Slide 1: Our vision: make tomorrow's communication smarter, safer and more efficient
OUR VISION To make tomorrow's communication smarter, safer and more efficient. 1
Slide 2: Year-End Report January - December 2023
Year-End Report JANUARY - DECEMBER 2023 Alan Mamedi, CEO & Odd Bolin, CFO @truecaller @alanmamedi @Truecaller_IR
Slide 3: Agenda
Agenda 1. Quarterly Highlights 2. Financial Performance 3. Product Update 4. Summary 5. Q&A 3
Slide 4: Quarterly Highlights
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Slide 5: Q4 Highlights
Q4 Highlights 374M 305M 81% Avg Monthly Active Users, MAU¹ Avg Daily Active Users, DAU¹ (338M) (271M) DAU/MAU Stickiness ▲11% (YoY) ▲12% (YoY) 425M 169M 229M SEK net sales (444M) SEK EBITDA² (136M) SEK in net cash from operating ▼4% (YoY) ▲24% (YoY) activities before tax payments³ (169M) 1 Figures r
Slide 6: Q4 Business Highlights
Q4 Business Highlights Reached 300 million DAUs Strong user growth across markets, with higher relative growth in regions outside of India and the Middle East; continued strong position in India with all-time high customer satisfaction lncreased premium adoption Strong conversion, with the subscribe
Slide 7: Continued strong user growth and high daily usage
Continued strong user growth and high daily usage Monthly Active Users1 Daily Active Users1 (Millions, Q-average) (Millions, Q-average) % of MAUs 79% 80% 81% 81% 81% 81% 7 1. Figures represent period averages (i.e., the average of each day in the period) 7
Slide 8: Financial performance
Financial performance
Slide 9: Revenue
Revenue Total net sales Continued steady growth of recurring SEKm revenue ● Ads demand and ads income lower than 2023 ● Increasing share of users converted into premium and average price increase ● Truecaller for Business solid growth across both Verified Business Caller ID and Business Messaging 9
Slide 10: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Truecaller for Business SEKm SEKm SEKm General demand continued to be weak, some 19% growth in number of subscribers and Strong growth for verified business continues seasonal improvements in Q4 23% growth in revenues Increase in volumes Y/Y
Slide 11: Increase in recurring revenues
Increase in recurring revenues 11 11
Slide 12: Improved gross margin
Improved gross margin Gross profit & margin (%) SEKm ● Stable gross margin development both Y/Y and Q/Q ● Efficiency improvements for servers and verification of new customers has a positive impact ● Lower gross profit due to ads demand 12 FINANCIAL PERFORMANCE 12
Slide 13: Solid cost development
Solid cost development SEKm • Lower costs Y/Y - with growing user base • Some annual adjustments in Q4 increases costs in Q4 - both employee expenses and other external expenses • Lower other external expenses Y/Y, consists of marketing, user- and data acquisition, and other operational costs. Q4 20
Slide 14: Strong EBITDA and EPS development
Strong EBITDA and EPS development EBITDA and margin (%) SEKm ● Consistently delivered high and stable margins even in 2023 with tougher macro. Full-year margin 41% ● Strong profitability improvement, EBITDA +24% and EPS +43% vs Q4 22 ● Strong EBITDA-margin in Q4 of 40% (31%) ● EBITDA-margin excl cos
Slide 15: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities was 171 MSEK (46), of Net cash flow from operating activities which 57 MSEK (23) was attributed to changes in working before tax paid capital. SEKm • Net cash flow from operating activities excluding paid income tax was 229 M
Slide 16: Financial targets
Financial targets FY 2021 FY 2022 FY 2023 Medium-term financial targets Targeting an average net sales 1 growth of above 45% per year Net sales growth 130% 57% -2% over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 40% 41% Excl. incentive costs 42% 42% 43% Targetin
Slide 17: Quarterly Product Update
Quarterly Product Update
Slide 18: Q4 Product Highlights
Q4 Product Highlights Core product offering Truecaller Premium AdTech and Truecaller for Business 18 18
Slide 19: Engagement-driven improvements
CORE PRODUCT ENHANCEMENTS Engagement-driven improvements Technical improvements as well as initiatives expanding machine learning applications facilitate improvements to the overall user experience ▼44% reduction in ▲21% growth in user support ticket engagement volume 19 CORE OFFERING | PREMIUM | AD
Slide 20: Caller ID and Search capabilities
CORE PRODUCT ENHANCEMENTS Caller ID and Search capabilities Data quality continues to improve across markets, thanks to focused AI Identity and machine learning initiatives ▲1 million+ additional spam calls identified on a daily basis 20 CORE OFFERING | PREMIUM | ADTECH & TRUECALLER FOR BUSINESS 20
Slide 21: Fraud prevention
CORE PRODUCT ENHANCEMENTS Fraud prevention Truecaller’s ability to identify suspicious numbers and alert users in real-time is further strengthened by the integration of Trustcheckr models into the app 21 CORE OFFERING | PREMIUM | ADTECH & TRUECALLER FOR BUSINESS 21
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Slide 23: Truecaller for iPhone
CORE PRODUCT ENHANCEMENTS Truecaller for iPhone Investments in the platform have driven improvements to both user experience and Truecaller’s ability to monetize on iPhone BETTER MONETIZATION ACROSS THE OFFERING ▲76% growth in ▲42% growth in revenue from revenue from advertising on iOS subscriptions
Slide 24: Assistant and call recording
PREMIUM EXPERIENCE Assistant and call recording The integration of large language models (LLMs) into the product establish the foundation for even smarter products Call recording is now supported by LLMs, which instantly translate extensive transcripts into concise, actionable insights 24 CORE OFFER
Slide 25: Growth and retention initiatives
INVESTMENTS DRIVING PREMIUM ADOPTION Growth and retention initiatives Truecaller’s User Monetization Engine was expanded to improve both subscriber conversion and retention ▲23% growth in ▲19% growth in revenue from overall subscriber subscriptions base 25 CORE OFFERING | PREMIUM | ADTECH & TRUECALL
Slide 26: Development towards end-to-end advertising solutions
ADTECH Development towards end-to-end advertising solutions Investments in the in-house ad server enable Truecaller to deliver customized solutions for advertisers’ specific needs Select advertising partners 26 CORE OFFERING | PREMIUM | ADTECH & TRUECALLER FOR BUSINESS 26
Slide 27: Case study Games 24x7
ADTECH “Truecaller's excellent targeting capabilities and creative optimizations have helped us to acquire high LTV players with impressive performance metrics. We look forward to the exciting growth opportunities ahead Case study Games 24x7 One of India’s leading gaming companies engaged Truecaller
Slide 28: Expansion of enterprise business
TRUECALLER FOR BUSINESS (TfB) Expansion of enterprise business New pricing plans and updates to the reseller program contributed to securing larger, longer-term deals SELECT NEW VERIFIED BUSINESS LOGOS 2,500+ enterprise Landmark telecom operator customers partnership with Tata Tele 28 CORE OFFERING
Slide 29: Business Messaging
TRUECALLER FOR BUSINESS (TfB) Business Messaging Strengthened collaboration with Tanla, enabling opportunities to serve even more partners and business customers via their network Rich media capabilities are fully integrated and expected to drive increased engagement for businesses >2 billion Busine
Slide 30: Risk intelligence
TRUECALLER FOR BUSINESS (TfB) Risk intelligence Technology of recently acquired Trustcheckr was fully integrated into the risk intelligence offering, with full commercial rollout expected in 24Q1 Promising indicators from testing stages, with two deals secured with business customers from the Early
Slide 31: Summary
Summary
Slide 32: Q4 2023 Summary
Q4 2023 Summary ● Continued user growth, ● Regulatory clarity with Telecom added 36M users during 2023 Bill and Data Privacy Bill adopted ● Strong profitability and cash flow (EPS ● Lower Ads demand than 2022 +43% Q4 and EBITDA +24%). EBITDA-margin 41% in 2023 ● Strong growth development for recurri
Slide 33: 2024 update
2024 update ● Strong start for user growth ● Continued roll-out of Assistant and Call Recording in additional ● Low demand/pricing for Ads in India geographies expected to continue near-term. Other markets off to a stronger start ● Board decision to ask AGM to cancel bought back shares and for a new
Slide 34: Thank you
Thank you To our users, partners and the Truecaller team
Slide 35: Q&A
Q&A
Slide 36: Appendix
Appendix
Slide 37: Income Statement & Free Cash Flow
Income Statement & Free Cash Flow 37 APPENDIX 1 37
Slide 38: Balance Sheet
Balance Sheet 38 APPENDIX 2 38
Slide 39: truecaller
truecaller