Tracxn Technologies Ltd. · NSE:TRACXN
Tracxn Technologies — Q1 FY25 Earnings Presentation
45 slides from Tracxn Technologies's earnings presentation, Jul 31, 2024
Slide 1: Private Market Intelligence Platform – Q1 FY25 Investor Presentation
Private Market Intelligence Platform Q1 FY25 Investor Presentation 31st July 2024 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved.
Slide 2: Disclaimer
Disclaimer By attending this presentation including the commentary by the Company management This Presentation may contain, words or phrases that are forward-looking statements that and the transcript of the same, together (“Presentation”) and/or accepting a copy of it, involve risks and uncertainti
Slide 3: Tracxn Overview
Tracxn Overview Tracxn is a Data & Software platform for the Private Markets globally We work with Venture Capital Firms, Private Equity Firms, Investment Banks - as well as M&A & Innovation teams of large Corporates Global Platform, customers span 50+ countries 3
Slide 4: Q1 FY25 Financial Performance
Q1 FY25 Financial Performance 4
Slide 5: Q1 FY25: Financial Performance Summary
Q1 FY25: Financial Performance Summary Steady growth in Revenue and Profitability REVENUE PROFITABILITY OTHER Revenue from Operations EBITDA EBITDA Margin Free Cash Flow1 20.5 Cr. 0.3 Cr. 1.4 % 3.6 Cr. 3.6% YoY 0.3 Cr. YoY Margin increased by 1.3% 3.0 Cr. YoY, up from Q1 FY24 from Q1 FY24 Total Inco
Slide 6: Q1 FY25: Continued Revenue Growth
Q1 FY25: Continued Revenue Growth Revenue from Operations Total Income (in INR Cr.) (in INR Cr.) 6% 4% Historical Annual Historical Annual 24% 24% CAGR CAGR Revenue from operations grew at 4% YoY for Q1FY25 6 Note: (*) Total Income excludes Fair value gain/ (loss) on CCPS for FY21
Slide 7: Q1 FY25: Profitable Operations - EBITDA & PAT
Q1 FY25: Profitable Operations - EBITDA & PAT EBITDA (in INR Cr.) Excluding non-cash ESOP Historical Annual expense this is 1.3 Cr. Q1 FY25 EBITDA of 0.3 Cr. and PAT of 1.3 Cr. (Note EBITDA & PAT includes non-cash expenses, eg. ESOP PAT (in INR Cr.) Excluding non-cash exp) Historical Annual items -
Slide 8: Q1 FY25: EBITDA & PAT Margin
Q1 FY25: EBITDA & PAT Margin EBITDA Margin Historical Annual Q1 FY25 EBITDA Margin of 1.4% and PAT Margin of 6.2%. PAT Margin Historical Annual 8 Note: (*) Excluding Fair value gain/ (loss) on CCPS for FY21
Slide 9: Significant Incremental Revenue continues going into Bottomline
Significant Incremental Revenue continues going into Bottomline Historical Annual: Q1FY24 Q1FY25 FY 21 FY 22 FY 23 FY 24 Revenue from operations 19.8 20.5 43.8 63.5 78.1 82.8 Incremental Revenue from Operations (Δ) +0.7 +6.4 +19.7 +14.7 +4.7 EBITDA excl IPO Expense 0.02 0.3 (17.1) (1.9) 2.6 4.6 Incr
Slide 10: Q1 FY25: Expense Breakup
Q1 FY25: Expense Breakup Total Expense (in INR Cr.) Total Expense - Breakup (for Q1FY25) (in INR Cr.) % of Total Q1FY25 Expense Historical Annual Employee Benefit Expenses 17.7 Cr. 87.2% 2% Salaries, Wages & Bonus 16.3 Cr. 80.3% 9% CAGR Employee stock option expense 1.0 Cr. 4.8% Other Employee Benef
Slide 11: Private Markets - Quick snapshot (1/3)
Private Markets - Quick snapshot (1/3) Global Tech Funding India Tech Funding (in USD Bn.) (in USD Bn.) GLOBAL TECH FUNDING: CY23 was a 6yr low # Unicorns created globally # Unicorns created in India LATE-STAGE FUNDING: (proxy # new unicorn rounds) Decline is more, CY23 was a 7yr low Source: Interna
Slide 12: Private Markets - Quick snapshot (2/3)
Private Markets - Quick snapshot (2/3) Global M&A deal value and IB fees at its lowest Global M&A (in USD Tn.) GLOBAL M&A: CY23 (last year) was lowest in 10yr M&A advisory fees (in USD Bn.) IB M&A ADVISORY FEES: CY23 (last year) was one of the lowest in the last 10yr 12 Source: Report on Global Merg
Slide 13: Private Markets - Quick snapshot (3/3)
Private Markets - Quick snapshot (3/3) Some signs of recovery in private markets Global Tech Funding Global Tech Funding - Early Stage (in USD Bn.) (in USD Bn.) India Tech Funding India Tech Funding - Early Stage (in USD Bn.) (in USD Bn.) Overall funding recovery awaited, early signs look optimistic
Slide 14: Q1 FY25: Greenshoots (1/3)
Q1 FY25: Greenshoots (1/3) Started seeing volume growth Customer Accounts (#) Customer Accounts - Net Addition 14 Note: (*) FY23 Quarterly Avg. is provided for like to like comparison. Customer Accounts are as on respective end of period. QoQ comparison limited to last 12 quarters
Slide 15: Q1 FY25: Greenshoots (2/3)
Q1 FY25: Greenshoots (2/3) Deferred revenue also saw good expansion Deferred Revenue (in INR Cr.) Historical Annual Quarterly 19% CAGR YoY Growth Rate 15 Note: (*) Adjusted for proforma bills wherein invoice is to be raised after payment is received
Slide 16: Q1 FY25: Greenshoots (3/3)
Q1 FY25: Greenshoots (3/3) Platform Engagement continues to increase Trend of platform usage metrics in terms of # of Exports and Myanalyst queries ~1.6X Despite lower external deal activity, customers’ platform engagement looks healthy (Customer exports & myanalyst queries have grown ~1.6X over the
Slide 17: Growth Initiatives
Growth Initiatives GTM Funnel • Also, we have been investing across LEAD GENERATION: various growth initiatives Marketing • These span across the Go-to-market funnel of marketing, sales and account expansion LEAD • We believe as the markets open up CLOSURE: Sales further, we should see more accelera
Slide 18: Select Recent Growth Initiatives
Select Recent Growth Initiatives 1 Scaling Organic Traffic & Inbound Leads Organic Search Traffic* (in millions) Pipeline ~3X ● We have built a large organic inbound traffic funnel ● Over 16 Million visits in FY24 ● In Q1FY25 this was 4.6 Million visits (~3x increase in 3 years) 18 Note: (*) Source:
Slide 19: Select Recent Growth Initiatives: Tracxn Lite
Select Recent Growth Initiatives # Tracxn Lite Users 2 Tracxn Lite ● Launched Tracxn Lite for PLG (Product-Led Growth) to make the customers aware of the richness of the platform and drive product led growth ● Users get full platform access (with limitations such as restricted daily hits for profile
Slide 20: Select Recent Growth Initiatives: Specialized Teams - Universities
Select Recent Growth Initiatives 3 Specialized Teams - Universities ● Specialised team with cumulative experience of over 20 years in selling to universities ● Bulk of our relevant customer segments come from top universities globally ● More than a revenue segment, universities are a good marketing
Slide 21: Select Recent Growth Initiatives: Specialized Teams - Private Equity
Select Recent Growth Initiatives 4 Specialized Teams - Private Equity ● We have setup a specialized sales team for Private Equity - as it’s a large and cash-rich sub-segment ● In addition to the sales engine, we have also doubled down on the data production specifically for the PE customer segment.
Slide 22: Select Recent Growth Initiatives: Specialized Teams - Startups
Select Recent Growth Initiatives 5 Specialized Teams - Startups ● We have seen high volume of inbound leads from startups ● Though they are served by the same platform, they have a differentiated use case and workflow requirements ● We have set up a separate team to focus on acquisition and expansio
Slide 23: Increasing Coverage of Private Company Financials
Select Recent Growth Initiatives 6 Increasing Coverage of Private Company Financials Currently cover private company financials across 20+ countries # Financials Covered Major countries by coverage ● India ● Norway ● South Korea ● United Kingdom ● Denmark ● New Zealand ~5x ● Croatia ● Czech Republic
Slide 24: Increasing Coverage of Private Company Captables
Select Recent Growth Initiatives 6 Increasing Coverage of Private Company Captables Currently cover private company captables across 15+ countries # Companies with Captables Major countries by coverage 1.4x ● India ● Estonia ● France ● United Kingdom ● United States ● Japan* ● Germany ● Australia ●
Slide 25: Launched Legal Entities Database
Select Recent Growth Initiatives 6 Launched Legal Entities Database Currently cover 60M+ legal entities across key geographies # Legal Entities Major countries by coverage (in millions) ● United States ● United Kingdom ● Japan ● India ● Australia ● Brazil … Crossed 50M entities, in-line with what we
Slide 26: Account Expansion & Engagement
Select Recent Growth Initiatives 7 Account Expansion & Engagement Various initiatives are underway for improving paid customer engagement as well as account expansion to enhance growth from existing customers. We have setup a separate team for expansion within existing accounts, to increasing penetr
Slide 27: Increased Press Mentions
Select Recent Growth Initiatives 8 Increased Press Mentions Through various media partnerships, data contributions, reports, etc. 500+ Press Mentions across media* Eg. Report coverage eg. Regular Columns in newspapers eg. Others 27 Note: (*) in Q1FY25
Slide 28: Q1 FY25: FCF and Cash & Cash Equiv.
Q1 FY25: FCF and Cash & Cash Equiv. FCF (Free Cash Flow)1 Cash & Cash Equivalents1,2 (in INR Cr.) 3.0 Cr. (in INR Cr.) Historical Annual 80.4 Cr. Added 18.4 Cr. YoY 30% YoY Pending tax refunds received in Q1 FY25 Note: (1) Free Cash Flow and Cash & Cash equiv. excludes tax amounts received from empl
Slide 29: Q1 FY25: Other KPIs (1/2)
Q1 FY25: Other KPIs (1/2) Customer Accounts (#) Users (#) Historical Annual Historical Annual 14% 13% 15% 15% CAGR CAGR Q1 FY25 was the highest net account additions, Q1 FY25 was the highest user additions due to various growth initiatives 29 Note: Customer Accounts and Users are as on respective en
Slide 30: Q1 FY25: Other KPIs (2/2)
Q1 FY25: Other KPIs (2/2) Contract Price Entities Profiled, on platform (in INR Cr.) (in millions) Historical Annual Historical Annual 45% 19% CAGR 7% 30% CAGR 30 Note: Entities Profiled are as on respective end of period (*) Adjusted for proforma bills wherein invoice is to be raised after payment
Slide 31: Business Overview
OOOO EEE @Tracxn Business Overview 31
Slide 32: Global Customer Base
Global Customer Base 61% International revenue in Q1 FY25 Customers span over 50+ countries* Top 5 countries by #customer accounts*: Indian International Revenue India, USA, Singapore, Germany, UK Revenue 61% Historical annual International Revenue Share 32 Note: (*) Based on Customer Accounts as on
Slide 33: Diverse Customer Base
Diverse Customer Base Customer segments & departments that we work with Corporate Private Corp Dev / Venture Equity M&A Teams Capital Venture Investment Government Companies Capital Banking Agencies Family Corporate Consulting Offices Innovation Accelerator Digital Corporate Universities & Incubator
Slide 34: Our Journey
Our Journey Listed on 50+ Countries Ratan N Tata Current - Among the 2021-22 Leading global market intelligence - Became a publicly providers for private Sachin Bansal Binny Bansal NRJN Family Trust 2020-21 listed company on company data* 20th Oct 2022 - Crossed customers - One of the largest 2017-1
Slide 35: Significant cost advantages from India-based operations
Significant cost advantages from India-based operations Significant cost advantage due to Europe make-in-India. Especially: Asia N.America • Data-production & technology Middle East platform is built from India India • Global sales happens from Africa India (sales & support teams work across all tim
Slide 36: Experienced Promoters & Board of Directors
Experienced Promoters & Board of Directors Neha Singh Abhishek Goyal Brij Bhushan Chairperson and Managing Vice Chairman and Independent Director Director Executive Director ▪ B.Tech. & M.Tech. from IIT Bombay ▪ B.Tech. from IIT Kanpur ▪ B.Tech. from Maharshi Dayanand & MBA from Stanford Graduate Un
Slide 37: Supported by Senior Management Team Backed by Marquee Investors
Supported by Senior Management Team Backed by Marquee Investors Prashant Chandra Amit Agarwal Neeraj Chopra Bhaskar Sharma Chief Financial Officer Chief Operating Officer Chief Technology Officer Chief Product Officer ▪ B.Tech. from IIT Kanpur & MBA ▪ B.Tech. from MNNIT-Allahabad & ▪ MS from Univers
Slide 38: Robust Technology Platform
Robust Technology Platform Wide range of business and workflow tools – Scalable backend framework – based on open Inbuilt CRM tool, custom dashboard builder, tools for source technologies sourcing, tracking companies, portfolio tracking, API Automated – based on web crawling and data support, browse
Slide 39: Large & Growing Market $35B+
Large & Growing Market Multiple large companies have been created in the financial data markets $35B+ Cumulative Revenue of Financial Market Data Companies for 2023* 39 Note: (*) Revenue of key public market data companies has been calculated based on the publicly available sources and internal esti
Slide 40: Large & Growing Market
Large & Growing Market Private Market AUM Growth1 Public Market Capitalization2 (in USD trillion) (in USD trillion) 15% ~6% CAGR CAGR Cumulative market capitalization of listed domestic companies across all the countries converted to USD Private market AUM expected to cross $15T by 2028 Note: (1) Ac
Slide 41: Q1 FY25 Detailed Financial Statements
Q1 FY25 Detailed Financial Statements 41
Slide 42: Profit & Loss Statement (1/2)
Profit & Loss Statement (1/2) Particulars Q1 FY25 Q4 FY24 Q1 FY24 FY24 Income Revenue from operations 20.54 20.32 19.82 82.77 Other income 0.16 0.03 0.20 0.31 Other gains/(losses) - net 1.24 1.23 0.75 3.96 Total Income 21.95 21.57 20.77 87.04 Expenses Employee benefit expense 17.67 17.78 17.38 69.26
Slide 43: Profit & Loss Statement (2/2)
Profit & Loss Statement (2/2) Particulars Q1 FY25 Q4 FY24 Q1 FY24 FY24 Profit / (loss) for the period 1.27 1.43 0.69 6.50 Less: Other Income 0.16 0.03 0.20 0.31 Less: Other gains/(losses) - net 1.24 1.23 0.75 3.96 Add: Depreciation expense 0.02 0.04 0.04 0.17 Add: Current tax 0.06 0.05 0.05 0.18 Add
Slide 44: Definitions
Definitions (1) Customer Accounts refers to the distinct contracts entered into by our Company with each customer, at the time of measurement. A customer account may include access for a single or multiple number of Users. (2) Users refers to the number of activated user accesses on the platform at
Slide 45: Thank You
Company Information Address : 2nd Floor, L-248, 17th Cross, Sector 6, HSR Layout, Bangalore - 560102 Thank You CIN : L72200KA2012PLC065294 Corporate Presentation: Link For any queries, please contact: Email ID : investor.relations@tracxn.com www.tracxn.com/investor-relations 45