Increased focus on recurring revenues
Truecaller, the leading global platform for verifying contacts and blocking unwanted communication, increased EBITDA with 24% to SEK 169 million (136) and the EBITDA margin was 39.7% (30.6%) in the fourth quarter. Earnings per share increased with 43% to 0.33 SEK (0.23) while net sales decreased with 4% to SEK 424.7 million (444.1).
“During the fourth quarter, our user base grew by six million, landing at an average of 374 million monthly active users. The trend of high growth rates outside of India continued. During the quarter, we saw higher relative growth in regions outside of India and the Middle East. India continues to be an important market for us, and we continue to be one of the most loved apps in the market. We are proud to have reached a new all-time high in our Net Promoter Score in India, ending the quarter at an NPS of 62. The growth rate in the number of paying users was almost twice as high as that for the total user base.
Net sales amounted to SEK 425 million (444), a decrease with 4% compared to the same quarter in 2022, as a result of a 12% decrease in revenue from our advertising business. Our recurring revenues from businesses increased by 42%, and consumer subscription revenues increased by 23%.
Our profitability and cash flow continued to be strong. EBITDA increased by 24 percent to SEK 169 million (136), and the EBITDA margin was 40% (31%). Earnings per share increased by 43% to SEK 0.33 (0.23). The operational cash flow amounted to SEK 170 million (46) for the quarter.
The fourth quarter was the strongest yet for Truecaller for Business in terms of customer uptake. The customer base now consists of more than 2,500 larger companies, and the trend of customers opting for higher-priced plans continues.
Our balance sheet remains solid with SEK 1.6 billion in cash and short-term investments and 25.3 million repurchased shares, providing stability and flexibility contributing to long-term shareholder value. Since the end of the third quarter of 2022, our cash flow has enabled us to repurchase shares totaling SEK 842 million and make small acquisitions while maintaining a stable cash position. With the financial strength at hand, the board has decided to propose to the annual general meeting to cancel the repurchased B shares, which currently represent 6.7% of the total outstanding shares, and request a new repurchase mandate
During 2024 we will increase our focus to develop AI-based features to prevent fraud, grow our user base and recurring revenues with the long-term ambition to make them a much larger share of our total revenues.” says Alan Mamedi CEO of Truecaller
October-December 2023 (Q4)
Comparative figures refer to October-December 2022
● Net sales decreased by 4 percent to SEK 424.7m (444.1).
● Adjusted EBITDA amounted to SEK 168.5m (135.9), corresponding to an adjusted EBITDA margin of 39.7 (30.6) percent. Excluding the costs of incentive programs, adjusted EBITDA would have been SEK 170.5m (145.7), equivalent to an adjusted EBITDA margin of 40.1 (32.8) percent.
● Profit after tax amounted to SEK 116.2m (85.5).
● Basic earnings per share were SEK 0.33 (0.23) and diluted earnings per share were SEK 0.33 (0.23).
● The average number of active users (MAU) increased by 35.8 million to approximately 374.1 million (338.2).
● Net sales decreased by 1 percent in India, by 15 percent in the Middle East and Africa and by 8 percent in the rest of the world.
● Truecaller's board of Directors has decided to propose to the Annual General Meeting (AGM) in May to cancel all repurchased B-shares and request a new mandate to have the ability to continue to repurchase shares after the AGM.
January-December 2023
Comparative figures refer to January-December 2022
● Net sales decreased by 2 percent to SEK 1,728.9m (1,772.9)
● Adjusted EBITDA amounted to SEK 702.9m (717.2), corresponding to an adjusted EBITDA margin of 40.7 (40.5) percent. Excluding the costs of incentive programs, adjusted EBITDA would have been SEK 742.7m (747.3), equivalent to an adjusted EBITDA margin of 43.0 (42.2) percent.
● Profit after tax amounted to SEK 536.3m (535.2).
● Basic earnings per share were SEK 1.49 (1.43) and diluted earnings per share were SEK 1.49 (1.43).
● The average number of active users (MAU) increased by 35.3 million to approximately 360.5 million (325.2).
● Net Sales decreased by 1 percent in India, by 13 percent in the Middle East and Africa and stable in the rest of the world.
Presentation of the report
Alan Mamedi, CEO and Odd Bolin, CFO presents the report and answers questions in a webcast and conference call today at 13.00 CET. The presentation will be held in English.
If you wish to participate via webcast please use the link below.
https://ir.financialhearings.com/truecaller-q4-report-2023/register
If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=50047335
For more information, please contact:
Odd Bolin, CFO
Andreas Frid, Head of IR & Communication
+46 705 29 08 00
andreas.frid@truecaller.com
This information is information that Truecaller is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact persons set out above, at the time stated by the Company’s news distributor, Cision, at the publication of this press release.
About Truecaller:
Truecaller (TRUE B) is the leading global platform for verifying contacts and blocking unwanted communication. We enable safe and relevant conversations between people and make it efficient for businesses to connect with consumers. Fraud and unwanted communication are endemic to digital economies. especially in emerging markets. We are on a mission to build trust in communication. Truecaller is an essential part of everyday communication for more than 374 million active users, with more than a billion downloads since launch and around 50 billion unwanted calls identified and blocked in 2022. Headquartered in Stockholm. since 2009. we are a co-founder led. entrepreneurial company. with a highly experienced management team. Truecaller is listed on Nasdaq Stockholm since 8 October 2021. For more information. please visit corporate.truecaller.com
Tags:
