Strong development for user growth and recurring revenues
Truecaller, the leading global platform for verifying contacts and blocking unwanted communication, report a decrease in net sales of 11 percent to SEK 398.7 million (450.1) combined with an adjusted EBITDA of SEK 145.8 million for the third quarter (181.5). The EBITDA margin was 36.6 percent and profit after tax amounted to SEK 105.0 million (143.3).
“During the third quarter our user base grew by another 12 million monthly active users and reached an average of 368 million monthly active users. Consumer subscriptions grew almost twice as fast as the total user base, increasing both our recurring revenues and revenue per user. Strong growth in Truecaller for Business also contributes to a more stable revenue profile going forward. Ads sales continue to be muted, due to adverse macroeconomic conditions, but our profitability and cash flow continues to be strong, even as we invest in both user growth and product improvements in order to be able to benefit from a future upturn in ads demand.
Our total revenues decreased by 11% to SEK 399 million (450) compared to the same quarter 2022. While revenues from our advertising business decreased by 20%, income from our other revenue streams grew at a solid pace, with subscription revenue increasing by 19% and Truecaller for Business revenue increasing by 55%.
In a challenging macroeconomic environment, our focus continues to be on delivering strong profit margins and driving efficiency through both improved technology and operational excellence. This quarter, the EBITDA-margin was 37% and EBITDA amounted to SEK 146 million (182). Truecaller continues to have a very strong cash flow profile due to the high operating leverage in the business, and in nine out of the ten last quarters, our EBITDA-margin has exceeded 35%.
Our balance sheet remains solid with SEK 1.6 bn in cash and short-term placements and 19.4 million repurchased shares, which creates stability and freedom of action to pursue interesting M&A opportunities, further buy-backs, and/or investments that contribute to long-term shareholder value.
Overall, I´m very proud of the progress we have made this quarter in product development, diversifying our revenue streams, and the continued user growth across many markets. This demonstrates that Truecaller and its services remain highly relevant, regardless of broader economic trends. Truecaller addresses a growing global issue, and we remain committed to investing in further growth in our existing and new markets to provide more value for our shareholders and, most importantly, our users in the long term.” says Alan Mamedi CEO of Truecaller.
July-September 2023 (Q3)
Comparative figures refer to July-September 2022
● Net sales decreased by 11 percent to SEK 398.7m (450.1) compared to the same quarter last year.
● Adjusted EBITDA amounted to SEK 145.8m (181.5), corresponding to an adjusted EBITDA margin of 36.6 (40.3) percent. Excluding costs for incentive programs adjusted EBITDA would have been SEK 161.5m (191.5), equivalent to an adjusted EBITDA-margin of 40.5 (42.5) percent.
● Profit after tax amounted to SEK 105.0m (143.3).
● Basic earnings per share were SEK 0.29 (0.38) and diluted earnings per share were SEK 0.29 (0.38).
● The average number of monthly active users (MAU) increased by 36.9 million to 367.8 million (330.9).
● Net sales decreased by 12 percent in India, by 18 percent in the Middle East and Africa and was stable in the rest of the world.
January-September 2023
Comparative figures refer to January-September 2022
● Net sales decreased by 2 percent to SEK 1,304.2m (1,328.8) compared to the same period last year.
● Adjusted EBITDA amounted to SEK 534.4m (581.3), corresponding to an adjusted EBITDA margin of 41.0 (43.7) percent. Excluding costs for incentive programs adjusted EBITDA would have been SEK 572.3m (601.6), equivalent to an adjusted EBITDA-margin of 43.9 (45.3) percent.
● Profit after tax amounted to SEK 420.1m (449.7).
● Basic earnings per share were SEK 1.16 (1.20) and diluted earnings per share were SEK 1.16 (1.20).
● The number of average monthly active users (MAU) increased by 35.1 million to 356.0 million (320.9).
● Net sales decreased by 1 percent in India, by 12 percent in the Middle East and Africa and increased by 5 percent 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 CEST. The presentation will be held in English.
Follow the presentation live:
If you wish to participate via teleconference please register on this link. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
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 368 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
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