Tracxn Technologies Ltd. · NSE:TRACXN
Tracxn Technologies — Q2 FY24 Earnings Presentation
48 slides from Tracxn Technologies's earnings presentation, Nov 2, 2023
Slide 1: Private Market Intelligence Platform: Q2 FY24 Investor Presentation
Private Market Intelligence Platform Q2 FY24 Investor Presentation 2nd November 2023 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: Q2 FY24 Financial Performance
Q2 FY24 Financial Performance 4
Slide 5: Q2 FY24: Financial Performance Summary
Q2 FY24: Financial Performance Summary Revenue growth and profitability saw acceleration again REVENUE PROFITABILITY Revenue from Operations EBITDA EBITDA Margin 21.5 Cr. 2.0 Cr. 9.5 % 12.5% YoY 1.1 Cr. YoY, up from Margin increased by 4.8% Q2 FY23 from Q2 FY23 Total Income PAT PAT Margin* 22.5 Cr.
Slide 6: H1 FY24: Financial Performance Summary
H1 FY24: Financial Performance Summary Revenue growth and profitability saw acceleration again REVENUE PROFITABILITY OTHER Revenue from Operations EBITDA EBITDA Margin Free Cash Flow2 41.3 Cr. 2.1 Cr. 5.0 % 0.6 Cr. 10.1% YoY 1.0 Cr. YoY, up from Margin increased by 2.1% 4.7 Cr. YoY, down H1 FY23 fro
Slide 7: Q2 FY24: Revenue Growth Accelerated
Q2 FY24: Revenue Growth Accelerated Revenue from Operations (in INR Cr.) Historical Annual Quarterly 34% Revenue growth rate has started CAGR seeing acceleration, after decline in growth for the last 3 quarters. Revenue from operations grew at 12.5% YoY for Q2FY24 (up from 8% YoY in the previous qua
Slide 8: Q2 FY24: Revenue Growth Accelerated
Q2 FY24: Revenue Growth Accelerated Total Income (in INR Cr.) Historical Annual Quarterly 34% Total Income growth rate saw a CAGR similar acceleration, after decline in growth for the last 3 quarters. Total Income grew at 12% YoY for Q2FY24 (up from 9% YoY in the previous quarter) YoY Growth Rate 8
Slide 9: Q2 FY24: EBITDA & EBITDA Margin
Q2 FY24: EBITDA & EBITDA Margin EBITDA (in INR Cr.) Excluding Historical Annual non-cash ESOP expense this is 3.1 Cr. Q2 FY24 EBITDA of 2.0Cr. and EBITDA margin of 9.5%. Note EBITDA includes non-cash expenses (eg. ESOP exp) Highest Quarterly EBITDA and EBITDA Margin EBITDA margin seen till date. His
Slide 10: Q2 FY24: PAT & PAT Margin
Q2 FY24: PAT & PAT Margin PAT (in INR Cr.) Excluding non-cash Historical Annual items - ESOP exp. and tax set-off with deferred tax assets, this is 4.0 Cr. Q2 FY24 PAT of 2.2Cr. and PAT margin of 10.1%. Note PAT includes non-cash expenses (eg. ESOP exp) PAT Margin Highest Quarterly PAT and PAT margi
Slide 11: Significant Incremental Revenue has started going into Bottomline again
Significant Incremental Revenue has started going into Bottomline again Historical Annual: Q2FY23 Q2FY24 FY 21 FY 22 FY 23 Revenue from operations 19.1 21.5 43.8 63.5 78.1 Incremental Revenue from Operations (Δ) +2.4 +6.4 +19.7 +14.7 EBITDA excl IPO Expense 0.9 2.0 (17.1) (1.9) 2.6 Incremental EBITD
Slide 12: Q2 FY24: Expense Breakup
Q2 FY24: Expense Breakup Total Expense Total Expense - Breakup (for Q2FY24) (in INR Cr.) (in INR Cr.) Employee Benefit Expenses 17.1 Cr. 87.7% Historical Annual Salaries, Wages & Bonus 15.7 Cr. 80.6% 7% 11% Employee stock option expense 1.1 Cr. 5.5% CAGR Other Employee Benefit Expenses 0.3 Cr. 1.6%
Slide 13: Expense growth eased (1/2)
Expense growth eased (1/2) Total Expense (in INR Cr.) Historical Annual Quarterly 16 % Expense growth rate had increased from 7% in FY22 to 7% 16% in FY23, primarily due to increase in headcount. It has now eased back to 7% in Q2 FY24 (down from 9% in the previous quarter) YoY Growth Rate 13
Slide 14: Expense growth eased (2/2)
Expense growth eased (2/2) Avg. Headcount* Trend for last 5 Quarters Expense growth rate eased to 7% YoY primarily due to decrease in headcount Headcount had increased last year due to growth initiatives, and subsequently has been optimized due to automation & efficiency initiatives Total Employee 5
Slide 15: Private Markets - Quick snapshot (1/4)
Private Markets - Quick snapshot (1/4) Global Tech Funding India Tech Funding (in USD Bn.) (in USD Bn.) GLOBAL TECH FUNDING: at a 6yr low # Unicorns created globally # Unicorns created in India LATE-STAGE FUNDING: (proxy # new unicorn rounds) Decline is more, at a 7yr low Souce: Internal Estimates 1
Slide 16: Private Markets - Quick snapshot (2/4)
Private Markets - Quick snapshot (2/4) Global M&A deal value and IB fees at its lowest Global M&A (in USD Tn.) GLOBAL M&A: Lowest in 10yr M&A advisory fees (in USD Bn.) IB M&A ADVISORY FEES: One of the lowest in the last 10yr 16 Source: Report on Global Mergers and Acquisitions Review and Report on
Slide 17: Private Markets - Quick snapshot (3/4)
Private Markets - Quick snapshot (3/4) Public markets have recovered this year When will private markets bounce back? ● Typically there is a lag of 2-3Qs between public tech and private market ● With public markets having recovered this year, likely to see some recovery in private tech soon ● Alread
Slide 18: Private Markets - Quick snapshot (4/4)
Private Markets - Quick snapshot (4/4) Some signs of recovery in private markets as well Global Tech Funding (in USD Bn.) YoY Growth Rate India Tech Funding (in USD Bn.) YoY Growth Rate 18 Source: Internal Estimates
Slide 19: We continue to see Greenshoots
We continue to see Greenshoots Deferred Revenue (Adj. for billing methodology change) (in INR Cr.) Historical Annual Quarterly 23% CAGR Adjusted for change in methodology (discussed in the next slide) YoY Growth Rate 19 Note: (*) Adjusted for change in methodology in billing of newly onboarded accou
Slide 20: Note, change in billing methodology for new accounts
Note, change in billing methodology for new accounts Old Methodology: Raise invoice followed by payment in due course New Methodology: For select set of accounts (currently all newly onboarded accounts), raise the invoice after payment is received. This is to reduce instances of bad debts and conseq
Slide 21: Platform engagement looks healthy
Platform engagement looks healthy Usage has been increasing consistently Trend of platform usage metrics in terms of # of Exports and Myanalyst queries ~2X Despite lower external deal activity, customer’s platform engagement still looks very healthy and increasing. (Customer exports & myanalyst quer
Slide 22: Growth Initiatives
Growth Initiatives GTM Funnel ● Also, we have been investing across various LEAD GENERATION: growth initiatives Marketing ● These span across the Go-to-market funnel of marketing, sales and account expansion LEAD CLOSURE: Sales ● We believe as the markets open up further, we should see more accelera
Slide 23: Select Recent Growth Initiatives
Select Recent Growth Initiatives Organic Search Traffic* 1 Scaling Organic Traffic & Inbound Leads Pipeline (in millions) ● We have built a large organic inbound traffic funnel ~8X ● Over 9 Million visits in FY23 ● In H1 FY24 alone this was 8.7 million visits (~8x increase in 3 years) 1 23 Note: (*)
Slide 24: Select Recent Growth Initiatives
Select Recent Growth Initiatives 22. Increased Press Mentions: Through various media partnerships, data contributions, reports, etc. 1000+ Press Mentions across media* Eg. Report coverage eg. Regular Columns in newspapers eg. Others 24 Note: (*) in Q2 FY24
Slide 25: Select Recent Growth Initiatives
Select Recent Growth Initiatives 31. Expanding coverage of Company Financials & Captables ● Currently cover private company financials across 15+ countries and captables Private Company across 10+ countries Financials Currently across 15+ Countries ● Seeing demand for this data - especially from Pri
Slide 26: Select Recent Growth Initiatives
Select Recent Growth Initiatives 4 Expansion & Engagement Initiatives Various initiatives are underway for improving paid customer engagement as well as account expansion to enhance growth from existing customers. Setup a separate team for expansion within existing accounts, mainly by increasing pen
Slide 27: H1 FY24: FCF and Cash & Cash Equiv.
H1 FY24: FCF and Cash & Cash Equiv. FCF (Free Cash Flow)1 Cash & Cash Equivalents1,2 (in INR Cr.) 4.7Cr. (in INR Cr.) 10.7Cr. Historical Annual Historical Annual 20% FCF lower since some payments realized post quarter end and pending tax refunds Note: (1) Free Cash Flow and Cash & Cash equiv. exclud
Slide 28: Q2 FY24: Other KPIs (1/2)
Q2 FY24: Other KPIs (1/2) Customer Accounts (#) Users (#) 9% Historical Annual Historical Annual 2% 20% 20% CAGR CAGR User count got optimized also due to tightening of logins 28 Note: Customer Accounts and Users are as on respective end of period
Slide 29: Q2 FY24: Other KPIs (2/2)
Q2 FY24: Other KPIs (2/2) Contract Price (Adj. for billing methodology change) Entities Profiled, on platform (in millions) (in INR Cr.) 24% 22 % Historical Annual Historical Annual 27% 26% CAGR CAGR Note: Entities Profiled are as on respective end of period. Contract Price is net invoicing done in
Slide 30: Global Customer Base
Global Customer Base 66% international revenue in Q2 FY24 Customers span over 50+ countries* Top 5 countries by #customer accounts*: Indian International Revenue India, USA, Singapore, Germany, UK Revenue 66% Historical annual International Revenue Share 30 Note: (*) Based on Customer Accounts as on
Slide 31: Diverse Customer Base
Diverse Customer Base Corporate Private Venture M&A Teams Equity Capital Venture Investment Government Companies Capital Banking Agencies Family Corporate Consulting Offices Innovation Accelerator Digital Corporate & Universities Transformation Development Incubators Investment Industry Corporate Ot
Slide 32: Business Overview
32 Business Overview @Tracxn
Slide 33: 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 34: Significant cost advantages from India-based operations
Significant cost advantages from India-based operations Significant cost advantage due to make-in-India. Especially: Europe Asia N.America ● Data-production & technology Middle East platform is built from India India ● Global sales happens from India Africa (sales & support teams work across all tim
Slide 35: 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 Leland Stanford Juni
Slide 36: 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 37: 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 38: Large & Growing Market $30B+
Large & Growing Market Multiple large companies have been created in the financial data markets $30B+ Cumulative Revenue of Financial Market Data Companies for 2022* 38 Note: (*) Revenue of key public market data companies has been calculated based on the publicly available sources and internal esti
Slide 39: Large & Growing Market
Large & Growing Market Private Market AUM Growth1 Public Market Capitalization2 (in USD trillion) (in USD trillion) 12.6% 11.7% 6% CAGR CAGR CAGR Cumulative market capitalization of listed domestic companies across all the countries converted to USD Private market AUM has crossed $9T, and is growing
Slide 40: Q2 FY24 Detailed Financial Statements
Q2 FY24 Detailed Financial Statements 40
Slide 41: Profit & Loss Statement (1/2)
Profit & Loss Statement (1/2) Particulars Q2 FY24 Q1 FY24 Q2 FY23 H1 FY24 H1 FY23 FY23 Income Revenue from operations 21.49 19.82 19.11 41.31 37.51 78.11 Other income 0.03 0.20 0.55 0.23 0.82 1.31 Other gains/(losses) - net 0.95 0.75 0.42 1.71 0.83 1.76 Total Income 22.48 20.77 20.08 43.25 39.16 81.
Slide 42: Profit & Loss Statement (2/2)
Profit & Loss Statement (2/2) Particulars Q2 FY24 Q1 FY24 Q2 FY23 H1 FY24 H1 FY23 FY23 Profit / (loss) for the period 2.17 0.69 1.54 2.86 2.37 33.09 Less: Other Income 0.03 0.20 0.55 0.23 0.82 1.31 Less: Other gains/(losses) - net 0.95 0.75 0.42 1.71 0.83 1.76 Add: Depreciation expense 0.04 0.04 0.0
Slide 43: Balance Sheet (1/2)
Balance Sheet (1/2) Particulars As at September 30, 2023 As at March 31, 2023 ASSETS Non-current assets Property, plant and equipment 0.28 0.36 Intangible assets - - Current tax assets (net) 4.15 2.98 Deferred Tax Asset 22.18 23.07 Total non-current assets 26.61 26.41 Current assets Financial assets
Slide 44: Balance Sheet (2/2)
Balance Sheet (2/2) Particulars As at September 30, 2023 As at March 31, 2023 EQUITY Equity share capital 10.23 10.03 Instruments entirely equity in nature - - Reserves and surplus 54.33 49.66 Total equity 64.56 59.69 LIABILITIES Non-current liabilities Other financial liabilities - - Contract liabi
Slide 45: Cash Flow Statement (1/2)
Cash Flow Statement (1/2) Particulars Six months ended 30 Sep'24 Six months ended 30 Sep'23 Cash Flow from Operating Activities: Net profit before Income Tax 3.90 2.37 Adjustment for: Depreciation expense 0.08 0.07 Net (gain)/ loss on disposal of Property, plant and equipment 0.00 0.00 Net gains on
Slide 46: Cash Flow Statement (2/2)
Cash Flow Statement (2/2) Particulars Six months ended 30 Sep'24 Six months ended 30 Sep'23 Cash Flow from Investing Activities: Payments for purchase of property, plant and equipment (0.04) (0.20) Proceeds from sale of property, plant and equipment 0.03 - Funds invested in bank deposits 16.99 (0.51
Slide 47: 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 48: Thank You
Company Information Address : 2nd Floor, L-248, 17th Cross, Sector 6, HSR Layout, Thank You Bangalore - 560102 CIN : L72200KA2012PLC065294 Corporate Presentation: Link For any queries, please contact: Email ID : investor.relations@tracxn.com www.tracxn.com/investor-relations 48