Slide 1: Cover letter to stock exchanges
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 January 20, 2023 To, BSE Limited National Stock Exchange of India Ltd. Phiroze
Slide 2: Investor Update Q3 FY23
Investor Update Q3 FY23 Jan 20, 2023 Hyderabad Photo: The power of a first impression – Unveiling soon
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: Unique Ethos to Value Creation – In a class of its own
Unique Ethos to Value Creation – In a class of its own Best in Class Financials Customer and Innovation & and Shareholder Return Ecosystem Impact 28% + 18% = 46%(1) 2 19 TRUBLOQ Average Product Customers • 3 patents awarded • World’s first block chain Revenue EBITDA Rule of 40 paying > ₹ 500 • Co-se
Slide 5: Q3 FY23 Results: Snapshot
Q3 FY23 Results: Snapshot Revenue Gross Profit EBITDA OCF ₹8,696 Mn ₹2,168 Mn ₹1,513 Mn ₹-608 Mn 2% De-Growth 17% De-Growth 17.4% Margin Normalized OCF ₹ 780 Mn PAT EPS Cash ₹1,165 Mn ₹8.58 ₹7,680 Mn 13.4% Margin Down by ₹1,127 Mn © 2023 Tanla Platforms Limited. All Rights Reserved. 4
Slide 6: Empowering Consumers & Enabling Companies
EMPOWERING CONSUMERS & ENABLING COMPANIES Photo: Self-contained ‘garages’ – Unveiling soon
Slide 7: Innovating our platform for the future
Innovating our platform for the future © 2023 Tanla Platforms Limited. All Rights Reserved. 6
Slide 8: Platform Innovation: Evidence of success
Platform Innovation: Evidence of success Platform business delivered robust financial performance in Q3 FY23 driven by significant momentum across key modules Platform business gross profit grew by 26% YoY in Q3 FY23 Q3 FY22 Q3 FY23 Wisely contributed 35% of W Platforms gross profit in Q3 FY23 Gross
Slide 9: 1. TRUBLOQ
1. TRUBLOQ Key Details Gap to World’s first blockchain-enabled competition compliance platform Evidence of our success Largest DLT scrubbing platform in India GM growth 16% (Y-O-Y) Customer 100% volume in UAE adoption Partnership with 7 telcos across UAE and India Volume 82 bn (Q3) New APIs introduc
Slide 10: 2. Wisely Communicate
2. Wisely Communicate: Our differentiated proposition for enterprises 1 End-user data protection 4 Real time settlement through 100% E2E reports for zero Progress so far encryption through dispute settlements cryptographic algorithms Scaling of Volumes- 200 Mn per month from a banking 2 100% audit t
Slide 11: 3. Wisely OTT
3. Wisely OTT Vertical specific solutions being built on Delivering a market beating proposition with OTT advanced features and functionalities Superior user Advanced • Q3 volume of over 1 Bn across existing experience messaging customers on Wisely OTT capabilities Streamlined Rich performance onboa
Slide 12: 4. Wisely Network
4. Wisely Network ILD leakage prevention for Telcos AI-ML-NLP On track to be ₹1 billion gross margin platform per annum backed Intelligent Processed 33Bn messages across A2P solutions and P2P using AI/ML based filters © 2023 Tanla Platforms Limited. All Rights Reserved. 11
Slide 13: 5. Wisely Engage
5. Wisely Engage Re-imagining our vision for performance marketing Automated platform Self-serve campaign management with added intelligence layer Progress so far Multiple channels Features built on Large audiences on both online and offline channels 3,000+ attributes Early success in POC with U
Slide 14: Empowering Consumers & Enabling Companies
EMPOWERING CONSUMERS & ENABLING COMPANIES Photo: State of the art “Kaizen’ centre– Unveiling soon
Slide 15: Customer Outcomes
Customer Outcomes © 2023 Tanla Platforms Limited. All Rights Reserved. 14
Slide 16: Our large customers are expanding
Our large customers are expanding 220 189 19 220 customers contributing >10 Mn annual revenue, up by 16% 18 37 43 164 128 Q3 FY22 Q3 FY23 1. Customer segments are arrived at on a quarterly annualized basis (quarter revenue multiplied by four) >₹500Mn >₹100Mn-<₹500Mn >₹10Mn-<₹100Mn © 2023 Tanla Platf
Slide 17: Increasing product penetration in existing customers
Increasing product penetration in existing customers 8,589 8,571 Product penetration of 2.1, improved from 1.6 a year back 5,154 5,048 Sequentially revenue grew by 4% for >₹10 Mn customers 2,466 2,024 1,075 1,393 Q3 FY22 Q3 FY23 >₹500Mn >₹100Mn-<₹500Mn >₹10Mn-<₹100Mn 1. Customer segments are arrived
Slide 18: Customer concentration
Customer concentration 15 out of 20 customers of 60% 61% last year continue to be in Top 20, 17 remain in Top 30 Revenue from top 20 customers (₹ Million) 5,295 5,258 Q3 FY22 Q3 FY23 1. Customer segments are arrived at on a quarterly annualized basis (quarter revenue multiplied by four) © 2023 Tanla
Slide 19: Customer additions
Customer additions 237 210 33% New customers added on WhatsApp 571 322 Revenue from new customers (₹ Million) 9M FY22 9M FY23 Count of customers 1. New customers include every unique contracting entity added during the year 2. Customer segments are arrived at on a quarterly annualized basis (quarter
Slide 20: Empowering Consumers & Enabling Companies
EMPOWERING CONSUMERS & ENABLING COMPANIES Photo: Ways of Working: Uniquely designed to foster innovation – Unveiling soon
Slide 21: Financial Highlights & ESG Update
Financial Highlights & ESG Update © 2023 Tanla Platforms Limited. All Rights Reserved. 20
Slide 22: Sequential revenue growth
Sequential revenue growth 35% 32% 28% 1% (2%) 8,849 Revenue de-grew by 2% YOY and grew by 2% QoQ 8,696 8,531 8,510 Y-o-Y growth Sequential growth led by Platforms and WhatsApp. Festive spends lower 8,001 especially among BFSI (₹ Million) customers in Q3 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 © 2023
Slide 23: Platform and Enterprise revenue growth
Platform and Enterprise revenue growth Platform Business Enterprise Business (3%) 2% 19% 4% YoY growth QoQ Growth YoY growth QoQ Growth 8,191 782 7,914 658 (₹ Million) Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 © 2023 Tanla Platforms Limited. All Rights Reserved. 22
Slide 24: Gross profit improvement
Gross profit improvement 29.5 28.5 23.1 24.2 24.9 Platform business gross profit 2,610 grew by 26% YoY driven by 2,434 Trubloq and Wisely 2,056 2,168 1,850 Margin% On sequential basis, Enterprise business gross profit grew by 6%, driven by operational (₹ Million) efficiencies Improvement in consolid
Slide 25: Gross margin mix
Gross margin mix B 96% 96% 96% Platform 91% 95% A Gross margin business declined by 456 bps YoY, up 77 bps QoQ Overall margin Q3 Q4 Q1 Q2 Q3 A FY22 FY22 FY23 FY23 FY23 Platform business 29% 29% 23% B 24% 25% gross profit contribution to total at 35% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 C 25% 23%
Slide 26: Efficiency metrics
Efficiency metrics 78% 70% 2,028 2,610 1,513 2,168 Employee cost gone down by ₹ 56 Mn YOY, due to lower RSU cost (₹ Million) Indirect expenses have gone up by ₹ 130 Mn YOY, driven by spends on marketing (₹17 Mn). norm-based provision for doubtful debts (₹25 Mn), exchange rate fluctuation(₹28 Mn) and
Slide 27: Operating income
Operating income EBITDA 2,028 1,841 1,307 1,395 1,513 EBITDA margin at 17.4% in Q3 FY23, up 100 bps sequentially (₹ Million) Depreciation at ₹122 Mn in Q3 FY23, as against ₹111 Mn in Q3 FY22. Incremental Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 depreciation due to higher amortization of intangibles o
Slide 28: Free cash flow impacted by strategic partnership investment
Free cash flow impacted due to investment towards strategic partnerships 718 Lower generation of operating cash 444 flow due to working capital 302 investment made towards strategic partnerships (₹ Million) Tax payouts remain consistent. (416) (867) Major investments in innovation center will be com
Slide 29: Distribution of cash to shareholders and utilized for investments
Distribution of cash to shareholders and utilized for investments 1,114 196 - (1,235) 8,807 (1,086) (116) 7,680 (₹ Million) Opening CCE Operating Interest & Issue of Capital Dividend paid Lease Closing CCE (Dec 31 2021) cash flow other income shares investments liabilities - net (Dec 31 2022) © 2023
Slide 30: Cash and Cash equivalent break up
Cash and Cash equivalent break up In Million, unless Current Current Fixed Deposits Restricted cash Total otherwise stated accounts-INR accounts-USD 200 430 3,410 200 4,240 - - 1,100 - 1,100 30 - 380 - 410 30 - 400 - 430 10 - 190 - 200 - 180 - - 180 - 870 - 30 900 190 - - - 190 Others 10 - - 20 30 T
Slide 31: Cash utilization towards strategic partnership
Cash utilization towards strategic partnership Increase in restricted cash due to issuance of Bank Guarantees for new contracts and participation in RFP 5,957 5,480 Decrease overall cash balance due to working capital investment made towards strategic partnership 1,690 1,480 (₹ Million) 720 470 185
Slide 32: Net income and EPS
Net income and EPS PAT 1,580 1,406 1,004 1,104 1,165 Effective tax rate at 19.7% Profit tax after margin at 13%, decreased by 446 bps YoY due to (₹ Million) drop in EBITDA Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 EPS 11.66 10.36 7.40 8.14 8.58 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 © 2023 Tanla Plat
Slide 33: Return on capital employed
Return on capital employed 51% 47% 58% 32% 33% 31% excluding CCE as against 170% last year Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 ROCE- Return on capital employed; CCE- Cash & cash equivalents © 2023 Tanla Platforms Limited. All Rights Reserved. 32
Slide 34: Strong balance sheet
Strong balance sheet ₹16,078 Mn Strong Equity and Reserves ₹7,680 Mn Cash & cash equivalents 58% ROCE (excluding cash & cash equivalents Debt Free Photo: Garage way of working – Unveiling soon © 2023 Tanla Platforms Limited. All Rights Reserved. 33
Slide 35: Update on Corporate action
Update on Corporate action Third consecutive buyback announced by the Board of 14,16,666 Directors and completed on January 11, 2023. The Company bought back 14,16,666 shares at ₹ 1,200 per share for an aggregate amount of ₹ 1,700 Mn through tender route mechanism Equity shares tendered © 2023 Tanla
Slide 36: ESG update Q3 FY23
ESG update Q3 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 • Inclusive Development of Society: Placed 90/100 candidates skill • Transparency & Good Governance • Towards
Slide 37: Empowering Consumers & Enabling Companies
EMPOWERING CONSUMERS & ENABLING COMPANIES Photo: A Magnificent view from our Innovation Center– Unveiling soon 36
Slide 38: Appendix
Appendix © 2023 Tanla Platforms Limited. All Rights Reserved. 37
Slide 39: Profit & Loss Q3 FY23
Profit & Loss Q3 FY23 In ₹ Million, unless otherwise stated Q3 FY23 Q3 FY22 ∆% Q2 FY23 Revenue from operations 8,696 8,849 (2) 8,510 Cost of services (6,528) (6,239) 5 (6,454) Gross profit 2,168 2,610 (17) 2,056 Operating expenses (655) (582) 13 (661) EBITDA 1,513 2,028 (25) 1,395 Depreciation & amo
Slide 40: Unaudited Balance Sheet Dec 31, 2022
Unaudited Balance Sheet Dec 31, 2022 In ₹ Million, unless otherwise In ₹ Million, unless otherwise Dec 31, 2022 Dec 31,2021 Dec 31, 2022 Dec 31,2021 stated stated ASSETS EQUITY AND LIABILITIES Non-current assets Equity share capital 136 136 Property, plant and equipment 600 270 Other equity 15,942 1
Slide 41: Condensed Cash flow
In ₹ Million, unless otherwise stated Q3 FY23 Q3 FY22 Cash flow before changes in working capital 1,605 2,125 Changes in working capital (1,792) (1,527) Cash generated from operations (187) 598 Taxes (421) (180) Cash flow from operating activities (608) 418 Net investments in tangible and intangible
Slide 42: Free cash flow
Free cash flow In ₹ Million, unless otherwise stated Q3 FY23 Q3 FY22 ∆% Q2 FY23 Operating cash flow (608) 418 (246) 41 Capital expenditure (259) (116) 124 (457) Free cash flow (867) 302 (387) 416 Free cash flow in percent of total - 3% - - revenue Free cash flow as % of PAT - 19% - - © 2023 Tanla Pl
Slide 43: Thank you
Thank you Investor Update Q3 FY23 Photo: The power of a first impression – Unveiling soon