Slide 1: Our vision: smarter, safer and more efficient communication
OUR VISION To make tomorrow's communication smarter, safer and more efficient. 1
Slide 2: Interim Report January-September 2023
Interim Report January-September 2023 Alan Mamedi, CEO & Odd Bolin, CFO @truecaller, @alanmamedi, @Truecaller_IR
Slide 3: Summary
Summary
Slide 4: Agenda
Agenda 1. Quarterly Highlights 2. Product Update 3. Financial Performance 4. Summary 5. Q&A
Slide 5: Quarterly Highlights
Quarterly Highlights
Slide 6: Q3 Highlights
Q3 Highlights 368M 298M 81% Avg Monthly Active Users, MAU¹ Avg Daily Active Users, DAU¹ (331M) (261M) DAU/MAU Stickiness ▲11% (YoY) ▲14% (YoY) 399M 146M 189M SEK net sales (450M) SEK EBITDA² (182M) SEK in net cash from operating ▼11% (YoY) ▼20% (YoY) activities before tax payments³ (179M) 1 Figures
Slide 7: Q3 Business Highlights
Q3 Business Highlights Continued strong user growth + 12m MAU’s | 2nd consecutive quarter with all-time high growth outside of India and MEA | MAU/DAU ratio stable at 81% Increased conversion to subscriptions, revenue growth of 19% and subscriber growth of 20%. Strong traction on iOS and from roll-o
Slide 8: 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 79% 79% 80% 81% 81% 81% 1. Figures represent period averages (i.e., the average of each day in the period) 8
Slide 9: Quarterly Product Update
Quarterly Product Update
Slide 10: Q3 Product Highlights
Q3 Product Highlights Investments in Fraud Prevention Focus Truecaller Premium AI technology Continued development of Adoption of Cloud Telephony An improved Caller ID and features and services to products increases globally, spam detection experience, strengthen fraud protection and and conversion
Slide 11: Improved Caller ID and Spam Detection
Core offering | Premium | AdTech & Truecaller for Business INVESTMENTS IN AI TECHNOLOGY Improved Caller ID and Spam Detection Continued improvements in AI Identity technology to leverage artificial intelligence and machine learning models to provide an improved Caller ID and spam detection experienc
Slide 12: Increased Efforts in Proactive Fraud Prevention
Core offering | Premium | AdTech & Truecaller for Business FURTHER INVESTMENTS TO ENHANCE USER EXPERIENCE AND COMBAT FRAUD Increased Efforts in Proactive Fraud Prevention The Message ID feature now includes an additional layer of protection, alerting users to the risks of sharing OTPs when they rece
Slide 13: Assessing the Potential Impact of New Data Privacy Regulation
Core offering | Premium | AdTech & Truecaller for Business INVESTMENTS IN AI TECHNOLOGY Assessing the Potential Impact of New Data Privacy Regulation Large-scale tests performed to better understand the potential impact on user experience in a worst-case scenario where some data might need to be adj
Slide 14: Assistant Plan India
Core offering | Premium | AdTech & Truecaller for Business IMPORTANT IMPROVEMENTS TO PREMIUM OFFERING AND CONVERSION Assistant Plan India Adoption of Truecaller Assistant has seen considerable growth globally, marking more than a 5x increase Q-o-Q, driven by the launch in India. Advancing in the rig
Slide 15: iOS Key Driver of Growth
Core offering | Premium | AdTech & Truecaller for Business IMPORTANT IMPROVEMENTS TO PREMIUM OFFERING AND CONVERSION iOS Key Driver of Growth Outpacing the growth in monthly active users (MAUs) with a 13% increase QoQ for subscriptions. Call Recording, was launched in three more countries during the
Slide 16: New Ad Formats
Core offering | Premium | AdTech & Truecaller for Business INNOVATING SUPPLY VIA IN-HOUSE AD TECH New Ad Formats ● Click-to-Video: Engaging user experiences post-click. ● Sponsored Bubbles & Animated Ads: Dynamic visuals on the after-call screen. ● Carousel Ads: Interactive, rich content display. Se
Slide 17: Case study Amazon Prime
Core offering | Premium | AdTech & Truecaller for Business INNOVATING SUPPLY VIA IN-HOUSE AD TECH Case study Amazon Prime The campaign's objective was to increase awareness and foster user engagement through an innovative approach. The strategy was to break the clutter and give an immersive experien
Slide 18: The Verified Business Solution
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) The Verified Business Solution Business Messaging continues to redefine how verified businesses interact with their customers on Truecaller. In the third quarter, over 2 billion messages were sent on the platfor
Slide 19: Fraud Prevention Focus
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) Fraud Prevention Focus Risk Intelligence API - a scoring engine that provides enterprises with an assessment of risk associated with a mobile number. With the integration of TrustCheckr’s capabilities, we are se
Slide 20: Financial performance
Financial performance
Slide 21: Revenue
Revenue Total net sales ● Continued weak ads market SEKm impacts total revenue, but increasing recurring revenues; ○ Ads demand low but stable, comps impacted by strong demand in Q3 2022. ○ Increasing share of users converted into premium. ○ Truecaller for Business continues its steady growth. 21
Slide 22: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Truecaller for Business SEKm SEKm SEKm General demand continued to be weak, much 20% growth in number of subscribers and Strong growth for verified business calls lower than 2022 (slowdown from mid Q4 2022) 19% growth in revenues continues b
Slide 23: Gross profit
Gross profit Gross profit & margin (%) ● Stable gross margin development SEKm but lower gross profit due to slower ads demand ● Some negative effect from increased server and verification costs Y/Y, due to growth of users and engagement, but costs have stabilised during 2023 thanks to continued focu
Slide 24: Cost development
Cost development SEKm • Lower costs Y/Y - with growing user base • Number of FTEs relative stable. Annual salary review included from Q2, TrustChekr addition to have some impact from Q4 (7 new employees) • Lower other external expenses Y/Y, consists of marketing, user- and data acquisition, and othe
Slide 25: Adjusted EBITDA
Adjusted EBITDA Adj. EBITDA and margin (%) SEKm • Adjusted EBITDA margin reached 36.6% (40.3%) due to lowe revenue • Adjusted EBITDA excl cost for incentive programs was 40.5% (42.5%) and YTD 44% • Nine out of the 10 latest quarters EBITDA-margin been >35% and YTD the margin is 41% • Lean operations
Slide 26: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities was 126 MSEK (162), of which 30 MSEK (-8) was attributed to changes in working Net cash flow from operating activities capital. before tax paid SEKm • Net cash flow from operating activities excluding paid income tax was 189
Slide 27: Financial targets
Financial targets FY 2021 FY 2022 YTD 2023 Medium-term financial targets Targeting an average net sales 1 growth of above 45% per year Net sales growth 130% 57% -2% over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 40% 41% Excl. incentive costs 42% 42% 44% Targeti
Slide 28: Q3 Summary
Q3 Summary ● 2nd quarter in a row with +12m MAU’s and all time-high growth in RoW ● Solid results in tests ahead of new data legislation In India ● Stable demand for Ads during 2023 but negative effect Y/Y ● Solid growth development for recurring revenues (Subs and TfB) ● Profit margin of 37% above
Slide 29: Thank you
Thank you To our users, partners and the Truecaller team for a great quarter 🎉
Slide 30: Q&A
Q&A
Slide 31: Appendix
Appendix
Slide 32: Income Statement & Free Cash Flow
Appendix 1 Income Statement & Free Cash Flow 32
Slide 33: Balance Sheet
Appendix 2 Balance Sheet [Balanceshet FY2020 Fy2021 FY2022 2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 H 1 Non-current assets 162.0 125.41 253.9 196.4 240.1 253.9 255.6 2804 | 2821 | : ' ' H Current receivables 78.6 179.3 362.2 203.7 246.1 362.2 260.4 3082 | 3044 | Short term placements. 150.1 40
Slide 34: truecaller
truecaller