Truecaller AB Q3 2024 Earnings Call Transcript

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

Question: Predrag Savinovic - Carnegie - Analyst : Hi, Alan. Hi Odd, good afternoon. Start with the, with, with the ad side. It's encouraging to see that ads are growing again. But in India specifically, there seems to be lots of ads flushing in the last 12 years, I think you call it supply inflation. Do you see that this trend is easy now or stop paying? Like for example, we saw a method report that they seem to be stabilizing quite a bit in terms of inventory. Is this something you are experiencing as well. And how could this affect you in the coming quarters then?

Question: Predrag Savinovic - Carnegie - Analyst : Okay. Sounds good. And on true quality business, you made price adjustments. You announced those in in the last quarter. How have new sales developed since, since you made this change? And given the tenure of the contracts, this does entail then that the revenue growth all else equal should improve even further from this level as customers mature into the new pricing contract. Right?

Question: Predrag Savinovic - Carnegie - Analyst : That sounds great. And finally, just based on the presentation, you just held the numbers achieved this Q3, it sounds like this growth return could be consistent going forward. Is there any reason to believe that the growth recovery or trajectory will look any different than Q4, Q1, Q2 and so on?

Question: Predrag Savinovic - Carnegie - Analyst : Okay. Thank you very much.

Question: Stefan Gauffin - DNB - Analyst : Yes. Hello, I have two IOS related questions. First of all, you mentioned that you plan to make this premium product. So how do you plan to convert existing IOS users to become paying users? And how should we think about timing relating to this? Secondly, you say that you have chosen this strategy due to the ability to generate ad revenues is more restricted on iPhone and on Android. So, can you just explain why that is?

Question: Stefan Gauffin - DNB - Analyst : Okay, perfect. Thank you.

Question: John Karidis - Deutsche Bank - Analyst : Thank you. Thank you. I've got three questions, please. The first one for Odd, I think the other two are for Alan. Odd when you said that the FX win headwind is 5%. I, I don't really understand what that means. Does it mean that had, had you not had that headwind the revenue growth instead of being 15% would have been 20% or if not, what does that mean, please?

Question: John Karidis - Deutsche Bank - Analyst : That's correct. Great. Thank you. And then, Alan, the first of all regarding you and Nami leaving the company, it's sort of clearly disappointing and one sort of wonders two things. The first one is, isn't the job there, your jobs there big enough for you. Why would you be leaving? And more importantly, for shareholders, there's this concern that a few quarters after you leave, there's going to be a significant share overhang for Truecaller. Maybe I can ask you to answer this and then I'll have one more, please.

Question: John Karidis - Deutsche Bank - Analyst : Thank you, Alan. I'll miss you too. Then lastly forgive me, this is a very blunt question, the stock is down 10% the day after you promote the MD of India to become Truecaller' s MD or Global Chief Executive, the Indian tax authorities raid Truecaller and this looks really bad optically, beyond what you've said in the press release, is there anything else you can give us to tell us to give some sort of comfort, given also what the share price is doing just now.

Question: John Karidis - Deutsche Bank - Analyst : Understood. Thank you very much, Alan and Nami, the best of luck.

Question: Bharath Nagaraj - Cantor Fitzergald - Analyst : Hi. Thank you for taking my questions. First one is how confident are you that the CPMs for banner ads will ever return to, let's say better levels compared to today. What's your base case trajectory for the banner ads? CPMs?

Question: Bharath Nagaraj - Cantor Fitzergald - Analyst : Thank you. That's actually useful background. The second, the second question I had is with regards to I think, Odd you said that you will continue to invest in digital marketing, even going forward to grow the user base and also the subscriptions. How do we kind of quantify that for 2025 related to 2024 please?

Question: Bharath Nagaraj - Cantor Fitzergald - Analyst : Understood. And is that sorry, just a quick follow up? Is that like an on an absolute basis that you're saying that you continue to invest at the same level? Or is that like, are you measuring it some other way?

Question: Bharath Nagaraj - Cantor Fitzergald - Analyst : Understood. Thank you. The last one for me with regards to the premium subscription's revenue. I think it's fair to say that you do expect like for the, for this to pick up with the product IOS product to be released in Q4, is there anything that you can quantify or you can say with regards to how much you expect in terms of growth, acceleration for, for the premium subscriptions in the future, the future quarter? Thank you.

Question: Bharath Nagaraj - Cantor Fitzergald - Analyst : Thank you.

Question: Anton Hoof - Redeye - Analyst : Hi. Can you hear me? Yeah. Yeah, good. So, I have a question regarding the balance here between your programmatic and the direct sales in the ad business. I mean, I think it's that said that we are seeing some of, of a trend of companies stepping back the open market and focusing more on direct sales. So, it will be interesting to hear your view of that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 12:00PM, TRUEb.ST - Q3 2024 Truecaller AB Earnings Call

Question: Anton Hoof - Redeye - Analyst : And maybe if you just can expand on how, you add formats, improve the opportunities to increase direct sales. I think you wrote that in the report.

Question: Anton Hoof - Redeye - Analyst : Good. That was all for me. Thank you.