Truecaller Ab Class B · OMXSTO:TRUE_B
Truecaller Ab Class B — Q2 2022 Earnings Presentation
35 slides from Truecaller Ab Class B's earnings presentation, July 2022
Slide 1: Our vision: smarter, safer, more efficient communication
OUR VISION To make tomorrow's communication smarter, safer and more efficient. 1
Slide 2: Interim Report January-June 2022
Interim Report January-June 2022 Alan Mamedi, CEO & Odd Bolin, CFO @truecaller, @alanmamedi
Slide 3: Agenda
Agenda 1. Quarterly Highlights 2. Product Update 3. Financial Performance 4. Summary 5. Q&A
Slide 4: Quarterly Highlights
Quarterly Highlights
Slide 5: Q2 Highlights
Q2 Highlights 321M 255M 79% Avg Monthly Active Users, Avg Daily Active Users, DAU¹ MAU¹ (271M) (211M) DAU/MAU Engagement ▲15% (YoY) ▲17% (YoY) 480M 218M 281M SEK net sales (240M) SEK adjusted EBITDA (104M) SEK in net cash from operating ▲100% (YoY) Adjusted EBITDA margin of activities² (92M) 45.5% (
Slide 6: Q2 Business Highlights
Q2 Business Highlights Solid user growth across targeted growth regions, with particularly notable growth in MAU of ~50% in South American markets. Truecaller continues to be one of the top 20 most downloaded apps in the world¹ Substantial growth in consumer advertising, driven by the continued deve
Slide 7: Strong growth in user base; average MAU up 42M YoY
Strong growth in user base; average MAU up ▲42M YoY Monthly Active Users1 Daily Active Users1 (Millions, Q-average) (Millions, Q-average) % of MAUs 78% 78% 78% 79% 80% 79% 1. Figures represent period averages (i.e., the average of each day in the period) 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 9
Slide 10: Q2 Product Highlights
Q2 Product Highlights AdTech & Core product offering iPhone & Assistant Truecaller for Business Continued enhancement Continued development Investments driving of AI Identity and core of Ads and Truecaller for fundamental communications product Business improvements to user experience 10
Slide 11: More relevant information at a glance
Core offering | AdTech & Truecaller for Business | iPhone & Assistant AI IDENTITY More relevant information at a glance The introduction of additional user feedback points earlier in the year has led to increased engagement and contributed over 30 million comments and responses AI Identity now extrac
Slide 12: Enhancements to the calling experience
Core offering | AdTech & Truecaller for Business | iPhone & Assistant CORE COMMUNICATIONS OFFERING Enhancements to the calling experience Call Reason has been simplified to make it easier for users to access and engage with the feature Truecaller Voice now has a dedicated tab, making it much easier to
Slide 13: Enhancements to Messaging and Smart SMS
Core offering | AdTech & Truecaller for Business | iPhone & Assistant CORE COMMUNICATIONS OFFERING Enhancements to Messaging and Smart SMS Users who want to add an extra layer of security now have the option to set a passcode lock on their messaging tab Enhancements to the Smart SMS experience have a
Slide 14: Improvements to paid offering
Core offering | AdTech & Truecaller for Business | iPhone & Assistant PREMIUM OFFERING Improvements to paid offering Instant Messaging Caller ID is a new paid feature that brings Truecaller’s ability to identify unknown senders across different messaging apps, other than SMS Premium users also now hav
Slide 15: Our advertising business continues to grow
Core offering | AdTech & Truecaller for Business | iPhone & Assistant ADTECH Our advertising business continues to grow, driven by improved access to demand, investments in AdTech and optimizations on the inventory side Continuous improvements to the re-architected auction set up have facilitated eas
Slide 16: Truecaller for Business: improving operational capabilities
Core offering | AdTech & Truecaller for Business | iPhone & Assistant TRUECALLER FOR BUSINESS (TfB) Truecaller continues to invest in improving operational capabilities in order to serve growing demand for the business offering Truecaller developed and launched additional features to its new self-serv
Slide 17: Truecaller for Business: value-add features
Core offering | AdTech & Truecaller for Business | iPhone & Assistant TRUECALLER FOR BUSINESS (TfB) Product development for the business offering has progressed, and value-add features such as Video Caller ID and Call Me Back have been implemented for over 100 select customers STRONG ADOPTION OF VALUE
Slide 18: Investments towards a brand new iOS experience
Core offering | AdTech & Truecaller for Business | iPhone & Assistant TRUECALLER FOR iPHONE Investments towards a brand new iOS experience Truecaller for iPhone has been rebuilt from the ground up, and is planned for release in the third quarter The new iPhone experience offers a refreshed look and a
Slide 19: Enhanced call screening
Core offering | AdTech & Truecaller for Business | iPhone & Assistant TRUECALLER ASSISTANT Enhanced call screening Integration of Truecaller Assistant has been completed and is undergoing final calibration for release to premium users in select markets later this year Truecaller Assistant is enabled b
Slide 20: Financial performance
Financial performance
Slide 21: Revenue
Revenue Total net sales ● Strong net sales performance driven SEKm by all income streams: ○ Increase in users and growing demand for TfB ○ Growth in ad impressions per user and positive trend for CPM rates ○ FX, IPL and covid-effects created further tailwinds in the quarter 21
Slide 22: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Other SEKm SEKm SEKm • Continued growth in number of ad impressions • Increased ARPU due to growth in • Continued strong momentum for and positive CPM development markets with higher prices Truecaller for Business • Comparison to last year p
Slide 23: Gross profit
Gross profit Gross profit & margin (%) ● Gross margin improvement of SEKm 3% YoY, primarily driven by increased share of sales via partners with lower fees, as well as partners that do not report precise commission figures such that we report income net of commission (i.e., 100% gross margin) 23
Slide 24: Opex and adjustments
Opex and adjustments SEKm • Employee expenses increase in Q2 includes annual salary increase (for Q1 and Q2) and larger organisation • 6 MSEK in costs for incentive programs (not full cost in Q2). Costs will increase and social insurance costs might be volatile depending on share price development •
Slide 25: Adjusted EBITDA
Adjusted EBITDA • Adjusted EBITDA grew with 109% compared Adj. EBITDA and margin (%) to Q2 2021 SEKm • Adjusted EBITDA margin increased by 2%-points YoY to 45.5% and Adjusted EBITDA excl cost for incentive programs was 46.9% • Ready to ramp up investments in user acquisition, preloads, and marketing
Slide 26: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities 281 MSEK (54) of which 62 (0) due to changes in working capital • 1 626 MSEK in cash and short-term funds available for strategic investments and other growth initiatives. Also 500 MSEK available in RCF, if needed • We are in a
Slide 27: Financial targets
Financial targets FY2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Medium-term financial targets Targeting an average Net sales net sales growth of growth1 130% 229% 129% 111% 116% 100% above 45% per year over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 43% 38% 50% 4
Slide 28: Summary
Summary
Slide 29: Summary
Summary ● Strong financial performance in terms of growth and profitability, with ▲100% net sales growth (YoY) combined with a 45.5% adj. EBITDA margin. Strong underlying performance and also supported by tailwinds from FX. Comparison to previous year also positively affected by covid effects in 2021, a
Slide 30: Thank you
Thank you To our users, partners and the Truecaller team for a great quarter 🎉
Slide 31: Q&A
Q&A
Slide 32: Appendix
Appendix
Slide 33: Income Statement & Free Cash Flow
Appendix 1 Income Statement & Free Cash Flow 33
Slide 34: Balance Sheet
Appendix 2 Balance Sheet truecaller Non-current assets Current receivables Short term placements Cash & cash equivalents Current assets TOTAL ASSETS Total equity Liability arising from defined-benefit pension plans Lease liability Deferred tax liability Other non-current liabilities Total non-curren
Slide 35: Truecaller
truecaller