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-June 2023
Interim Report January-June 2023 Alan Mamedi, CEO & Odd Bolin, CFO @truecaller, @alanmamedi, @Truecaller_IR
Slide 3: Agenda
Agenda 1. Quarterly Highlights 2. Product Update 3. Financial Performance 4. Summary 5. Q&A
Slide 4: Quarterly Highlights
Quarterly Highlights
Slide 5: Q2 Highlights
Q2 Highlights 356M 289M 81% Avg Monthly Active Users, Avg Daily Active Users, DAU¹ MAU¹ (321M) (255M) DAU/MAU Stickiness ▲13% (YoY) ▲16% (YoY) 518M 239M 251M SEK net sales (480M) SEK adjusted EBITDA² (218M) SEK in net cash from operating ▲8% (YoY) ▲9% (YoY) activities before tax payments³ (285M) 1 F
Slide 6: Q2 Business Highlights
Q2 Business Highlights Accelerated user growth | Highest growth of DAU’s since end of 2020. Highest ever growth in RoW-regions driven by growth regions Southeast Asia and Latin America. ATH DAU/MAU ratio. IPL boosts Ad-income | Strong traction on Truecaller during IPL, increased demand and pricing a
Slide 7: Improved user growth; stemming from many regions
Improved user growth; stemming from many regions Monthly Active Users1 Daily Active Users1 (Millions, Q-average) (Millions, Q-average) % of MAUs 80% 79% 79% 80% 81% 81% 1. Figures represent period averages (i.e., the average of each day in the period) 7
Slide 8: Quarterly Product Update
Quarterly Product Update
Slide 9: Our holistic platform enables a trusted and secure communication experience
Our holistic platform enables a trusted and secure communication experience 1 2 For Consumers For Businesses All-in-one Help businesses grow communication suite by reaching their creating trust and customers effectively efficiency for more than 356 million active Select clients users 9
Slide 10: Q2 Product Highlights
Q2 Product Highlights Core product offering Truecaller Premium AdTech & Truecaller for Focused efforts on stronger Expansion of Cloud Telephony Business AI enhanced fraud protection products with Call Recording Continued development and launch of Assistant in India of Ads and Truecaller for Business
Slide 11: AI Enhanced Fraud Protection
Core offering | Premium | AdTech & Truecaller for Business FOCUSED EFFORTS ON STRONGER FRAUD PROTECTION AI Enhanced Fraud Protection Further leveraged on-device machine learning algorithms to proactively identify and flag fraudulent SMS messages. Unsafe links within SMS messages are automatically disa
Slide 12: Call Recording on iOS
Core offering | Premium | AdTech & Truecaller for Business EXPANSION OF CLOUD TELEPHONY PLATFORM Call Recording on iOS Call Recording on Truecaller was launched in the US and Australia. Includes call transcribing, automatic call subject creation, and the choice of saving the recordings on either the
Slide 13: AI Assistant launched in India
Core offering | Premium | AdTech & Truecaller for Business EXPANSION OF CLOUD TELEPHONY PLATFORM AI Assistant launched in India Truecaller Assistant was launched in the Indian market on Android end of Q2. The integration of Hindi marked a milestone, being the first time an additional language was inco
Slide 14: Solid execution on our ads product roadmap
Core offering | Premium | AdTech & Truecaller for Business BUILDING A FULL STACK GLOBAL ADS PLATFORM Solid execution on our ads product roadmap to service a wider portfolio of advertisers and advertising objectives; from branding to performance. Focus on more controllable factors like ad tech capabil
Slide 15: Optimizing the ad inventory on the iOS platform
Core offering | Premium | AdTech & Truecaller for Business iOS ADS PLATFORM Optimizing the ad inventory on the iOS platform has grown the iOS ad revenue by 190% YoY . High-yielding ad formats indicates higher-quality ads with higher CPMs. iOS ads monetisation being further strengthened to leverage pr
Slide 16: Case study Xiaomi
Core offering | Premium | AdTech & Truecaller for Business EVOLVING TOWARD A FULL STACK ADS SOLUTION Case study Xiaomi Goal: Drive substantial traffic for the online reveal event of Xiaomi's Redmi A2 series smartphones. Approach: Truecaller presented Xiaomi with a new opportunity—a custom 1-hour pan In
Slide 17: Truecaller for Business (TfB)
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) Introduced a new Call Management API and webhook Alerts infrastructure to manage a series of processes using the same number and create more personalized communication for their customers. Launched an upgraded an
Slide 18: Financial performance
Financial performance
Slide 19: Revenue
Revenue Total net sales ● Growth in all revenue streams, strong SEKm seasonal impact on Ads from IPL: ○ Cricket IPL increased demand and pricing. Underlying demand for online ads at same level as end of Q1, no further weakening ○ Increasing share of users converted into premium ○ Truecaller for Busi
Slide 20: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Truecaller for Business SEKm SEKm SEKm • Strong demand due to IPL had a seasonal positive • 21% growth in number of subscribers • Strong growth - increased no of price effect and demonstrated the potential for customers and deepened • Positiv
Slide 21: Gross profit
Gross profit Gross profit & margin (%) ● Gross margin improved QoQ SEKm ● Gross profit increased by 21 million SEK Y/Y ● Decreased gross margin YoY mainly due to increased costs for hosting, servers and new customer verification ● Focus continues on efficiency improvements in COGS, investment in cloud ser
Slide 22: Opex and adjustments
Opex and adjustments SEKm • Costs YoY stable excl incentive costs, and costs materially lower compared to Q3-Q4 2022 • Yearly salary revision impacted employee expenses in Q2 and onwards. No of FTEs remained flat from Q1. • 11 MSEK in costs for incentive programs. Potential volatility on social secur
Slide 23: Adjusted EBITDA
Adjusted EBITDA Adj. EBITDA and margin (%) SEKm • All-time-high profit achieved by growth in all revenue streams and stable cost level • Adjusted EBITDA margin 46% – second highest quarterly margin in a challenging macro environment • Lean operations creates operating leverage and substantial potenti
Slide 24: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities was 205 MSEK (281), of which 2 MSEK (62) was attributed to changes in working capital. Net cash flow from operating activities before tax paid • Net cash flow from operating activities excluding paid income tax SEKm was 251 MSEK (
Slide 25: Financial targets
Financial targets FY 2021 FY 2022 H1 2023 Q2 2022 Q1 2023 Q2 2023 Medium-term financial targets Targeting an average net sales 1 growth of above 45% per year Net sales growth 130% 57% 3% 100% -3% 8% over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 40% 43% 45% 39% 4
Slide 26: Summary
Summary
Slide 27: Q2 Summary
Q2 Summary ● All-time high revenues, profit and user base ● Accelerated user growth across markets; strong development in India and especially RoW. Strong development in our focus growth markets. ● Positive Ads IPL performance boosts Ads income and demonstrates the potential for Ads once general dema
Slide 28: Focus on building an even stronger position
Focus on building an even stronger position ● Continue to innovate on the product and ad platform to grow user base and scale when demand improves ● Exciting roadmap with focus on fraud prevention and new income levers in Truecaller for Business ● Increase conversion to the premium product through n
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 [Batanceshect Non-current assets Current receivables Short term placements Cash & cash equivalents Current assets. TOTAL ASSETS Total equity Liability arising from defined-benefit pension plans Lease liability Deferred tax liability Other non-current liabilities Total non-cu
Slide 34: Truecaller
truecaller