Slide 1: Cover letter to stock exchanges
April 25, 2024 To, BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, “Exchange Plaza” Dalal Street, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 532790 Symbol: TANLA Dear Madam/Sir, Sub: Investor Updates for the quarter and year ended
Slide 2: Investor Update Q4 FY24 and Full Year
Investor Update Q4 FY24 and Full Year April 25, 2024 CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission is strictly prohibited London Business School unveils the Case Study on Tanla at the Tanla Hub, MWC24, Barcelona
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: Q4 FY24 Results – Snapshot
Q4 FY24 Results – Snapshot Revenue Gross Profit Adjusted EBITDA(1) FCF ₹10,055 Mn ₹2,686 Mn ₹1,877 Mn ₹1,492 Mn 20.6 %Growth 17.3% Growth 10.5% Growth(4) 115% of PAT Adjusted PAT(2) EPS Cash(5) ₹1,361 Mn ₹9.69 ₹6,810 Mn Increased by ₹647 Mn QoQ post 10.4% Growth(4) 9.1 %Growth dividend payouts 1.Adj
Slide 5: FY24 Results – Snapshot
FY24 Results – Snapshot Revenue Gross Profit Adjusted EBITDA(1) FCF ₹39,278 Mn ₹10,559 Mn ₹7,595 Mn ₹4,311 Mn 17.1% Growth 26.2% Growth 28.4% Growth (4) 79% of PAT Adjusted PAT (2) EPS Cash(5) ₹5,542 Mn ₹40.8 ₹6,810 Mn decreased by ₹ 306 Mn post 23.0% Growth (4) 23.4 % Growth ValueFirst acquisition
Slide 6: Tanla has track record of Strong Performance
Tanla has track record of Strong Performance All numbers in ₹ FY24 Sustained Value Creation Best-in-class Execution World Class Culture 39,278 Mn 10,559 Mn 100+ 5+ 1000+ No layoffs Revenue Gross Profit Innovations3 Patents4 Employees in India and beyond 17% 4,311 Mn 2,000+ 50+ 25% Zero Adjusted Oper
Slide 7: Tanla focuses on two synergistic businesses
Today, Tanla focuses on two synergistic businesses - Digital Platforms & Enterprise Communications Predictable growth Undisputed market leadership 26%+ growth in gross profit for ~35% market share in India FY24 Deeply embedded E2E omnichannel NRR of 125% presence SMS, Voice, OTT (WhatsApp, TrueCalle
Slide 8: Business Outcomes
Business Outcomes CONFIDENTIAL AND PROPRIETARY Team Tanla celebrates the launch of Tanla Case by London Business School Any use of this material without specific permission is strictly prohibited
Slide 9: Expansion of Customer Relationships
Expansion of Customer Relationships 223 323 21 323 customers contributing > ₹ 10 19 Mn annual revenue, count up by 45% on YoY basis 61 33 171 241 Count of customers FY23 FY24 >₹500 Mn >₹100 Mn- < ₹500 Mn >₹10 Mn-<₹100 Mn Investor Update Q4 FY24 and Full Year 8
Slide 10: Increase in Product Penetration
Increase in Product Penetration 37,364 Product penetration improved to 2.32 from 2.17 in FY24 on a larger customer base, driven by growing adoption of 32,347 WhatsApp and other newer channels 17,071 19,039 In FY23, ValueFirst (VF) was of one of our top customers. Post acquisition we have 12,626 only
Slide 11: Customer Concentration
Customer Concentration 15 out of 20 customers of last 58% 42% year continue to be in Top 20, 19 remain in Top 30 In FY23, ValueFirst was of one of our 19,517 16,571 top customers. Post acquisition it no FY23 FY24 longer remains our top customer and its impact can be seen in customer concentration mi
Slide 12: Winning New Logos
Winning New Logos 404 269 33% New Customers added on WA 498 1,425 FY23 FY24 Revenue from new customers Count of customers (₹ Mn) 1.New customers include every unique contracting entity added during the year Investor Update Q4 FY24 and Full Year 11
Slide 13: Customer Cohorts
Customer Cohorts Year CAGR FY17 15% FY18 81% FY19 45% FY20 45% FY21 55% FY22 46% FY23 316% FY23 FY23 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 1.Represents revenue from our active customers grouped by cohorts based on the year when each customer account cohort originated Cohorts of 16-17 also
Slide 14: Financial Outcomes
Financial Outcomes CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission is strictly prohibited Panel discussion at Hall 8 of MWC24, Barcelona
Slide 15: Revenue growth in a seasonally weak quarter
Revenue growth in a seasonally weak quarter 15% 21% (2%) 14% 19% Revenue grew by 21% YoY, driven by Digital platforms and 10,086 10,026 10,055 Enterprise communications 9,111 Y-o-Y growth 8,335 Enterprise communications grew by 22% YoY and 1% sequentially ( ₹ (Mn) Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4
Slide 16: Full Year – Digital Platforms & Enterprise Communications Revenue Growth
Full Year – Digital Platforms & Enterprise Communications Revenue Growth Digital Platforms Enterprise Communications 22% 17% YoY growth YoY growth 3,689 35,588 3,028 30,517 (₹ Mn) FY23 FY24 FY23 FY24 Investor Update Q4 FY24 and Full Year 15
Slide 17: Q4FY24 – Digital Platforms & Enterprise Communications Revenue Growth
Q4FY24– Digital Platforms & Enterprise Communications Revenue Growth Digital Platforms Enterprise Communications (₹ Mn) 10% 22% YoY growth YoY growth 900 9,155 815 7,520 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Investor Update Q4 FY24 and Full Year 16
Slide 18: Profile – Gross Profit
Profile – Gross Profit Gross profit grew by 17.3% YoY. Gross margin at 26.7% decreased by 27.5 27.4 76 bps 26.9 26.7 26.5 Digital Platform gross profit grew by Margin% 13.2% driven by Wisely-OTT 2,762 2,699 2,686 Enterprise communications gross 2,413 profit grew by 19.5%, led by 2,289 (₹ Mn) WhatsAp
Slide 19: Profile – Gross Margin
Profile – Gross Margin B 96% 97% 98% 98% 98% A Decrease in gross Platform margin by 76 bps YoY, A business and 21 bps QoQ Overall margin Q4 Q1 Q2 Q3 Q4 27% 27% FY23 FY24 FY24 FY24 FY24 27% 26% 27% B Digital Platform gross margin contribution to total at 33% Q4 Q1 Q2 Q3 Q4 C FY23 FY24 FY24 FY24 FY24
Slide 20: Efficiency Metrics
Efficiency Metrics 74% 70% 2,686 Indirect cost expenses includes one-time expense of ₹273 Mn 2,289 towards MWC in Q4FY24 and ₹38 Mn in Q4FY23 1,699 1,877 (₹ Mn) Adjusted EBITDA to Gross profit at 70% in Q4 Excluding VF, overall indirect cost remains constant on YoY basis 1.Adjusted for one-time expe
Slide 21: Indirect Expenses
Indirect Expenses Employee Cost 442 462 451 307 335 Other expenses includes one- time expense of ₹273 Mn (₹ Mn) towards MWC 2024 in Q4FY24 On sequential basis, excluding Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 MWC cost, indirect cost have increased by ₹37 Mn due to Other Expenses forex fluctuations
Slide 22: Adjusted EBIT Profile
Adjusted EBIT Profile Digital Platforms Enterprise Communications 70% 11% EBIT% EBIT% 884 1,802 633 (₹ Mn) 1,016 EBIT Gross Profit EBIT Gross Profit 1.Adjusted for one-time expenditure incurred for Mobile World Congress 2024. Refer 35 slide for reconciliation between reported and adjusted EBIT Inves
Slide 23: EBITDA
Operating Income EBITDA Adjusted EBITDA was at ₹ 1,877 Mn. Adjusted EBITDA growth at 10.5% 1,968 1,928 1,822 YoY and -3% seq. Adjusted EBITDA 1,661 1,604 margin at 18.7% (seq drop of 56 bps) (₹ Mn) Depreciation was at ₹229 Mn in Q4 FY24, as against ₹147 Mn in Q4 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24
Slide 24: Strong Cash Flow Generation
Strong Cash Flow Generation DSO down by 1 days to 76 in 1,472 1,492 Q4. Free Cash flow for FY24 was at ₹ 4,311 Mn 1,310 Tax payouts remain consistent 869 640 (₹ Mn) Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Investor Update Q4 FY24 and Full Year 23
Slide 25: Net Income & EPS
Net Income & EPS Profit After Tax (PAT) 1,425 1,401 1,354 1,302 Adjusted PAT was at ₹ 1,361 Mn in Q4. Adjusted PAT grew by 10.4% 1,203 YoY. On sequential basis Adjusted (₹ Mn) PAT de-grew by 3%. Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Effective tax rate for FY24 at 19.8% EPS 10.60 10.42 EPS at 9.69,
Slide 26: Net Income & EPS for full year
Net Income & EPS for full year Adjusted Profit After Tax Earnings per share 23% 23% (₹ Mn) YoY growth YoY growth 5,542 40.79 33.05 4,506 (₹) FY23 FY24 FY23 FY24 1.Adjusted PAT is normalized for the post tax impact for 2 items – (i) one-time expenditure of ₹ 273 MN incurred for Mobile World Congress
Slide 27: Return on Capital Employed
Return on Capital Employed 53% excluding CCE as against 58% last 34% 38% 35% 34% year 31% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 ROCE- Return on capital employed; CCE- Cash & cash equivalents 1.Adjusted EBIT considered for calculation of Capital employed . Investor Update Q4 FY24 and Full Year 26
Slide 28: Strong Balance Sheet
Strong Balance Sheet Team Tanla at an internal event hosted at Tanla Innovation and Experience Center, Hyderabad ₹19,421 Mn ₹6,810 Mn 53% Strong Equity and Reserves Cash & cash equivalents ROCE (excluding cash & cash equivalents) Debt Free Investor Update Q4 FY24 and Full Year 27
Slide 29: Profit & Loss Q4 FY24
In ₹ Mn, unless otherwise stated Q4 FY24 Q4 FY23 ∆% Q3 FY24 Revenue from operations 10,055 8,335 21 10,026 Cost of services (7,369) (6,046) 22 (7,327) Profit & Loss Q4 Gross profit 2,686 2,289 17 2,699 FY24 Operating expenses (1,081) (628) 72 (771) EBITDA 1,605 1,661 (3) 1928 Depreciation & amortiza
Slide 30: Profit & Loss FY24
In ₹ Mn, unless otherwise stated FY24 FY23 ∆% Revenue from operations 39,278 33,546 17 Cost of services (28,719) (25,179) 14 Profit & Loss Gross profit 10,559 8,367 26 FY24 Operating expenses (3,237) (2,488) 30 EBITDA 7,322 5,879 25 Depreciation & amortization (854) (462) 85 EBIT 6,470 5,418 19 Fina
Slide 31: Audited Balance Sheet Mar 31, 2024
Audited Balance Sheet Mar 31, 2024 `Mar 31, Mar 31, Mar 31, Mar 31, In ₹ Mn, unless otherwise stated In ₹ Mn, unless otherwise stated 2024 2023 2024 2023 ASSETS EQUITY AND LIABILITIES Non-current assets Equity share capital 134 134 Property, plant and equipment 2,058 1,659 Other equity 19.284 15,041
Slide 32: Condensed Cash flow Q4 FY24
In ₹ Mn, unless otherwise stated Q4 FY24 Q3 FY24 Cash flow before changes in working capital 1,684 1,945 Changes in working capital 500 (677) Cash generated from operations 2,184 1268 Condensed Cash Taxes Cash flow from operating activities (262) 1,921 (186) 1082 flow Q4 FY24 Net investments in tang
Slide 33: Condensed Cash flow FY24
In ₹ Mn, unless otherwise stated FY24 FY23 Cash flow before changes in working capital 7,563 6,249 Changes in working capital (625) (2,350) Cash generated from operations 6,938 3,899 Condensed Cash Taxes Cash flow from operating activities (1,039) 5.899 (1,432) 2,467 flow FY24 Net investments in tan
Slide 34: Free Cash Flow
In ₹ Mn, unless otherwise Free stated Q4 FY24 Q4 FY23 ∆% Q3 FY24 Cash Flow Operating cash flow 1,921 2,069 (0.1) 1,082 Capital expenditure (429) (597) (0.3) (442) Free cash flow 1492 1,472 1.85 640 Free cash flow in percent of 15% 18% - 6% total revenue Free cash flow as % of PAT 115% 123% - 46% Inv
Slide 35: Free Cash Flow FY24
In ₹ Mn, unless otherwise Free stated FY24 FY23 ∆% Cash Flow FY24 Operating cash flow 5,899 2,467 139 Capital expenditure (1,588) (1,560) (0.02) Free cash flow 4,311 907 375 Free cash flow in percent of 11% 3% - total revenue Free cash flow as % of PAT 79% 20% - Investor Update Q4 FY24 and Full Year
Slide 36: Reconciliation
In ₹ Mn, unless otherwise stated Q4 FY24 Q4 FY23 FY24 FY23 Reconciliation Reported EBITDA 1604 1661 7,322 5,879 One-time expense- MWC 273 38 273 38 Adjusted EBITDA 1877 1,699 7,595 5,917 Adjusted EBIT 1649 1,553 6,743 5,453 Adjusted PAT 1361 1,233 5,542 4,506 1.Adjusted PAT is normalized for the pos
Slide 37: MWC24 Barcelona
MWC24 Barcelona CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission is strictly prohibited Tanla Hub at MWC24, Barcelona
Slide 38: Tanla Experience Hub @MWC 24, Barcelona
Tanla Experience Hub @MWC 24, Barcelona Biggest Exhibit by an Indian company Over 200 visitors (in person) and 100,000 viewers (online) Attended by over 30 CXOs of leading enterprises. The event was also attended by regulators and analysts Hosting partners like Meta, Google, Truecaller, and major te
Slide 39: Launch of Case Study on Tanla by London Business School
Launch of Case Study on Tanla by London Business School London School of Business launched a case study titled ‘From Adversity to Leadership- Tanla Platforms’ Journey to Becoming India’s SaaS Titan’. Scan QR for Case Study London Business School unveils the Case Study on Tanla at the Tanla Hub, MWC2
Slide 40: Celebrating launch of Messaging as a Platform (MaaP) for Google RBM
Celebrating launch of Messaging as a Platform (MaaP) for Google RBM
Slide 41: #MWC24 Snapshots
#MWC24 Snapshots Investor Update Q4 FY24 and Full Year 40
Slide 42: Groundbreaking Announcements
Groundbreaking Announcements The next generation of DLT is here: Tanla Tanla aims to make digital commerce easier Tanla announced “Wisely ATP Spotlight” – an launches Trubloq.ai for Indian SMBs with WhatsApp-based innovative citizen protection portal to fight solutions against online scams Scan QR t
Slide 43: Influential Insights – Exclusive Leadership Sessions at Tanla Hub
Influential Insights – Exclusive Leadership Sessions at Tanla Hub Protecting 1Bn+ users from Scam Reimagining Conversational Commerce Investor Update Q4 FY24 and Full Year 42
Slide 44: About Us
About Us CONFIDENTIAL AND PROPRIETARY Team Tanla at the Tanla Hub, MWC24, Barcelona Any use of this material without specific permission is strictly prohibited
Slide 45: Tanla embeds GenAI across all its platforms
Tanla embeds GenAI across all its platforms Our intelligent core underlying all our products, revolutionizing digital interactions through Gen Al Wise Albert capabilities Audience.ai Content.ai Channel & Partner.ai (how (whom to send) (what to send) to send) ATP Trubloq Wisely Scam identification an
Slide 46: These platforms represent a Large & Growing TAM Opportunity
These platforms represent a Large & Growing TAM Opportunity Total addressable market (CY’23 to 27, USD Bn) Engage Communicate Protect Experience 11-13 3.5-3.9 0.7-0.8 5-6 3.7-3.9 1.2-1.3 0.4 2-3 0.4-0.5 2.5-2.7 0.3 4.1-4.5 1.7-1.9 1.3-1.4 2023 (India) 2027 with new platforms (India) 2027 with new pl
Slide 47: We have also successfully addressed several Greenfield opportunities
We have also successfully addressed several Greenfield opportunities ATP Trubloq First of its kind anti-smishing platform With world’s 1st blockchain-enabled communication stack. It works with a consortium of telecom players and other stakeholders to maintain the leadership position Identification P
Slide 48: Our Customers love us in India and beyond
Our Customers love us in India and beyond We are the player of choice in India… … and serve global giants in 4 regions ~45% 9/10 top banks served NLD market share USA & Global Tech giants Europe 50%+ 7/10 top insurance of total revenues contributed by 50 of our top 100 customers, retained top financ
Slide 49: Our Market Leadership in Enterprise Communication (1/2)
Our Market Leadership in Enterprise Communication (1/2) Undisputed market leadership High Customer Stickiness Unmatched scale with 35% CPaaS market share 50 of Top 100 accounts > 5 years ‐ 5% increase post ValueFirst acquisition ‐ Double digit growth in every customer cohort since inception ‐ ~45% s
Slide 50: Our Market Leadership in Enterprise Communication (2/2)
Our Market Leadership in Enterprise Communication (2/2) Tech. backed use cases Newer Channels AI/ML based solutions developed for a leading Turbo charging our growth bank ‐ ~3X YoY growth in Q4 from WhatsApp ‐ Impact: 2X increase in loyalty (offers availed) for the bank Context Serving enterprise cu
Slide 51: Great Financial Track Record
All figures in ₹ Mn 10,040 ~4x 39,278 Great Financial Revenues 2019 Revenues 2024 Track Record We continue to 967 ~8x 7,322 deliver over the EBITDA 2019 EBITDA 2024 last five years 298 ~18x 5,483 PAT 2019 PAT 2024 50 Investor Update Q4 FY24 and Full Year 50
Slide 52: Thank You
© Tanla Platforms Limited Tanla Technology Centre, Madhapur, Hyderabad, Telangana, India - 500081 CIN: L72200TG199SPLC021262 OW Be +91-40-40099999 91-40-23122999 info@tanla.com www-tanla.com Thank You Follow us at: