growth of growth1 64% 91% 229% 129% 111% 130% above 45% per year over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 21% 29% 43% 38% 50
Slide 26: Summary
Summary
Slide 27: In summary
In summary ► Exceptional year in terms of growth and profitability, with ▲130% net sales growth (YoY) combined with a 41.9% adj. EBITDA margin ► Strong revenue growth with a slower increase in OPEX resulted in a very strong profit margin, exceeding our long-term financial target ► Product first focu
Slide 28: Q&A
Q&A
Slide 29: Thank you
Thank you To our users, employees, and our partners for a phenomenal year 🎉
Slide 30: Appendix
Appendix
Slide 31: Income Statement & Free Cash Flow
Appendix 1 Income Statement & Free Cash Flow * Investment of 150 SEKm in a fixed income fund impacts adjusted free cash flow of Q4 and FY 2021 32
Slide 32: Balance Sheet
Appendix 2 Balance Sheet Non-current assets 162.0 125.1 162.0 156.6 152.9 139.8 125.1 Current receivables 78.6 179.3 78.6 94.4 98.0 153.2 179.3 ‘Short term placements - 150.1 - - - - 150.1 Cash & cash equivalents 195.2 1,238.4 195.2 254.4 342.7 259.6 1,238.4 Current assets 273.8 1,567.8 273.8 348.8
Slide 33: truecaller
truecaller