Truecaller: Record Quarter Despite Macroeconomic Headwinds
Truecaller, the leading global platform for verifying contacts and blocking unwanted communication, is proud to report an increase in net sales of 8 percent combined with an increase of adjusted EBITDA of 9 percent to SEK 238,5 million for the second quarter. The EBITDA margin was 46 percent and profit after tax amounted to SEK 205.9 (172.7 in the second quarter of 2023.
“Truecaller’s second quarter was our strongest quarter to date in terms of number of users as well as revenue and profit. I am especially proud that we accomplished this despite macroeconomic challenges which are putting pressure on demand for advertising and declining sales of new smartphones.
Demand for our products are increasing and our user growth has accelerated. During the quarter, we had an average of 355.6 million (321.4) monthly users. Our growth in daily active users is the highest since the end of 2020. Growth in markets outside our largest markets – India as well as Africa and the Middle East – is at a record high. In selected growth markets like Malaysia, Indonesia, Colombia, Chile and the US the annualized growth rate in Q2 was above 30 percent. Our long term focus to build an even stronger value proposition to increase the daily engagement per daily active user is showing great results, and we see features such as Commenting, AI Assistant, Smart SMS to name a few features, generating significantly higher engagement and long term retention.
Quarterly revenue amounted to SEK 518.4m (480.4). All revenue streams, ads, subscriptions and Truecaller for Business grew healthy. Revenue from Truecaller for Business grew the fastest.
EBITDA amounted to SEK 238.5m (218.5), corresponding to an EBITDA margin of 46.0 percent (45.5).
On a seasonal basis, the second quarter is strong for our largest revenue source, ad revenues. In total, ad revenues amounted to SEK 425.2m (414.2). Just like last year, demand for digital advertising grew sharply during India’s largest sporting event, the Indian Premier League (IPL) in cricket. The impact of the IPL was just as strong this year as in 2022, while advertising demand in general remains lower than last year. General demand has stabilized, and at this point we expect neither a further weakening nor a significant improvement compared to the end of the first quarter.
The rise of Artificial Intelligence (AI) is an important change driver for our business. Impersonations, phishing attempts and overall sophistication of scams is increasing rapidly across a wider variety of channels due to the use of AI based technologies. We are adapting our solutions to better enable consumers and businesses to protect themselves.
In summary, we are reporting Truecaller’s strongest quarterly profit ever with accelerating user growth. Seasonally, the second quarter is strong, but in general ad demand is lower than last year and economic conditions and their impact on the advertising market remain difficult to predict. The weaker advertising market that we saw the effects of from the fourth quarter of 2022 persists, but demand has stabilized.”, says Alan Mamedi, CEO of Truecaller.