Truecaller AB Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Rame Coria - Danske Bank - Analyst : Yeah, thank you guys and thank you for taking my questions. I have a few, if I may, maybe we do them one by one. First off, on the subscription side, it's quite encouraging to see the rest of the world sort of constituting almost 50% of revenues and RO levels are quite a bit higher than the group average in that segment. And now you allude to sort of iOS initial. A subs intake being outside of India. So could you shed some light on, which countries you are seeing the subscriber intake in if you, if you've, well, secondly, if you've given any discounts to initial iOS subscribers, and maybe if we sort of lift our site a little bit, how should we reason around iOS or moving forward given all the moving parts here?

Question: Rame Coria - Danske Bank - Analyst : And maybe a follow up to that, Richard. I mean, if you look into the coming few quarters, should we expect sort of India and call it a diluted markets such as Egypt growing, as a share of iOS subscriber intake, or should we extrapolate the April trend here? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 11:00AM, TRUEb.ST - Q1 2025 Truecaller AB Earnings Call

Question: Rame Coria - Danske Bank - Analyst : Okay, and then looking at the advertising revenue composition, you did qualitatively provide us a commentary about CPM being up sequentially, and to my knowledge, that is the first time Q1 CPM is above Q4, and I can see the impact from direct sales and new ad formats, but conversely, it seems like ad impressions in that case is down quite a bit sequentially. Is that by design or are there any other aspects that I'm forgetting here?

Question: Rame Coria - Danske Bank - Analyst : Yeah, it makes sense. So but if I rephrase a little bit, is there any sort of intention of decreasing ad load over time as recurring revenue share of total growth just to improve user experience and maybe attract incremental users, so to say, is there or is that not a part of the agenda here?

Question: Rame Coria - Danske Bank - Analyst : Okay, makes sense. And then a final one, if I may, guys, on the topic of marketing expenses, how, it's a pretty significant step up sequentially into Q1. How should we think of sort of continued market expenses moving forward? Are they going to increase from from Q1 levels or how should we think about them?

Question: Rame Coria - Danske Bank - Analyst : Very clear. Mm, that's very clear. Thank you so much, guys.

Question: Akhil. Deanni - JPMorgan - Analyst : Yeah, hi, good afternoon. Thanks for taking the questions. I'll go one by one as well if I can. Can I just start by asking on the iOS disclosure you've given this quarter? You mentioned that you've managed to sign up 55,000 customers onto the paying premium, subscription. I guess I just wondered if we could get a couple of bits of clarification around that. The first is could you maybe help us understand, are you seeing any particularly bias in terms of mix across markets in terms of where those ads are coming? And you said it would be steady momentum that you'd expect, but as we think about the next couple of months, I mean, is that a reasonable starting point? Is that something similar you're expecting? Just any sort of color on how you think about the phasing of how this momentum will run to the base, that would be my first question, please.

Question: Akhil. Deanni - JPMorgan - Analyst : No, I get that. Yeah, it would imply about 900,000, right, because you said it's 6% off month to month. So I guess the base is more like 900,000, I guess, right?

Question: Akhil. Deanni - JPMorgan - Analyst : So I guess what I was trying to understand is how that run rate, how we should think about the run rate. Going forward.

Question: Akhil. Deanni - JPMorgan - Analyst : Okay, and is there any sort of geographic bias you're seeing at the moment in the early days?

Question: Akhil. Deanni - JPMorgan - Analyst : Fine, okay. The second one is just on the down to mile ratio and you mentioned obviously the very strong ratio you have on the total base, but actually if I look at the numbers based on the including IOS and excluding iOS numbers and therefore back out the IOS specific ratio, it's obviously a lot lower. It's about 40%. So obviously there's a lot lower daily util utilization rate. I just wondered what you can do because I guess if you're trying to incentivize customers to upsell on to premium, part of that mechanism would presumably be to drive up utilization. So can you sort of help us understand, what can you do and what are you doing to Incentivize customers to move up the stack and use the service more.

Question: Akhil. Deanni - JPMorgan - Analyst : Great, thanks. And then just one financial question around FX. So you've mentioned SEK 9 million FX hit in the quarter, you've also alluded that on current spot rates, the currency impact would be greater. I just wondered if you might be willing to quantify if we were to see spot rates stay where they are today, what the implied FX drag would be for the rest of the year.

Question: Akhil. Deanni - JPMorgan - Analyst : Makes sense. And can I just ask, is the impact very different at EBIT data because I guess it's going to depend a bit on your cost allocation things like that. So when you're giving us these numbers, how should we understand the translation from top line to earnings?

Question: Viktor Lindstrom - Nordea - Analyst : Hi, all done. Thank you for taking my question. So I, I'll follow up here on the premium sales, but on non non iOS units which seems to that they grew 31% year year and how far have you would you say you've come here in improving the conversion rates for for non-iOS, platforms.

Question: Viktor Lindstrom - Nordea - Analyst : Right, thank you. And then, I have a follow up. I did send another one. If you look at the ad revenue per per Dow in in the rest of the world here, it was down 20% here year. Is there any particular reason for that or? Just seasonality. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 11:00AM, TRUEb.ST - Q1 2025 Truecaller AB Earnings Call

Question: Viktor Lindstrom - Nordea - Analyst : Okay, thank you. All for me.

Question: Predrag Sainovic - Carnegie - Analyst : Hi Richard, thanks for taking my questions. Can you give some more color on how ads started for the second quarter and how you see the state of the ad market currently compared to say one year ago or even one quarter ago. I'll start there.

Question: Predrag Sainovic - Carnegie - Analyst : Okay, and can you unpack a little bit more on the new ad formats and how direct sales, change? I know you don't like to discuss pricing and so on, but obviously higher reach ad formats should have an incrementally positive contribution over time. How, this affects you in the quarter. Are there any puts and takes here?

Question: Predrag Sainovic - Carnegie - Analyst : And what about the kind of pricing differential between such formats compared to bannerats which you have previously been having? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 11:00AM, TRUEb.ST - Q1 2025 Truecaller AB Earnings Call

Question: Predrag Sainovic - Carnegie - Analyst : Okay, thank you, and you don't want to quantify the dramatic increase. I mean, if you compare that to say what you fetch for a [banra] generally if it's a 510 or something X.

Question: Predrag Sainovic - Carnegie - Analyst : And then on the growth in business, can you unpack this also a little bit around discussing the pricing and your customers and growth with existing customers to kind of understand the three growth drivers that.

Question: Predrag Sainovic - Carnegie - Analyst : Okay, and finally on the risk intelligence product you just mentioned it again and you made a call out around a 4 folded uptake compared to last quarter. Is this meaningful in terms of revenue contribution now and what are your expectations or interest levels on this product that you see that can impact you for for the coming quarters? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 11:00AM, TRUEb.ST - Q1 2025 Truecaller AB Earnings Call

Question: Predrag Sainovic - Carnegie - Analyst : Okay, very good. Thank you very much.

Question: Erik Larsson - SEB - Analyst : Thank you and good afternoon. I just have a follow-up question on B2B here because for the past two years we've seen flattish growth in Q1 versus Q4, and I think you've mentioned some seasonality playing in here historically, but now the sequential growth is really strong. So has anything really changed here, or should we see it as the underlying growth coming up a bit?

Question: Stephen Gorin - D&B - Analyst : Yes, hello. I'm just trying to get some more flavor on the iOS conversion. So you have around 31 million monthly active users on iPhone. Of this you are now approaching 900,000 premium users. So all these 31 million, how many have installed the latest version? How many have tried the premium version? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 11:00AM, TRUEb.ST - Q1 2025 Truecaller AB Earnings Call And what what share of those who have tested have converted to becoming paying users. So any flavor that you can give here is much appreciated.

Question: Stephen Gorin - D&B - Analyst : Okay, and then just follow up on the growth investments, I think you answered earlier, but, let's see. So after the Q4 you stated that your growth investments should increase with around 50% to 100% run rate at the end of 2025. Now growth investments increased SEK20 million year over year, and this was mainly due to the iOS launch and then you commented that you shouldn't expect these growth investments to increase significantly from from this level. Do I understand that correctly?

Question: Stephen Gorin - D&B - Analyst : Yes, and then what traditional, I mean, given that this was quite a dramatic increase compared to Q1 last year, how should we think about overall growth investments for the coming quarter plan?

Question: Stephen Gorin - D&B - Analyst : But that run rate is still valid compared to the SEK150 million. Yes okay, perfect. Thank you.

Question: Boris Nogoroj - Cantor Fitzgerald - Analyst : Thank you. I just have a couple of quick remaining questions. Did you see any traction in the new iOS app from users who are not yet premium users previously, or was the bulk of the traction from the existing premium users? And just to follow up on the same one, if correct me if I'm wrong here, 7% to 8% of your user base is iOS, and I think you said 43% of the revenue, subscriber revenue is iOS. Could you provide a geographical split of the same metrics for the rest of the regions?

Question: Boris Nogoroj - Cantor Fitzgerald - Analyst : Okay, that's for both the user base and the revenue I guess.

Question: Boris Nogoroj - Cantor Fitzgerald - Analyst : All right, the other question I had is on the staff cost. I think we touched upon it just on the previous question. I think compared to Q4 is slightly higher in terms of the staff cost, excluding incentive costs. So apart from the yearly salary increases that you mentioned in your prepared remarks in Q2, what further level of staff investments do you expect for the rest of the year?

Question: Boris Nogoroj - Cantor Fitzgerald - Analyst : Okay, thank you.