Tracxn Technologies Ltd. · NSE:TRACXN
Tracxn Technologies — Q2 FY23 Earnings Presentation
48 slides from Tracxn Technologies's earnings presentation, November 2022
Slide 1: Private Market Intelligence SaaS Platform Corporate Presentation
Private Market Intelligence SaaS Platform Corporate Presentation November 2022 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved.
Slide 2: Tracxn Overview
Tracxn Overview Tracxn is a Data & Software platform for the Private Markets Globally Work with Venture Capital Firms, Private Equity Firms, Investment Banks - as well as M&A & Innovation teams of large Corporates. Global Platform, customers space 50+ countries.
Slide 3: 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 4: Our speakers today
Our speakers today Neha Singh Abhishek Goyal Prashant Chandra Chairperson and Managing Vice Chairman and Executive Chief Financial Officer Director Director
Slide 5: Tracxn – Leading global Private Market Intelligence SaaS Platform
Tracxn – Leading global Private Market Intelligence SaaS Platform# Platform 1.90 million+ 55,635 5,42,000+ scale (30th Sept, 2022) Entities profiled Investor profiles Transactions covered^ Customer KEY scale 55+ 1,155 3,365 Countries of presence # of customer accounts # of users HIGHLIGHTS (30th Sep
Slide 6: 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 Sachin Bansal Binny Bansal NRJN Family Trust 2020-21 listed company on private company 20th Oct 2022 data^ - Crossed - Crossed 2017-19 customers in 50 cus
Slide 7: Our platform (1/2)
Our platform (1/2) Amongst Top 5 Company Profile Deal Management CRM globally Detailed Taxonomy APIs in terms of number of Newsletters Analyst Ratings companies profiled^ Tracxn Score Browser Plugin One of the largest Competition Mapping Sourcing Dashboards coverage of private Transactions DB Analys
Slide 8: Our platform (2/2)
Our platform (2/2) 44 industries tracked Organized into proprietary taxonomy Quick visual market maps across the globe nodes Auto As of June 30, 2022 Consumer Goods 44 Media & Entertainment Industries Healthcare 2,000+ Private Market Financial Services Feeds Food Education ~49,900+ Taxonomy Nodes Bu
Slide 9: 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 2021* * Revenue of financial market data companies has been calculated based on the publicly available sources for key public market data co
Slide 10: 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 11: Private Market Data is a large and expanding industry
Private Market Data is a large and expanding industry Private Market Data Key User segments - Large & Growing ~100,000 addressable organizations (Nos) A large base of other users globally (as of 2021) 10,000 1,149 1,956 44,350 Hedge Funds Angel Network Family Offices Listed Entities 1,598 3,00,000 3
Slide 12: Key Highlights
Key Highlights
Slide 13: Global Customer Base
Global Customer Base ~70% international revenue in Q2FY23 Customers span over 55 countries Indian International Revenue Revenue 69% Historical annual International Revenue Share #1 Americas #2 EMEA #3 APAC (ex-India) #4 India ~29% CAGR ~29% CAGR ~43% CAGR ~29% CAGR
Slide 14: Growing base of longstanding customers
#2 Growing base of longstanding customers #1 Private Market 1.69x Investors & Investment Banks #3 Other customer categories (includes government agencies, universities, accelerators and incubators) #2 Corporations 1.88x 1.62x Bar charts represent the number of customer accounts in each category
Slide 15: 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 16: 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 ti
Slide 17: Experienced Promoters & Board of Directors
Experienced Promoters & Board of Directors Neha Singh Abhishek Goyal Vivek Kumar Mathur Chairperson and Managing Vice Chairman and Director Executive Director Non-Executive Nominee Director ▪ B.Tech. & M.Tech. from IIT ▪ B.Tech. from IIT Kanpur ▪ B.Engg. from BITS Pilani & MBA Bombay & MBA from Lela
Slide 18: 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 19: Key Strategies
Key Strategies
Slide 20: Key strategies (1/2)
Key strategies (1/2) Ways to increase our account base Historical Growth § Expanding sales, marketing & § Channel partnerships Customer Accounts customer success team Continue to grow § Additional sales and marketing 1,092 § Referrals from existing representatives in geographies account base custome
Slide 21: Key strategies (2/2)
Key strategies (2/2) Private Market AUM^ - (US$ Tn) Total Addressable Market^ - ($ Mn) Capitalize on industry 190 Mn to 200 From 52% to 65% Mn 12.50 opportunities to 9.60 CAGR 2,097 Combined market expand coverage of private companies 1,322 11.96% penetration of private worldwide. market data provid
Slide 22: Financial performance
Financial performance
Slide 23: Snapshot – Operational Performance
Snapshot – Operational Performance Customer Accounts Users Entities Profiled (Nos) (Nos) (Nos) 1.50x 1.88x 642 855 1,092 Customer Accounts refers to the distinct Users refers to the number of user Entities profiled are categorised under contracts entered into by our Company with accesses available t
Slide 24: Snapshot – Financial Performance
Snapshot – Financial Performance Revenue From Operations Contract Price^ v/s Net Operating Expenses (INR Thousand) Operating Cash Flow* (INR Thousand) (INR Thousand) 6,95,752.77 162% 140% 103% 6,34,535.12 67,981.38 5,10,391.40 70,240.14 1,456.72 85,018.88 2,523.15 4,04,577.79 5,649.38 4,37,786.71 3,
Slide 25: Q2 FY23 Financial Performance
Q2 FY23 Financial Performance
Slide 26: Q2 FY23: Financial Performance Summary
Q2 FY23: Financial Performance Summary Continued momentum of revenue & profitability growth, margin expansion, increasing FCF REVENUE PROFITABILITY OTHER Revenue from Operations Adj EBITDA Adj EBITDA Margin Free Cash Flow (H1)3 19.1 Cr 2.0 Cr 10.5% 5.3 Cr 28% YoY 3.2Cr YoY, up from Margin expanded b
Slide 27: Q2 FY23: Continued Revenue Growth Momentum
Q2 FY23: Continued Revenue Growth Momentum Revenue from Operations Total Income Historical annual (in INR Cr) (in INR Cr) Revenue from Operations (in INR Cr) 28% YoY 32% YoY 30% CAGR 23% YoY Total Income (in INR Cr) 27% CAGR Revenue from operations grew at 28% YoY. Previous 2yr annual CAGR was 30% *
Slide 28: Q2 FY23: Non-linear EBITDA Expansion
Q2 FY23: Non-linear EBITDA Expansion Adj EBITDA Adj EBITDA % Historical annual (in INR Cr) Adj. EBITDA (in INR Cr) 3.2 Cr 19% FY20 FY21 FY22 Adj EBITDA (in ₹ Cr.) (20.0) (14.3) 4.8 Adj EBITDA Margin -53.5% -32.7% 7.5% Δ - Adj EBITDA Margin +21% +40% Q2 FY23 Adj EBITDA Margin expanded by 19% (YoY), f
Slide 29: Q2 FY23: Non-linear PAT Expansion
Q2 FY23: Non-linear PAT Expansion Adj PAT Adj PAT % Historical annual (in INR Cr) Adj. PAT 3.9 Cr (in INR Cr) 22% FY20 FY21 FY22 Adj. PAT (17.2) (13.1) 6.3 Adj. PAT Margin -46.0% -29.9% 10.0% Δ - Adj PAT Margin +16% +40% Q2 FY23 Adj PAT Margin expanded by 22% (YoY), continuing the margin expansion m
Slide 30: Bulk of the incremental Revenue continues to go into bottomline
Bulk of the incremental Revenue continues to go into bottomline Historical annual: Q2 FY22 Q2 FY23 FY20 FY21 FY22 Revenue from operations 14.9 19.1 37.3 43.8 63.5 Δ - Incremental Revenue from Operations +4.2 +6.4 +19.7 Adj EBITDA (1.2) 2.0 (20.0) (14.3) 4.8 Δ - Incremental Adj EBITDA +3.2 +5.6 +19.1
Slide 31: H1 FY23: Increasing FCF
H1 FY23: Increasing FCF FCF (Free Cash Flow) Cash & Cash Equivalents H1 FY23, Adjusted for IPO Expenses* Adjusted for IPO Expenses* (in INR Cr) (in INR Cr) 4.2 Cr Historical annual 52.4Cr FCF (Free Cash Flow) In INR Cr, Adj. for IPO expense Added 7.3 Cr YoY Year FCF FY20 (15.4) FY21 (6.1) FY22 4.9 F
Slide 32: Q2 FY23: Expense Breakup (1/2)
Q2 FY23: Expense Breakup (1/2) Expense Breakup (for Q2 FY23) (in INR Cr.) Employee Benefit Expenses 16.3 Cr. 89.0% Historical annual Salaries, Wages & Bonus 14.2 Cr. 77.8% Total Expenses (in INR Cr) Employee stock option expense 1.1 Cr. 6.0% Other Employee Benefit Expenses 0.9 Cr. 5.2% FY20 FY21 FY2
Slide 33: Q2 FY23: Expense Growth (2/2)
Q2 FY23: Expense Growth (2/2) Total Expense Historical annual: (in INR Cr) 8% YoY Total Expense (in INR Cr) 4% CAGR Headcount 659 808 855 697 629 798 196 added headcount 101 added headcount High Operating Leverage: Revenue from operations in the same period increased 28% YoY
Slide 34: Q2 FY23: Other KPIs (1/2)
Q2 FY23: Other KPIs (1/2) Customer Accounts (#) Users (#) 17% 17% Note that the growth rates for account, user and revenue may vary, as the average pricing per user varies. Initial users are priced higher than subsequent users for an account.
Slide 35: Q2 FY23: Other KPIs (2/2)
Q2 FY23: Other KPIs (2/2) Contract Price (in INR Cr) Entities Profiled, on platform (in million) 24% 19% Note: Contract Price refers to the gross invoice value towards services to be provided for a given period of time adjusted for any refund liabilities, as agreed under the subscription agreement w
Slide 36: Thanks
Thanks
Slide 37: Annexures
Annexures
Slide 38: Profit & Loss Statement (1/2)
Profit & Loss Statement (1/2) Change Particulars Q2FY23 Q1FY23 Q2FY22 FY 2022 FY 2021 FY 2020 YoY% Income Revenue from operations 19.11 18.40 14.90 28% 63.45 43.78 37.33 Other income 0.55 0.27 0.26 115% 1.10 1.02 0.09 Other gains/(losses) - net 0.42 0.41 0.08 397% 0.61 10.94 (31.11) Total Income 20.
Slide 39: Profit & Loss Statement (2/2)
Profit & Loss Statement (2/2) Change Particulars Q2FY23 Q1FY23 Q2FY22 FY 2022 FY 2021 FY 2020 YoY% Profit / (Loss) for the year (PAT) 1.54 0.8 (4.83) (4.85) (5.35) (54.03) Less: Other Income 0.55 0.3 0.26 115% 1.10 1.02 0.09 Less: Other gains/(losses) - net 0.42 0.4 0.08 397% 0.61 10.94 (31.11) Add:
Slide 40: Balance Sheet (1/3)
Balance Sheet (1/3) Change Particulars Q2FY23 Q1FY23 Q2FY22 FY 2022 FY 2021 FY 2020 YoY% ASSETS Non-current assets Property, plant and equipment 0.39 0.34 0.16 140% 0.27 0.27 0.57 Intangible assets - - - - - - - Current tax assets (net) 3.66 5.07 3.45 6% 4.53 2.57 2.22 Other non-current assets - - 0
Slide 41: Balance Sheet (2/3)
Balance Sheet (2/3) Change FY Particulars Q2FY23 Q1FY23 Q2FY22 FY 2021 FY 2020 YoY% 2022 EQUITY AND LIABILITIES Equity Equity share capital 10.03 10.03 9.81 2% 10.03 0.11 0.11 Instruments entirely equity in nature - - 0.04 -100% - 0.79 0.09 Other equity Reserves and surplus 15.67 12.95 7.96 97% 10.6
Slide 42: Balance Sheet (3/3)
Balance Sheet (3/3) Change Particulars Q2FY23 Q1FY23 Q2FY22 FY 2022 FY 2021 FY 2020 YoY% LIABILITIES Non-current liabilities Financial liabilities i. Other financial liabilities - - - - - - 169.17 Contract liabilities 0.23 0.11 0.08 179% 0.11 0.09 - Employee benefit obligations 3.66 3.48 3.19 15% 3.
Slide 43: Cash Flow statement (1/2)
Cash Flow statement (1/2) Change Particulars H1’23 H1’22 FY 22 FY 21 FY 20 YoY% Cash Flow from Operating Activities: Restated profit / (loss) before Income Tax 2.46 (5.55) (4.85) (5.35) (54.03) Adjustments for: Depreciation expense 0.67 0.10 -35% 0.15 0.25 0.56 Net (gain)/loss on disposal of Propert
Slide 44: Cash Flow statement (2/2)
Cash Flow statement (2/2) Change Particulars H1’23 H1’22 FY 22 FY 21 FY 20 YoY% Cash Flow from Investing Activities: Payments for purchase of property, plant and equipment (0.20) - (0.16) - (0.02) Proceeds from sale of property, plant and equipment - - - 0.01 - Funds invested in bank deposits (0.36)
Slide 45: Team Split
Team Split As on 30 June, 2022 Number of Function Employees Data Operations team across various data modules like financials, cap tables, transactions, company data, etc; Sector-focused Analyst team; and MyAnalyst Analysts and Data Operations 447 Support team Product and Technology 81 Engineering an
Slide 46: Distribution Engine
Distribution Engine Marketing Team ● Content-driven acquisition flywheel. ~No paid ● Public pages across categories like companies, investors, people LEAD GENERATION and reports. ● Industry reports & vertical newsletter Sales Team LEAD ● Inside sales based. ~Round-the-clock coverage of time zones CL
Slide 47: Source of Data
Source of Data Key sources of data: Mining, Curation, Standardization and Publicly available data about companies making it actionable using Technology 1 (company websites) & People Have build a Google for Companies at the backend, where we track & mine data of over 0.7Billion entities, adding ~79,0
Slide 48: Definitions
Definitions (1) Customer Accounts refers to the distinct contracts entered into by our Company with each customer at the time of measurement. Paid subscriptions may include access for a single or multiple number of Users of the customer (2) Users refers to the number of activated user accesses avail