Truecaller Ab Class B · OMXSTO:TRUE_B
Truecaller Ab Class B — Q1 2023 Earnings Presentation
35 slides from Truecaller Ab Class B's earnings presentation, April 2023
Slide 1: Our vision
OUR VISION To make tomorrow's communication smarter, safer and more efficient. 1
Slide 2: Interim Report January-March 2023
Interim Report January-March 2023 Alan Mamedi, CEO & Odd Bolin, CFO @truecaller, @alanmamedi, @Truecaller_IR
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: Q1 Highlights
Q1 Highlights 344M 278M 81% Avg Monthly Active Users, Avg Daily Active Users, DAU¹ MAU¹ (310M) (248M) DAU/MAU Stickiness ▲11% (YoY) ▲12% (YoY) 387M 150M 127M SEK net sales (398M) SEK adjusted EBITDA² (181M) SEK in net cash from operating ▼-3% (YoY) ▼17% (YoY) activities before tax payments³ (132M) 1
Slide 6: Q1 Business Highlights
Q1 Business Highlights Reached 350 million MAUs | Continued user growth across markets on both Android and iOS. Accelerated growth at the end of Q1 and beginning of Q2; 348M at end of Q1, and 350M on 17th of April. Increased premium adoption | Launches of new pricing plans and features driving healt
Slide 7: Continued user growth; reached 350M MAU 17th of April
Continued user growth; reached 350M MAU 17th of April Monthly Active Users1 Daily Active Users1 (Millions, Q-average) (Millions, Q-average) % of MAUs 79% 80% 79% 79% 80% 81% 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 350 million active Select clients users 9
Slide 10: Q1 Product Highlights
Q1 Product Highlights Core product offering Truecaller Premium AdTech & Truecaller for Product enhancements Initiatives driving Premium Business across Truecaller on adoption; product Continued development Android, iPhone and web improvements on Assistant of Ads and Truecaller for and iOS Business 1
Slide 11: Caller ID and Search experience
Core offering | Premium | AdTech & Truecaller for Business CORE PRODUCT ENHANCEMENTS Caller ID and Search experience Data quality continues to improve, thanks to focused AI Identity initiatives as well as relevant partnerships PRODUCT-LED GROWTH INITIATIVES 6% increase in retention of new users 11
Slide 12: New messaging features
Core offering | Premium | AdTech & Truecaller for Business CORE PRODUCT ENHANCEMENTS New messaging features AI Identity now covers SMS, providing a Caller ID-like service for text messages Enhanced SMS filtering is now available on Truecaller for iPhone, helping users sort through the noise GROWING AD
Slide 13: Vastly improved web presence
Core offering | Premium | AdTech & Truecaller for Business CORE PRODUCT ENHANCEMENTS Vastly improved web presence Truecaller’s online search experience now brings the benefits of using the app to desktop users while facilitating intent-driven traffic to the website Nine languages ▲654% growth in support
Slide 14: Family Plan in the US expanded to include Truecaller Assistant
Core offering | Premium | AdTech & Truecaller for Business INITIATIVES DRIVING PREMIUM ADOPTION Family Plan in the US has been expanded to include access to Truecaller Assistant New features introduced to deliver more value to the paid offering PROMISING CONVERSION INDICATORS ~80% of Family Plan users
Slide 15: Premium for iPhone
Core offering | Premium | AdTech & Truecaller for Business INITIATIVES DRIVING PREMIUM ADOPTION Premium for iPhone The paid offering on iPhone now supports Live Caller ID, the first real-time, server-based number lookup solution on iOS CONTINUED GROWTH OF iPHONE SUBSCRIBER BASE ▲21% iPhone subscribers
Slide 16: AdTech
Core offering | Premium | AdTech & Truecaller for Business ADTECH Technical optimizations demonstrate continued improvements across multiple indicators, including 20% growth in total impressions Truecaller Ad Server now supports more advanced features such as custom targeting and retargeting Investme
Slide 17: Truecaller for Business: Verified Business expanded to SMS
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) Verified Business expanded to cover SMS, offering a powerful tool for businesses seeking to create more impactful SMS communications with their audiences Call Me Back now allows users to indicate their preferred ti
Slide 18: Business messaging
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) Business messaging Business messaging facilitates the distribution of messages to end customers in a more efficient way Through Truecaller’s platform, businesses can analyze campaign performance in order to fine-tun
Slide 19: Financial performance
Financial performance
Slide 20: Revenue
Revenue Total net sales ● Net sales growth impacted by global SEKm macro and timing effects related to IPL: ○ Demand for online ads continued to be muted which resulted in decreased prices which was partly offset by growth in monetizable ad impressions ○ Larger share of users converted into premium ○
Slide 21: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Truecaller for Business SEKm SEKm SEKm • Seasonally slowest quarter and in comparison to • Growth in number of subscribers by • Strong growth of income YOY but slower 22Q1 also impacted by IPL timing. Some IPL 18% new sales in Q1 due to caut
Slide 22: Gross profit
Gross profit Gross profit & margin (%) ● Gross margin stable QoQ SEKm ● Gross profit decreased by 6% YoY ● Decreased gross margin YoY mainly due to increased costs for hosting, servers and new customer verification ● Focus potential for efficiency improvements in COGS, investments in cloud services costs
Slide 23: Opex and adjustments
Opex and adjustments SEKm • Increased investments in our tech to deliver solid profitability has paid off • Costs YoY stable excl incentive costs, and costs materially lower compared to Q2-Q4 2022 • 11M SEK in costs for incentive programs. Potential volatility on social security costs for RSUs as shar
Slide 24: Adjusted EBITDA
Adjusted EBITDA Adj. EBITDA and margin (%) SEKm • Adjusted EBITDA margin 39% – stable in comparison to underlying level in Q4 although seasonally weaker income in Q1 • Investments in our technology has safeguarded profitability level • Adjusted EBITDA excl cost for incentive programs was 42% • Adjust
Slide 25: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities was 80 MSEK (122), of which -31 (-47) was attributed to changes in working capital. Net cash flow from operating activities before tax paid • Net cash flow from operating activities excluding paid income tax SEKm was 127 MSEK (132
Slide 26: Financial targets
Financial targets FY2021 FY 2022 Q1 2022 Q4 2022 Q1 2023 Medium-term financial targets Targeting an average net sales Net sales growth 1 130% 57% 116% 13% -3% growth of above 45% per year over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 40% 46% 31% 39% Excl. incent
Slide 27: Summary
Summary
Slide 28: Q1 Summary
Q1 Summary ● Continued user growth across markets; strong development in RoW. Accelerated growth towards the end of Q1 and beginning of Q2, surpassed 350M MAUs in April. ● Subdued macro affects demand and income from Ads and timing effects also had a negative impact. In general a somewhat more positiv
Slide 29: Focus on building an even stronger position
Focus on building an even stronger position ● Continue to innovate on the product and ad platform to grow user base and scale when demand improves ● User growth across geographies with focused efforts in chosen markets ● Increase conversion to the premium product through new features and plans ● Cont
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 [ealance sheet 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-cu
Slide 35: Truecaller
truecaller