Slide 1: Exchange filing cover letter
Tanla Platforms Limited T: +91-40-40099999 (Formerly known as Tanla Solutions Limited) info@tanla.com Tanla Technology Center www.tanla.com Hi-tech city Road, Madhapur, Hyderabad, India - 500081 CIN: L72200TG1995PLC021262 April 26, 2023 To, BSE Limited National Stock Exchange of India Ltd. Phiroze J
Slide 2: Investor Update Q4 & Full Year FY23
Investor Update Q4 & Full Year FY23 April 26, 2023 Hyderabad
Slide 3: Safe Harbor and Other Information
Safe Harbor and Other Information The CPaaS business is evolving at a fast pace in India with very little information available in the public domain on the overall market. The financial community has always sought a response on the total market size, key drivers of the industry and the competitive l
Slide 4: FY23 Results: Snapshot
FY23 Results: Snapshot Revenue Gross Profit EBITDA FCF ₹33,543 Mn ₹8,365 Mn ₹5,877 Mn ₹907 Mn 5% Growth 8% De-Growth 17.5% Margin 20% of PAT PAT EPS Cash ₹4,476 Mn ₹33.05 ₹7,116 Mn 13.3% Margin Down by ₹2,106 Mn YoY due to buyback and dividend © 2023 Tanla Platforms Limited. All Rights Reserved. 3
Slide 5: Q4 FY23 Results: Snapshot
Q4 FY23 Results: Snapshot Revenue Gross Profit EBITDA FCF ₹8,335 Mn ₹2,289 Mn ₹1,661 Mn ₹1,472 Mn 2% De-Growth 6% De-Growth 20% Margin 123% of PAT PAT EPS Cash ₹1,203 Mn ₹8.88 ₹7,116 Mn 14.4% Margin Down by ₹564 Mn- QoQ due to buyback © 2023 Tanla Platforms Limited. All Rights Reserved. 4
Slide 6: Innovation
Innovation 5
Slide 7: Platform Innovation: Evidence of success
Platform Innovation: Evidence of success Platform business delivered robust financial performance in Q4 FY23 driven by significant momentum across key platforms Platform business gross profit grew by 20% in Q4 FY23 Q4 FY22 Q4 FY23 30-35 Innovations and W improvements across the Gross profit platform
Slide 8: 1. Trubloq
1. TRUBLOQ Key Details Gap to World’s first blockchain-enabled competition compliance platform Evidence of our success Automated detection and complaint logging for UCC (i.e., spam and leakage) through GM growth 22% (Y-O-Y) Innovation honeypot deployment Consent acquisition via multiple industry fir
Slide 9: 2. Wisely Communicate
2. Wisely Communicate: Our innovations 1 Improved delivery % via real time smart routing across Progress so far high performing routes Volumes- 200 Mn per month from a banking customer 2 <2 days onboarding time Customers delivering 70% of critical UPI messages 20MN+ users reached 3 Enhanced user exp
Slide 10: 3. Wisely OTT
3. Wisely OTT Vertical specific solutions being built on Delivering a market beating proposition with OTT advanced features and functionalities • Q4 volume of over 1.5 Bn across existing 50+ Enterprises customers on Wisely OTT onboarded • 40% QoQ volume growth on Wisely OTT Readability and UX improv
Slide 11: 4. Wisely Network
4. Wisely Network ILD leakage Enhanced leakage detection efficiency via AI/ML engines on prevention for Telcos firewall AI-ML-NLP On track to be ₹1 billion gross margin platform per annum backed Intelligent Blocked 5mn+message per month with <1% leakage solutions © 2023 Tanla Platforms Limited. All
Slide 12: 5. Wisely Engage
5. Wisely Engage Re-imagining our vision for performance marketing Target audience identification via ‘Smart feature mart’ containing 3000+ intent-based features Progress so far Advanced campaign manager with industry-based insights Initiating POC with clients (e.g., lending, gaming) in Q1 to demo
Slide 13: 6. Wisely ATP
6. Wisely ATP Anti Phishing ATP launched in MWC Barcelona is a single Platform to protect Technology Platform users from phishing and fraud In-principle sandbox signoff received in TRAI AI-ML-NLP backed Intelligent On-going PoC with three leading banks solutions Three in-house ML engines with 99.9%
Slide 14: Business
Business Photo: Our ways of working – Unveiling soon 13
Slide 15: Expansion of customer relationships
Expansion of customer relationships 223 192 19 223 customers contributing >10 Mn annual revenue count up by 16% 17 33 36 171 139 Count of customers FY 22 FY 23 >₹500Mn >₹100Mn-<₹500Mn >₹10Mn-<₹100Mn © 2023 Tanla Platforms Limited. All Rights Reserved. 14
Slide 16: Increased wallet share and product penetration
Increased wallet share and product penetration 32,347 31,038 19,039 Product penetration improved to 2.17 from 1.95 for our top 120 customers in a year 17,906 Whatsapp is the highest penetrated 7,470 product across our customers after A2P 8,510 ₹500Mn+ customers revenue grew by 6% 5,838 4,622 FY22 FY
Slide 17: Customer concentration
Customer concentration 15 out of 20 customers 61% 58% of last year continue to be in Top 20, 18 remain in Top 30 Revenue from top 20 customers (₹ Million) 19,401 19,517 FY22 FY23 © 2023 Tanla Platforms Limited. All Rights Reserved. 16
Slide 18: Customer additions
Customer additions 28% 270 269 New customers added on WA Revenue from new customers (₹ Million) 1,010 498 Count of customers FY22 FY23 1. New customers include every unique contracting entity added during the year © 2023 Tanla Platforms Limited. All Rights Reserved. 17
Slide 19: Customer Cohort Growth
Customer Cohort Growth FY17 FY18 CAGR FY19 19% FY20 FY21 FY22 FY23 103% 59% 80% 51% 19% FY17 FY18 FY19 FY20 FY21 FY22 FY23 1. Represents revenue from our active customers grouped by cohorts based on the year when each customer account cohort originated 2. Cohorts of 16-17 also includes customers acq
Slide 20: Financials
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Slide 21: Enterprise business impacting revenue growth
Enterprise business impacting revenue growth 32% 28% 1% (2%) (2%) 8,696 Revenue de-grew by 2% YOY in Q4 FY23, due to 8,531 decline of Enterprise 8,510 Y-o-Y growth business of 4% 8,335 Platform business grew 19% on YoY basis in Q4 FY23 8,001 (₹ Million) Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 © 2023
Slide 22: Platform and Enterprise revenue growth
Platform and Enterprise revenue growth Platform Business Enterprise Business (4%) (5%) 19% 4% YoY growth QoQ Growth YoY growth QoQ Growth 7,844 815 7,520 687 (₹ Million) Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 © 2023 Tanla Platforms Limited. All Rights Reserved. 21
Slide 23: Gross profit improvement
Gross profit improvement 28.5% 27.5% 24.2% 24.9% 23.1% Platform business gross profit grew by 20% at ₹ 781 Mn in Q4 FY23 2,434 driven by Wisely and Trubloq. Seq 2,289 2,168 growth of 4% was led by Trubloq 2,056 Margin% 1,850 On sequential basis Enterprise business gross profit grew by (₹ Million) 6%
Slide 24: Gross margin mix
Gross margin mix B 96% 96% 96% Platform 95% 96% A Decrease in gross business margin by 106 bps YoY, up 253 bps QoQ Overall margin Q4 Q1 Q2 Q3 Q4 A FY22 FY23 FY23 FY23 FY23 Platform business 29% 23% 24% 27% B 25% gross margin contribution to total at 34% Q4 Q1 Q2 Q3 Q4 FY22 FY23 FY23 FY23 FY23 C 23%
Slide 25: Efficiency metrics
Efficiency metrics 76% 73% Increase in marketing spends (MWC) 2,434 2,289 coupled with higher CSR spending and lower gross margin percentage 1,841 has resulted in other indirect costs 1,661 (₹ Million) rising to 27% of gross profit as against 24% in Q4 FY22 Employee cost at 13% of Gross profit in Q4
Slide 26: Operating income
Operating income EBITDA 1,841 1,513 1,661 1,307 1,395 EBITDA margin at 20% in Q4 (₹ Million) FY23, up 253 bps QoQ Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Depreciation at ₹146 Mn in Q4 FY23, EBIT as against ₹102 Mn in Q4 FY22. 1,739 Incremental depreciation due to 1,515 1,214 1,295 1,391 capitalizati
Slide 27: Improved Free Cash flow profile
Improved Free Cash flow profile 1,472 Improved DSO (5 days) resulted in stronger cash flows 718 (₹ Million) 444 Tax payouts remain consistent. (416) (867) Investments in innovation center and infrastructure will continue in Q1 FY24 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 © 2023 Tanla Platforms Limit
Slide 28: Distribution of cash to shareholders and utilized for investments
Distribution of cash to shareholders and utilized for investments 2,467 264 0 (1,560) (2,124) (₹ million) 9,222 (1,086) (68) 7,116 Opening CCE Operating Interest & Issue of Capital Buyback Dividend paid Lease Closing CCE (April1 2022)1 cash flow other income shares investments liabilities - net (Mar
Slide 29: Cash and Cash equivalent break up
Cash and Cash equivalent break up In Million, unless Current Current Fixed Deposits Restricted Total otherwise stated accounts-INR accounts-USD cash 99 - 3,428 207 3,734 - - 600 - 600 36 - 153 - 189 29 - 2 - 31 48 - 188 - 236 - 559 - - 559 - 1,188 - 27 1,215 192 - 320 - 512 Others 13 - - 27 40 Total
Slide 30: Cash utilization towards return to shareholders
Cash utilization towards return to shareholders Significant cash utilized towards buyback including distribution tax and other expenses. (₹2,124 Mn) 5,480 4,691 Cash balance in current account is high due to last day collections 1,480 1,747 (₹ Million) Increase in restricted cash due to 250 261 470
Slide 31: Net income and EPS
Net income and EPS PAT 1,406 1,104 1,165 1,203 1,004 Profit tax after margin at 14%, decreased by 206 bps YoY due to drop in EBITDA and higher depreciation (₹ Million) Earnings per share at ₹ 8.88 in Q4 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23. On sequential basis EPS EPS growth driven by combin
Slide 32: Return on capital employed
Return on capital employed 47% 32% 33% 34% 31% 61% excluding CCE as against 141% last year Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 ROCE- Return on capital employed; CCE- Cash & cash equivalents © 2023 Tanla Platforms Limited. All Rights Reserved. 31
Slide 33: Full year Revenue
Full year Revenue Revenue grew by 5% YoY 5% 33,543 Y-o-Y growth Platform business grew by 32,060 20%, driven by Trubloq and Wisely Enterprise business grew by (₹ Million) 3%, led by Whatsapp FY22 FY23 © 2023 Tanla Platforms Limited. All Rights Reserved. 32
Slide 34: Full year Gross profit
Full year Gross profit Gross profit de-grew by 8% YoY Gross profit margin at 25%, 9,080 (8%) decreased by 339 bps 8,365 Y-o-Y growth Platform business gross profit grew by 23%, driven by Trubloq and Wisely (₹ Million) Enterprise business gross profit de- grew by 19% FY22 FY23 © 2023 Tanla Platforms
Slide 35: Efficiency metrics for full year
Efficiency metrics for full year 77% 70% 9,080 8,365 EBITDA margin at 18% in FY23, decreased by 432 bps. 7,001 5,877 Operating expense increased due to (₹ Million) incremental spends on salaries (₹ 70 Mn), impact of currency fluctuation (₹ 86 Mn), marketing and travelling (₹ 90 Mn) coupled with decr
Slide 36: Strong balance sheet
Strong balance sheet ₹15,175 Mn Strong Equity and Reserves ₹7,116 Mn Cash & cash equivalents 61% ROCE (excluding cash & cash equivalents Debt Free © 2023 Tanla Platforms Limited. All Rights Reserved. 35
Slide 37: Corporate
Corporate 36
Slide 38: ESG update Q4 FY23
ESG update Q4 FY23 Environmental Social Governance Steps towards creating a Giving back to the society and developing our employees Integrating ESG in greener & cleaner tomorrow our business • The Skill Development & Training Centre in Khammam completed • Human Rights Due Diligence with multiple • A
Slide 39: Appendix
Appendix @tanla 38
Slide 40: Profit & Loss Q4 FY23
Profit & Loss Q4 FY23 In ₹ Million, unless otherwise stated Q4 FY23 Q4 FY22 ∆% Q3 FY23 Revenue from operations 8,335 8,531 (2) 8,696 Cost of services (6,046) (6,097) (1) (6,528) Gross profit 2,289 2,434 (6) 2,168 Operating expenses (628) (593) 6 (655) EBITDA 1,661 1,841 (10) 1,513 Depreciation & amo
Slide 41: Profit & Loss FY23
Profit & Loss FY23 In ₹ Million, unless otherwise stated FY23 FY22 ∆% Revenue from operations 33,543 32,060 5 Cost of services (25,178) (22,980) 10 Gross profit 8,365 9,080 (8) Operating expenses (2,488) (2,079) 20 EBITDA 5,877 7,001 (16) Depreciation & amortization (462) (408) 13 EBIT 5,415 6,593 (
Slide 42: Balance Sheet Mar 31, 2023
Balance Sheet Mar 31, 2023 In ₹ Mn, unless otherwise stated Mar 31, 2023 Mar 31,2022 In ₹ Mn, unless otherwise stated Mar 31, 2023 Mar 31,2022 ASSETS EQUITY AND LIABILITIES Non-current assets Equity share capital 134 136 Property, plant and equipment 1,659 429 Other equity 15,041 13,404 Platforms 87
Slide 43: Condensed Cash flow
In ₹ Million, unless otherwise stated Q4 FY23 Q3 FY23 Cash flow before changes in working capital 1,683 1,605 Changes in working capital 765 (1,792) Cash generated from operations 2,448 (187) Taxes (379) (421) Cash flow from operating activities 2,069 (608) Net investments in tangible and intangible
Slide 44: Condensed Cash flow
In ₹ Million, unless otherwise stated FY23 FY22 Cash flow before changes in working capital 6,249 7,249 Changes in working capital (2,352) (1,220) Cash generated from operations 3,899 6,029 Taxes (1,432) (1,165) Cash flow from operating activities 2,467 4,864 Net investments in tangible and intangib
Slide 45: Free cash flow
Free cash flow In ₹ Million, unless otherwise stated Q4 FY23 Q4 FY22 ∆% Q3 FY23 Operating cash flow 2,069 716 189 (608) Capital expenditure (597) (272) 119 (259) Free cash flow 1,472 444 232 (867) Free cash flow in percent of total 18% 5% - - revenue Free cash flow as % of PAT 123% 32% - - © 2023 Ta
Slide 46: Thank you
GJ tanla Thank you