Slide 1: Q3 Report January - September 2024
Q3 Report JANUARY - SEPTEMBER 2024 Alan Mamedi Odd Bolin CEO CFO 2024 Q3 REPORT @truecaller @alanmamedi @Truecaller_IR
Slide 2: Agenda
Agenda 1. Quarterly Highlights 2. Financial Performance 3. Product Update 4. Summary 5. Q&A 2024 Q3 REPORT
Slide 3: Quarterly Highlights
Quarterly Highlights
Slide 4: Q3 Highlights
Q3 Highlights 413M 337M 81% Avg Monthly Active Users, MAU Avg Daily Active Users, DAU DAU/MAU Stickiness (368M) (298M) ▲12% (YoY) ▲13% (YoY) 457M 167M 166M SEK net sales (399M) SEK EBITDA¹ (146M) SEK in net cash from operating ▲15% (YoY) ▲15% (YoY) activities before tax payments² (189M) 1 EBITDA mar
Slide 5: Q3 Business Highlights
Q3 Business Highlights All-time high in absolute user growth Gained 16 million MAUs QoQ with an annualized growth rate of ~40% in targeted markets such as Colombia and Nigeria Return in growth of advertising revenue ● Healthy development in MEA-region ● Gradual roll out of new, higher-CPM formats -
Slide 6: All-time high user growth
All-time high user growth Monthly Active Users1 Daily Active Users1 (Millions, Q-average) (Millions, Q-average) % of MAUs 81% 81% 81% 82% 82% 81% 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 All revenue streams contributed to growth in SEKm revenues ● Ad revenues returned to growth ● Strong trend in recurring revenues continues ● Negative FX impact on revenues compared to Q3 2023 - strengthened SEK vs. INR, NGN and EGP 8 2024 Q3 REPORT FINANCIAL PERFORMANCE 8
Slide 9: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Truecaller for Business SEKm SEKm SEKm Growth of impressions - increased user base, 19% growth in number of subscribers Strong growth for both Verified Business (VB) higher engagement and improved platform and Business Messaging All-time hig
Slide 10: Recurring revenues surpassed 500 SEKm annualized
Recurring revenues surpassed 500 SEKm annualized +35% 10 2024 Q3 REPORT Subscriptions Truecaller for Business
Slide 11: Improved gross margin
Improved gross margin Gross profit & margin (%) SEKm ● Gross profit +18% Y/Y and gross margin improved to 77% (75%) ● Focus on efficiency for server costs and verification costs contributed positively ● New iOS product is expected to increase server cost somewhat going forward 11 2024 Q3 REPORT FINA
Slide 12: Cost development
Cost development SEKm ● Seasonal lower staff expenses, cautious stance on new recruitments ● Continued growth investments in selected markets ● 2024 incentive programme impacted incentive costs, volatile due to dependence on share price ● Tax rate 25.5% (29.0) in the quarter and YTD 24.7% (24.3) - i
Slide 13: Profit development
Profit development ● EBITDA increased by 15% to 167 MSEK EBITDA and margin (%) (146) SEKm ● EBITDA-margin 37%, improved Q/Q and stable Y/Y. ● EBITDA-margin excl cost for incentive programs in Q2 was 40.6% (40.5%) ● FX-effects had a negative impact on profit margins Y/Y ● EBIT increased by 16% to 155
Slide 14: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities excluding Net cash flow from operating activities paid income tax was 166 MSEK (189), of which -20 before tax paid SEKm MSEK (30) was attributed to changes in working capital. • Authorisation to buy back 10% of outstanding sh
Slide 15: Financial targets
Financial targets FY 2021 FY 2022 FY 2023 YTD 2024 Medium-term financial targets Targeting an average net sales 1 growth of above 45% per year Net sales growth 130% 57% -2% 3% over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 40% 41% 36% Excl. incentive costs 42%
Slide 16: Quarterly Product Update
” - Qua rterly ‘ Product Update , 4 Es : a | truecaller
Slide 17: Q3 Product Highlights
Q3 Product Highlights Core product offering Truecaller Premium AdTech and Truecaller for Business 17 2024 Q3 REPORT 17
Slide 18: Initiatives driving retention and engagement
CORE PRODUCT ENHANCEMENTS Initiatives driving retention and engagement Upgrades to Truecaller’s Calling and Messaging features have led to higher user engagement and more efficient use of ad inventory ▲10% increase in ads ▲35% growth in in-app CTR on Calls tab during engagement the quarter 18
Slide 19: Rewards Program
CORE PRODUCT ENHANCEMENTS Rewards Program The launch of a global Rewards Program on Android uses gamification to further boost user engagement 19
Slide 20: AI-generated Message ID
CORE PRODUCT ENHANCEMENTS AI-generated Message ID The expansion of large language models (LLMs) to SMS enables better message identification and summarization >290 million messages from businesses identified and summarized daily 20
Slide 21: Truecaller on WearOS
CORE PRODUCT ENHANCEMENTS Truecaller on WearOS The launch of the app for Android smart watches allows users to identify calls, block spam, and make calls directly from their wrist Top 5 Wear OS app in 143 markets 21 2024 Q3 REPORT
Slide 22: Expansion of Premium offering
PREMIUM OFFERING Expansion of Premium offering The launch of a streamlined pricing strategy earlier in the year has driven overall adoption, while the addition of features such as Verified status in India attract more Android users to the paid offering ▲25% growth in revenue ▲19% growth in overall f
Slide 23: Truecaller Assistant
PREMIUM OFFERING Truecaller Assistant The Assistant was rebuilt from the ground up, harnessing the power of custom LLMs to deliver truly intelligent conversations while transforming automated call handling into natural, human-like interactions 3X faster responses from the Assistant 23
Slide 24: Truecaller for iPhone
PREMIUM OFFERING Truecaller for iPhone Spam auto-blocking is now available for Premium users on iPhone and blocks calls from known spammers, fraudsters and telemarketers automatically ▲57% growth in revenue from iPhone subscribers 24
Slide 25: Continued expansion of advertising opportunities
ADTECH Continued expansion of advertising opportunities Supply- and demand-side initiatives widen access to demand, and improve inventory quality for better advertiser ROI The introduction of high-CPM interstitials and rewarded ads, coupled with advancements in video capabilities, have driven ad eng
Slide 26: Continued development of enterprise offering
TRUECALLER FOR BUSINESS (TfB) Continued development of enterprise offering Strategic pricing and packaging continue to drive growth, with notable contributions from RoW markets SELECT NEW VERIFIED BUSINESS LOGOS 26 2024 Q3 REPORT
Slide 27: Summary
Summary
Slide 28: Q3 2024 Summary
Q3 2024 Summary ● All-time high in user growth ● New iOS-product to be launched in Q4 ○ Strategy will be on premium monetization ● Ad revenue returned to growth ● Profitability and high cash conversion ● Strategy to focus on recurring creates room for dividend, buy-backs revenues continues to develo
Slide 29: Thank you
Thank you To our users, partners and the Truecaller team
Slide 30: Q&A
Q&A
Slide 31: Appendix
Appendix ' q N . . ) f |
Slide 32: Income Statement & Free Cash Flow
Income Statement & Free Cash Flow 32 APPENDIX 1 32
Slide 33: Balance Sheet
Balance Sheet 33 APPENDIX 2 33
Slide 34: Truecaller
truecaller