Truecaller Ab Class B · OMXSTO:TRUE_B
Truecaller Ab Class B — Q1 2022 Earnings Presentation
33 slides from Truecaller Ab Class B's earnings presentation, 2022
Slide 1: Our Vision
OUR VISION To make tomorrow's communication smarter, safer and more efficient. 1
Slide 2: Interim Report January-March 2022
Interim Report January-March 2022 Alan Mamedi, CEO & Odd Bolin, CFO @truecaller, @alanmamedi
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 Financial Highlights
Q1 Financial Highlights 310M 248M 80% Avg Monthly Active Avg Daily Active Users, Users, MAU¹ (271M) DAU¹ (211M) DAU/MAU Engagement ▲14% (YoY) ▲18% (YoY) 398M 181.4M 122M SEK net sales (184M) SEK adjusted EBITDA (54M) SEK in net cash from ▲116% (YoY) Adjusted EBITDA operating activities (54M) margin
Slide 6: Q1 Business Highlights
Q1 Business Highlights Truecaller was one of the top 20 most downloaded apps in the world¹ and achieved the milestone of an 80% DAU to MAU engagement ratio in Q1 2022 Strong growth in consumer advertising, following continued growth in number of users in various geographies combined with an sequenti
Slide 7: Strong growth in user base; average MAU up 39M YoY
Strong growth in user base; average MAU up ▲39M YoY Monthly Active Users1 Daily Active Users1 (Millions, Q-average) (Millions, Q-average) ▲+14% % of MAUs 77% 78% 78% 78% 79% 80% ▲+18% 1. Figures represent period averages. Historical figures have been adjusted to updated definition of average MAU/DAU,
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 300 million active users Select clients India 9
Slide 10: Q1 Product Highlights
Q1 Product Highlights AdTech & Core offering AI Identity CallHero acquisition Truecaller for Business Engagement-driven Fundamental Continued development Ongoing integration of enhancements to core improvements to search of Ads and Truecaller for enhanced call communications offering and AI Identity
Slide 11: Engagement-driven enhancements
Core offering | AI Identity | AdTech & Truecaller for Business | CallHero acquisition CORE COMMUNICATIONS OFFERING Engagement-driven enhancements Following the launch of Truecaller Version 12 on Android, additional messaging capabilities have been introduced to continue to improve the core communicat
Slide 12: Smart SMS and shareable smart cards
Core offering | AI Identity | AdTech & Truecaller for Business | CallHero acquisition CORE COMMUNICATIONS OFFERING Smart SMS and shareable smart cards Fully automated machine learning models based on community feedback are now deployed globally, ensuring that every user has the most relevant Smart SM
Slide 13: Comments and dynamic feedback
Core offering | AI Identity | AdTech & Truecaller for Business | CallHero acquisition FUNDAMENTAL IMPROVEMENTS TO SEARCH AND AI IDENTITY Comments and dynamic feedback Comments have been expanded to cover over 30 additional languages, empowering more users to report on their own experience while furth
Slide 14: Improved Search experience on the web & desktop
Core offering | AI Identity | AdTech & Truecaller for Business | CallHero acquisition FUNDAMENTAL IMPROVEMENTS TO SEARCH AND AI IDENTITY Improved Search experience on the web & desktop Our website, which is used by millions of people, has been improved with a new and improved search experience, provi
Slide 15: Continued investment in AdTech
Core offering | AI Identity | AdTech & Truecaller for Business | CallHero acquisition CONTINUED INVESTMENT IN ADTECH A re-architected auction set up enhances Truecaller’s ability to integrate all types of demand partners into its ecosystem with greater flexibility and during Q1 we have onboarded more
Slide 16: Landmark partnership with Tanla
Core offering | AI Identity | AdTech & Truecaller for Business | CallHero acquisition Landmark partnership RAPID DEVELOPMENT OF TRUECALLER FOR BUSINESS (TfB) Truecaller’s exclusive reseller partnership with Tanla helps businesses reach more than 300 million users with relevant messages that include r
Slide 17: Rapid development of Truecaller for Business
Core offering | AI Identity | AdTech & Truecaller for Business | CallHero acquisition RAPID DEVELOPMENT OF TRUECALLER FOR BUSINESS Building on the success of the self-serve portal introduced at the end of 2021, a new reseller portal was launched in the first quarter, enabling resellers to handle all s
Slide 18: AI-powered Digital Assistant (CallHero acquisition)
Core offering | AI Identity | AdTech & Truecaller for Business | CallHero acquisition CALLHERO ACQUISITION AI-powered Digital Assistant The acquisition of CallHero in the first quarter is expected to add even more value to the Truecaller experience on both iPhone and Android devices. Integration of Ca
Slide 19: Financial performance
Financial performance
Slide 20: Revenue
Revenue Total net sales SEKm ● Strong net sales performance driven by: ○ Increase in monthly active users (MAU) in ▲+116% several markets ○ Continued growth in revenue-generating ad impressions per user ○ Positive trend for CPM rates ○ Strong development for Truecaller for Business ● Foundation set
Slide 21: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Other SEKm SEKm SEKm ▲+300% ▲+132% ▲+15% • Continued growth in number of ad • Increased ARPU due to growth in • Continued strong momentum for impressions markets with higher prices Truecaller for Business • Changes to the ad server’s auction
Slide 22: Gross profit
Gross profit • Gross margin improvement of 6.5% YoY Gross profit & margin (%) • AdTech improvements in Q3 driving a more SEKm intelligent bidding process • Gross margin improvements mainly coming from: − Increased share of sales via partners with lower fees, as well as partners that do not report prec
Slide 23: Opex and adjustments
Opex and adjustments SEKm • No non-recurring expenses in Q1 • Other external expenses consists of marketing, user- and data acquisition, and other operational costs. Increase due to increased investments in data -and user acquisition to support long-term organic growth. Also increased investments in
Slide 24: Adjusted EBITDA
Adjusted EBITDA Adj. EBITDA and margin (%) SEKm • Adjusted EBITDA margin increased by 17%-points YoY • Stronger improvement in adjusted YoY EBITDA margin compared to YoY Gross margin due to strong operational leverage (i.e., revenues grow faster than employee costs) 24
Slide 25: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities 122 MSEK (54) • Cash conversion ratio was 67% • 1 452 MSEK in cash and short-term funds available for strategic investments and other growth initiatives • Also 500 MSEK available in RCF, if needed • We are in a very favorable po
Slide 26: Financial targets
Financial targets FY2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Medium-term financial targets Targeting an average Net sales net sales growth of growth1 130% 91% 229% 129% 111% 116% above 45% per year over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 29% 43% 38% 50
Slide 27: Summary
Summary
Slide 28: Summary
Summary ● Strong start to 2022 in terms of growth and profitability, with ▲116% net sales growth (YoY) combined with a 45.5% adj. EBITDA margin ● Strong revenue growth with a slower increase in OPEX resulted in a very strong profit margin, exceeding our long-term financial target ● Product-first focus:
Slide 29: Thank you
Thank you To our users, employees, and our partners for a great quarter 🎉
Slide 30: Appendix
Appendix
Slide 31: Income Statement & Free Cash Flow
Appendix 1 Income Statement & Free Cash Flow 31
Slide 32: Balance Sheet
Appendix 2 Balance Sheet jBalanceshet = Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Non-current assets 162.0 125.4 162.0 156.6 152.9 139.8 125.1 196.7 Current receivables 78.6 179.3 78.6 94.4 98.0 153.2 179.3 208.8 Short term placements - 150.1 : - : - 450.1 149.6 Cash & cash equivalents 195.2 1
Slide 33: Truecaller
truecaller