Truecaller Ab Class B · OMXSTO:TRUE_B
Truecaller Ab Class B — Q4 2022 Earnings Presentation
34 slides from Truecaller Ab Class B's earnings presentation, 2023
Slide 1: Our vision
OUR VISION To make tomorrow's communication smarter, safer and more efficient. 1
Slide 2: Year-end Report January-December 2022
Year-end Report January-December 2022 Alan Mamedi, CEO & Odd Bolin, CFO @truecaller, @alanmamedi
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: Q4 Highlights
Q4 Highlights 338M 271M 80% Avg Monthly Active Users, Avg Daily Active Users, DAU¹ MAU¹ (300M) (237M) DAU/MAU Engagement ▲13% (YoY) ▲14% (YoY) 444M 136M 169M SEK net sales (392M) SEK adjusted EBITDA (196M) SEK in net cash from operating ▲13% (YoY) Adjusted EBITDA margin of activities before tax paym
Slide 6: Q4 Business Highlights
Q4 Business Highlights Continued user growth across markets on both Android and iOS. 14th most downloaded app globally; continued strong position in India with all- time high in customer satisfaction. Ads platform further enhanced, enabling significant increase in ad impressions. Income on Truecaller
Slide 7: Continued growth in user base; average MAU up 38M YoY
Continued growth in user base; average MAU up ▲38M YoY Monthly Active Users1 Daily Active Users1 (Millions, Q-average) (Millions, Q-average) % of MAUs 78% 79% 80% 79% 79% 80% 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 300 million active Select clients users 9
Slide 10: Q4 Product Highlights
Q4 Product Highlights Core product offering Truecaller Premium AdTech & Truecaller for Engagement-driven product Initiatives to streamline paid Business enhancements across offering and drive subscription Continued development Truecaller on Android and growth of Ads and Truecaller for iPhone Business
Slide 11: Machine learning developments
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR ANDROID Machine learning developments Community feedback opportunities continue to drive strong user engagement while serving as valuable input to contextual information provided by AI Identity Smart SMS now sends intelligent r
Slide 12: Scam and fraud protection initiatives
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR ANDROID Scam and fraud protection initiatives The new Government Services Directory helps users in India to seamlessly connect with the government through easy access to verified contacts Market-specific intelligence distributed
Slide 13: Continued improvements to the new iPhone app
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR iPHONE Continued improvements to the new iPhone app AI Identity strengthened on iPhone to help users with contextual information on who is calling Community feedback opportunities through name suggestions, comments and up/down
Slide 14: Ad-free and Family plans
Core offering | Premium | AdTech & Truecaller for Business STREAMLINED PAID OFFERING Ad-free and Family plans The Ad-free plan gives specific user segments the opportunity to have access to select premium features at a more accessible price Family Plan allows users to add up to four people on a single
Slide 15: Growth and adoption initiatives
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER PREMIUM ON IPHONE AND ASSISTANT Growth and adoption initiatives Improvements to the user interface on the iPhone app facilitate a smoother checkout process Truecaller Assistant has gained traction since its recent launch, with stro
Slide 16: Improvements to Truecaller's proprietary advertising platform
Core offering | Premium | AdTech & Truecaller for Business ADTECH Improvements to Truecaller’s proprietary advertising platform resulted in the growth of impressions by over 36%, as well as improvements in ads engagement and click-through rates Initiatives to build out the demand side platform contin
Slide 17: Truecaller for Business website improvements
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) Continued improvements to the TfB website and investments in operational efficiency facilitate enable a faster onboarding process for new business customers Select new Verified Business logos 17
Slide 18: Enterprise-facing product development
Core offering | Premium | AdTech & Truecaller for Business TRUECALLER FOR BUSINESS (TfB) Enterprise-facing product development Business profiles enable customers to reinforce their brand and help route organic traffic to their digital channels Truecaller continues to build out its technical capabilities
Slide 19: Financial performance
Financial performance
Slide 20: Revenue
Revenue Total net sales ● Net sales growth impacted by global SEKm macro, but we still grow income due to: ○ Growth in monetizable ad impressions per user ○ Growth of number of premium users ○ Continued growth of Truecaller for Business 20
Slide 21: Revenue by service type
Revenue by service type Advertising Consumer subscriptions Other SEKm SEKm SEKm • Lower pricing caused by lower demand due to • Growth in number of subscribers by • Continued strong momentum for global macro 18% Truecaller for Business • Continuous improvements in in-house capabilities • Growth on b
Slide 22: Gross profit
Gross profit Gross profit & margin (%) ● Gross margin increased somewhat SEKm Q/Q ● Gross profit increased by 9% Y/Y ● Decreased gross margin Y/Y due to ● Improved transparency about COGS from demand partners who previously reported only net figures ● Increased costs for new customer verification, hostin
Slide 23: Opex and adjustments
Opex and adjustments SEKm • Temporary increase in marketing costs due to larger marketing campaigns during Q4 • 10 MSEK in costs for incentive programs. Potential volatility on social security costs for RSUs as share price increases/decreases • Other external expenses consists of marketing, user- an
Slide 24: Adjusted EBITDA
Adjusted EBITDA Adj. EBITDA and margin (%) SEKm • Adjusted EBITDA decreased due to macro and increased marketing spend in Q4 • Adjusted EBITDA margin decreased to 31%; if excluding temporary marketing campaigns, the EBITDA-margin was 39% • Adjusted EBITDA excl cost for incentive programs was 33% • I
Slide 25: Cash flow and financial position
Cash flow and financial position • Net cash flow from operating activities was 46 MSEK (159), of which 23 (-15) was attributed to changes in working capital. Net cash flow from operating activities • Net cash flow from operating activities excluding paid income tax before tax paid was 169 MSEK (164) MSEK
Slide 26: Financial targets
Financial targets FY2021 FY 2022 Q4 2021 Q3 2022 Q4 2022 Medium-term financial targets Targeting an average net sales Net sales growth 1 130% 57% 111% 44% 13% growth of above 45% per year over the medium term (2021E-2024E) Long-term financial targets Adj. EBITDA margin 42% 40% 50% 40% 31% Excl. incent
Slide 27: Summary
Summary
Slide 28: Q4 Summary
Q4 Summary ● Continued user growth across markets; strong development on iOS. ● Subdued macro decreased demand for advertising, which affected pricing. Numerous improvements to our app and ad platform counteracted the macroeconomic effect to some extent. ● Strong development for subscriptions and True
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 Balancesheet FY2020 FY2021 Fy2022 Q22021 Q32021 = 42021 = a2022 = a2 2022 Q3 2022 Q4 2022 H Hl ; Non-current assets 162.0 125.1 253.9 152.9 139.8 125.1 196.7 196.4 240.1 253.9 | f Current receivables 78.6 179.3 362.2 98.0 153.2 179.3 208.8 203.7 246.1 362.2 : Short term plac
Slide 34: Truecaller
truecaller