Truecaller Ab Class B · OMXSTO:TRUE_B
Truecaller Ab Class B — Q3 2022 Earnings Presentation
34 slides from Truecaller Ab Class B's earnings presentation, October 2022
Slide 1: Our vision: smarter, safer and more efficient communication
OUR VISION To make tomorrow's communication smarter, safer and more efficient. 1
Slide 2: Interim Report January-September 2022
Interim Report January-September 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
| i Quarter, H i i nee ” Wy y truecaller ig
Slide 5: Q3 Highlights
Q3 Highlights 331M 261M 79% Avg Monthly Active Users, Avg Daily Active Users, DAU¹ MAU¹ (291M) (211M) DAU/MAU Engagement ▲14% (YoY) ▲15% (YoY) 450M 181M 162M SEK net sales (313M) SEK adjusted EBITDA (118M) SEK in net cash from operating ▲44% (YoY) Adjusted EBITDA margin of activities² (75M) 40.3% (3
Slide 6: Q3 Business Highlights
Q3 Business Highlights Continued user growth across markets, with the highest growth rates in South America and Africa; India continues to drive the highest user growth in absolute numbers Global launch of new iPhone app, establishing the foundation for future growth Improved subscription offering wi
Slide 7: Continued growth in user base; average MAU up 40M YoY
Continued growth in user base; average MAU up ▲40M YoY Monthly Active Users1 Daily Active Users1 (Millions, Q-average) (Millions, Q-average) % of MAUs 78% 78% 78% 79% 80% 79% 1. Figures represent period averages (i.e., the average of each day in the period) 7
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 Select clients users 9
Slide 10: Q3 Product Highlights
Q3 Product Highlights AdTech & Truecaller for iPhone & Assistant Core product offering Business Launches of revamped Initiatives to improve user Continued development iPhone app and experience across AI of Ads and Truecaller for AI-powered Assistant Identity Business 10
Slide 11: Vastly improved iPhone experience
iPhone and Assistant | Core offering | AdTech & Truecaller for Business TRUECALLER FOR iPHONE Vastly improved iPhone experience Truecaller for iPhone was rebuilt from the ground up, offering a fundamentally better user experience from end-to-end Key performance indicators such as daily active users on
Slide 12: 12
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Slide 13: Launch of AI-powered Assistant
iPhone and Assistant | Core offering | AdTech & Truecaller for Business ENHANCED CALL SCREENING Launch of AI-powered Assistant Truecaller Assistant is a customizable, interactive digital receptionist that automatically answers calls, filters spam and shows the user what the caller wants in real time A
Slide 14: Value-driven engagement
iPhone and Assistant | Core offering | AdTech & Truecaller for Business AI IDENTITY Value-driven engagement Truecaller continues to leverage community feedback to drive both user engagement and improved data quality, with tens of millions of caller names suggested by users in Q3 alone The redesign of
Slide 15: More innovative, performance-driven ad formats deliver better results
iPhone and Assistant | Core offering | AdTech & Truecaller for Business ADTECH More innovative, performance-driven ad formats deliver better results for demand partners Optimization efforts have driven positive trends, including Truecaller’s highest render rate to date Investments to improve Truecalle
Slide 16: The new TfB website facilitates a smoother self-serve experience
iPhone and Assistant | Core offering | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) The new TfB website facilitates an even smoother self-serve experience for direct sales and resellers New value-based pricing tiers rolled out in the Indian market drives longer-term value for busine
Slide 17: Video Caller ID for Business
iPhone and Assistant | Core offering | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) Video Caller ID for Business Video Caller ID for Business is now fully commercialized and enables brands to deliver customized videos when they call a customer 17
Slide 18: Call Me Back
iPhone and Assistant | Core offering | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) Call Me Back Call Me Back is now fully commercialized after a successful pilot with early access customers Users can now tell businesses to call them back with one click if they are not able to answe
Slide 19: Financial performance
Financial performance
Slide 20: Revenue
Revenue Total net sales ● Solid net sales performance driven by SEKm all income streams: ○ Increase in users and growing demand for TfB ○ Growth in ad impressions per user and positive long-term trend for CPM rates ○ Positive effect from FX compared to Q3’21 and negative effect from IPL compared to Q2
Slide 21: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Other SEKm SEKm SEKm • Continued growth in number of ad impressions • Growth comes from many markets • Continued strong momentum for and positive long term CPM development Truecaller for Business • Increased ARPU due to growth in • Compariso
Slide 22: Gross profit
Gross profit Gross profit & margin (%) ● Gross margin remains strong; SEKm gross profit increased by 41% Y/Y ● Gross margin of 75% in Q3, with some negative effects from ● Improved transparency about COGS from demand partners who previously reported only net figures. ● Increased costs for hosting and ser
Slide 23: Opex and adjustments
Opex and adjustments SEKm • 10M SEK in costs for incentive programs, full effect in Q3. Potential volatility on social security costs for RSU’s as share price increase/decrease • Other external expenses consists of marketing, user- and data acquisition, and other operational costs. Increase due to eg
Slide 24: Adjusted EBITDA
Adjusted EBITDA Adj. EBITDA and margin (%) SEKm • Adjusted EBITDA grew by 54% YoY • Adjusted EBITDA margin increased by 2.7%-points YoY to 40.3% • Adjusted EBITDA excl cost for incentive programs was 42.5% • Ready to ramp up investments in user acquisition, preloads and marketing in the coming quart
Slide 25: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities is 162 MSEK (75), of which -8 (-24) is attributed to changes in working capital • 1 868 MSEK in cash and short-term funds available for strategic investments and other growth initiatives; an additional 500M SEK available in RCF
Slide 26: Financial targets
Financial targets FY2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Medium-term financial targets Targeting an average net sales Net sales growth 1 130% 129% 111% 116% 100% 44% growth of above 45% per year over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 38% 50% 46% 4
Slide 27: Summary
Summary
Slide 28: Summary
Summary ● New iOS-app and launch of cloud telephony-based AI-Assistant, important investments for future growth ● Stable, mainly organic growth of user base, +40 M Users YoY, with the strongest relative growth in South America and Africa ● Strong financial performance ▲44% net sales growth (YoY) comb
Slide 29: Thank you
Thank you To our users, partners and the Truecaller team for a great quarter 🎉
Slide 30: Q&A
Q&A
Slide 31: Appendix
Appendix
Slide 32: Income Statement & Free Cash Flow
Appendix 1 Income Statement & Free Cash Flow 32
Slide 33: Balance Sheet
Appendix 2 Balance Sheet truecaller Non-current assets Current receivables Short term placements Cash & cash equivalents Current assets TOTAL ASSETS: Total equity ability arising from defined-benefit pension plans Lease liability Deferred tax liability Other non-current liabilities Total non-current
Slide 34: Truecaller
truecaller