FULLTEXT DEL 1 AV 1

Kvartalsrapport Q1 2023

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===== SIDA 2 =====

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Group, SEKm (unless otherwise stated)
2023
Jan-Mar
2022
Jan-Mar
2022
Jan-Dec
Net sales 387.1 398.3 1,772.9
Gross profit 291.0 311.3 1,355.2
Gross margin (%) 75.2% 78.1% 76.4%
Adjusted EBITDA 150.0 181.4 717.2
Adjusted EBITDA margin (%) 38.8% 45.5% 40.5%
EBIT (operating profit) 139.8 175.5 688.5
EBIT margin (%) 36.1% 44.0% 38.8%
Adjusted EBIT 139.8 175.5 688.5
Adjusted EBIT margin (%) 36.1% 44.0% 38.8%
Profit or loss after net financial income or expense 147.0 170.1 688.1
Basic earnings per share (SEK) 0.30 0.36 1.43
Diluted earnings per share (SEK) 0.30 0.35 1.43
Equity 1,738.4 1,566.0 1,804.1
Total assets 2,123.5 1,857.3 2,344.4
Equity to assets ratio (%) 81.9% 84.3% 77.0%
Employees at the end of the period 400 321 395

===== SIDA 3 =====

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The average number of monthly active users increased by 34
million to 344 million in the quarter. We continue to grow the
number of users on Android as well as iOS, where growth is
strong after the launch of our new iOS app in 2022. During the
quarter, we invested in growing our growth engineering team
that focuses on user growth, as well as improving the product
to be able to continue to build underlying growth in our growth
markets. Eighty-one percent of monthly users are active on a
daily basis, a new re cord level. To put this in perspective, we
have an engagement level on a daily basis that is equivalent to
that of other large global services such as WhatsApp and
Facebook.

Relative user growth was strongest in regions outside India, and
in absolute term s growth for the first time in the years 2020 -
2023 was just as high outside India as in India. The stronger
growth at the end of the quarter has continued and in April we
passed 350 million monthly users, a major milestone for us as a
company. The growth h as mainly been achieved through the
launch of features that have gone viral, as well as through major
improvements in the product that make more users discover
the value of the service faster, which in turn leads to higher
retention.

During the quarter, we continued to deliver a number of major
production improvements such as Live Caller ID on iOS as a
premium function and improved SMS functions on iOS. Paying
iOS users now receive the same quality of information as users
on Android, which is a big improvement. Our investments in AI,
coupled with feedback from users, continue to bear fruit in the
form of improved data quality as well as a number of
improvements to functions that are designed to prevent fraud
by phone, including an AI-based fraud protection for SMS.

The lower demand for digital advertising led to a drop in
advertising revenue of 10 percent to SEK 303.9m (339.0)
compared to the same quarter in 2022. Prices on the ads market
decreased due to generally lower demand, primarily driven by
lower investments in large-scale branding campaigns by private
equity owned firms and larger companies, which has affected
pricing in the market. Seasonally, the first quarter is the weakest
quarter in the ads market. This year the pattern was even more
evident as revenue related to the Indian Premier League (IPL)
for 2023 is recognized entirely in the second quarter, while in
2022 it was partially recognized in the first quarter. In recent
quarters, we have made big improvements to our Ad -tech
platform to offset the weaker demand. In the first quarter, this
enabled us to increase ad impressions by 20 percent compared
to last year. This is positive, but more important is that the
improvements will generate a significantly higher return once
demand regains momentum on a broad basis. This has already
proven to be true at the beginning of the Q2 when we on
individual days reached all time high for advertising revenue
tied to the increased demand in connection with the IPL.

Revenue from subscriptions increased by 20 per cent to SEK
46.5m (38.9). Revenue is rising mainly due to better conversion
to the subscription offering, which resulted in an 18% increase
in the number of subscribers, a higher growth rate than total
user growth. The subscription product is growing stead ily and
we see great long-term potential. With further investments, and
as the willingness to pay for subscriptions rises in our markets,
it could in time account for a substantially larger share of our
revenue.

Truecaller for Business continues to prosper with new products
and an increased number of customers. Revenue grew by 87
percent to SEK 34.4m (18.4) and there are now customers in a
total of 36 countries. New sales were slightly lower in the
quarter as sales processes took somewhat longer time,
impacted by the weaker economy. During the quarter, we
launched “Verified SMS” to complement “Verified Calling,” which
means that companies can now verify their identity with
Truecaller to create more secure communication with
consumers by voice as well as SM S. Truecaller Business
Messaging saw rising popularity in the quarter and volumes
were record high. We think this service, which today is done
exclusively in a partnership with the CPaaS company Tanla,
could eventually become an important part of our busin ess
offering, beyond the opportunities we have already created with
our calling solutions.

Our adjusted EBITDA amounted to SEK 150.0m (181.4) with an
adjusted EBITDA margin of 38.8 percent (45.5) and our cash flow
from operating acti vities before tax amounted to SEK 126.7m
(131.7). When revenue growth slowed in the fourth quarter we
increased investments in our server infrastructure to obtain a
more scalable and resource-efficient architecture, which in the
long term can have a greater effect , and compared to the
previous quarter we reduced underlying costs (excluding the
major marketing campaigns in the fourth quarter) by
approximately 20 percent. The company’s cash position and
holdings in short-term interest-bearing securities amounted to
SEK 1.6bn at the end of the quarter.

Our view that the general advertising market will be weaker in
the first half of 2023 remains unchange d, although we noticed
positive effects on demand and prices at the beginning of the
second quarter, driven by the IPL. The view of major market
players and partners we continuously dialogue with is that the
second half of the year is generally expected to be somewhat
better than the first half, but economic conditions and their
impact on the advertising market remain difficult to assess.

In summary, we have had a quarter with many product
improvements towards the end user, strong profitability despite
a weaker macro through continuous improvements in our Ad -
tech platform, increased conversion of paying users, and we
have scaled up Truecall er for Business on the messaging side,
while we have invested in increased efficiency of our server
infrastructure. Our focus is still to build a world -class product
for our users, grow number of users and the engagement in the
product and deliver solid pr ofitability through the entire
economic downturn, while at the same time ensuring that we
stand even stronger when demand turns higher again and also
planning to take advantage of opportunities that can arise
during a recession. This combined provides exce llent
opportunities for growth once the macroeconomy and demand
regain momentum.

Alan Mamedi, President and CEO

===== SIDA 6 =====

January-March 2023 Total India
Middle East &
Africa
Rest of the
world
Monthly Active Users (MAU). quarterly average (millions) 344.4 249.3 69.9 25.2
Daily Active Users (DAU). quarterly average (millions) 278.0 208.8 52.3 16.9
Cost per mille impressions (CPM) for ad sales (SEK) 0.94 0.84 1.37 3.15
Average revenue per user (ARPU) for premium subscriptions
(SEK) 8.34 4.77 10.95 13.37

January-March 2022 Total India
Middle East &
Africa
Rest of the
world
Monthly Active Users (MAU). quarterly average (millions) 310.1 227.8 60.1 22.2
Daily Active Users (DAU). quarterly average (millions) 247.7 189.4 44.1 14.2
Cost per mille impressions (CPM) for ad sales (SEK) 1.24 1.13 1.57 3.18
Average revenue per user (ARPU) for premium subscriptions
(SEK) 8.05 4.50 10.10 11.83

===== SIDA 7 =====

300 310 321 331 338 344
238 248 255 261 271 278
0
50
100
150
200
250
300
350
Q421 Q122 Q222 Q322 Q422 Q123
Användare, milj
Monthly active users (MAU) Daily active users (DAU), avg
392 398
480
450 444
387
0
100
200
300
400
500
600
Q421 Q122 Q222 Q322 Q422 Q123
MSEK
Net sales
306 311
374
337 333
291
70%
72%
74%
76%
78%
80%
0
50
100
150
200
250
300
350
400
Q421 Q122 Q222 Q322 Q422 Q123
MSEK
Gross profit Gross margin
196
181
218
181
136
150
0%
10%
20%
30%
40%
50%
60%
0
50
100
150
200
250
Q421 Q122 Q222 Q322 Q422 Q123
MSEK
Adjusted EBITDA Adjusted EBITDA-margin

===== SIDA 8 =====

Net sales during the first quarter decreased by 3 percent
compared to the corresponding period last years and
amounted to SEK 387.1 (398.3) million. Revenue increased for
subscriptions and the business offering, Truecaller for Business
(TfB), while advertising revenue decreased. Currency effects had
a minor positive effect on revenues during the quarter, see
Currency exposure below.

One important fact or for Truecaller's revenue development
over the longer term is the continued growth in the number of
regular users of Truecaller's app. The app is one of the world's
most downloaded, and the user base is growing continuously,
in many different geographies. Scams and other unwanted calls
and messages continue to increase in many countries, as
smartphones become the primary communication channel for
individuals in their communications with businesses and
authorities. This drives a need to be able to communic ate
securely and efficiently, which benefits Truecaller.

In the markets where a sufficiently large part of the users of
smartphones are also users of Truecaller, the company gets a
very good accuracy in identifying who contacts the users of the
company's app, and thereby good opportunities to prevent
fraud and other unwanted communication. This leads to
continued organic growth of the user base, a network effect. In
markets where the company does not yet have a sufficiently
extensive database to be able to offer this accuracy, Truecaller
invests in user acquisition through platforms such as Google
and Facebook. These user acquisitions contribute to Truecaller's
users getting a continuously improved experience of the
company's services, and when the experien ce is good enough,
organic growth takes off, which is clearly visible in well -
established markets such as India.

The last year, new smartphone sales declined globally. This have
had some impact on the growth in the number of monthly active
users (MAU) of Truecaller's app, as many choose to start using
the app when they get their first smartphone, or switch to a
more modern version.

To make it easier for new smartphone users to take advantage
of Truecaller's services, the company has signed agreements
with a number of smartphone manufacturers to pre-install the
company's app on a large number of new phones in several
different markets. Over time, these agreements are expected to
have positive effects on the growth in the number of users, as
well as data quality, but the agreements span several years, and
so far only a small percentage of phones with Truecaller pre -
installed have reached end users. The rollout is considered to
have been delayed due to macroeconomic developments,
which reduced sales of new smartphones during the past year.

Net sales in India decreased by 1 per cent to SEK 292.2 (296.6)
million, in the Middle East & Africa it decreased by 13 percent to
SEK 49.2 (56.4) million and in the rest of the world it increased
by 1 percent to SEK 45.7 (45.3) million.

Ad revenues decreased by 10 percent t o SEK 303.9 (339.0)
million. Truecaller continuously optimizes the balance between
prices (CPM) and utilization (fill rate) of the company's
advertising space. CPM therefore varies between quarters, as a
consequence of seasonal and macroeconomic variations in
demand in different geographies, th e mix between different
types of ads and the mix between direct sales and sales via
partners such as Google and Facebook.

Compared to the corresponding quarter last year, prices (CPM)
decreased by approximately 24 percent. The price reduction is
due to lower demand in the wake of weak macroeconomic
development. Many companies have become more cautious
about marketing investments, and have either postponed
these, or have chosen to reduce their digital advertising
budgets. This effect has become increasing ly clear even in
markets where the underlying macroeconomic development
remains good, such as India. The fact that the Indian cricket
season (IPL) last year was divided between the first and the
second quarter, and this year only takes place during the second
quarter, impacted the comparison between the years . This as
IPL increases the demand for digital advertising and thereby
increases CPM levels.

The effects of the weak demand and price trend have been
partially counteracted thanks to investments and
improvements in Truecaller's advertising platform, which has
enabled a greater number of ads to be displayed than was the
case before. This means that the company is even stronger than
before once the economy turns upwards and demand
increases.

On the supply side, the continuous user growth also increases
our available advertising space. We are also working on
continued optimization of the utilization of advertising space,
with the aim of increasing both fill rate and prices. On the
demand side, we continue to increase our advertiser base, as
well as making it easier for advertisers to use our services
without intermediaries, which has a positive effect on our
profitability while helping us to increase fill rates.

Revenue from premium subscriptions increased by 20 percent
to SEK 46.5 (38.9) million. This is primarily an effect of more
India 75.5%
Africa and Middle East
12.7%
Rest of the World
11.8%

===== SIDA 9 =====

premium subscribers. The growth in the number of
subscriptions and subscription revenue occurs in most regions
and for both Android and iOS users.

From this quarter Truecaller for Business (TfB) is reported
separately, and not as a part of other income. Revenue from TfB
amounted to SEK 34.4 (18.4) million. The demand for these
services is still very high i n several of our established markets,
as many companies need to maintain a secure communication
channel to their customers. The number of connected
customers continues to show good growth both in India and in
other markets, and in total Truecaller for Busi ness now has
active customers in 36 countries. During the quarter new sales
was somewhat lower , as a consequence of he weaker global
macro economy which makes companies more cautious when
it comes to signing new business agreements. The services are
sold through direct sales, through partners and through a self -
service portal . In collaboration with CPAAS company Tanla,
Truecaller also sends B2C messages to Truecaller's users. The
volumes of business messages have gradually increased.

Other income amounted to SEK 1.0 (2.3) million.

The gross profit decreased by 7 percent t o SEK 291.0 (311.3)
million compared to the same period last year. The gross
margin amounted to 75.2 (78.1) percent but has been stable
during the last three quarters. The gross margin is partly
determined by fees to partners such as Google and Apple, partly
by costs for verification of new users and for servers used for
the company's services. During the second half of 2022,
transparency was improved fro m partners who previously did
not specify brokerage costs for advertisements. Truecaller are
now receiving information about brokerage costs, which will
partly increase revenues somewhat, and partly will be included
in the reported costs of goods sold. Thi s has a certain negative
impact on the gross margin compared to the comparison
period.

The fees to partners are proportional to the number of
displayed ads and the number of premium users. Truecaller
also sells ads directly to end customers, resulting in a higher
gross margin. Different advertising partners have different fee
levels, and the gross margin is therefore affected by how the
advertising traffic is distributed between direct sales and
different partners during different periods.

Verification costs are proportional to growth in the customer
base but are also affected by how local telecom operators price
their messaging services. The cost of server hosting is, in the
short and medium term, relatively independent of traffic
volumes, but rises when these reach new volume bands. The
costs both for messaging services used for verification of new
users and for servers increased compared to the comparison
period, which had a certain negative impact on the gross
margin.
Operating profit before depreciation and write-downs excluding
items affecting comparability (adjusted EBITDA) amounted to
SEK 150.0 (181.4) million. The adjusted EBITDA margin
amounted to 38.8 (45.5) percent.

Operating profit (EBIT) decreased to SEK 139.8 (175.4) million,
corresponding to an operating margin of 36.1 (44.0) p ercent.
EBIT excluding items affecting comparability (adjusted operat -
ing profit) amounted to SEK 1 39.8 (175.4) million with an ad -
justed operating margin of 36.1 (44.0) percent.

The lower operating profit is largely due to the lower ad related
income due to a worsening macro, timing efffects with regards
to IPL (the indian cricket league, somewhat lower gross margin
and higher costs for incentive programs.

The company will closely monitor the demand trend in order to
adjust costs during the ongoing macroeconomic slowdown,
without renouncing the growth potential when demand picks
up again. Costs excluding incentive costs is stable compared to
the comparison p eriod and decreased compared to the last
three quarters as a result of a number of efficiency
improvements during the end of 2022 and the first quarter of
2023. Among other things, the investments in user acquisition
have been focused on a smaller number of focus markets where
the cost effectiveness is high.

Staff costs during the quarter increased to SEK 84.8 (58.7)
million. Salary costs increased as an effect of increased number
of employees and salary adjustments. The recruitment rate of
new staff has decreased significantly during the period as a
result of the weaker demand The group's long -term incentive
program (LTIP 2021 and LTIP 2022) entailed a salary cost for the
period of SEK 10.6 (3.4) million with a corresponding increase in
equity and social security contributions of SEK 0.4 (-) million
reported as a provision in the balance sheet. Salary costs are
valued at fair value and amortized over the term of the program.
The social security contributions are affected by the share price
at the end of each accounting period and may therefore amount
to significantly higher amounts in the future and create volatility
in the income statement. In order to clarify the distribution of
staff costs between staff costs attributable to salaries, and
personnel costs related to performance or share price -related
incentive programs, the company will continue to report the
latter separately. Excluding costs for incentive programs, the
EBITDA margin during the quarter would have increased by 2.9
(0.9) percentage points and been 41.6 (46.4) percent. See more
info in note 5.

Other external costs decreased to SEK 57.1 (73.4) million
compared to the same period last year. The reduction in costs
is primarily an effect of investments in user growth and
marketing being focused on a smaller number of markets
where cost efficiency is high.

Profit before tax amounted to SEK 147.0 (170.1) million. Profit
after tax for the period was SEK 109.1 (133.7) million. Net
financial income amounted to SEK 7.2 (-5.4) million and
comprises positive exchange rate differences of SEK 4.5 (0.9)
million, interest income of SEK 4.1 (-5.0) million and other
financial expenses of SEK -1.3 (-1.3) million.

The total tax amounted to SEK 37.9 (36.4) million which
corresponds to an effective tax rate of 25.8 (21.4) percent for
the group.

Basic earnings per share were SEK 0.30 (0.36) and diluted
earnings per share were SEK 0.30 (0.35).
Net cash from operating activities amounted to SEK 80.1 (121.5)
million. Net cash from investing activities amounted to SEK -
519.1 (-29.1) million and included an investment in short term

===== SIDA 10 =====

interest funds of SEK -500.0 (-0.0) million. Net cash used in
financing activities was SEK -189.1 (-28.7) million and included
purchase of treasury shares SEK -182.2 (-) million. Net cash for
the period was SEK -628.1 (63.7) million. Truecaller had cash and
cash equivalents of SEK 699.5 (1,302.2) million at the end of the
quarter. The equity to assets ratio was 81.9 (84.3) percent. In
excess to the cash and cash equivalents Truecaller has SEK 900
(150) million invested in short-term interest rate funds.

Truecaller have a revolving credit facility of SEK 500 (500) million.
SEK 0 (0) million had been utilized as of the reporting date.

Consolidated total assets amounted to SEK 2,123.5 (1,857.3)
million at 31 March 2023. The carrying amounts of financial
assets and financial liabilities are estimated to coincide with fair
value in all material respects.

Trade receivables for the Group amounted to SEK 60.0 (38.7)
million and claims on advertising networks and platform
owners amounted to SEK 93.8 (125.6) million. The increase in
trade receivables is attributable mainly to the increase in direct
sales in the advertising business and growth in Truecaller for
Business. Payment terms for the company’s customers are
normally 30 -60 days. A structured credit review process in
combination with non -paying customers being quickly
suspended from the company’s services and proactive
assurance that customers pay their invoices with minimal delay
has r esulted in limited customer losses. Recognized but
unrealized customer credit losses amounted to SEK 2.2 (1.7)
million as of 31 March 2023 . The increase in claims on
advertising networks and platform owners is mainly linked to
outstanding claims against Google and Facebook.

The Group began capitalizing development costs in 2021 when
certain initiated projects were assessed as meeting the criteria
under IAS 38 . Development costs for these projects have
therefore been capitalized. During the first quarter of 2023, SEK
1.1 (2.8) million were capitalized as internally developed
intangible assets.

The majority of Truecaller’s revenues are denominated in
Swedish kronor (SEK) via partners including Google and Apple.
Accordingly, there is little direct currency expo sure. In turn,
these partners bill users of Truecaller’s services partly in local
currency, which entails indirect currency exposure. Truecaller
does not, however, have complete information concerning
currency exposure or how currency effects are managed b y
partners and thus cannot at present accurately quantify indirect
currency exposure. A depreciation of SEK against currencies
including USD and INR, however, has a positive impact on the
company’s sales and profit, although it also increases the
company’s costs. The largest currency exposures are against
INR and USD. The company estimates that exchange rate
changes had a minor positive impact on sales during the first
quarter of 2023 compared to the corresponding quarter in
2022. The company's estimate is that exchange rate changes did
not affect the EBITDA margin.

Parent company income for the quarter amounted to SEK 1.6
(1.0) million which refers to billing of subsidiaries for services
rendered The profit before tax amounted to SEK 1.4 (-5.4)
million. The profit after tax amounted to SEK 1.2 (-4.3) million.
Cash and cash equivalents on 31 March 2023 amounted to SEK
173.5 (718.7) million. In excess to the cash and cash equivalents
the parent company has SEK 400 (150) million invested in short-
term interest rate funds. No investments have taken place in
intangible or tangible assets. At the end of the period, 2 (2)
people were employed in the parent company

===== SIDA 11 =====

During the first quarter, Truecaller made significant progress in
improving the app’s core infrastructure. Focused engineering
efforts led to more streamlined operations, resulting in more
efficient use of resources and reduced costs. With a focus on
user experience improvements that enhance stickiness,
Truecaller optimized its infrastructure with a leaner architecture
and lower latency. This approach resulted in faster response
times, which reduced the resources required to serve its users
and lowered server costs and data usage. Additionall y, low
latency minimizes the risk of server downtime or disruptions,
which can be costly and disrupt user experience.

Throughout 2022, Truecaller invested in strengthening its
growth engineering team. This strategic investment in
engineering resources is expected to enhance Truecaller's
capacity to support and drive long -term organic and inorganic
growth. Truecaller invested in enhancing metrics and
observability to track user behavior at a much more granular
level in order to identify leaks in the activat ion funnel and
retention. In the first quarter, this resulted in improvements to
the product, increased user engagement and a material
increase in retention of new users. These initiatives are
expected to have long -term benefits with respect to organic
growth and retention.
Truecaller continues to improve its core offering in order to
deliver on its promise of a smarter, safer, and more efficient
experience across communication needs. AI Identity
technology, which leverages artificial intelligence and machine
learning, continued to develop during the first quarter, ensuring
that users receive the most up-to-date and relevant information
about unknown numbers in real time. Community feedback
played a significant role in driving these improvements, with
up/down votes and comments growing by 63% quarter on
quarter. By using community input to enhance AI Identity,
Truecaller has created a valuable feedback loop; as more users
contribute information throug h these channels, Truecaller’s
data quality improves, which ultimately drives even higher in -
app engagement. Other initiatives leveraging AI Identity in the
first quarter facilitated continued improvements in data quality
in both mature and nascent markets.

One significant development in the first quarter was the
expansion of AI Identity to SMS with the introduction of
Message ID, which provides a Caller ID -like service for text
messages. With Message ID, users can easily verify the
authenticity of an SMS sender using visual cues provided by the
app. Truecaller's advanced machine learning models power
Message ID, and all processing is conducted locally on the user's
device, ensuring complete privacy protection. The feature
prioritizes time -sensitive, transacti onal, or bill reminder
messages, cutting through spam and fraud and ensuring
prompt and secure delivery.

Truecaller continued to invest in developing its offering for
iPhone users by further optimizing the caller identification
experience on iOS. Improvements executed in the first quarter
included updated SMS filtering for users in key markets to drive
further adoption. This new filtering mechanism uses the same
machine learning model as on Android, ensuring that messages
are sorted in the relevant inbox (e.g., junk, coupons, and more).
Efforts to improve the Truecaller experience on iPhone continue
to demonstrate strong potential, with healthy growth across
performance indicators. In the first quarter, the daily active user
base on iPhone continued to show good growth, while retention
continued to show improvements, particularly in comparison to
prior to the launch of the brand new Truecaller experience on
iPhone in August 2022.

In addition to internal product development efforts, Truecaller
expanded its collaboration with Indian government authorities.
Government Directory Services (GDS), an in -app service
available to Indian users, helps users seamlessly connect with
the government through easy access to verified contacts, and
has grown to cover ove r 30 different states and union
territories. Additionally, a partnership with the Delhi Police
added the organization’s official numbers and addresses to the
GDS Directory, further protecting the population from fraud and
impersonation.

During the first quarter, Truecaller made advancements in
bolstering its web capabilities, including expanding its search
experience. This brings the benefits of using the Truecaller app
to the web and facilitates intent -driven traffic to the website.
The company also focu sed on improving localization on this
channel, making the Truecaller website more relevant to each
user while also attracting organic traffic from a wider range of
markets. These efforts continue to demonstrate positive results,
with continued growth in we b traffic and improved SEO
performance. Truecaller continues to explore innovative ways
to enhance its desktop functionalities and drive adoption in
regions with higher desktop usage. With further developments

===== SIDA 12 =====

planned for the web in 2023, Truecaller remain s committed to
delivering the best possible user experience across all
platforms.

Truecaller’s paid offering continued to develop positively, with
the subscriber base increasing by 18% compared to the first
quarter of 2022. Adoption of the recently introduced Family
Plan continues to gain traction, with 80% of those opting in to
the plan being new subscribers. In the US, this package was
expanded to include access to Truecaller Assistant.

Truecaller continues to develop its premium offering by
introducing new features, expanding its Assistant capabilities,
and delivering the most attractive pricing packages for its users.
Who Searched For Me, an extension of the popular Who Viewed
Me feature, now gives subscribers visibility on users that have
searched for their number using Truecaller. This feature was
introduced in the beginning of the first quarter, and has already
demonstrated very positive results with respect to driving
higher subscriber conversion.

For iPhone users, Truecaller made Live Caller ID available to
paid users globally. As the first real-time, server-based number
lookup solution for iPhone, Live Caller ID underscores
Truecaller’s commitment to strengthening its foothold in the
Apple ecosystem. Live Caller ID leverages Truecaller’s
proprietary technology on the iOS platform to provide users
with instant, reliable identification of incoming calls from
unknown numbers. This development represents a significant
breakthrough in bringing the quality of the Truecaller
experience on iPhone even closer to that on Android. Early
indicators are promising, including growth in conversions as
well as increased usage.

Truecaller Assistant, the newest paid feature powered by cloud
telephony technology, developed further in the first quarter.
Assistant now offers a higher level of customization,
empowering users to personalize their experience to their
specific needs. Users can now set a personalized greeting
whenever the Assistant answers incoming calls. The custom
greeting can be tailored to different callers based on their
classification (e.g., phonebook contacts, top spammers, non -
phonebook contacts). During the first quarter, T ruecaller also
integrated voicemail into the offering. Given that voicemail is
not available in many of Truecaller’s core markets, the cloud
telephony product enables the app to expand the service to
additional countries in parallel to the expansion of Ass istant to
more markets. Truecaller made progress towards bringing the
Assistant offering to more markets in the first quarter. Building
on the valuable insights gained from the initial launch in the US,
preparations are now underway to expand the service t o new
markets, bringing the benefits of cloud telephony technology to
even more users.
Despite muted demand affecting revenue growth in advertising,
Truecaller continues to enhance its AdTech capabilities to offer
a superior experience to advertisers, demand partners, and end
users. Investments in advertising capabilities over the previous
year have been paying off, as demonstrated in continued
improvements across multiple indicators —including notable
growth in total impressions with a 20% improvement compared
to the first quarter of 2022.

Technical optimizations on the supply side continue to
demonstrate substantial improvements to render rate and
efficiency across the advertising life cycle. Key indicators such as
ads engagement and click through rates continue to develop
positively, establishing strong operating leverage when demand
recovers. Other ongoing initiatives on the supply side include
continued development of custom formats within existing ad
inventory to drive better outcomes, and optimizations to
inventory on iOS in order to better monetize Truecaller’s
growing user base on iPhone.

Investments in Truecaller’s independent tech stack have yielded
positive results, with strong growth in demand from T ruecaller
Ad Server. In the first quarter, Truecaller continued to build out
its in-house capabilities in order to strengthen its offering for its
growing range of demand partners and advertisers. Truecaller
Ad Server now supports more advanced features su ch as
custom targeting and retargeting, which have shown promising
indicators in terms of further improving conversion rates (e.g.,
app installs, lead generation and sales) while maintaining the
right balance of precision and scale. Truecaller continues to
collaborate with ecosystem partners such as mobile
measurement partners and attribution companies in order to
make its advertising platform more performance -ready. Other
initiatives to expand performance advertising capabilities have
also gained traction, enabling advertisers to make more
informed decisions about campaigns executed on the
Truecaller Ad Server.

Efforts to strengthen Truecaller’s demand side platform
continue to scale well, giving direct advertisers a holistic solution
for setting up and managing campaigns, using various targeting
options and optimization tools. In addition to enabling access to
target audiences beyond Truecaller’s ecosystem, investments in
the demand side platform set the foundation for Truecaller’s
transition towards becom ing a full stack advertising solutions
partner catering to a wide range of use cases across the
advertising funnel.

===== SIDA 13 =====

Demand for the Truecaller for Business (TfB) developed at a
healthy pace, demonstrating the continued relevance and need
for Truecaller’s business solutions amidst a more challeng ing
macroeconomic environment. In the first quarter, TfB’s portfolio
of accounts grew by 57% year on year. TfB continues to benefit
from strong interest from the banking and financial services
sector, with notable brands such as ICICI Prudential, Airtel
Payments, and Godrej Housing Finance onboarded as new
clients during the quarter, to name a few. While the offering has
established product -market fit within banking and financial
services, the portfolio of clients has continued to expand
beyond the sector, with growing representation from
automotive, logistics, retail, and more. Adoption of TfB has also
shown steady growth outside of India, with the RoW segment
accounting for 18% of the overall client base (vs. 15% in the
same period of 2022).

Product development for the enterprise offering continued to
progress, with a number of milestones delivered in the first
quarter. Verified Business expanded to include SMS, marking a
significant step in the evolution of the offering. As SMS
continues to function as a n important channel for businesses,
Verified SMS offers a powerful tool for businesses seeking to
create more impactful SMS communications with their
audiences. By providing users with the assurance that an SMS
message is genuine and secure, Verified SMS e nhances trust
and confidence with an enterprise’s brand. Verified SMS was
commercialized at the end of the first quarter and has already
generated interest from some of the highest -volume SMS
senders in India, most notably within the banking and financial
services sector.

Other product development efforts centered on facilitating two-
way communication between users and businesses, which in
turn provides high-intent signals from users to enterprises. Call
Me Back for Business, an existing feature that allows users to
request a call back from a business when they are not able to
answer the phone, was updated in the first quarter such that
users can now indicate their preferred time for the business to
call back. This initiative is expected to drive conversion rates for
businesses, and early results indicate a correlation between
usage of Call Me Back and user propensity to purchase. Another
new feature, User Feedback (screenshot #13), introduces a new
way for businesses to get real -time customer feedback and
insights after answered, missed, and rejected calls. User
Feedback is self -serve and fully customizable, such that
feedback can be solicited in multiple styles and formats based
on the context of any call.

Business messaging, a first -of-its-kind service delivered in
partnership with leading CPaaS provider Tanla, facilitates the
distribution of messages to end customers in a more efficient
way. During the first quarter, implementation scaled up
substantially, with over 1.5 billion messages delivered to end
users on this channel — a 100% growth in volume, quarter on
quarter. In addition to improved efficiency, business messaging
also allows enterprises to analyze their messaging campaign
performance, providing them with the insights necessary to
fine-tune their messaging and targeting to optimize results.
Adoption of business messaging has demonstrated applicability
to various use cases, including transactional, bill payments,
delivery, and informational message s. For important
transactional and bill-related messages, the product is designed
such that users do not miss out on important communications.
Enterprises who have adopted business messaging —including
some of the most recognizable brands in India—have observed
higher levels of user engagement as compared to traditional
SMS, suggesting significant potential for even broader adoption
moving forward.

Truecaller continues to build out its capabilities in order to serve
growing demand and the evolving nee ds of enterprise
customers. In the first quarter, Truecaller made significant
progress with respect to its investments in technology
supporting the business offering, repositioning Truecaller as a
platform that allows businesses to integrate their CRM systems
with Truecaller APIs. The platform’s APIs provide businesses
with the flexibility to customize their communications and
enhance overall customer experience. These efforts to evolve
Truecaller’s platform into a more holistic business tool
demonstrate the company’s commitment to driving innovation
and creating value for business customers and end users.

===== SIDA 14 =====

On the 26th of April Truecaller published the notice for the
Annual General Meeting (AGM). The AGM will be held on the
26th of May at 2pm CET in the companys office on Mäster
Samuelsgatan 56 in Stockholm.

The Board of directors has presented a number of proposals
for the AGM. Among them are proposals for resolution on
authorization for the Board of Directors regarding new issue of
up to 10 percent of the current number of shares in the
company and authorization regarding repurchase and transfer
of a maximum of 10 percent of the outstanding B-shares in the
company. The Board has also propsed to implement a
employee stock option program and a share program for
Truecaller’s staff. Upon full exercise of the two programs the
total potential dilution is 0.86% of the outstanding shares in
the company.

The nomination Committee, among other things, propose a re-
election of the current board which consists of Bing Gordon,
Alan Mamedi, Annika Poutianen, Helena Svancar, Nami
Zarringhalam och Shailesh Lakhani. Nami Zarringhalam is
proposed as new chairman . The Nomination Committee also
proposes unchanged remuneration for board duties as well as
a re -election of the companys audit Ernst & Young with
responsible Auditor in charge Jennifer Rock-Bailey.

All information about registration, documents and the full
notice is available at
https://corporate.truecaller.com/governance/general-
meetings.
Like all companies. Truecaller is exposed to various types of risk
in the course of business. These include risks related to
currency movements. dependence upon certain strategic
partners. the general economic trend and developments in the
financial market. technical progress. dependence on key
individuals. legal risks and risks associat ed with personal
privacy. as well as tax risks and political risks. Risk management
is an integrated component of the management of Truecaller.
The risks described for the Group could also have indirect
impact on the parent company. A complete description of risks
and uncertainties associated with Truecaller is provided in the
2022 annual report.

The war in Ukraine and its global economic repercussions have
had minimal impact on Truecaller’s business. Truecaller’s focus
has been to take care of our employees who have family and
friends in Ukraine.
The report presents statements pertaining to matters including
Truecaller’s financial position and performance as well as
statements on market conditions that may be forward-looking.
Truecaller believes the expectations reflected in these forward-
looking statements are based on reasonable assumptions.
Forward-looking statements are. however. associated with risks
and uncertainties and actual outcomes or conseq uences may
differ materially from those presented here. In addition to that
required under applicable law. forward -looking statements
apply only on the date presented and Truecaller disclaims any
obligation to update them in the light of new information or
future events.
Truecaller does not publish forecasts.
Truecaller AB. CRN 559278-2774. is a Swedish public company
whose registered office is in Stockholm. Sweden.

Annual General Meeting: 26 May 2023
Interim report, January-June 2023: 21 July 2023
Interim report, January-September 2023: 9 November 2023
Alan Mamedi. CEO
alan.mamedi@truecaller.com

Odd Bolin. CFO
+46 70 428 31 73
odd.bolin@truecaller.com

Andreas Frid. Head of IR & Communication
+46 705 29 08 00
andreas.frid@truecaller.com

This interim report has not been reviewed by the
company’s auditor.

This information constitutes insider information that
Truecaller AB is required to disclose under the EU Market
Abuse Regulation. The information was released for
publication, through the agency of the contact persons
above, on 11 May 2023 at 07.30 CET.

===== SIDA 15 =====

Operating revenue 3 387,064 398,300 1,772,926
Other income 21 9 7,506
Work performed by the entity and capitalized 1,018 2,245 5,204
Third party fees -96,108 -87,050 -417,689
Other external costs -57,118 -73,430 -349,750
Employee costs -84,830 -58,701 -301,031
Depreciation. amortization and impairments -10,220 -5,927 -28,664
EBIT (operating profit) 139,827 175,447 688,502

Net financial income or expense 7,199 -5,380 -381
Profit or loss after net financial income or expense 147,026 170,067 688,121

Tax -37,906 -36,372 -152,891
Profit for the period 1) 109,120 133,695 535,230

Earnings per share
Basic earnings per share (SEK) 0.30 0.36 1.43
Diluted earnings per share (SEK) 0.30 0.35 1.43

Average number of shares before dilution 367,572,311 373,696,919 373,273,365
Average number of shares after dilution 367,572,311 375,343,332 373,300,072

1) The profit for the period is attributable entirely to shareholders in the parent company.

===== SIDA 16 =====

1) The profit for the period is attributable entirely to shareholders in the parent company.

Profit or loss for the period 109,120 133,695 535,230

Other comprehensive income for the period
Items that will be reclassified to profit and loss in subsequent periods
Foreign exchange translation differences -952 -302 -753
Items that will not be reclassified to profit and loss in subsequent periods
Remeasurement of defined-benefit pension plans - - -1,891
Other comprehensive income for the period -952 -302 -2,645

Comprehensive income for the period 1) 108,168 133,393 532,586

===== SIDA 17 =====

ASSETS

Non-current assets
Goodwill 33,653 34,209 34,530
Other intangible assets 14,567 13,955 15,200
Property. plant and equipment 17,642 1,314 8,118
Right-of-use assets 136,932 88,225 139,777
Deferred tax assets 38,022 40,132 39,584
Other non-current receivables 4 14,777 18,819 16,697
Total non-current assets 255,592 196,654 253,906

Current assets
Current receivables 4 260,415 208,838 362,175
Short-term placements 4 907,941 149,604 400,490
Cash and cash equivalents 4 699,510 1,302,180 1,327,801
Total current assets 1,867,865 1,660,623 2,090,466

TOTAL ASSETS 2,123,457 1,857,277 2,344,372

EQUITY AND LIABILITIES

Equity
Equity attributable to owners of the parent 1,738,400 1,565,957 1,804,093
Total equity 1,738,400 1,565,957 1,804,093

Non-current liabilities
Liability arising from defined-benefit pension plans 6,345 4,445 7,653
Lease liabilities 115,559 70,723 118,208
Deferred tax liability 33,532 20,800 34,563
Other non-current liabilities 4 8,568 12,097 8,395
Total non-current liabilities 164,003 108,065 168,819

Current liabilities
Lease liability 21,820 16,233 23,307
Other current liabilities 4 199,234 167,022 348,153
Total current liabilities 221,055 183,255 371,460

TOTAL EQUITY AND LIABILITIES 2,123,457 1,857,277 2,344,372

===== SIDA 18 =====

Operating activities
Profit or loss after net financial income or expense 147,026 170,067 688,121
Adjustments for non-cash items 10,935 8,692 47,094
Income tax paid -46,586 -10,123 -154,078
Cash flow from operating activities before
changes in working capital
111,374 168,636 581,137

Net cash from changes in working capital
Change in operating receivables -6,616 -34,599 -50,434
Change in operating liabilities -24,623 -12,523 79,707
Net cash from operating activities 80,136 121,514 610,410

Investing activities
Acquisitions of Group companies, net effect on cash and cash
equivalents
- -26,824 -32,158
Purchases of property, plant and equipment -10,551 - -7,594
Disposals of property, plant and equipment - - -
Purchases of intangible assets -1,141 -2,760 -7,146
Purchases of short-term investments -500,000 - -250,000
Change in financial receivables -7,450 461 -425
Net cash used in investing activities -519,143 -29,123 -297,323

Financing activities
Funds received for warrants - - 3,146
Repurchase of warrants - -374 -872
Amortization of lease liability -6,926 -5,148 -19,869
Payout synthetic options - -23,140 -23,140
Buyback of treasury shares -182,164 - -182,389
Net cash from (-used in) financing activities -189,090 -28,662 -223,124

Net cash flow for the period -628,098 63,729 89,963
Cash and cash equivalents at the beginning of the period 1,327,801 1,238,443 1,238,443
Foreign exchange differences in cash and cash equivalents -194 9 -605
Cash and cash equivalents at the end of the period 699,510 1,302,180 1,327,801

===== SIDA 19 =====

Opening balance at 1 January 2022 747 1,707,864 3,153 -300,354 1,411,410

Profit for the period - - - 133,695 133,695
Other comprehensive income for the period - - -302 - -302
Comprehensive income for the period - - -302 133,695 133,393

Transactions with owners of the Group
Share issue after transaction costs 1 - - 18,152 18,152
Warrants - -374 - - -374
Share-based payment - - - 3,375 3,375
Total 1 -374 - 21,527 21,153

Closing balance at 31 March 2022 748 1707,490 2,851 -145,132 1,565,957

Opening balance at 1 January 2023 758 1,710,139 2,400 90,797 1,804,093

Profit for the period - - - 109,120 109,120
Other comprehensive income for the period - - -952 0 -952
Comprehensive income for the period - - -952 109,120 108,168

Transactions with owners of the Group
Treasury shares after transaction costs - - - -184,470 -184,470
Share-based payment - - - 10,610 10,610
Total - - - -173,861 -173,861

Closing balance at 31 March 2023 758 1,710,139 1,448 26,056 1,738,400

===== SIDA 20 =====

Operating revenue 1,566 1,034 6,734
Other external costs -2,541 -3,006 -13,003
Employee costs -2,763 -1,697 -12,846
EBIT (operating profit) -3,738 -3,670 -19,116

Net financial income or expense 5,181 -1,746 -2,978
Profit or loss after financial items 1,443 -5,416 -22,094

Appropriations - - 102,600
Profit or loss before tax 1,443 -5,416 80,506

Tax -295 1,116 -16,598
Profit or loss for the period 1,148 -4,300 63,908

===== SIDA 21 =====

ASSETS

Non-current assets
Investments in Group companies 10,297,177 10,217,177 10,247,177
Deferred tax assets - 17,698 -
Total non-current assets 10,297,177 10,234,875 10,247,177

Current assets
Current receivables 12,739 27,291 12,357
Receivables from Group companies 12,471 26,370 106,248
Short-term placements 405,193 149,604 400,490
Cash and cash equivalents 173,472 718,691 305,935
Total current assets 603,875 921,957 825,030

TOTAL ASSETS 10,901,053 11,156,832 11,072,207

EQUITY AND LIABILITIES

Equity and liabilities
Equity 10,886,786 11,152,347 11,059,499
Liabilities to Group companies - 74 -
Current liabilities 14,226 4,410 12,708
TOTAL EQUITY AND LIABILITIES 10,901,053 11,156,832 11,072,207

===== SIDA 22 =====

This interim report covers the Swedish parent company
Truecaller AB (“Truecaller”). company registration number
559278-2774. and its subsidiaries. The principal business of the
Group is to develop and publish software. primarily mobile
Caller ID applications. under the Truecaller brand. The parent is
a limited liability company registered and domiciled in
Stockholm. Sweden. The address of the head office is Mäster
Samuelsgatan 56. 111 21 Stockholm. Sweden.

Truecaller restructured the Group in 2021. whereby the former
parent company. True Software Scandinavia AB. became a
wholly owned subsidiary of the new parent. Truecaller AB.
Truecaller AB was previously a dormant shelf compa ny. The
restructuring was accomplished through a non -cash issue
directed at shareholders in True Software Scandinavia AB. who
retained their relative ownership interests in Truecaller AB. The
newly formed Group is a direct continuation of the True
Software Scandinavia Group and Truecaller has thus assumed
the financial history of the True Software Scandinavia Group
unencumbered.

Truecaller applies International Financial Reporting Standards
(IFRS). as adopted by the EU. The interim report for the Group
was prepared in compliance with IAS 34 Interim Financial
Reporting and applicable sections of the Swedish Annual
Accounts Act (1995:1554). Disclosures according to IAS 34 are
provided in other parts of the interim report. in addition to the
financial statements. The interim report for the parent company
was prepared in accordance with the Annual Accounts Act.
Chapter 9 Interim Financial Reporting. and recommendation
RFR 2 Accounting of Legal Entities issued by the Swedish
Financial Accounting Standards Council . The accounting
principles. basis for measurement and estimates and
judgements applied on the interim report for the Group and the
parent are identical to those applied in Truecaller’s annual
report. Accordingly. refer to the most recently published annual
report for a description of applied accounting policies.

Equity
Shares issued by the company are classified as equity.
Additional costs arising directly from the issue of common
shares and stock options are recognized as a debit item in
equity after deducting tax effects. if any. When Truecaller’s
shares classified as equity are repurchased. the amount of
consideration paid is recognized as a reduction in equity. after
deducting tax effects. if any. Repurchased shares are c lassified
as treasury shares and recognized as a debit item under equity.
When treasury shares are subsequently sold or reissued. the
amount received is recognized as an increase in equity and the
surplus or deficit resulting from the transaction is transferred to
or from other capital contributions

Preparation of the interim report requires management to
make judgements. estimates and assumptions that affect the
application of the accounting policies and the recognized
amounts of assets. liabilities. revenues and costs. Actual
outcomes may differ from these judgements and estimates. The
key judgements and sources of estimation uncertainty are
unchanged from those described in the most recently published
annual report.

Geographical region
India 292,158 296,568 1,324,080
Middle East and Africa 49,159 56,427 237,096

===== SIDA 23 =====

Rest of the world 45,747 45,305 211,750
Revenue from contracts with customers 387,064 398,300 1,772,926

The geographical distribution is based on where the customer has their mobile subscription.

Type of service
Advertising revenues 303,924 338,955 1,488,558
User revenues 46,546 38,883 170,507
Truecaller for Business 34,375 18,417 105,473
Other revenues 2,219 2,044 8,388
Revenue from contracts with customers 387,064 398,300 1,772,926

Measurement of financial assets and liabilities at 31 March 2023

Financial assets measured at
fair value through profit and
loss
Financial assets measured at
amortized cost Total carrying amount
Other non-current receivables - 14,777 14,777
Claims on advertising networks and platform
owners - 93,826 93,826
Trade receivables - 59,984 59,984
Short-term placements 907,941 - 907,941
Cash and cash equivalents - 699,510 699,510
Total 907,941 868,096 1,776,037

Trade payables - 58,872 58,872
Conditional consideration (earnout) 13,520 - 13,520
Total 13,520 58,872 72,392

Measurement of financial assets and liabilities at 31 March 2022

Financial assets measured at
fair value through profit and
loss
Financial assets measured at
amortized cost Total carrying amount
Other non-current receivables - 18,819 18,819
Claims on advertising networks and platform
owners
- 125,615 125,615
Trade receivables - 38,712 38,712
Short-term placements 149,604 - 149,604

===== SIDA 24 =====

Cash and cash equivalents - 1,302,180 1,302,180
Total 149,604 1,485,326 1,634,930

Trade payables - 28,776 28,776
Conditional consideration (earnout) 16,785 - 16,785
Total 16,785 28,776 45,561

Measurement of financial assets and liabilities at 31 December 2022

Financial assets measured at
fair value through profit and
loss
Financial assets measured at
amortized cost Total carrying amount
Other non-current receivables - 16,697 16,697
Claims on advertising networks and platform
owners - 91,158 91,158
Trade receivables - 60,704 60,704
Short-term placements 400,490 - 400,490
Cash and cash equivalents - 1,327,801 1,327,801
Total 400,490 1,496,360 1,896,851

Trade payables - 69,835 69,835
Conditional consideration (earnout) 13,301 - 13,301
Total 13,301 69,835 83,136

The carrying amount is considered a good estimate of the fair
value of current receivables and liabilities. such as claims on
advertising networks and platform owners. trade receivables
and trade payables. The maximum credit risk of the assets
comprises the net amounts of the carrying amounts shown in
the table above.

The Group has short -term placements and conditional
consideration (earnouts) that are measured at fair value
through profit or loss. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the
measurement date. The measurement methods are classified
in a hierarchy consisting of three levels defined as follows:
• Level 1 Quoted prices in active markets
• Level 2 Inputs other than quoted prices that are
observable directly (prices) or indirectly (derived from
prices)
• Level 3 Non-observable market data
There were no transfers between the levels during the period.
The Group has no financial assets or liabi lities that have been
offset in the accounts or which are covered by a legally binding
netting agreement.

Short-term placements
Truecaller has SEK 900 million placed in short-term fixed
income funds. The fair value of the holding is determined by
using market prices on the reporting date according to Level 1.
The effect of the measurement at fair value is recognized in
profit or loss. The adjustment to the fair value of these
instruments is reflected directly in “Short-term placements” in
the statement of financial position.

Short-term placements,
SEK 000s 2023
Jan-Mar
2022
Jan-Mar
2022
Jan-Dec
Balance at 1 January 400,490 150,066 150,066
Investment in short-
term placements 500,000 - 250,000
Change in value
recognized in profit and
loss
7,451 -462 424
Closing balance 907,941 149,604 400,490

Conditional consideration (earnout)
Conditional consideration is categorized at level 3 of the fair
value hierarchy. The fair value of conditional consideration is
calculated by discounting future cash flows by a risk -adjusted
discount rate. The conditional consideration for CallHero has
been classified as a current and non-current liability.

Conditional
consideration
(earnout), SEK 000s
2023
Jan-Mar
2022
Jan-Mar
2022
Jan-Dec
Balance at 1 January 13,301 - -
Acquisition value - 16,785 16,785
Payout - - -5,228

===== SIDA 25 =====

Change in value
recognized in profit and
loss
219 - 1,744
Closing balance 13,520 16,785 13,301

Shareholders at the annual general meeting held 24 May 2022
endorsed the board’s proposal regarding incentive programs
directed at key management personnel. Key individuals and
employees of the Truecaller Group. The incentive program
comprises at maximum of 500.000 warrants and a maximum
of 5.100.000 performance-based share rights.
Participants buy the warrants at market value and the price
for one warrant (the warrant premium) is calculated using the
Black & Scholes valuation model.
Performance-based share rights give participants the right to
receive Class B shares in the company against no monetary
consideration after the fixed vesting period has ended. Provided
that participants remained employed by the company during
the vesting period and that certain specific performance targets
were reached by Truecaller regarding revenue growth and
adjusted EBITDA. The Group applies IFRS 2 Share -based
Payment to performance-based share rights. Where the cost is
measured at fair value and allocated over the term o f the
program and recognized in equity. The Group recognizes a
reserve for accrued social insurance costs for the program
based on the estimated benefit value for participants.
The Group has a previously implemented incentive program.
LTIP 2021. Refer to the 2021 annual report for detailed
information about the program.

Costs of LTIP 2021 and LTIP
2022, SEKm 2023
Jan-Mar
2022
Jan-Mar
2022
Jan-Dec
Cost of vested warrants per
IFRS 2 -10.6 -3.4 -28.4
Social insurance contributions -0.4 - -1.8
Costs of LTIP 2021 and LTIP
2022 -11.1 -3.4 -30.2

The annual general meeting held 24 May 2022 authorized the
board of directors to decide a treasury share buyback program.
The buyback program is limited to 5 percent of shares
outstanding as of the date of the AGM equivalent to 18,697,985
shares. Share buybacks may be executed on one or more
occasions prior to the next AGM. The buyback program began
on 23 September and until the end of the reportin g period a
total of 10,997, 407 Class B shares were repurchased for SEK
373.3 million including transaction costs.

Distribution of shares at the end of the reporting period:
Share class Shares
Class A
Class B
Class C

46,783,800
327,175,910
5,100,000
Total number of shares outstanding 379,059,710
- of which Class B shares held by Truecaller
- of which Class C shares held by Truecaller 10,997,407
5,100,000
Total number of shares outstanding. net after
shares held by Truecaller 362,962,303

The Group’s contingent liabilities consist of a tax matter in the
previously acquired subsidiary Backwater Technologies related
to determination of income for FY 2016-17. The ongoing matter
refers to a period prior to the acquisition date. The Group has
determined that it is likely that the outcome will be in its favor
and has therefore not recognized a provision in relation to this
matter. The total undiscounted amount that the Group could be
obligated to pay if the decision in the proceedings is not in the
Group’s favor is estimated at between SEK 3 million and SEK 12
million.

No related party transactions occurred during the reporting
period.

After the end of the reporting period, in line with the share
repurchase program initiated on September 23, 2022,
Truecaller has repurchased an additional 569,397 Class B
shares for SE K 17.0 million including transaction costs.
Truecaller's total holding of treasury Class B shares amounts to
11,566,804, which were repurchased for a total of SEK 390. 3
million including transaction costs.

On April 10, 2023, Truecaller acquired 4+ percent of the shares
in the Singapore-based game development company Mayhem
Studios Private Ltd. for SEK 32.6 million. The investment was
financed through existing cash. Other investors include Sequoia
and Mobile Premier League. Mayhem Studio s Private Ltd.
focuses on developing mobile games for the Indian market. The
Indian mobile gaming market is expected to grow strongly from
USD 2.8 billion in 2022 to USD 5 billion in 2025 and the number
of players is expected to grow from 400 million in 20 22 to 500
million in 2025. The availability of affordable mobile data
coupled with increased smartphone penetration are two of the
factors which is expected to contribute to the strong market
growth.

===== SIDA 26 =====

Stockholm, 11 May 2023

Bing Gordon
Board Chair
Alan Mamedi
Director and CEO

Annika Poutiainen
Director
Helena Svancar
Director

Nami Zarringhalam
Director Shailesh Lakhani
Director

===== SIDA 27 =====

===== SIDA 28 =====

Group, SEKm
2023
Jan-Mar
2022
Jan-Mar
2022
Jan-Dec
Gross profit and gross margin
Net sales 387.1 398.3 1,772.9
Minus brokerage costs -96.1 -87.0 -417.7
Gross profit 291.0 311.3 1,355.2
Divided by Net sales 387.1 398.3 1,772.9
Gross margin 75.2% 78.1% 76.4%

Adjusted EBITDA and Adjusted EBITDA margin
Profit before tax 147.0 170.1 688.1
Excluding net financial income or expense -7.2 5.4 0.4
Excluding depreciation. amortization and impairments 10.2 5.9 28.7
EBITDA 150.0 181.4 717.2
Excluding items affecting comparability - - -
Adjusted EBITDA 150.0 181.4 717.2
Divided by Net sales 387.1 398.3 1,772.9
Adjusted EBITDA margin 38.8% 45.5% 40.5%

EBIT (operating profit) and EBIT margin
Profit before tax 147.0 170.1 688.1
Excluding net financial income or expense -7.2 5.4 0.4
EBIT (operating profit) 139.8 175.5 688.5
Divided by Net sales 387.1 398.3 1,772.9
EBIT margin 36.1% 44.0% 38.8%

Adjusted EBIT and Adjusted EBIT margin
EBIT (operating profit) 139.8 175.5 688.5
Excluding items affecting comparability - - -
Adjusted EBIT 139.8 175.5 688.5
Divided by Net sales 387.1 398.3 1,772.9
Adjusted EBIT margin 36.1% 44.0% 38.8%

Equity to assets ratio
Total equity 1,738.4 1,566.0 1,804.1

===== SIDA 29 =====

Divided by Total assets 2,123.5 1,857.3 2,344.4
Equity to assets ratio 81.9% 84.3% 77.0%