Tracxn Technologies Ltd. · NSE:TRACXN
Tracxn Technologies — Q3 FY24 Earnings Presentation
42 slides from Tracxn Technologies's earnings presentation, Jan 31, 2024
Slide 1: Private Market Intelligence Platform
Private Market Intelligence Platform Q3 & 9M FY24 Investor Presentation 31st January 2024 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 3
Slide 4: Q3 & 9M FY24 Financial Performance
Q3 & 9M FY24 Financial Performance 4
Slide 5: Q3 FY24: Financial Performance Summary
Q3 FY24: Financial Performance Summary Steady growth in Revenue and Profitability REVENUE PROFITABILITY Revenue from Operations EBITDA EBITDA Margin 21.1 Cr. 1.9 Cr. 8.8 % 4.4% YoY 1.1 Cr. YoY Margin increased by 4.9% from Q3 FY23 Total Income PAT PAT Margin* 22.2 Cr. 2.2 Cr. 10.5 % 6.0% YoY 0.8 Cr.
Slide 6: 9M FY24: Financial Performance Summary
9M FY24: Financial Performance Summary Steady growth in Revenue and Profitability REVENUE PROFITABILITY OTHER Revenue from Operations EBITDA EBITDA Margin Free Cash Flow1 62.5 Cr. 3.9 Cr. 6.3 % 6.7 Cr. 8.1% YoY 2.0 Cr. YoY Margin increased by 3.0% 1.1 Cr. YoY, down from 9M FY23 from 9M FY23 Total In
Slide 7: 9M FY24: Continued Revenue Growth
9M FY24: Continued Revenue Growth Revenue from Operations Total Income (in INR Cr.) (in INR Cr.) 8% 9% Historical Annual Historical Annual 34% 34% CAGR CAGR Revenue from operations grew at 8% YoY for 9M FY24 7 Note: (*) Total Income net of for Fair value gain/ (loss) on CCPS for FY21
Slide 8: 9M FY24: Profitable Operations - EBITDA & PAT
9M FY24: Profitable Operations - EBITDA & PAT EBITDA Excluding (in INR Cr.) non-cash ESOP expense this is Historical Annual 7.1 Cr. 9M FY24 EBITDA of 3.9Cr. and PAT of 5.1Cr. Note EBITDA & PAT includes non-cash expenses (eg. ESOP exp) PAT Excluding non-cash (in INR Cr.) items - ESOP exp. and tax set
Slide 9: 9M FY24: Continued Margin Expansion
9M FY24: Continued Margin Expansion EBITDA Margin Historical Annual 9M FY24 EBITDA Margin of 6.3%. and PAT Margin of 8.1%. EBITDA Margin expanded by 3.0% YoY PAT Margin Q3 FY24 PAT Margin of 10.5%, Historical Annual highest quarterly PAT margin seen till date 9 Note: (*) Net of for Fair value gain/
Slide 10: Significant Incremental Revenue continues going into Bottomline
Significant Incremental Revenue continues going into Bottomline Historical Annual: Q3FY24 9MFY23 9MFY24 FY 21 FY 22 FY 23 Revenue from operations 21.1 57.8 62.5 43.8 63.5 78.1 Incremental Revenue from Operations (Δ) +0.9 +4.7 +6.4 +19.7 +14.7 EBITDA excl IPO Expense 1.9 1.9 3.9 (17.1) (1.9) 2.6 Incr
Slide 11: 9M FY24: Expense Breakup
9M FY24: Expense Breakup Total Expense (in INR Cr.) Total Expense - Breakup (for 9MFY24) (in INR Cr.) Employee Benefit Expenses 51.5 Cr. 87.7% 5% Historical Annual Salaries, Wages & Bonus 47.3 Cr. 80.6% Employee stock option expense 3.2 Cr. 5.4% 11% CAGR Other Employee Benefit Expenses 1.0 Cr. 1.7%
Slide 12: Expense growth eased (1/2)
Expense growth eased (1/2) Total Expense (in INR Cr.) Historical Annual Expense growth rate had increased from 16 % 7% in FY22 to 16% in FY23, primarily due to 7% increase in headcount. It has now eased back to 5% in 9MFY24 (down from 16% in 9M FY23) YoY Growth Rate 12
Slide 13: Expense growth eased (2/2)
Expense growth eased (2/2) Avg. Headcount* Trend for last 5 Quarters Expense growth rate eased to 5% YoY primarily due to decrease in headcount Expense remained flat YoY for Q3 FY24 Headcount had increased last year due to growth initiatives, and subsequently has been optimized due to automation & e
Slide 14: Private Markets - Quick snapshot (1/4)
Private Markets - Quick snapshot (1/4) Global Tech Funding India Tech Funding (in USD Bn.) (in USD Bn.) GLOBAL TECH FUNDING: at a 6yr low # Unicorns created globally # Unicorns created in India LATE-STAGE FUNDING: (proxy # new unicorn rounds) Decline is more, at a 7yr low Source: Internal Estimates
Slide 15: Private Markets - Quick snapshot (2/4)
Private Markets - Quick snapshot (2/4) Global M&A deal value and IB fees at its lowest Global M&A (in USD Tn.) GLOBAL M&A: Lowest in 10yr M&A advisory fees (in USD Bn.) IB M&A ADVISORY FEES: One of the lowest in the last 10yr 15 Source: Report on Global Mergers and Acquisitions Review and Report on
Slide 16: Private Markets - Quick snapshot (3/4)
Private Markets - Quick snapshot (3/4) 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 • Alread
Slide 17: Private Markets - Quick snapshot (4/4)
Private Markets - Quick snapshot (4/4) Some signs of recovery in private markets as well Global Tech Funding (in USD Bn.) YoY Growth Rate India Tech Funding (in USD Bn.) 17 Source: Internal Estimates YoY Growth Rate
Slide 18: We continue to see Greenshoots
We continue to see Greenshoots Deferred Revenue (in INR Cr.) Historical Annual Quarterly 23% CAGR YoY Growth Rate 18 Note: (*) Adjusted for proforma billing of newly onboarded accounts wherein invoice is raised after payment is received
Slide 19: Platform engagement looks healthy
Platform engagement looks healthy Usage continues to follow upward trend Trend of platform usage metrics in terms of # of Exports and Myanalyst queries ~2X Despite lower external deal activity, customers’ platform engagement looks healthy (Customer exports & myanalyst queries have almost doubled ove
Slide 20: Growth Initiatives
Growth Initiatives GTM Funnel • Also, we have been investing across LEAD GENERATION: various growth initiatives Marketing • These span across the Go-to-market funnel of marketing, sales and account expansion LEAD • We believe as the markets open up CLOSURE: Sales further, we should see more accelera
Slide 21: Select Recent Growth Initiatives
Select Recent Growth Initiatives Organic Search Traffic* 1 Scaling Organic Traffic & Inbound Leads (in millions) Pipeline ~7X ● We have built a large organic inbound traffic funnel ● Over 9 Million visits in FY23 ● In 9MFY24 alone this was 12.2 million visits (~7x increase in 3 years) 21 Note: (*) S
Slide 22: Select Recent Growth Initiatives
Select Recent Growth Initiatives 22. Increased Press Mentions: Through various media partnerships, data contributions, reports, etc. 2300+ Press Mentions across media* Eg. Report coverage eg. Regular Columns in newspapers eg. Others 22 Note: (*) in 9M FY24
Slide 23: Select Recent Growth Initiatives
Select Recent Growth Initiatives 31. Expanding coverage of Company Financials & Captables Private Company • Currently cover private company financials across 20+ countries and captables across 15+ countries Financials Currently across 20+ Countries • Seeing demand for this data - especially from Pri
Slide 24: Select Recent Growth Initiatives
Select Recent Growth Initiatives 44. Expansion & Engagement Initiatives Various initiatives are underway for improving paid customer engagement as well as account expansion to enhance growth from existing customers. Setup a separate team for expansion within existing accounts, mainly by increasing p
Slide 25: 9M FY24: FCF and Cash & Cash Equiv.
9M FY24: FCF and Cash & Cash Equiv. FCF (Free Cash Flow)1 Cash & Cash Equivalents1,2 (in INR Cr.) 1.1Cr. (in INR Cr.) Historical Annual 70.3 Cr. Added 14.9 Cr. YoY 27% YoY FCF lower due to pending tax refunds Note: (1) Free Cash Flow and Cash & Cash equiv. excludes tax amounts received from employee
Slide 26: 9M FY24: Other KPIs (1/2)
9M FY24: Other KPIs (1/2) Customer Accounts (#) Users (#) Historical Annual 3% Historical Annual 4% 20% 20% CAGR CAGR User count got optimized also due to tightening of logins 26 Note: Customer Accounts and Users are as on respective end of period
Slide 27: 9M FY24: Other KPIs (2/2)
9M FY24: Other KPIs (2/2) Contract Price Entities Profiled, on platform (in INR Cr.) (in millions) 11 % 26% Historical Annual Historical Annual 27% 26% CAGR CAGR 27 Note: Entities Profiled are as on respective end of period (*) Adjusted for proforma billing of newly onboarded accounts wherein invoic
Slide 28: Global Customer Base
Global Customer Base 66% international revenue in 9M 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 28 Note: (*) Based on Customer Accounts as on
Slide 29: Diverse Customer Base
Diverse Customer Base Customer segments & departments that we work with Corporate Private Corp Dev / Venture Equity M&A Teams Capital Venture Investment Government Companies Capital Banking Agencies Family Corporate Consulting Offices Innovation Accelerator Digital Corporate Universities & Incubator
Slide 30: Business Overview
OOOO EEE @Tracxn Business Overview 30
Slide 31: 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 32: Significant cost advantages from India-based operations
Significant cost advantages from India-based operations Europe N.America Asia Significant cost advantage due to make-in-India. Especially: Middle East India • Data-production & technology platform is built from India Africa • Global sales happens from India (sales & support teams S.America Australia
Slide 33: 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 Stanford Graduate Un
Slide 34: 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 Univers
Slide 35: 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 36: 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* 36 Note: (*) Revenue of key public market data companies has been calculated based on the publicly available sources and internal esti
Slide 37: 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 38: Q3 FY24 Detailed Financial Statements
Q3 FY24 Detailed Financial Statements 38
Slide 39: Profit & Loss Statement (1/2)
Profit & Loss Statement (1/2) Particulars Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23 FY23 Income Revenue from operations 21.14 21.49 20.25 62.46 57.77 78.11 Other income 0.05 0.03 0.25 0.28 1.07 1.31 Other gains/(losses) - net 1.02 0.95 0.45 2.73 1.28 1.76 Total Income 22.22 22.48 20.95 65.47 60.11 81.
Slide 40: Profit & Loss Statement (2/2)
Profit & Loss Statement (2/2) Particulars Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23 FY23 Profit / (loss) for the period 2.22 2.17 6.21 5.08 8.59 33.09 Less: Other Income 0.05 0.03 0.25 0.28 1.07 1.31 Less: Other gains/(losses) - net 1.02 0.95 0.45 2.73 1.28 1.76 Add: Depreciation expense 0.04 0.04 0.0
Slide 41: 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 42: Thank You
Company Information Address : 2nd Floor, L-248, 17th Cross, Sector 6, HSR Layout, Bangalore - 560102 Thank You CIN : L72200KA2012PLC065294 Corporate Presentation: Link For any queries, please contact: Email ID : investor.relations@tracxn.com www.tracxn.com/investor-relations 42