Tracxn Technologies Ltd. · NSE:TRACXN
Tracxn Technologies — Q4 FY23 Earnings Presentation
44 slides from Tracxn Technologies's earnings presentation, May 11, 2023
Slide 1: Private Market Intelligence Platform Q4 & FY23 Investor Presentation
Private Market Intelligence Platform Q4 & FY23 Investor Presentation 11th May 2023 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved.
Slide 2: Disclaimer
Disclaimer By attending this presentation including the commentary by the Company management This Presentation may contain, words or phrases that are forward-looking statements that and the transcript of the same, together (“Presentation”) and/or accepting a copy of it, involve risks and uncertainti
Slide 3: Tracxn Overview
Tracxn Overview Tracxn is a Data & Software platform for the Private Markets globally We work with Venture Capital Firms, Private Equity Firms, Investment Banks - as well as M&A & Innovation teams of large Corporates Global Platform, customers span 50+ countries
Slide 4: Q4 & FY23 Financial Performance
Q4 & FY23 Financial Performance
Slide 5: Q4 FY23: Financial Performance Summary
Q4 FY23: Financial Performance Summary Continued growth of revenue & profitability REVENUE PROFITABILITY Revenue from Operations EBITDA EBITDA Margin excl IPO Expense1 excl IPO Expense1 20.3 Cr. 0.7 Cr. 3.4% 19% YoY 0.9Cr YoY Margin expanded by 4.4% YoY Total Income PAT PAT Margin excl IPO Expense1
Slide 6: FY23: Financial Performance Summary
FY23: Financial Performance Summary Continued growth of revenue & profitability, increasing FCF REVENUE PROFITABILITY OTHER Revenue from Operations EBITDA EBITDA Margin Free Cash Flow1 1 excl IPO Expense1 excl IPO Expense 78.1 Cr. 2.6 Cr. 3.3% 11.9 Cr. 23% YoY 4.5 Cr. YoY, up from Margin expanded by
Slide 7: FY23: Continued Revenue Growth Momentum
FY23: Continued Revenue Growth Momentum Revenue from Operations (in INR Cr.) Total Income (in INR Cr.) 23% 25% Historical Annual Historical Annual 30% 27% CAGR CAGR Revenue from operations grew at 23% YoY for FY23 Note: (*) Total Income net of for Fair value gain/ (loss) on CCPS for FY20 & FY21
Slide 8: FY23: Continued EBITDA Expansion
FY23: Continued EBITDA Expansion EBITDA EBITDA Margin 1 excl. IPO Expense (in INR Cr.) excl. IPO Expense1 6.3% Historical Annual 4.5 Cr. Historical Annual Excluding non-cash ESOP expense this is 8.0 Cr. EBITDA Margin (excl IPO exp.) expanded by 6.3% YoY for FY23 Note: (1) EBITDA has been adjusted fo
Slide 9: FY23: Continued PAT Expansion
FY23: Continued PAT Expansion PAT PAT Margin 1 excl. IPO Expense (in INR Cr.) excl. IPO Expense1 5.7 Cr. Historical Annual Historical Annual 7.4 % Excluding non-cash ESOP expense this is 10.8 Cr. PAT Margin (excl IPO exp.) expanded by 7.4% YoY for FY23 Note: (1) PAT has been adjusted for IPO Expense
Slide 10: Significant Incremental Revenue continues to go into Bottomline
Significant Incremental Revenue continues to go into Bottomline Historical Annual: FY 22 FY 23 FY 20 FY 21 FY 22 Revenue from operations 63.5 78.1 37.3 43.8 63.5 Incremental Revenue from Operations (Δ) +14.7 +6.4 +19.7 EBITDA excl IPO Expense (1.9) 2.6 (22.4) (17.1) (1.9) Incremental EBITDA excl IPO
Slide 11: FY23: Expense Breakup
FY23: Expense Breakup Total Expense Total Expense - Breakup (for FY23) (in INR Cr.) (in INR Cr.) Employee Benefit Expenses 67.0 Cr. 88.5% Historical Annual Salaries, Wages & Bonus 57.9 Cr. 76.5% 16% Employee stock option expense 5.4 Cr. 7.1% 4% CAGR Other Employee Benefit Expenses 3.6 Cr. 4.8% Depre
Slide 12: FY23 v/s FY22: Expense Bridge (1/3)
FY23 v/s FY22: Expense Bridge (1/3) Total Expense Key items of FY23 v/s FY22 expense bridge: (in INR Cr.) 1● 8.4Cr. increase in “Employee Expense” ○ Primarily due to increase in average headcount by 23%, due to various growth initiatives 10.2Cr. 2● 0.6Cr. increase in “Rental cost” ○ Took additional
Slide 13: FY23 v/s FY22: Expense Bridge (2/3)
FY23 v/s FY22: Expense Bridge (2/3) 1 Employee Exp.(1) Avg. Headcount* Trend for FY23 Qs (in INR Cr.) 8.4 Cr. Ending HC 822 Total Employee Exp. 58.6 16.2 16.3 17.0 17.6 YoY increase 9% 14% (INR Cr.) Headcount increased due to growth initiatives. This is already getting optimized due to automation &
Slide 14: FY23 v/s FY22: Expense Bridge (3/3)
FY23 v/s FY22: Expense Bridge (3/3) 2 Rental Expense 3 Other Expenses(1) (in INR Cr.) 0.6 Cr. (in INR Cr.) 1.2 Cr. Quarterly Rental Expense Trend Quarterly Other Expenses Trend Other expense step-up due to increased rental on account of employees returning to office (further capacity expansion not p
Slide 15: FY23 v/s FY22: Revenue Bridge
FY23 v/s FY22: Revenue Bridge Revenue from Existing Customers 1.4 Cr. in FY23 Revenue Contribution by ~80% revenue is from existing customers New & Existing Customers 6.9Cr. in FY22 (in INR Cr.) Growth in revenue from existing customers (as compared to previous year revenue), was lower in FY23 than
Slide 16: FY23: Revenue Growth
FY23: Revenue Growth Continued growth in large Geo-wise Revenue Split accounts* FY23 FY23 Geography FY 21 FY 22 FY 23 Revenue FY 21 FY 22 FY 23 Contribution Growth INR 20L+ accounts 13 26 33 Americas 12.5 18.6 24.1 31% 30% INR 30L+ accounts 5 11 22 APAC (excl. India) 4.8 6.9 8.1 10% 18% INR 40L+ acc
Slide 17: FY23: Customer Accounts Growth
FY23: Customer Accounts Growth Customer Accounts (#) Customer Accounts - Net Addition Improving incremental QoQ account addition Note: (*) FY22 Quarterly Avg. is provided for like to like comparison. Customer Accounts are as on respective end of period
Slide 18: Select Recent Growth Initiatives
Select Recent Growth Initiatives Organic Search Traffic* 1 Scaling Organic Traffic & Inbound Leads Pipeline (in millions) 15m ● We have built a large organic inbound traffic funnel 19X ● Over 9 Million visits in FY23 Current run-rate1 ● ~20X increase in 3 years ● We expect this organic traffic to fu
Slide 19: Select Recent Growth Initiatives
Select Recent Growth Initiatives 22. Increased Press Mentions: Through various media partnerships, data contributions, reports, etc. 1000+ Press Mentions across media* Eg. Report coverage eg. Regular Columns in newspapers eg. Others Note: (*) in FY23
Slide 20: Select Recent Growth Initiatives
Select Recent Growth Initiatives 31. Expanding coverage of Company Financials & Captables ● Currently cover private company financials across 15+ countries and captables Private Company across 10+ countries Financials Currently across 15+ Countries ● Seeing demand for this data - especially from Pri
Slide 21: FY23: Increasing FCF
FY23: Increasing FCF FCF (Free Cash Flow) Cash & Cash Equivalents2 FY23, Adjusted for IPO Expense1 (in INR Cr.) (in INR Cr.) 7.0 Cr. Historical Annual 143% 60.3 Cr. FCF (Free Cash Flow) In INR Cr., Adj. for IPO expense Added 14.5 Cr. YoY Year FCF 32% YoY FY20 (15.4) FY21 (6.1) FY22 4.9 FCF continues
Slide 22: FY23: Other KPIs (1/2)
FY23: Other KPIs (1/2) Customer Accounts (#) Users (#) 13% Historical Annual Historical Annual 10% 23% 30% CAGR CAGR User count got optimized also due to tightening of logins Note: Customer Accounts and Users are as on respective end of period
Slide 23: FY23: Other KPIs (2/2)
FY23: Other KPIs (2/2) Contract Price (in INR Cr.) Entities Profiled, on platform (in millions) 18% 21% Historical Annual Historical Annual 31% 37% CAGR CAGR Note: Contract Price is net invoicing done in a given period adjusted for unbilled revenue for the period, till the time of measurement Entiti
Slide 24: Global Customer Base
Global Customer Base ~70% international revenue in FY23 Customers span over 50+ countries* Top 5 countries by #customer accounts*: Indian International Revenue India, USA, Singapore, UK, Germany Revenue 68% Historical annual International Revenue Share Note: (*) Based on Customer Accounts as on End
Slide 25: Diverse Customer Base
Diverse Customer Base Corporate Private Venture M&A Teams Equity Capital Venture Investment Government Companies Capital Banking Agencies Family Corporate Consulting Offices Innovation Accelerator Digital Corporate & Universities Transformation Development Incubators Investment Industry Corporate Ot
Slide 26: Generative AI & its potential use
Generative AI & its potential use Generative AI at works in Tracxn: We want to be pioneers in using generative AI as a tech company. Examples of some projects being worked upon are: 1. Querying: Easier natural language-based querying and search for users 2. Chatbot: For getting answers to common que
Slide 27: Business Overview
Business Overview @Tracxn
Slide 28: Our Journey
Our Journey Listed on 50+ Countries Ratan N Tata Current - Among the 2021-22 Leading global market intelligence - Became a publicly providers for private Sachin Bansal Binny Bansal NRJN Family Trust 2020-21 listed company on company data^ 20th Oct 2022 - Crossed customers - One of the largest 2017-1
Slide 29: Significant cost advantages from India-based operations
Significant cost advantages from India-based operations Significant cost advantage due to make-in-India. Especially: Europe Asia N.America ● Data-production & technology Middle East platform is built from India India ● Global sales happens from India Africa (sales & support teams work across all tim
Slide 30: Experienced Promoters & Board of Directors
Experienced Promoters & Board of Directors Neha Singh Abhishek Goyal Brij Bhushan Chairperson and Managing Vice Chairman and Independent Director Director Executive Director ▪ B.Tech. & M.Tech. from IIT Bombay ▪ B.Tech. from IIT Kanpur ▪ B.Tech. from Maharshi Dayanand & MBA from Leland Stanford Juni
Slide 31: Supported by Senior Management Team Backed by Marquee Investors
Supported by Senior Management Team Backed by * Marquee Investors Prashant Chandra Amit Agarwal Neeraj Chopra Bhaskar Sharma Chief Financial Officer Chief Operating Officer Chief Technology Officer Chief Product Officer ▪ B.Tech. from IIT Kanpur & MBA ▪ B.Tech. from MNNIT-Allahabad & ▪ MS from Unive
Slide 32: Robust Technology Platform
Robust Technology Platform Wide range of business and workflow tools – Scalable backend framework – based on open Inbuilt CRM tool, custom dashboard builder, tools for source technologies sourcing, tracking companies, portfolio tracking, API Automated – based on web crawling and data support, browse
Slide 33: Large & Growing Market
Large & Growing Market Multiple large companies have been created in the financial data markets $30B+ Cumulative Revenue of Financial Market Data Companies for 2022* Note: (*) Revenue of key public market data companies has been calculated based on the publicly available sources and internal estimat
Slide 34: Large & Growing Market
Large & Growing Market Private Market AUM Growth1 Public Market Capitalization2 (in USD trillion) (in USD trillion) 12.6% 11.7% 6% CAGR CAGR CAGR Cumulative market capitalization of listed domestic companies across all the countries converted to USD Private market AUM has crossed $9T, and is growing
Slide 35: Q4 & FY23 Detailed Financial Statements
Q4 & FY23 Detailed Financial Statements
Slide 36: Profit & Loss Statement (1/2)
Profit & Loss Statement (1/2) Particulars Q4FY23 Q3FY23 Q4FY22 FY23 FY22 Income Revenue from operations 20.34 20.25 17.15 78.11 63.45 Other income 0.24 0.25 0.30 1.31 1.10 Other gains/(losses) - net 0.49 0.45 0.21 1.76 0.61 Total Income 21.07 20.95 17.66 81.18 65.16 Expenses Employee benefit expense
Slide 37: Profit & Loss Statement (2/2)
Profit & Loss Statement (2/2) Particulars Q4FY23 Q3FY23 Q4FY22 FY23 FY22 Profit / (loss) for the period 24.50 6.21 (0.37) 33.09 (4.85) Less: Other Income 0.24 0.25 0.30 1.31 1.10 Less: Other gains/(losses) - net 0.49 0.45 0.21 1.76 0.61 Add: Depreciation expense 0.07 0.06 0.03 0.19 0.15 Add: Current
Slide 38: Balance Sheet (1/3)
Balance Sheet (1/3) Particulars As at March 31, 2023 As at March 31, 2022 ASSETS Non-current assets Property, plant and equipment 0.36 0.27 Intangible assets - - Current tax assets (net) 2.98 4.53 Deferred Tax Asset 23.07 Total non-current assets 26.41 4.79 Current assets Financial assets i. Investm
Slide 39: Balance Sheet (2/3)
Balance Sheet (2/3) Particulars As at March 31, 2023 As at March 31, 2022 EQUITY AND LIABILITIES Equity Equity share capital 10.03 10.03 Instruments entirely equity in nature - - Reserves and surplus 49.66 10.61 Total equity 59.69 20.64 In INR Cr.
Slide 40: Balance Sheet (3/3)
Balance Sheet (3/3) Particulars As at March 31, 2023 As at March 31, 2022 LIABILITIES Non-current liabilities Financial liabilities i. Other financial liabilities Employee benefit obligations 2.79 3.42 Contract liabilities 0.26 0.11 Total non-current liabilities 3.05 3.53 Current liabilities Financi
Slide 41: Cash Flow Statement (1/2)
Cash Flow Statement (1/2) Year ended Year ended Particulars 31 March 2023 31 March 2022 Cash Flow from Operating Activities: Net (loss) before Income Tax 9.95 (4.85) Adjustment for: Depreciation expense 0.19 0.15 Net (gain)/ loss on disposal of Property, plant and equipment 0.00 0.02 Net gains on sa
Slide 42: Cash Flow Statement (2/2)
Cash Flow Statement (2/2) Year ended Year ended Particulars 31 March 2023 31 March 2023 Cash Flow from Investing Activities: Payments for purchase of property, plant and equipment (0.31) (0.16) Proceeds from sale of property, plant and equipment 0.03 - Funds invested in bank deposits 3.00 (0.95) Pro
Slide 43: Definitions
Definitions (1) Customer Accounts refers to the distinct contracts entered into by our Company with each customer, at the time of measurement. A customer account may include access for a single or multiple number of Users. (2) Users refers to the number of activated user accesses on the platform at
Slide 44: Thank You
Company Information Address : 2nd Floor, L-248, 17th Cross, Sector 6, HSR Layout, Thank You Bangalore - 560102 CIN : L72200KA2012PLC065294 Corporate Presentation: Link For any queries, please contact: Email ID : investor.relations@tracxn.com www.tracxn.com/investor-relations