Tanla Platforms Ltd · NSE:TANLA
Tanla Platforms — Q3 FY25 Earnings Presentation
36 slides from Tanla Platforms's earnings presentation, Jan 21, 2025
Slide 1: Exchange filing cover letter
Date: January 21, 2025 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 Sir / Madam, Subject: Investor Updates for the quarter e
Slide 2: Investor Update Q3 FY25
Investor Update Q3 FY25 Tanla Team Celebrating One Billion RCS Messages in a Month Jan 21, 2025 CONFIDENTIAL AND PROPRIETARY 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: Q3 FY25 Results – Snapshot
Q3 FY25 Results – Snapshot All numbers are ₹ unless otherwise stated Revenue Gross Profit EBITDA FCF 10,004 Mn 2,607 Mn 1,634 Mn 2,165 Mn 26.1% gross margin 16.3% EBITDA margin 183% of PAT PAT EPS Cash 1,185 Mn 8.82 9,208 Mn Increased by ₹ 2155 Mn 11.8% PAT margin Note: All growth numbers are over Q
Slide 5: Tanla has track record of Strong Performance
Tanla has track record of Strong Performance All numbers are ₹, unless otherwise stated Sustained Value Creation Best-in-class Execution World Class Culture 19% 22% 100+ 7+ 1000+ 19,749 Revenue growth1 Gross profit 1 Innovations3 Patents4 Employees in India and Training hours beyond 19% 7,146 Mn 2,0
Slide 6: Two synergistic businesses - Digital Platforms & Enterprise Communications
Today, Tanla focuses on two synergistic businesses - Digital Platforms & Enterprise Communications Predictable growth Undisputed market leadership 26%+ growth in gross profit ~35% market share in India for FY24 Deeply embedded E2E omnichannel presence NRR of 125% SMS, Voice, OTT (WhatsApp, TrueCalle
Slide 7: Business Outcomes
Business Outcomes 6 Investor Update Q3 FY25 Tanla awarded the prestigious Growth Partner of the Year by Google
Slide 8: Customer cohorts
Customer cohorts 335 333 325 325 customers contributing > ₹ 10 Mn annual revenue, down by 2% on QoQ basis 17 18 16 Customers contributing > ₹ 10 64 64 59 Mn annual revenue de-grew by 3% on QoQ basis 254 251 250 Q3 FY24 Q2 FY25 Q3 FY25 Count of customers >₹ 500 Mn >₹ 100 Mn - < ₹ 500 Mn >₹ 10 Mn - <₹
Slide 9: Customer cohorts
Customer cohorts 9,664 9,524 9,221 Customers on-boarded during the trailing twelve 3,799 3,889 4,150 months (TTM) have added ₹ 363 Mn in Q3 FY25 Top 20 customers are 3,724 3,346 3,245 contributing to 46% of revenue (₹ 4,565 Mn) in Q3 FY25 2,051 2,028 2,177 Q3 FY24 Q2 FY25 Q2 FY25 Revenue from >₹ 500
Slide 10: Winning New Logos
Winning New Logos Revenue from new customers (₹ Mn) Count of customers 50% 105 123 New Customers added on WA and RCS 29 64 Q3 FY24 Q3 FY25 1. New customers include every unique contracting entity added during the year 9 Investor Update Q3 FY25
Slide 11: Customer Concentration
Customer Concentration Revenue from top 20 customers (₹ Mn) 12 out of 20 customers 42 % 46 % of last year continue to be in Top 20 4,239 4,565 Q3 FY24 Q3 FY25 10 Investor Update Q3 FY25
Slide 12: Financial Outcomes
Financial Outcomes 11 Investor CONFIDENTIAL Update AND Q3 FY25 PROPRIETARY Tanla Immersive and Experience Center at the India Mobile Congress, 2024 Any use of this material without specific permission is strictly prohibited
Slide 13: Revenue
Revenue 15% 21% 10% Revenue growth remains (1%) (0.2%) muted 10,026 10,055 10,022 10,007 10,004 OTT contribution to Y-o-Y growth overall revenue was at 22.8% in Q3 FY25, as against 14.8% in Q3 FY24 – we are making the (₹ Mn) shift to rich media Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 12 Investor Upd
Slide 14: Q3 FY25 – Digital Platforms & Enterprise Communications Revenue
Q3 FY25 – Digital Platforms & Enterprise Communications Revenue Digital Platforms Enterprise Communications 0.3% de-grew YoY 0.2% de-grew (₹ Mn) (excl. Vi Impact grew by 16.9%) YoY 958 9,068 9,049 955 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 13 Investor Update Q3 FY25
Slide 15: Gross profit
Gross profit 26.9% 26.7% 26.9% 26.2% 26.1% Gross profit de-grew by 0.4% QoQ. Gross margin was at 26.1% in Q3FY25 2,699 2,686 2,694 2,618 2,607 Digital Platform gross profit grew by 8.6% sequentially led by MaaP Margin% Enterprise communications gross profit de-grew by 4.9% QoQ due to softness in ILD
Slide 16: Gross margin profile
Gross margin profile B 97.5% 98.2% 98.7% 98.7% 98.7% Platform A business Overall margin A Decrease in gross margin by 87bps YoY, 26.9% 26.7% 26.9% 26.2% 26.1% Q3 Q4 Q1 Q2 Q3 and 11 bps QoQ FY24 FY24 FY25 FY25 FY25 B Digital Platform gross Q3 Q4 Q1 Q2 Q3 margin contribution FY24 FY24 FY25 FY25 FY25 t
Slide 17: Efficiency Metrics
Efficiency Metrics 71% 63% EBITDA was at ₹ 1,634 Mn, de-grew by 6.8% QoQ. The decrease can be 2,699 2,607 primarily be attributed increase in indirect cost spends and one-time forex impact of ₹ 44 Mn 1,928 1,634 (₹ Mn) EBITDA margin declined by 119 basis points sequentially and 289 basis points YoY
Slide 18: Indirect cost walk QoQ
Indirect cost walk QoQ 23 (15) We have a forex fluctuation loss 34 973 67 of ₹44 Mn in Q3, compared to a 864 ₹23 Mn gain in Q2, due to sharp depreciation of EURO Over the longer period, cumulative impact of forex (₹ Mn) fluctuation from Q3 FY24 to Q2 FY25 is a gain of ₹11 Mn Employee cost increased
Slide 19: Operating Income: EBITDA and EBIT
Operating Income EBITDA 1,928 1 1,886 1,754 1,604 1,634 EBITDA de-grew by 15.2% YoY and 6.8% QoQ to ₹ 1,634 Mn in Q3 FY25 (₹ Mn) We have capitalized our “MaaP” Q3 FY24 Q4 FY24 Q1 FY24 Q2 FY25 Q3 FY25 platform during the quarter resulting in increased depreciation EBIT by ₹ 25 Mn 1,694 1 1,658 1,520
Slide 20: Free Cash Flow Generation
Free Cash Flow Generation 2,165 In Q3, we generated ₹ 2,165 Mn as free cash flow highest in last six quarters DSO at 82 days in Q3, improved by 8 days from Q2 1,492 744 640 520 (₹ Mn) Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 19 Investor Update Q3 FY25
Slide 21: Profit After Tax & EPS
Profit After Tax & EPS Profit After Tax (PAT) 1,401 1,302 1 1,412 1,302 1,185 PAT was at ₹ 1,185 Mn in Q3, (₹ Mn) impacted by increase in indirect cost spends and impact of forex loss Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Effective tax rate for Q3 FY25 is at 19.2% EPS 10.42 9.69 10.50 9.70 8.82 EP
Slide 22: Strong Balance Sheet
Strong Balance Sheet All numbers are ₹, unless otherwise stated Tanla Immersive & Experience Center at IMC 2024 22,330 Mn 9,208 Mn 34% Strong Equity and Reserves Cash & cash equivalents ROCE (excluding cash & cash equivalents) 21 Investor Update Q3 FY25 Debt Free
Slide 23: Annexures
Annexures 22 Investor CONFIDENTIAL Update AND Q3 FY25 PROPRIETARY Industry Roundtable at Karix Elevate, an event hosted in collaboration with Meta Any use of this material without specific permission is strictly prohibited
Slide 24: Profit & Loss Q3 FY25
Q3 Q3 Q2 In ₹ Mn, unless otherwise stated FY25 FY24 ∆% FY25 Revenue from operations (net) 10,004 10,026 (0) 10,007 Cost of services (7,397) (7,327) 1 (7,389) Profit & Loss Gross Profit 2,607 2,699 (3) 2,618 Q3 FY25 Operating Expenses (973) (771) 26 (864) EBITDA 1,634 1,928 (15) 1,754 Depreciation an
Slide 25: Balance Sheet December 31, 2024
Balance Sheet December 31, 2024 Unaudited Unaudited Unaudited Unaudited In ₹ Mn, unless otherwise stated Dec 31, 2024 Sep 30, 2024 In ₹ Mn, unless otherwise stated Dec 31, 2024 Sep 30, 2024 Assets Equity & Liabilities Non-current assets Equity share capital 135 135 Property, plant and equipment 2,24
Slide 26: Condensed Cash flow Q3 FY25
In ₹ Mn, unless otherwise stated Q3 FY25 Q2 FY25 Cash flow before changes in working capital 1,711 1,761 Condensed Changes in working capital Cash generated from operations 1,240 2,951 (455) 1,306 Cash flow Taxes Cash flow from operating activities (319) 2,632 (417) 889 Q3 FY25 Net investments in ta
Slide 27: Free Cash Flow
Free Q3 Q3 Q2 Cash Flow In ₹ Mn, unless otherwise stated FY25 FY24 ∆% FY25 Operating cash flow 2,632 1,083 143% 889 Capital expenditure (467) (443) 5% (369) Free cash flow 2165 640 238% 520 Free cash flow in percent of total revenue 22% 6% - 5% Free cash flow as % of PAT 183% 46% - 40% 26 Investor U
Slide 28: Reconciliation
Q3 Q2 In ₹ Mn, unless otherwise stated FY25 FY25 Q1 FY25 Q4 FY24 Reconciliation Reported EBITDA 1,634 1,754 1,886 1,604 One-time expense- MWC - - - 273 Adjusted EBITDA 1,634 1,754 1,886 1,877 Adjusted EBIT 1,388 1,520 1,658 1,649 adjusted PAT 1,185 1,302 1,412 1,361 1. Adjusted PAT is normalized for
Slide 29: About Us
About Us 28 Investor CONFIDENTIAL Update AND Q3 FY25 PROPRIETARY Festive Celebrations at Tanla Innovation Center Any use of this material without specific permission is strictly prohibited
Slide 30: 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 (whom to send) (what to send) (how to send) ATP Trubloq Wisely Scam identification a
Slide 31: Greenfield opportunities: Trubloq and ATP
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 Identification Prevention Elimination other stakeholders to maintain t
Slide 32: 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 USA & Global Tech giants CPaaS market share Europe SEA 50%+ 7/10 top insurance of total revenues contributed by 50 of our top 100 customers, Middle East re
Slide 33: Our Market Leadership in Enterprise Communication (1/2)
Our Market Leadership in Enterprise Communication (1/2) Tech. backed use cases 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 ~45% share in SMS NLD
Slide 34: 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 Turbo charging our growth leading bank 4x growth in RCS Impact: 2X increase in loyalty (offers availed) for the bank Serving enterprise curated needs Commerce on
Slide 35: Great Financial Track Record
All figures in ₹ Mn Great 10,040 ~4x 39,278 Financial Track Revenues 2019 Revenues 2024 Record We continue to deliver over 967 ~8x 7,322 the last five EBITDA 2019 EBITDA 2024 years 298 ~18x 5,483 PAT 2019 PAT 2024 34 34 Investor Update Q2 FY25
Slide 36: Thank You
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