Tracxn Technologies Ltd. · NSE:TRACXN
Tracxn Technologies — Q1 FY24 Earnings Presentation
37 slides from Tracxn Technologies's earnings presentation, Aug 1, 2023
Slide 1: Private Market Intelligence Platform - Q1 FY24 Investor Presentation
Private Market Intelligence Platform Q1 FY24 Investor Presentation 1st August 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: Q1 FY24 Financial Performance
Q1 FY24 Financial Performance
Slide 5: Q1 FY24: Financial Performance Summary
Q1 FY24: Financial Performance Summary Revenue grew at a slower pace, marginal impact on margins REVENUE PROFITABILITY OTHER Revenue from Operations EBITDA EBITDA Margin Free Cash Flow2 19.8 Cr. 0.02 Cr. 0.1% 0.6 Cr. 8% YoY 0.17 Cr. YoY, down Margin reduced by 0.9% 0.9 Cr. YoY, down from Q1 FY23 fro
Slide 6: Q1 FY24: Continued Revenue Growth Momentum
Q1 FY24: Continued Revenue Growth Momentum Revenue from Operations (in INR Cr.) Total Income (in INR Cr.) 9% 8% Historical Annual Historical Annual 34% 34% CAGR CAGR Revenue from operations grew at 8% YoY for Q1FY24 Note: (*) Total Income net of for Fair value gain/ (loss) on CCPS for FY21
Slide 7: Q1 FY24: EBITDA & PAT
Q1 FY24: EBITDA & PAT EBITDA EBITDA Margin (in INR Cr.) Historical Annual Historical Annual Excluding non-cash ESOP expense this is 0.9 Cr. PAT PAT Margin (in INR Cr.) Historical Annual Historical Annual Excluding non-cash ESOP expense this is 1.6 Cr. Note: (*) Net of for Fair value gain/ (loss) on
Slide 8: Incremental Revenue going into Bottomline
Incremental Revenue going into Bottomline Historical Annual: Q1FY23 Q1FY24 FY 21 FY 22 FY 23 Revenue from operations 18.4 19.8 43.8 63.5 78.1 Incremental Revenue from Operations (Δ) +1.4 +6.4 +19.7 +14.7 EBITDA excl IPO Expense 0.2 0.02 (17.1) (1.9) 2.6 Incremental EBITDA excl IPO Expense (Δ) (0.2)
Slide 9: Q1 FY24: Expense Breakup
Q1 FY24: Expense Breakup Total Expense Total Expense - Breakup (for Q1FY24) (in INR Cr.) (in INR Cr.) Employee Benefit Expenses 17.4 Cr. 87.6% Historical Annual Salaries, Wages & Bonus * 16.1 Cr. 81.1% 9% Employee stock option expense 0.9 Cr. 4.5% 11% Other Employee Benefit Expenses 0.4 Cr. 1.9% CAG
Slide 10: Expense growth eased
Expense growth eased Total Expense Avg. Headcount* Trend for last 5 Quarters (in INR Cr.) 16 % Ending HC 9% 814 Total Employee Exp.1 58.6 16.2 16.3 17.0 17.6 17.4 (INR Cr.) Expense growth got eased. Headcount had increased last year due to growth initiatives, and subsequently has been optimized due
Slide 11: Private Markets - Quick snapshot
Private Markets - Quick snapshot Global Tech Funding India Tech Funding (in USD Bn.) (in USD Bn.) GLOBAL TECH FUNDING: at a 5yr low # Unicorns created globally # Unicorns created in India LATE-STAGE FUNDING: (proxy # new unicorn rounds) Decline is more stark, at a 9yr low
Slide 12: Private Markets - Quick snapshot
Private Markets - Quick snapshot Global M&A deal value and IB fees at its lowest Global M&A (in USD Tn.) GLOBAL M&A: Lowest in 10yr, after 2020 M&A advisory fees (in USD Bn.) IB M&A ADVISORY FEES: One of the lowest in the last 10yr Reference : Financial Times
Slide 13: Private Markets - Quick snapshot
Private Markets - Quick snapshot Public markets have recovered this year When will private markets bounce back? ● Typically there is a lag of 2-3Qs between public tech and private market ● With public markets having recovered this year, likely to see some recovery in private tech soon
Slide 14: Seeing some greenshoots
Seeing some greenshoots Deferred Revenue (in INR Cr.) and its YoY growth 23% CAGR Deferred revenue growth saw acceleration in Q1FY24
Slide 15: Platform engagement looks healthy
Platform engagement looks healthy Usage has been increasing consistently Trend of platform usage metrics in terms of # of Exports and Myanalyst queries ~2X Despite lower external deal activity, customer’s platform engagement still looks very healthy and increasing. (Customer exports & myanalyst quer
Slide 16: Growth Initiatives
Growth Initiatives GTM Funnel ● Also, we have been investing across various LEAD GENERATION: growth initiatives Marketing ● These span across the Go-to-market funnel of marketing, sales and account expansion LEAD CLOSURE: Sales ● We believe as the markets open up further, we should see more accelera
Slide 17: Select Recent Growth Initiatives
Select Recent Growth Initiatives Organic Search Traffic* 1 Scaling Organic Traffic & Inbound Leads Pipeline (in millions) ● We have built a large organic inbound traffic funnel 32X ● Over 9 Million visits in FY23, current run-rate of 16 Million ● ~20X increase in 3 years ● We expect this organic tra
Slide 18: Select Recent Growth Initiatives
Select Recent Growth Initiatives 22. Increased Press Mentions: Through various media partnerships, data contributions, reports, etc. 800+ Press Mentions across media* Eg. Report coverage eg. Regular Columns in newspapers eg. Others Note: (*) in Q1 FY24
Slide 19: 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 20: Q1 FY24: FCF lower on YoY basis
Q1 FY24: FCF lower on YoY basis FCF (Free Cash Flow)1 (0.9)Cr. Cash & Cash Equivalents1,2 (in INR Cr.) (in INR Cr.) Historical Annual 61.9 Cr. Added 14.1 Cr. YoY 14.1Cr. 30% YoY 30% Revenue increased by 8%, collections increased but FCF lower due to increased employee, rent and other expense Note: (
Slide 21: Q1 FY24: Other KPIs (1/2)
Q1 FY24: Other KPIs (1/2) Customer Accounts (#) Users (#) 9% Historical Annual Historical Annual 6% 20% 20% 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 22: Q1 FY24: Other KPIs (2/2)
Q1 FY24: Other KPIs (2/2) Contract Price (in INR Cr.) Entities Profiled, on platform (in millions) 23% Historical Annual Historical Annual 27% 13% 26% 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 Ent
Slide 23: Global Customer Base
Global Customer Base ~66% international revenue in Q1 FY24 Customers span over 50+ countries* Top 5 countries by #customer accounts*: Indian International Revenue India, USA, Singapore, Germany, UK Revenue 66% Historical annual International Revenue Share Note: (*) Based on Customer Accounts as on E
Slide 24: 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 25: Business Overview
Business Overview @Tracxn
Slide 26: 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 27: 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 28: 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 29: 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 30: 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 31: Large & Growing Market $30B+
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 32: 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 33: Q1 FY24 Detailed Financial Statements
Q1 FY24 Detailed Financial Statements
Slide 34: Profit & Loss Statement (1/2)
Profit & Loss Statement (1/2) Particulars Q1 FY24 Q4 FY23 Q1 FY23 FY23 Income Revenue from operations 19.82 20.34 18.40 78.11 Other income 0.20 0.24 0.27 1.31 Other gains/(losses) - net 0.75 0.49 0.41 1.76 Total Income 20.77 21.07 19.08 81.18 Expenses Employee benefit expense 17.38 17.58 16.17 66.98
Slide 35: Profit & Loss Statement (2/2)
Profit & Loss Statement (2/2) Particulars Q1FY24 Q4FY23 Q1FY23 FY23 Profit / (loss) for the period 0.69 24.50 0.84 33.09 Less: Other Income 0.20 0.24 0.27 1.31 Less: Other gains/(losses) - net 0.75 0.49 0.41 1.76 Add: Depreciation expense 0.04 0.07 0.02 0.19 Add: Current tax 0.05 0.12 - 0.12 Add: De
Slide 36: 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 37: 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