Slide 1: Q2 Report January - June 2024
Q2 Report JANUARY - JUNE 2024 Alan Mamedi Odd Bolin CEO CFO 2024 Q2 REPORT @truecaller @alanmamedi @Truecaller_IR
Slide 2: Agenda
Agenda 1. Quarterly Highlights 2. Financial Performance 3. Product Update 4. Summary 5. Q&A 2024 Q2 REPORT
Slide 3: Quarterly Highlights
Quarterly Highlights
Slide 4: Q2 Highlights
Q2 Highlights 397M 325M 82% Avg Monthly Active Users, MAU Avg Daily Active Users, DAU DAU/MAU Stickiness (356M) (289M) ▲12% (YoY) ▲12% (YoY) 456M 165M 213M SEK net sales (518M) SEK EBITDA¹ (239M) SEK in net cash from operating ▼-12% (YoY) ▼-31% (YoY) activities before tax payments² (251M) 1 EBITDA m
Slide 5: Q2 Business Highlights
Q2 Business Highlights Highest quarterly user growth since 2018 with significant momentum in targeted focus markets Gained 14 million MAUs with an annualized growth rate of ~40% in targeted markets such as Colombia and Nigeria All-time high quarterly revenue growth from subscriptions ● ARPPU hit an
Slide 6: 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 81% 81% 81% 81% 82% 82% 6 1. Figures represent period averages (i.e., the average of each day in the period) 6
Slide 7: Financial performance
Financial performance
Slide 8: Revenue
Revenue Total net sales Strong growth of recurring revenues but lower SEKm ad revenues due to IPL-related effects ● Ad revenues in Q2 negatively impacted by IPL timing as well as lower overall ad demand during IPL this year ● All time high growth in premium revenues and Truecaller for business reven
Slide 9: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Truecaller for Business SEKm SEKm SEKm Negative IPL impact compared to Q2 23 approximately 18% growth in number of subscribers and 29% All-time high quarterly growth of revenues -85 MSEK. Low single digit decline excluding IPL impact growth
Slide 10: IPL impact on Truecaller ad revenues
IPL impact on Truecaller ad revenues SEKm ● Truecaller’s extensive reach and performance marketing capabilities positions the company as a preferred platform for brands that want to grow their user base during the Indian Premier League in cricket (IPL) ● IPL is an important revenue driver for Trueca
Slide 11: Increase in recurring revenues
Increase in recurring revenues +33% 11 2024 Q2 REPORT Subscriptions Truecaller for Business
Slide 12: Stable gross margin
Stable gross margin Gross profit & margin (%) SEKm ● Gross profit improved compared to Q1 but declined Y/Y due to IPL-impact ● Stable gross margin development 12 2024 Q2 REPORT FINANCIAL PERFORMANCE 12
Slide 13: Cost development
Cost development SEKm • From Q2, the annual salary review increased employee expenses, but we are still conservative in terms of new recruitments, managing cost base • As communicated - Investments in growth related initiatives in selected markets will be on a higher level during 2024 compared to 20
Slide 14: Profit development
Profit development EBITDA and margin (%) SEKm ● EBITDA increased by 9% to 165 MSEK (151) compared to Q1 but declined compared to Q2 2023 due to lower IPL-revenues and higher growth investments ● EBITDA-margin improved somewhat compared to Q1 to 36% ● EBITDA-margin excl cost for incentive programs in
Slide 15: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities excluding paid Net cash flow from operating activities income tax was 213 MSEK (251), of which 11 MSEK (2) was before tax paid attributed to changes in working capital. SEKm • Cancellation of shares bought back from Q3 2022-Q
Slide 16: Financial targets
Financial targets FY 2021 FY 2022 FY 2023 H1 2024 Medium-term financial targets Targeting an average net sales 1 growth of above 45% per year Net sales growth 130% 57% -2% -2% over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 40% 41% 36% Excl. incentive costs 42%
Slide 17: Quarterly Product Update
Quarterly Product Update
Slide 18: Q2 Product Highlights
Q2 Product Highlights Core product offering Truecaller Premium AdTech and Truecaller for Business 18 2024 Q2 REPORT 18
Slide 19: Enhanced spam and fraud protection
CORE PRODUCT ENHANCEMENTS Enhanced spam and fraud protection Investments in machine learning and AI further strengthen Truecaller’s caller ID and message ID capabilities 100X+ growth in ▲100+% growth in fraudulent callers spammers identified identified 19
Slide 20: User experience improvements
CORE PRODUCT ENHANCEMENTS User experience improvements Continued improvements to the app’s UX drive more user contributions and in-app engagement ▲25% growth in in-app 1.5X more users contributing engagement insights to improve the service 20
Slide 21: Truecaller for iPhone
CORE PRODUCT ENHANCEMENTS Truecaller for iPhone User interface improvements enable smoother navigation, easier onboarding, and new ways for users to give feedback and learn about the app’s features ▲90% growth in revenue ▲65% growth in revenue from advertising on iOS from US subscriptions 21 2024 Q2
Slide 22: Sweden
Sweden 073-516 22 52
Slide 23: Significant potential for further iPhone adoption
Significant potential for further iPhone adoption TRUECALLER’S USER BASE ON iPHONE TODAY 7% 5x of all Truecaller users conversion rate to are on iPhone Premium vs. Android 40% 80% of revenue from consumer higher revenue from a subscriber subscriptions is from iPhone users on iPhone vs. Android 23
Slide 24: Product development beyond mobile
CORE PRODUCT ENHANCEMENTS Product development beyond mobile Efforts to build a broader ecosystem ensure relevant coverage across channels 24 2024 Q2 REPORT
Slide 25: Streamlined pricing strategy
PREMIUM OFFERING Streamlined pricing strategy Simplified subscription packages and optimized pricing globally drive strong adoption ▲29% growth in revenue ▲18% growth in overall from subscriptions subscriber base 25 2024 Q2 REPORT
Slide 26: Fraud insurance
PREMIUM OFFERING Fraud insurance Delivered in partnership with HDFC ERGO*, annual plan subscribers in India are now protected from financial losses due to fraudulent calls or messages * Digital theft of funds is covered under HDFC ERGO cyber sachet insurance. 26
Slide 27: Continued expansion of advertising opportunities
ADTECH SELECT ADVERTISING PARTNERS Continued expansion of advertising opportunities Supply- and demand-side initiatives improve inventory quality and access to demand for better advertiser ROI Investments in Truecaller’s in-house ad server are expected to scale branding initiatives and support innov
Slide 28: Case study Make My Trip
ADTECH The precise audience Case study segmentation and innovative ad placements led to … user growth, and the campaign was Make My Trip delivered efficiently within our benchmarks. One of India’s top online travel platforms engaged This success highlights the expertise and Truecaller to support the
Slide 29: Expansion of enterprise offering
TRUECALLER FOR BUSINESS (TfB) Expansion of enterprise offering Significant growth for Verified Business driven by new packaging, pricing and higher average revenue per account Upcoming Verified Campaigns will enhance engagement for enterprises during and after calls/messages SELECT NEW VERIFIED BUSI
Slide 30: Business messaging
TRUECALLER FOR BUSINESS (TfB) Business messaging Delivered in partnership with Tanla, business messaging continues to see growing volumes Rich media capabilities provide call-to-action click insights in real-time, enabling enterprises to understand user interactions and respond more effectively ▲50%
Slide 31: Summary
Summary
Slide 32: Q2 2024 Summary
Q2 2024 Summary ● Highest quarterly user growth since ● All-time high quarterly growth for both 2018 subscription and business revenues ● Solid traction in targeted growth ● iOS-changes will open up a huge markets untapped market from 2025 ● Ad revenue and overall revenue ● Profitability and high ca
Slide 33: Thank you
Thank you To our users, partners and the Truecaller team
Slide 34: Q&A
Q&A
Slide 35: Appendix
Appendix
Slide 36: Income Statement & Free Cash Flow
Income Statement & Free Cash Flow 36 APPENDIX 1 36
Slide 37: Balance Sheet
Balance Sheet 37 APPENDIX 2 37
Slide 38: truecaller
truecaller