Tanla Platforms Ltd · NSE:TANLA
Tanla Platforms — Q1 FY25 Earnings Presentation
38 slides from Tanla Platforms's earnings presentation, Jul 18, 2024
Slide 1: Exchange filing cover letter
Date: July 18, 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 ended June
Slide 2: Investor Update Q1 FY25
Investor Update Q1 FY25 July 18, 2024 CONFIDENTIAL AND PROPRIETARY Durgam cheruvu overlooking Tanla Innovation Center, Hyderabad, India Any use of this material without specific permission is strictly prohibited
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: Q1 FY25 Results – Snapshot
Q1 FY25 Results – Snapshot All numbers are INR, unless otherwise stated Revenue Gross Profit EBITDA FCF 10,022 Mn 2,694 Mn 1,886 Mn 744 Mn 10.0 % Growth 11.7% Growth 3.5% Growth 53% of PAT PAT EPS Cash(1) 1,412 Mn 10.50 7,572 Mn 4.3% Growth 4.3% Growth Increased by INR 763 Mn QoQ Note: All growth nu
Slide 5: Tanla has track record of Strong Performance
Tanla has track record of Strong Performance All numbers are INR, unless otherwise stated Sustained Value Creation Best-in-class Execution World Class Culture 19% 22% 100+ 5+ 1000+ 19,749 1 1 3 4 Revenue growth Gross profit Innovations Patents Employees in India and Training hours beyond 19% 6,596 M
Slide 6: Today, Tanla focuses on two synergistic businesses - Digital Platforms & Enterprise Communications
Today, Tanla focuses on two synergistic businesses - Digital Platforms & Enterprise Communications Predictable growth Undisputed market 26%+ growth in gross profit for leadership FY24 ~35% market share in India Deeply embedded E2E omnichannel NRR of 125% presence SMS, Voice, OTT (WhatsApp, TrueCalle
Slide 7: Business Outcomes
Business Outcomes 6 Investor CONFIDENTIAL ANDUpdate Q1 FY25 PROPRIETARY Karix office, Mumbai, India Any use of this material without specific permission is strictly prohibited
Slide 8: Customer cohorts: Expansion of Customer Relationships
Customer cohorts: Expansion of Customer Relationships 329 customers contributing > INR 10 Mn annual revenue, count 333 329 up by 49% on YoY basis 221 17 19 Customers contributing > INR 10 Mn annualized 19 revenue grew by 3% on 64 60 YoY basis 41 12 out of top 20 customers 250 252 of last year contin
Slide 9: Customer cohorts: Increase in Product Penetration
Customer cohorts: Increase in Product Penetration Product penetration improved 9,471 9,326 to 2.37 from 2.17 in Q1 FY25 9,034 on a larger customer base, 3,705 4,048 driven by growing adoption of WhatsApp and other newer 5,498 channels 3,63 3,115 Top 20 customers are 9 2,216 contributing to 43% of re
Slide 10: Customer Concentration
Customer Concentration Revenue from top 20 customers (INR Mn) 12 out of 20 customers of 62 % 43 % last year continue to be in Top 20 5,621 4,294 In Q1 FY24, ValueFirst was one of our top customers. Post acquisition Q1 FY24 Q1 FY25 it ceases to be our top customer and its impact can be seen in custom
Slide 11: Winning New Logos
Winning New Logos Revenue from new customers (INR Mn) Count of customers 80 121 19% New Customers added on WA 83 54 Q1 FY24 Q1 FY25 1. New customers include every unique contracting entity added during the year 10 Investor Update Q1 FY25
Slide 12: Financial Outcomes
Financial Outcomes 11 Investor CONFIDENTIAL ANDUpdate Q1 FY25 PROPRIETARY Any use of this material without specific permission is strictly prohibited
Slide 13: Revenue: Flat growth sequentially in a seasonally weak quarter
Revenue: Flat growth sequentially in a seasonally weak quarter 19% 21% 14% 15% 10% Revenue grew by 10.0% YoY to INR 10,022 Mn, driven by 10,086 10,026 10,055 10,022 Enterprise Communications 9,111 Enterprise revenue grew by Y-o-Y growth 11.2% YoY to INR 9,154 Mn OTT contribution to overall revenue w
Slide 14: Q1 FY25 – Digital Platforms & Enterprise Communications Revenue
Q1 FY25 – Digital Platforms & Enterprise Communications Revenue Digital Platforms Enterprise Communications De-grew by 1.2% 11.2% Growth 31% YoY growthYoY excluding Vi impact YoY (INR Mn) 879 868 9,154 8,232 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 13 Investor Update Q1 FY25
Slide 15: Gross profit: YoY growth of 11.7%
Gross profit: YoY growth of 11.7% Margin% Gross profit grew by 11.7% YoY. 27.4% Gross margin was at 26.9% in Q1 26.9% 26.9% FY25 improved by 40 bps 26.7% 26.5% Digital Platform gross profit grew 2,762 2,699 2,686 2,694 by 0.7% YoY and de-grew 3.1% sequentially due to Vi impact. If 2,413 adjusted for
Slide 16: Gross margin profile
Gross margin profile B 96.8% 97.7% 97.5% 98.2% 98.7% Platform business A A Increase in gross Overall margin margin by 40 bps Q1 Q2 Q3 Q4 Q1 YoY, and 17 bps QoQ 26.5% 27.4% 26.9% 26.7% 26.9% FY24 FY24 FY24 FY24 FY25 B Digital Platform gross Q1 Q2 Q3 Q4 Q1 margin contribution FY24 FY24 FY24 FY24 FY25
Slide 17: Efficiency Metrics
Efficiency Metrics 70% 76% EBITDA was at INR 1,886 Mn, YoY growth of 3.5% and sequential 2,694 growth of 0.4%1. The YoY 2,413 growth in EBITDA is post consolidation of ValueFirst India 1,822 1,886 business (INR Mn) EBITDA margin increased by 141 basis points sequentially and declined by 119 basis po
Slide 18: Indirect cost walk YoY
Indirect cost walk YoY 49 809 Employee cost increased due 32 to ValueFirst acquisition, net 138 additions and partly offset by lower RSU cost 590 (INR Mn) Cloud and hosting charges increased due to ValueFirst acquisition Other expense increased due to incremental spends on marketing and other genera
Slide 19: Operating Income: EBITDA and EBIT
Operating Income EBITDA 1,968 1,928 1,8771 1,886 1,822 EBITDA was at INR 1,886 Mn, YoY growth of 3.5% and (INR Mn) sequential growth of 0.4%1. Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Depreciation was at INR EBIT 227 Mn in Q1 FY25, as 1,658 1,742 1,694 1,6491 1,658 against INR165 Mn in Q1FY24 (INR Mn
Slide 20: EBIT Profile
EBIT Profile Digital Platforms Enterprise Communications 67.3% 11.7% EBIT% EBIT% (INR Mn) 609 584 1,049 1,074 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 19 Investor Update Q1 FY25
Slide 21: Cash Flow Generation
Cash Flow Generation 1,492 In Q1, we generated INR 744 Mn as free cash flow. Our cash 1,310 collections were spilled over in July impacting DSO days and free cash flow 869 744 640 (INR Mn) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 20 Investor Update Q1 FY25
Slide 22: Profit After Tax & EPS
Profit After Tax & EPS Profit After Tax (PAT) 1,354 1,425 1,401 1,3611 1,412 PAT was at INR 1,412 Mn in Q1. PAT grew by 3.8% sequentially (adjusted PAT) and 4.3% YoY (INR Mn) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Effective tax rate for Q1 FY25 is at 18.8% EPS 10.07 10.60 10.42 9.69 10.50 EPS was at INR
Slide 23: Return on Capital Employed
Return on Capital Employed 47% excluding CCE as against 72% 1 34% 38% 35% 34% 31% last year Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 ROCE- Return on capital employed; CCE- Cash & cash equivalents 1. ROCE is not comparable to previous year as it is impacted by ValueFirst acquisition 22 Investor Update
Slide 24: Strong Balance Sheet
Strong Balance Sheet All numbers are INR, unless otherwise stated Team Tanla at an internal event hosted at Tanla Innovation and Experience Center, Hyderabad 20,822 Mn 7,572 Mn 47% Strong Equity and Reserves Cash & cash equivalents ROCE (excluding cash & cash equivalents) Debt Free 23 Investor Updat
Slide 25: Annexures
Annexures 24 Investor Update Q1 FY25
Slide 26: Profit & Loss Q1 FY25
In INR Mn, unless otherwise stated Q1 FY25 Q1 FY24 ∆% Q4 FY24 Revenue from operations (net) 10,022 9,111 10 10,055 Cost of services (7,328) (6,698) 9 (7,369) Gross Profit 2,694 2413 12 2,686 Profit & Loss Operating Expenses (808) (591) 37 (1,081) Q1 FY25 EBITDA 1,886 1,822 4 1,605 Depreciation and A
Slide 27: Balance Sheet June 30, 2024
Balance Sheet June 30, 2024 Unaudited Audited Mar Unaudited June Audited Mar In INR Mn, unless otherwise stated June 30, 2024 31, 2024 In INR Mn, unless otherwise stated 30, 2024 31, 2024 Assets Equity & Liabilities Non-current assets Equity share capital 134 134 Property, plant and equipment 2,093
Slide 28: Condensed Cash flow Q1 FY25
In INR Mn, unless otherwise stated Q1 FY25 Q4 FY24 Cash flow before changes in working capital 1,901 1,684 Condensed Changes in working capital (1,302) 500 Cash generated from operations 599 2,184 Cash flow Q1 Taxes 299 (262) Cash flow from operating activities 898 1,921 FY25 Net investments in tang
Slide 29: Free Cash Flow
In INR Mn, unless Free otherwise stated Q1 FY25 Q1 FY24 ∆% Q4 FY24 Cash Flow Operating cash flow 898 1,294 31 1,921 Capital expenditure (154) (425) 64 (429) Free cash flow 744 869 14 1492 Free cash flow in percent of 7% 10% - 15% total revenue Free cash flow as % of PAT 53% 64% - 115% 28 Investor Up
Slide 30: Reconciliation
In INR Mn, unless Reconciliation otherwise stated Q1 FY25 Q1 FY24 Q4 FY24 Reported EBITDA 1,886 1,822 1,604 One-time expense- MWC - - 273 Adjusted EBITDA 1,886 1,822 1,877 Adjusted EBIT 1,658 1,658 1,649 Adjusted PAT 1,412 1,353 1,361 1. Adjusted PAT is normalized for the post tax impact for 2 items
Slide 31: About Us
About Us 30 Investor ANDUpdate Q1 FY25 CONFIDENTIAL PROPRIETARY Any use of this material without specific permission is strictly prohibited Karix Office, Mumbai
Slide 32: Tanla embeds Gen AI across all its platforms
Tanla embeds Gen AI 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 a
Slide 33: We have also successfully addressed several Greenfield opportunities
We have also successfully addressed several Greenfield opportunities Trubloq ATP With world’s 1st blockchain-enabled communication First of its kind anti-smishing platform. stack. It works with a consortium of telecom players and other stakeholders to maintain the leadership Identification Preventio
Slide 34: 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 ~35% 9/10 top banks served CPaaS market share Global Tech USA & Europe giants 50%+ 7/10 top insurance of total revenues contributed by 50 of our top 100 customers, retained for more
Slide 35: 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% share i
Slide 36: Our Market Leadership in Enterprise Communication (2/2)
Our Market Leadership in Enterprise Communication (1/2) Tech. backed use cases Newer Channels AI/ML based solutions developed for a Turbo charging our growth leading bank ~3X YoY growth in Q1 from WhatsApp Impact: 2X increase in loyalty (offers availed) for the bank Serving enterprise curated needs
Slide 37: Great Financial Track Record
All figures in INR Mn 10,040 ~4x 39,278 Revenues 2019 Revenues 2024 Great Financial 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 36 36 Investor Update Q1 FY25
Slide 38: Thank You
Thank You Tanla Technology Centre, fi 9 Madhapur, Hyderabad, Telangana, India - 500081 wwwtanla.com —s ia . Cin: Lraz00rcIgespLcone © in X @ f Follow us at: info@tanla.com