Third quarter 2022: Continued growth with good profitability and strong cash flow
Truecaller, the leading global platform for verifying contacts and blocking unwanted communication, is proud to report growth in net sales of 44 percent combined with an adjusted EBITDA margin of 40.3 percent in the third quarter of 2022.
“Demand and need for our services continue to grow globally. The average number of monthly active users was 331 million during the quarter, an increase of 40 million compared to the preceding year. In relative terms, we are growing fastest in Africa and South America, but India, our largest market, is still showing the strongest growth in absolute numbers. Our good financial performance continues. Net sales increased by 44 percent to SEK 450.1 million with an adjusted EBITDA margin of about 40 percent. All three revenue streams – Ads, Truecaller for Business, and Premium subscriptions – contributed to the revenue growth. The operational leverage in our model is high and EBITDA amounted to SEK 181.5 million for the quarter and operating cash flow to SEK 162 million. Accumulated operating cash flow is SEK 564.3 million for the year and we now have SEK 1.9 billion available in cash and short-term investments. The strong cash position is a major strength in uncertain times like these and creates scope for exciting potential opportunities like for example user- or company acquisitions.
During the quarter we launched our new app for iOS, which quickly increased our daily active users on the platform to new record levels. As Android phones are dominant in our most important markets, we have not historically focused on iOS. Creating better conditions for long-term growth in iPhone-dominated markets is a key component of our growth strategy. We integrated and launched our new AI-driven Assistant service during the quarter as part of the Premium offering for Android and iOS in the US. The service, made possible through the acquisition of CallHero, gives our users even better opportunities to filter out scam and marketing calls, but also gives everyone the opportunity to get their own digital assistant that can answer all of their calls. Demand remains strong for our business offering among business customers and the trend of entering into longer contracts persists. We now have active customers in 34 countries and seven of the most valuable brands in India are now Truecaller customers.
We still have numerous opportunities to increase the engagement in our app and continue to improve our ad platform to display ads to our users more effectively. We will continue to make improvements that can help us to increase our revenues per user even when the external macroenvironment is more challenging. Our continued growth, combined with our strong financial profile, enables us to continue investing in future growth while using part of cash flows to optimize our capital structure through the share buyback program which began in late September. This while maintaining an EBITDA margin which is in line with our financial targets. Even in these more uncertain times, I remain highly optimistic about the future", says Alan Mamedi, CEO of Truecaller.
July-September 2022 (Q3)
Comparative figures refer to July-September 2021.
● Net sales were up 44 percent to SEK 450.1m (312.6) compared to the same quarter last year.
● Adjusted EBITDA amounted to SEK 181.5m (117.7), corresponding to an adjusted EBITDA margin of 40.3 (37.6) percent. Excluding costs for incentive programs adjusted EBITDA would have been SEK 191.5m (118.3), equivalent to an adjusted EBITDA-margin of 42.5 (37.9) percent.
● Profit after tax of SEK 143.3m (2.3).
● Basic earnings per share were SEK 0.38 (0.01) and diluted earnings per share were SEK 0.38 (0.01).
● Profit for the quarter was not affected by any items affecting comparability, but such items reduced profit for Q3 2021 by SEK -77.2m. The items affecting comparability in 2021 comprised preparations for the IPO of SEK -15.2m and synthetic options of SEK -62.0m.
● The number of monthly active users (MAU) increased by 14 percent to around 330.9 million (291.1).
● Sales growth was 56 percent in India, 9 percent in the Middle East and Africa and 29 percent in the rest of the world.
January-September 2022
Comparative figures refer to January-September 2021.
● Net sales were up 80 percent to SEK 1328.8m (736.7) compared to the same period last year.
● Adjusted EBITDA amounted to SEK 581.3m (276.3), corresponding to an adjusted EBITDA margin of 43.7 (37.5) percent. Excluding costs for incentive programs adjusted EBITDA would have been SEK 601.6m (277.0), equivalent to an adjusted EBITDA-margin of 45.3 (37.6) percent.
● Profit after tax of SEK 449.7m (120.0).
● Basic earnings per share were SEK 1.20 (0.55) and diluted earnings per share were SEK 1.20 (0.34).
● Profit for the quarter was not affected by any items affecting comparability, but such items reduced profit for the same period in 2021 by SEK -106.6m. The items affecting comparability in 2021 comprised preparations for the IPO of SEK -30.0m and synthetic options of SEK -76.6m.
● Sales growth was 100 percent in India, 36 percent in the Middle East and Africa and 39 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 CET. The presentation will be held in English.
Follow the presentation live:
To listen to the presentation by phone, please call:
SE: +46850558354
UK: +443333009030
US: +16467224956
For more information, please contact:
Odd Bolin, CFO
Andreas, 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 330 million active users, with more than half a billion downloads since launch and around 38 billion unwanted calls identified and blocked in 2021. Headquartered in Stockholm, since 2009, we are a co-founder-led, entrepreneurial company, with a highly experienced management team. Truecaller has been listed on Nasdaq Stockholm since 8 October 2021. For more information, please visit corporate.truecaller.com
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