FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2023
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The interim report refers to the group for which Truecaller AB (publ) (559278 –2774) is the parent company, called Truecaller in the report.
January-September 2023
INTERIM REPORT
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Truecaller Interim Report
July-September 2023 (Q3)
Comparative figures refer to July-September 2022
• Net sales decreased by 11 percent to SEK 398.7m
(450.1).
• Adjusted EBITDA amounted to SEK 145.8m (181.5),
corresponding to an adjusted EBITDA margin of 36.6
(40.3) percent. Excluding the costs of incentive
programs, adjusted EBITDA would have been SEK
161.5m (191.5), equivalent to an adjusted EBITDA
margin of 40.5 (42.5) percent.
• Profit for the period was not affected by items
affecting comparability. The corresponding quarter
of the previous year was also not affected by any
items affecting comparability.
• Profit after tax amounted to SEK 105.0m (143.3).
• Basic earnings per share were SEK 0.29 (0.38) and
diluted earnings per share were SEK 0.29 (0.38).
• The average number of active users (MAU)
increased by 36.9 million to approximately 367.8
million (330.9).
• Net sales decreased by 12 percent in India, by 18
percent in the Middle East and Africa and was stable
in the rest of the world.
January-September 2023
Comparative figures refer to January-September 2022
• Net sales decreased by 2 percent to SEK 1,304.2m
(1,328.8)
• Adjusted EBITDA amounted to SEK 534.4m (581.3),
corresponding to an adjusted EBITDA margin of 41.0
(43.7) percent. Excluding the costs of incentive
programs, adjusted EBITDA would have been SEK
572.3m (601.6), equivalent to an adjusted EBITDA
margin of 43.9 (45.3) percent.
• Profit for the period was not affected by items
affecting comparability. The corresponding period of
the previous year was also not affected by any items
affecting comparability.
• Profit after tax amounted to SEK 420.1m (449.7).
• Basic earnings per share were SEK 1.16 (1.20) and
diluted earnings per share were SEK 1.16 (1.20).
• The average number of active users (MAU) increased
by 35.1 million to approximately 356.0 million (320.9).
• Net Sales decreased by 1 percent in India, by 12 percent
in the Middle East and Africa and increased by 5
percent in the rest of the world.
FINANCIAL KEY FIGURES
Group, SEKm (unless otherwise stated)
2023
Jul-Sep
2022
Jul-Sep
2023
Jan-Sep
2022
Jan-Sep
2022
Jan-Dec
Net sales 398.7 450.1 1,304.2 1,328.8 1,772.9
Gross profit 298.4 336.8 984.7 1,022.2 1,355.2
Gross margin (%) 74.9% 74.8% 75.5% 76.9% 76.4%
Adjusted EBITDA 145.8 181.5 534.4 581.3 717.2
Adjusted EBITDA margin (%) 36.6% 40.3% 41.0% 43.7% 40.5%
EBIT (operating profit) 133.7 173.4 501.4 561.8 688.5
EBIT margin (%) 33.5% 38.5% 38.4% 42.3% 38.8%
Adjusted EBIT 133.7 173.4 501.4 561.8 688.5
Adjusted EBIT margin (%) 33.5% 38.5% 38.4% 42.3% 38.8%
Profit or loss after net financial income or expense 148.0 186.2 555.1 578.4 688.1
Basic earnings per share (SEK) 0.29 0.38 1.16 1.20 1.43
Diluted earnings per share (SEK) 0.29 0.38 1.16 1.20 1.43
Equity 1,826.6 1,885.2 1,826.6 1,885.2 1,804.1
Total assets 2,211.5 2,354.1 2,211.5 2,354.1 2,344.4
Equity to assets ratio (%) 82.6% 80.1% 82.6% 80.1% 77.0%
Employees at the end of the period 406 374 406 374 395
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Significant events during the quarter
Truecaller continued to invest in product development by launching new products and functions and by
further improvements of the user experience.
• Strong user growth, record high in growth regions. Growth accelerated, and during the quarter,
the number of monthly active users (MAU) increased to 367.8 million, which was an increase of
more than 12 million users during the quarter. Growth outside the regions of India, Africa, and the
Middle East was exceptionally significant. The relative growth remained strongest in regions such
as South and Central America, Southeast Asia, and North America. This growth was achieved with
lower investments compared to the previous year. The development remains strong on iOS.
• Truecaller's strategy to increase the conversion to paying users continued to show positive
results. The number of paying users increased by 20 percent compared to the same period the
previous year, and revenues increased by 19 percent. Conversion improved both on Android and
iOS, with the most significant development on iOS. The launch of more advanced features like the
AI-based Truecaller Assistant had a positive impact on the average price per user, and the growth
was particularly strong in India.
• Truecaller for Business expanded its product offering and continued its growth. Towards the end
of the quarter, Truecaller launched risk and fraud management products that allow businesses to
minimize potential fraud. These solutions leverage Truecaller's network-based intelligence to
provide signals to enhance corporate risk assessment processes. Other services like Verified
Business and Business Messaging continued their strong growth, and revenues increased by 55
percent.
• A new data protection law was adopted in India and is expected to come into effect in 2024.
Truecaller's assessment is that the law will not significantly impact the user experience or revenues.
For more information, please refer to the press release from August 11 on Truecaller's website.
Other significant events
• Truecaller reached all-time high results in the customer satisfaction survey Net Promoter
Score (NPS). Truecaller continuously measures customer satisfaction in terms of the willingness
to recommend Truecaller as a product. In the latest survey, the NPS in India reached 61 (50)
which is a all-time-high result and a significant improvement from already high levels.
• During the third quarter Truecaller bought back 4.4 million B-shares as part of the ongoing
buy-back programme and as of 30th of September the company holds 19,391,533 B-shares. In
addition, a total of 5,600,000 C shares have been issued and repurchased to enable future
delivery of shares to employees within the framework of LTIP 2022 and LTIP 2023. Total number of
shares that may be bought back according to the authorization from the 2023 AGM corresponds
to 37,905,971 shares and the authorization is valid until the annual general meeting in May 2024.
See note 6 for more information.
• The number of shares and votes in Truecaller AB changed, read more on page 16.
Events after the period
• On the 6th of October Truecaller acquired the Indian company Unoideo Technologies Pvt Ltd
which provides the service TrustCheckr, that provides a fraud detection service. Through a
SaaS platform TrustChekr helps businesses verify customer information and detect risk of fraud
based on phone numbers and digital signals. The current offering has attracted interest from
companies in different industries with the most noticeable interest coming from banks and,
fintechs. The acquisition will strengthen Truecaller’s risk intelligence tool for enterprises, which
was launched late during the third quarter, and with improved tech it will speed up the roll-out of
that offering. The acquisition that was financed through existing cash will have a minor cash flow
effect and is not expected to have a material impact on the financial results in 2023.
• Truecaller is further increasing its ambitions in growth markets by recruiting country managers
in Colombia and Nigeria
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Strong development for user growth
and recurring revenues
During the third quarter our user base grew by another 12 million monthly active users, and reached an
average of 368 million monthly active users. Consumer subscriptions grew almost twice as fast as the
total user base, increasing both our recurring revenues and revenue per user. Strong growth in
Truecaller for Business also contributes to a more stable revenue profile going forward. Ads sales
continue to be muted, due to adverse macroeconomic conditions, but our profitability and cash flow
continues to be strong, even as we invest in both user growth and product improvements in order to be
able to benefit from a future upturn in ads demand.
Our total revenues decreased by 11% to SEK 399 million (450) compared to the same quarter 2022. While
revenues from our advertising business decreased by 20%, income from our other revenue streams grew
at a solid pace, with subscription revenue increasing by 19% and Truecaller for Business revenue
increasing by 55%.
In a challenging macroeconomic environment, our focus continues to be on delivering strong profit
margins and driving efficiency through both improved technology and operational excellence. This
quarter, the EBITDA-margin was 37% and EBITDA amounted to SEK 146 million (182). Truecaller continues
to have a very strong cash flow profile due to the high operating leverage in the business, and in nine out
of the ten last quarters, our EBITDA-margin has exceeded 35%.
For the past few months, we have conducted tests to assess the potential impact on user lifetime
(retention) in the event that we need to make adjustments to certain data in light of the new Digital
Personal Data Protection Act in India. These tests involv ed presenting different search results to distinct
user groups on a large scale, and with the help of our AI Identity technology, the initial results are highly
promising, as we have not observed any material change in re tention. This reinforces our previo us
statements that we do not expect the new regulations to impact either user experience or monetization.
THIRD QUARTER 2023
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Our user growth continues at a steady rate and for the
second consecutive quarter, the growth in markets outside
of India — particularly in Africa and the Middle East — was
at an all -time high. We continue to invest strategically in
selected growth markets. Our recent recruitment of country
managers in Colombia and Nigeria further strengthens our
focus on these markets by deploying local expertise on the
ground, in light of our rapidly growing user base and long -
term revenue potential in those regions.
A weak globl ads market continues to impact our revenues
negatively compared to 2022. It is reflected in lower
average prices as we continue to maximize revenue per
user, rather than CPM or fill rate. For comparable ads,
pricing has remained stable throughout 2023, with the
exception of higher demand during the Indian cricket
season (IPL) in Q2. When comparing the third quarter to the
first quarter this year, we see a stable development in the
ads market, albeit substantially lower than last year. We
continue to work diligently on improving our ability to show
ads more efficiently, and at the same time increase app
engagement through an even better produc t, and these
initiatives have created more impressions available for
monetization. Once demand for digital ads strengthens
again, and prices start to recover, we will be able to
monetize substantially more impressions than we do today
with higher price levels . The advertising landscape is
dynamic, and we see immense potential for growth when
market conditions improve and we remain well-positioned
to capitalize on this upside once it materializes.
While advertising is a cornerstone of our revenue model, we
continue to execute on our long-term strategy to diversify
our income streams. Our strategy to increase our recurring
revenues, consumer subscriptions and Truecaller for
Business (TfB), is developing according to plan. During the
third quarter, revenues for TfB grew by 55%, and
subscription revenues grew by 19%, and combined they
accounted for 25% of total revenues.
Compared to last year, the number of subscribers grew by
20%, almost twice as fast as the relative growth of the total
user base. We continue to expand our AI -powered
communication services to make our subscription offering
better, such as our new AI -features that make users' lives
easier and safer. We are on the right track to deliver a
higher value offering for communication services which
over time will justify higher subscription prices, which
currently is being evaluated.
Truecaller for Business continues to provide value for
businesses with solutions that enhance their outreach and
engagement with customers. As a continuation of our
efforts to make communication more secure and offering
products to combat the global rise o f fraud, we have
developed more robust solutions to safeguard both
consumers and businesses. Truecaller´s Business
Messaging continues to grow at a healthy pace and during
the quarter businesses sent over 2 billion messages. We will
launch Business Messaging with more partners, and
globally during 2024 and are excited about the future
opportunity. During Q4, we will launch new products that
focus on identifying and protecting companies from brand
impersonation scams and financial fraud as well as a
scoring engine that provides enterprises with an
assessment of risk associated with a mobile number. O ur
recent acquisition of Trustcheckr —whose offering helps
businesses verify customer information and detect the risk
of fraud based on both phone numbers and digital
signals—further strengthens our offerings for our 2,000+
enterprise customers and supports the growing business
need for fraud and risk intelligence.
We continue to make solid progress with our AI Identity
solution, which uses AI and machine learning models that
deliver relevant contextual information to users and help
them assess whether they should pick up the call or not,
without necessarily displayi ng the name of the caller. This
will be an important part of Truecaller´s future in
understanding the identities of phone numbers and
providing valuable information to users, without necessarily
revealing someone’s identity.
For the past few months, we have conducted tests to assess
the potential impact on user lifetime (retention) in the event
that we need to make adjustments to certain data in light
of the new Digital Personal Data Protection Act in India.
These tests involv ed presenting different search results to
distinct user groups on a large scale, and with the help of
our AI Identity technology, the initial results are highly
promising, as we have not observed any material change
in retention. This reinforces our previous statements that we
do not expect the new regulations to impact either user
experience or monetization.
In a challenging macroeconomic environment, our focus
continues to be on delivering strong profit margins and
driving efficiency through both improved technology and
operational excellence. This quarter, the EBITDA -margin
was 37% and EBITDA amounted to SEK 146 million (182).
Truecaller continues to have a very strong cash flow profile
due to the high operating leverage in the business, and in
nine out of the ten last quarters, our EBITDA -margin has
exceeded 35%.
Our balance sheet remains solid with SEK 1.6 bn in cash and
short-term investments 19.4 and million treasury shares,
which creates stability and f lexibility to pursue interesting
M&A opportunities, further buy -backs, and/or investments
that contribute to long-term shareholder value.
Overall, I´m very proud of the progress we have made this
quarter in product development, diversifying our revenue
streams, and the continued user growth across many
markets. This demonstrates that Truecaller and its services
remain highly relevant, regardless of broader economic
trends. Truecaller addresses a growing global issue, and we
remain committed to invest in further growth in existing and
new markets to provide more value for our shareholders
and, most importantly, our users in the long term.
Alan Mamedi, CEO and Co-founder
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Truecaller at a glance
Quarterly review, financial data
FINANCIAL KEY FIGURES
Group, SEKm (unless otherwise stated)
2023
Jul-Sep
2022
Jul-Sep
2023
Jan-Sep
2022
Jan-Sep
2022
Jan-Dec
Net sales 398.7 450.1 1,304.2 1,328.8 1,772.9
Gross profit 298.4 336.8 984.7 1,022.2 1,355.2
Gross margin (%) 74.9% 74.8% 75.5% 76.9% 76.4%
Adjusted EBITDA 145.8 181.5 534.4 581.3 717.2
Adjusted EBITDA margin (%) 36.6% 40.3% 41.0% 43.7% 40.5%
EBIT (operating profit) 133.7 173.4 501.4 561.8 688.5
EBIT margin (%) 33.5% 38.5% 38.4% 42.3% 38.8%
Adjusted EBIT 133.7 173.4 501.4 561.8 688.5
Adjusted EBIT margin (%) 33.5% 38.5% 38.4% 42.3% 38.8%
Profit or loss after net financial income or expense 148.0 186.2 555.1 578.4 688.1
Basic earnings per share (SEK) 0.29 0.38 1.16 1.20 1.43
Diluted earnings per share (SEK) 0.29 0.38 1.16 1.20 1.43
Equity 1,826.6 1,885.2 1,826.6 1,885.2 1,804.1
Total assets 2,211.5 2,354.1 2,211.5 2,354.1 2,344.4
Equity to assets ratio (%) 82.6% 80.1% 82.6% 80.1% 77.0%
Employees at the end of the period 406 374 406 374 395
OPERATIONAL KEY FIGURES
July-September 2023 Total India
Middle East &
Africa
Rest of the
world
Monthly Active Users (MAU), quarterly average (millions) 367.8 262.1 74.8 30.9
Daily Active Users (DAU), quarterly average (millions) 298.2 222.1 56.4 19.7
Cost per mille impressions (CPM) for ad sales (SEK) 0.96 0.84 1.37 3.43
Average revenue per user (ARPU) for premium
subscriptions (SEK) 8.73 5.46 10.16 14.18
July-September 2022 Total India
Middle East &
Africa
Rest of the
world
Monthly Active Users (MAU), quarterly average (millions) 330.9 241.6 65.5 23.7
Daily Active Users (DAU), quarterly average (millions) 261.1 198.0 47.5 15.5
Cost per mille impressions (CPM) for ad sales (SEK) 1.29 1.17 1.68 3.91
Average revenue per user (ARPU) for premium
subscriptions (SEK) 8.73 5.02 11.00 12.92
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
January-September 2023 Total India
Middle East &
Africa
Rest of the
world
Monthly Active Users (MAU). quarterly average (millions) 356.0 255.6 72.4 28.0
Daily Active Users (DAU). quarterly average (millions) 288.6 215.8 54.5 18.3
Cost per mille impressions (CPM) for ad sales (SEK) 1.06 0.97 1.37 3.19
Average revenue per user (ARPU) for premium
subscriptions (SEK) 8.56 5.15 10.59 13.79
January-September 2022 Total India
Middle East &
Africa
Rest of the
world
Monthly Active Users (MAU). quarterly average (millions) 320.9 235.0 62.9 23.0
Daily Active Users (DAU). quarterly average (millions) 254.8 194.0 45.9 14.9
Cost per mille impressions (CPM) for ad sales (SEK) 1.34 1.24 1.63 3.51
Average revenue per user (ARPU) for premium
subscriptions (SEK) 8.50 4.89 10.57 12.43
321 331 338 344 356 368
255 261 271 278 289 298
0
50
100
150
200
250
300
350
Q222 Q322 Q422 Q123 Q223 Q323
Users, millions
Monthly Active Users (MAU), avg Daily Active Users (DAU), avg
480
450 444
387
518
399
0
100
200
300
400
500
600
Q222 Q322 Q422 Q123 Q223 Q323
MSEK
Net sales
374
337 333
291
395
298
70%
72%
74%
76%
78%
80%
0
50
100
150
200
250
300
350
400
450
Q222 Q322 Q422 Q123 Q223 Q323
MSEK
Gross profit Gross margin
218
181
136
150
239
146
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
50
100
150
200
250
300
Q222 Q322 Q422 Q123 Q223 Q323
MSEK
Adjusted EBITDA Adjusted EBITDA-margin
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Financial performance
Third quarter 2023 (July-September)
Revenues
Net sales during the third quarter decreased by 11 percent
compared to the corresponding quarter last year and
amounted to SEK 398.7 (450.1) million. Revenue decreased
for ads but increased for subscriptions and Truecaller for
Business (TfB ). Currency effects had a limited negative
effect on revenues during the quarter, see Currency
exposure below.
Revenues distributed by region
Net sales in India decreased by 12 percent to SEK 293.4
(333.6) million, in the Middle East & Africa it decreased by 18
percent to SEK 50.6 (62.1) million and in the rest of the world
it was stable at SEK 54.6 (54.4) million. A contributing factor
to the decrease in revenues in the Middle East and Africa
region has been the impact of weaker currency in some of
Truecaller's largest markets in the region, such as Egypt and
Nigeria.
Revenues distributed by service
Ad revenues decreased by 20 percent to SEK 298.9 (373.1)
million. Compared to the corresponding quarter last year,
prices (CPM) decreased by approximately 26 percent. The
price reduction is due to lower demand in the wake of weak
macroeconomic development. This is reflected in lower
average prices as Truecaller continues to maximize
revenue per user instead of CPM or fill rates. For
comparable ads, pricing for similar advertisements has
remained relatively stable throughout 2023 , with the
exemption of the higher demand during the Indian cricket
season (IPL), but lower than 2022.
The number of impressions increased by 12 percent
compared to the same period last year. Truecaller
continues to enhance its ability to display ads more
efficiently for users by improving the quality of ad requests
and rendering capabilities (render rate).
Revenue from premium subscriptions increased by 19
percent to SEK 53.9 (45.1) million. this is primarily an effect
of an increased share of subscribers, with the number of
subscriptions rising by 2 0 percent. Truecaller has also
added more features to the premium offering in the past
year, which has had a positive impact on both revenue per
user and the growth of paying users . The growth has been
particularly strong among iOS users.
Revenue from Truecaller for Business (TfB) increased by 55
percent to SEK 44.4 (28.6) million. The number of connected
customers continues to show good growth both in India
and in other markets, and in total Truecaller for Business
now has active customers in 3 7 countries. In collaboration
with CPAAS company Tanla, Truecaller also sends B2C
messages to Truecaller's users. The volumes of business
messages have gradually increased and have contributed
to income growth.
Other income amounted to SEK 1.4 (3.3) million.
Gross profit
The gross profit decreased by 11 percent to SEK 298.4 (336.8)
million compared to the same period last year. The gross
margin amounted to 74.9 (74.8) percent. The gross margin
is mainly determined by fees to partners such as Google
and Apple, and to a smaller part by costs for verification of
new users and for servers used for the company's services.
Operating profit
Operating profit before depreciation and write -downs
excluding items affecting comparability (adjusted EBITDA)
amounted to SEK 145.8 (181.5) million. The adjusted EBITDA
margin amounted to 36.6 (40.3) percent.
Operating profit (EBIT) decreased to SEK 133.7 (173.4) million,
corresponding to an operating margin of 33.5 (38.5)
percent. Operating profit has decreased due to lower
income from Ads . The costs were lower compared to the
previous year.
The company continue to 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.
Staff costs during the quarter increased to SEK 93.5 (79.6)
million. Salary costs increased as an effect of increased
number of employees and the yearly salary adjustment.
The recruitment rate of new staff has decreased during the
period as a result of the weaker demand.
The group's long-term incentive program entailed a salary
cost for the period of SEK 13.1 (9.5) million with a
corresponding increase in equity and social security
contributions of SEK 2.5 (0.4) million reported as a provision
India 73.6%
Africa and Middle East
12.7%
RoW 13.7%
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
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 t he 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 3.9 (2.2)
percentage points and been 40.5 (42.5) percent. See more
info in note 5.
Other external costs decreased to SEK 59.2 (76.6) million
compared to the same period last year. The reduction in
costs is primarily an effect of that investments in user
growth and marketing has been focused on a smaller
number of markets where cost efficiency is high.
Profit and earnings per share for the period
Profit before tax decreased by 21 percent to SEK 148.0 (186.2)
million. Profit after tax for the period was SEK 105.0 (143.3)
million. Net financial income amounted to SEK 14.3 (12.8)
million and comprises positive exchange rate differences of
SEK 9.4 (16.2) million, interest income of SEK 6.3 (-2.1) million
and other financial expenses of SEK -1.5 (-1.3) million.
The total tax amounted to SEK 43.0 (42.8) million which
corresponds to an effective tax rate of 29.0 (23.0) percent
for the Group.
Basic earnings per share were SEK 0.29 (0.38) and diluted
earnings per share were SEK 0.29 (0.38).
Cash flow and financial position
Net cash from operating activities amounted to SEK 125.8
(161.9) million of which SEK 29.7 (-8.3) million was
attributable to changes in working capital and SEK -62.8 (-
17.5) million was attributable to income tax paid. Net cash
from investing activities amounted to SEK -21.1 (-3.1) million
and included a payment of additional purchase price
attributable to the acquisition of CallHero of SEK -5.3 ( -)
million and changes in non -current financial assets of SEK
-12.3 (-0.4) million. Net cash used in financing activities was
SEK -124.1 (-21.4) million and included purchase of treasury
shares SEK -163.4 (-19.8) million and a new share issue that
added SEK 46.7 (-) million. Net cash for the period was SEK
-19.5 (137.4) million.
Truecaller had cash and cash equivalents of SEK 694.0
(1,718.9) million at the end of the quarter. The equity to
assets ratio was 82.6 (80.1) percent. In excess to the cash
and cash equivalents Truecaller ha d SEK 931.0 (149.0)
million invested in short-term interest rate funds.
Truecaller have a revolving credit facility of SEK 500.0
(500.0) million. SEK 0.0 (0.0) million had been utilized as of
the reporting date.
Consolidated total assets amounted to SEK 2,211.5 (2,354.1)
million at 30 September 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 97.2
(48.7) million and claims on advertising networks and
platform owners amounted to SEK 89.4 (124.3) 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.
Recognized but unreali zed customer credit losses
amounted to SEK 4.3 (1.6) million as of 30 September 2023.
The claims on advertising networks and platform owners is
mainly linked to outst anding claims against Google and
Facebook.
Investments
During the third quarter of 2023, SEK - (1.4) million were
capitalized as internally developed intangible assets.
Currency exposure
The majority of Truecaller’s revenues are denominated in
Swedish kronor (SEK) via partners including Google and
Apple. Accordingly, there is little direct currency exposure.
In turn, these partners bill users of Truecaller’s services
partly in local curren cy, which entails indirect currency
exposure. Truecaller does not, however, have complete
information concerning currency exposure or how currency
effects are managed by 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 limited negative impact on sales during the third quarter
of 2023 compared to the corresponding quarter in 2022. The
company's estimate is that exchange rate changes had a
minor negative effect on the EBITDA margin.
Parent company
Parent company income for the quarter amounted to SEK
2.0 (2.0) million which refers to billing of subsidiaries for
services rendered The profit before tax amounted to SEK 2.4
(-7.1) million where the majority of the result is attributable
to dividends from subsidiaries . The profit after tax
amounted to SEK 1.9 (-5.6) million. Cash and cash
equivalents on 30 September 2023 amounted to SEK 323.0
(714.8) million. In excess to the cash and cash equivalents
the parent company has SEK 416.2 (149.0) 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 10 =====
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January – September 2023
Revenues
Net sales for the period January -September amounted to
SEK 1,304.2 (1,328.8) million, a decrease of 2 percent
compared to the same period last year . Net Sales for
Truecaller for Business and subscription s increased, while
advertising revenue decreased. Currency effects had a
minor positive effect on revenues during the period, see
Currency exposure below.
Revenues distributed by region
Net sales in India decreased by 1 percent during the period
to SEK 998.4 (1009.0) million, in the Middle East and Africa it
decreased by 12 percent to SEK 153.5 (174.3) million and
increased in the rest of the world by 5 percent to SEK 152.3
(145.5) million. A contributing factor to the decrease in
revenues in the Middle East and Africa region has been the
impact of weaker currency in some of Truecaller's largest
markets in the region, such as Egypt and Nigeria.
Revenues distributed by service
Advertising revenues decreased by 9 percent to SEK 1 028.0
(1 126 .3) million. Revenues from premium subscriptions
increased by 20 percent to SEK 150.5 (125.4) million,
primarily an effect of an increase in the number of premium
subscribers. Revenues from Truecaller for Business
increased with 71 percent and amounted to SEK 120.6 (70.5)
million.
Gross profit
Gross profit was SEK 984.7 (1,022.2) million, which decreased
the gross margin by 1.4 percentage points to 75.5 (76.9)
percent. 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. Increased costs for verification of new
users and increased server costs had a certain negative
impact on the gross margin during the year.
Operating profit
Operating profit before depreciation and write -downs
excluding items affecting comparability (adjusted EBITDA)
amounted to SEK 534.4 (581.3) million. The adjusted EBITDA
margin amounted to 41.0 (43.7) percent.
Operating profit (EBIT) amounted to SEK 501.4 (561.8) million,
corresponding to an operating margin of 38.4 (42.3)
percent.
Staff costs amounted to SEK 270.8 (216.9) million. Salary
costs increased as an effect of increased number of
employees and salary adjustments. The group's long-term
incentive program entailed a salary cost for the period of
SEK 34.1 (18.8) million with a corresponding increase in
equity and social security contributions of SEK 3.8 (1.5)
million reported as a provision in the balance sheet .
Excluding costs for incentive programs, the EBITDA margin
during the quarter would have increased by 2.9 (1.5)
percentage points and been 43.9 (45.3) percent. For more
info see note 5.
Other external costs amounted to SEK 181.2 (229.2) million.
The reduction in costs is primarily an effect of the fact that
the investments in user acquisition and marketing have
been focused on a smaller number of markets where the
cost efficiency is high. The company continues to closely
monitor demand trends with the aim of adjusting costs
during the ongoing macroeconomic slowdown, without
renouncing the growth potential when demand picks up
again.
Costs excluding incentive costs decreased slightly
compared to the comparison period as a result of a
number of efficiency improvements during the end of 2022
and beginning of 2023.
Profit and earnings per share for the period
Profit before tax amounted to SEK 555.1 (578.4) million. Profit
after tax for the period was SEK 420.1 (449.7) million. Net
financial income amounted to SEK 53.7 (16.6) million and
comprises positive exchange rate differences of SEK 42.1
(28.5) million, interest income of SEK 15.7 (-7.9) million and
other financial expenses of SEK -4.2 (-3.9) million.
The total tax amounted to SEK 135.0 (128.7) million, which
corresponds to an effective tax rate of 24.3 (22.2) percent
for the group.
Basic earnings per share were SEK 1.16 (1.20) and diluted
earnings per share were SEK 1.16 (1.20).
Cash flow and financial position
Net cash from operating activities amounted to SEK 411.4
(564.3) million of which 0.7 (6.4) is due to changes in
working capital and -154.9 (-31.3) is due to income taxes
paid. Net cash used in investing activities amounted to SEK
-586.0 (-34.7) million and included an investment in short
term interest funds of SEK 500.0 (-) million, an investment in
non-current financial assets of SEK -32.8 ( -) million, a
payment of additional purchase price attributable to the
acquisition of CallHero of SEK -5.3 (-) million and changes
in non-current financial assets of SEK -30.5 (-1.1) million. Net
India 76.5%
Africa and Middle East
11.8%
RoW 11.7%
===== SIDA 11 =====
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cash used in financing activities was SEK -462.2 ( -54.1)
million and included purchase of treasury shares SEK -486.3
(-19.8) million and a new share issue that added SEK 46.7 (-
) million. Net cash for the period was SEK -636.9 (475.4)
million.
Truecaller had cash and cash equivalents of SEK 694.0
(1,718.9) million at the end of the period. The equity to assets
ratio was 82.6 (80.1) percent. In excess to the cash and cash
equivalents Truecaller had SEK 931.0 (149.0) million invested
in short-term interest rate funds.
Truecaller has a revolving credit facility of SEK 500.0 (500.0)
million. None of the RCF had been drawn down as of the
reporting date.
Consolidated total assets amounted to SEK 2,211.5 (2,354.1)
million at 30 September 2023. The carrying amounts of
financial assets and financial liabilities are estimated to
coincide with fair value in all material respects.
Employees
There were 406 (374) employees at the end of the period .
The average number of employees during the period of
January–September was 402 (343).
Investments
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 period,
SEK 1.7 (7.2) million were capitalized as internally developed
intangible assets.
Currency exposure
The majority of Truecaller’s revenues are denominated in
Swedish kronor (SEK) via partners including Google and
Apple. Accordingly, there is little direct currency exposure.
In turn, these partners bill users of Truecaller’s services
partly in local curren cy, which entails indirect currency
exposure. Truecaller does not, however, have complete
information concerning currency exposure or how currency
effects are managed by 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 limited positive effect on revenues compared to the
corresponding period last year, but the operating margin
has not been affected by exchange rate changes.
Parent company
Parent company income for the period amounted to SEK 6.2
(4.8) million which refers to billing of subsidiaries for
services rendered The profit before tax amounted to SEK
405.4 (-19.6) million where the majority of the result is
attributable to dividends from subsidiaries . The profit after
tax amounted to SEK 404.2 (-15.6) million. Cash and cash
equivalents on 30 September 2023 amounted to SEK 323.0
(714.8) million. 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 12 =====
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Product update
In the third quarter, Truecaller focused on enhancing the user experience and continuing to integrate advanced AI
technology into its services. The goal was to provide immediate and practical benefits to users. This strategy led to the
introduction of additional AI -driven features, improvements in the Premium user experience, and ne w app
functionalities. Additionally, there was a significant enhancement in the ad server capabilities, leading to more
dynamic and effective ad campaigns.
The results of these initiatives have been positive; user engagement has increased, the level of subscriptions has seen
a noticeable increase, and the new AI-powered features have been well-received. The ad server's advanced features,
like retargeting, custom targeting, and look -alike audiences, have positively impacted conversion rates for various
business outcomes. Truecaller's efforts to combat fraud have also expanded, highlighting its commitment to user
safety. The corporate rebranding has further reinforced user trust and emphasized Truecaller's commitment to
privacy and security, underlining the continued focus on growth and innovation.
Investments in AI technology
Truecaller continues to make strategic investments in AI
technology. In the third quarter, initiatives rolled out
focused on applications improving support services, as
well as delivering the most relevant information to users.
Truecaller made significant improvements in its AI Identity
technology which leverages artificial intelligence and
machine learning models to provide an improved Caller ID
and spam detection experience, that goes beyond names
and spam reports. Enhancements made in this area
increased AI Identity coverage by over 50 percent during
the third quarter. Other important improvements to AI
Identity include the new anti-impersonation features that
indicate if someone is trying to impersonate another
person or business using fake names. This new AI model
protects consumers in a world where impersonation is
rapidly growing.
The company also built and introduced an internal AI-
powered knowledge system with the intention to be
utilized for customer support reasons. The system is
trained based on Truecaller's existing policies, content,
and user inquiries, prepared to handle a wide range of
customer support topics around the clock. One of the key
features is its multilingual capability, removing language
barriers in customer support interactions. The system is
also tailored with internal data, enhancing its ability to
address user-specific concerns accurately. The initial
product based on this system is called “ZipZip” and is live
on truecaller.com and soon ready to serve the company’s
368 million active users
Further demonstrating its investment in AI, Truecaller had
previously introduced AI-based transcriptions as part of
call recording in the second quarter. Though initially
available in the US, Canada, South Africa, and Australia,
this highlights Truecaller's dedication to using AI for
practical enhancements in its service offerings. By
providing transcriptions and call summaries of call
recordings, this feature adds a layer of convenience and
efficiency for users, reaffirming Truecaller's position as an
innovator in communication technology.
Further investments to enhance user
experience and combat fraud
Truecaller's dedication to fraud protection was further
emphasized through the enhancement of the Message ID
(Caller ID for Messages) feature. The feature now includes
an additional layer of protection, alerting users to the risks
of sharing OTPs when they receive a message while
engaged in a phone call.
The company has also increased its efforts in proactive
prevention to inform users about ongoing fraudulent
activities, both globally and locally. By using Truecaller's
own messaging platform, the company has sent over 1
Billion messages to users, alerting them about relevant and
local fraud issues that are trending. Users have appreciated
this information which shows in the rate of 25%.
===== SIDA 13 =====
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During the third quarter, Truecaller underwent a corporate
rebranding. The rebranding initiative, which includes a
refreshed app icon, and an updated design language, aims
to strengthen user trust and emphasize the company's
commitment to privacy and security. The familiar 'True blue'
color remains a key element of the brand identity, following
the vision of making tomorrow’s communication smarter,
safer and more efficient.
While the rebranding reaffirms Truecaller’s dedication to
user trust and safety, the company continues to innovate
its core offering.
The popular Video Caller ID feature initially rolled out in 2021
has received several major updates including more
themed videos and a more streamlined onboarding flow,
which has been requested by the community to increase
further engagement. This feature, which is built for both
consumers and verified businesses, allows users to share a
brief video that automatically plays when they call
contacts, providing a personalized touch to the calling
experience.
Important improvements to Premium
offering and conversion
The third quarter marked a pivotal period for Truecaller
Premium, characterized by substantial product launches
aimed at enhancing monetization and user retention.
The adoption of Truecaller Assistant has seen
considerable growth globally, with subscriber numbers
surging significantly, marking more than a 5x increase Q-
o-Q, driven by the launch in India, at the end of the second
quarter.
iOS has emerged as a key driver of growth in subscriptions
and revenue this quarter, outpacing the growth in monthly
active users (MAUs) with a 13% increase QoQ for both
Revenue and Subscriptions. On Android, the focus on
revenue generation yielded positive results, attributable to
strategic reductions in promotions, improved targeting,
and the multi-country rollout of the Assistant feature.
Specifically, in India, the introduction of the Assistant plan,
played a central role in revenue growth, as well as
subscription growth which grew with 39% YoY in India.
Preliminary tests indicate that higher pricing for such an
advanced product as Assistant does not adversely impact
conversion rates. This indicates that the company is
advancing in the right direction in terms of delivering a
higher value offering for communications services which
renders the opportunity to charge a higher price.
Call Recording - introduced in the second quarter, was
launched in more countries during the third quarter. Plans
are in progress for the introduction of new advanced
features during the upcoming quarter as well as
introducing new languages with the help of the new
improvements made in voice transcription.
A notable development in subscription conversion was the
introduction of the User Monetization Engine (UME), a
sophisticated system designed to personalize interstitial
prompts throughout the app. The UME's versatility is
evident in its support for various content types, including
translations, animations, and videos, and its advanced
targeting capabilities. This engine is not merely a tool for
conversion; it's instrumental in bolstering user
engagement and can be used throughout the app for
other use cases.
Attention was also directed towards refining the
experience for Premium users. This was achieved through
an overhaul of the Premium tab user interface, making it
more intuitive and user-friendly, and emphasizing the
user's Caller ID while granting easier access to premium
features. This enhancement sets the stage for future
initiatives focused on optimizing the paths to upgrades.
Optimizing AdTech for platform ad
impressions
Truecaller has steadfastly focused on refining both the
supply and demand aspects of its advertising platform, to
drive revenue growth and demand side ROI.
On the supply side this involves broadening user growth
and deepening engagement in markets with promising
medium-term growth. The aim is to enhance both the
volume and quality of ad opportunities. Key to this is
technological innovation, which bolsters in ventory
optimization and enhances crucial supply-side metrics like
request efficiency, viewability, and click -through rates
(CTR).
Despite broader market challenges in the third quarter,
Truecaller has continued to diversify its access to demand
by collaborating with a diverse set of partners, advertisers,
and agencies, and pioneering new use cases and business
models. The goal is mul tidimensional: increase demand -
===== SIDA 14 =====
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side availability to boost fill rates and intensify demand
density per ad opportunity.
Central to Truecaller's approach is the precise matching of
demand and supply. With operations handling billions of ad
opportunities daily, the team has invested in tech expertise,
data, and operational insights to ensure appropriate
demand-supply alignment, enhancin g advertiser ROI and
improving yield and ad relevance. Investment in the
proprietary tech stack continues to fine-tune this matching
process.
Truecaller continually invests in its adtech solutions to cater
to diverse performance demands. The Demand -Side
Platform (DSP) solution marks a significant enhancement in
this direction.
The AdServer capabilities have been substantially
amplified to accommodate any campaign type through
strategies like Retargeting, Re -engagement, and
Remarketing. Additionally, Truecaller has launched new
proprietary ad formats, enhancing the diversity and impact
of ad placements. These include:
- Post-click experiences: Innovations like Click -to-
Video offer engaging content for users post -
engagement.
- The introduction of Sponsored Bubbles and
Animated Ads on the after -call screen provides
dynamic and visually appealing content for users.
- Brand Sponsored Icons & Carousel ads offer a rich,
interactive experience, further enhancing user
engagement.
In a recent initiative, Truecaller collaborated with Amazon
Prime in India for the premiere of a major film. The
campaign's objective was to increase awareness and
foster user engagement through an innovative approach.
The strategy involved a concentrated effort leading up to
the film's release, using the "Click-to-experience" ad format.
Insights from the agency and client led to the development
of a custom audience segment, targeting OTT users with
semi-premium and top -tier smartphones in India's Top 8
Metros.
Speaking about the campaign's significant outcomes Jinit
Shah, Director Media, PivotRoots said " “We constantly look
to innovate our media solutions. With Truecaller's new
format, we were able to break the clutter with a very eye -
catching solution that blended seamlessly with our creative
strategy for Prime Video's latest campaign.”
Truecaller aspires to be a full -spectrum ads solution
provider across the entire advertising funnel. A recent
campaign with Goibibo, India's premier online travel
booking brand, illustrates the practical benefits of
Truecaller Ad server's advanced capabilities. The
campaign aimed to boost engagement and new u ser
acquisitions across 40 cities in India, utilizing optimized ad
delivery for efficiency and detailed analytics. By crafting a
specialized audience segment of users interested in travel
and employing re -targeting strategies, the initiative
engaged over 4 6 million users , all while staying within the
advertiser's Customer Acquisition Cost expectations. This
case underscores the effectiveness of Truecaller's
sophisticated ad features in driving substantial user
engagement and conversions.
Focused investments drive enterprise
growth and expand business offerings
Since its launch in 2020, Truecaller for Business has
emerged as a pivotal solution in secure business
communication, now serving customers across 36
countries and standing as Truecaller's most rapidly
expanding revenue source with a 55 % YoY growth. Notable
new customers during the quarter were UNICEF India, Union
Bank of India, Yes Bank, Bosch, Banque Misr, and SayHi South
Africa.
Business Messaging continues to redefine customer
interaction, offering a secure messaging platform exclusive
to verified businesses on Truecaller. During the third quarter,
more than 2 billion messages were delivered from verified
businesses to their cust omers on the Truecaller platform.
This product stands out for its ability to support rich media
content, extending beyond traditional text to include
images, videos, and documents; enhancing customer
engagement and experience.
The platform is predominantly utilized for transmitting
information like OTPs, service updates, and transaction
summaries, necessitating an elevated layer of security that
Business Messaging proficiently provides. This operational
===== SIDA 15 =====
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standard reinforces Truecaller's dedication to safeguarding
user data and fostering a secure digital communication
environment.
In response to the rising incidences of fraud globally, the
focus has been on developing a robust solution to
safeguard businesses effectively as a part of the Truecaller
for Business offering, the Risk Intelligence API is about to go
public and is a scoring engine that provides enterprises
with an assessment of risk associated with a mobile
number, using proprietary machine learning models to
analyze patterns and anomalies in aggregated data from
a mobile number’s activity. The development and
readiness we re done in the first half of the year with a
commercial launch planned for quarter four, enhancing
Truecaller’s dedication to continuous innovation within the
enterprise space.
At the beginning of quarter four, Truecaller announced the
acquisition of TrustCheckr - a SaaS platform, known for its
efficacy in verifying customer information and assessing
fraud risks. With the integration of TrustCheckr’s
capabilities, Truecaller is set to offer unparalleled security
insights, harnessing external and internal fraud signals, a
leap forward in its commitment to enterprise safety. This
development signifies an important continuatio n of
Truecaller’s relentless effort to offer products to combat
fraud and the company's mission of building trust in
communication.
Truecaller SDK -the technical solution that provides
companies with the tools needed to facilitate user logins
through quick and efficient user verification via Truecaller's
platform continued to grow during quarter three. An
impressive 6.3 million verification requests in one day were
noted.
===== SIDA 16 =====
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Other disclosures
Change of number of shares and votes in
Truecaller AB
During September the number of shares and votes in
Truecaller AB (publ) changed as a result of exercise of
employee stock options of series 2021:3 and series 2021:6 in
accordance with Truecaller's incentive programs. Through
the exercise of the employee stock options, the number of
shares has increased by 1,627,794 and the share capital
has increased by SEK 3,255.588. As of 29 September 2023,
the last trading day of September, the number of shares in
Truecaller amounts to 381,187,504, of which 46,783,800 are
ordinary shares of series A with 10 votes per share,
328,803,704 are ordinary shares of series B with 1 vote per
share and 5,600,000 are C-shares with one vote per share.
The total share capital amounts to 762,375.008 SEK.
Nomination Committe appointed
The following members have been appointed to form a
Nomination Committee ahead of the AGM in May 2024.
• Kamjar Hajabdolahi, appointed by Nami Zarringhalam
• Sven Törnkvist, appointed by Alan Mamedi
• Piyush Gupta, appointed by Sequoia Capital
• Bing Gordon, Member of the Board of Directors of
Truecaller AB
Proposals or comments to the Nomination Committee can be
sent to: nominationcommittee@truecaller.com
Risks and uncertainties
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 associated with
personal privacy. as well as tax r isks 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.
Impact of the war in Ukraine
The war in Ukraine and its global economic repercussions
have had minimal impact on Truecaller’s business.
Forward-looking statements
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 consequences 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.
Outlook
Truecaller does not publish forecasts.
Parent
Truecaller AB. CRN 559278 -2774. is a Swedish public
company whose registered office is in Stockholm. Sweden.
Financial calendar
Year-end Report 2023: 20 February 2024
Interim report January-March 2024: 7 May 2024
Interim report January-June 2024: 19 July 2024
Interim report January-September 2024: 28 October 2024
Contact details
Alan Mamedi, CEO
E-mail: alan.mamedi@truecaller.com
Odd Bolin, CFO
Tel: +46 70 428 31 73
E-mail: odd.bolin@truecaller.com
Andreas Frid, Head of IR & Communication
Tel: +46 705 29 08 00
E-mail: andreas.frid@truecaller.com
Auditor’s review
This interim report has 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 27 October 2023 at 07.30 CET.
===== SIDA 17 =====
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Condensed consolidated statement of
profit or loss
Amounts in SEK 000s Note
2023
Jul-Sep
2022
Jul-Sep
2023
Jan-Sep
2022
Jan-Sep
2022
Jan-Dec
Net sales 3 398,671 450,129 1,304,171 1,328,792 1,772,926
Other income 14 20 62 43 7,506
Work performed by the entity and capitalized - 868 1,650 5,204 5,204
Third party fees -100,255 -113,369 -319,490 -306,596 -417,689
Other external costs -59,166 -76,579 -181,241 -229,200 -349,750
Employee costs -93,476 -79,586 -270,786 -216,933 -301,031
Depreciation, amortization and impairments -12,057 -8,053 -32,998 -19,535 -28,664
EBIT (operating profit) 133,730 173,430 501,367 561,776 688,502
Net financial income or expense 14,273 12,754 53,701 16,619 -381
Profit or loss after net financial income or
expense
148,003 186,183 555,068 578,395 688,121
Tax -42,969 -42,836 -134,967 -128,651 -152,891
Profit for the period 1) 105,035 143,348 420,101 449,744 535,230
Earnings per share
Basic earnings per share (SEK) 0.29 0.38 1.16 1.20 1.43
Diluted earnings per share (SEK) 0.29 0.38 1.16 1.20 1.43
Average number of shares before dilution 356,964,229 373,941,981 361,899,206 373,867,101 373,273,365
Average number of shares after dilution 357,044,659 374,399,006 361,965,113 374,666,353 373,300,072
1) The profit for the period is attributable entirely to shareholders in the parent company.
===== SIDA 18 =====
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Consolidated statement of
comprehensive income
1) The profit for the period is attributable entirely to shareholders in the parent company.
Amounts in SEK 000s Note
2023
Jul-Sep
2022
Jul-Sep
2023
Jan-Sep
2022
Jan-Sep
2022
Jan-Dec
Profit or loss for the period 105,035 143,348 420,101 449,744 535,230
Other comprehensive income for the period
Items that will be reclassified to profit and loss in
subsequent periods
Foreign exchange translation differences -1,964 3,917 1,476 4,512 -753
Items that will not be reclassified to profit and loss
in subsequent periods
Remeasurements of defined-benefit pension plans - - - - -1,891
Other comprehensive income for the period -1,964 3,917 1,476 4,512 -2,645
Comprehensive income for the period 1) 103,071 147,265 421,577 454,256 532,586
===== SIDA 19 =====
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Condensed consolidated statement of
financial position
Amounts in SEK 000s Note
2023
30 Sep
2022
30 Sep
2022
31 Dec
ASSETS
Non-current assets
Goodwill 33,554 36,541 34,530
Other intangible assets 11,981 17,317 15,200
Property. plant and equipment 19,746 2,752 8,118
Right-of-use assets 126,771 110,580 139,777
Non-current financial assets 4 32,812 - -
Deferred tax assets 37,426 53,511 39,584
Other non-current receivables 4 19,771 19,371 16,697
Total non-current assets 282,062 240,073 253,906
Current assets
Current receivables 4 304,439 246,138 362,175
Short-term placements 4 930,954 148,979 400,490
Cash and cash equivalents 4 694,003 1,718,912 1,327,801
Total current assets 1,929,396 2,114,030 2,090,466
TOTAL ASSETS 2,211,458 2,354,102 2,344,372
EQUITY AND LIABILITIES
Equity
Equity attributable to owners of the parent 1,826,578 1,885,238 1,804,093
Total equity 1,826,578 1,885,238 1,804,093
Non-current liabilities
Liability arising from defined-benefit pension plans 7,747 5,815 7,653
Lease liabilities 106,370 96,975 118,208
Deferred tax liability 30,759 29,095 34,563
Other non-current liabilities 4 8,902 8,776 8,395
Total non-current liabilities 153,777 140,662 168,819
Current liabilities
Lease liability 22,397 15,559 23,307
Other current liabilities 4 208,706 312,643 348,153
Total current liabilities 231,104 328,203 371,460
TOTAL EQUITY AND LIABILITIES 2,211,458 2,354,102 2,344,372
===== SIDA 20 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Condensed consolidated statement of
cash flows
Amounts in SEK 000s
2023
Jul-Sep
2022
Jul-Sep
2023
Jan-Sep
2022
Jan-Sep
2022
Jan-Dec
Operating activities
Profit or loss after net financial income or expense 148,003 186,183 555,068 578,395 688,121
Adjustments for non-cash items 10,880 1,486 10,600 10,918 47,094
Income tax paid -62,835 -17,482 -154,945 -31,340 -154,078
Cash flow from operating activities before
changes in working capital
96,048 170,187 410,723 557,974 581,137
Net cash from changes in working capital
Change in operating receivables 8,571 2,000 -2,648 -24,069 -50,434
Change in operating liabilities 21,165 -10,297 3,328 30,419 79,707
Net cash from operating activities 125,785 161,891 411,403 564,324 610,410
Investing activities
Acquisitions of Group companies, net effect on cash and
cash equivalents
-5,286 -2 -5,286 -26,875 -32,158
Purchases of property, plant and equipment -3,537 -1,283 -15,827 -1,806 -7,594
Disposals of property, plant and equipment - - -1,650 - -
Purchases of intangible assets - -1,401 -500,000 -7,146 -7,146
Purchases of short-term investments -12,319 - -30,464 - -250,000
Change in financial receivables - -426 -32,812 1,087 -425
Investment in non-current financial assets -21,142 - -586,039 - -
Net cash used in investing activities -5,286 -3,110 -5,286 -34,741 -297,323
Financing activities
New share issue 46,718 - 46,718 - -
Funds received for warrants - 2,206 - 2,978 3,146
Repurchase of warrants -25 -99 -335 -818 -872
Amortization of lease liability -7,392 -3,728 -22,326 -13,411 -19,869
Payout synthetic options - - - -23,140 -23,140
Buyback of treasury shares -163,411 -19,755 -486,280 -19,755 -182,389
Net cash from (-used in) financing activities -124,111 -21,375 -462,224 -54,146 -223,124
Net cash flow for the period -19,468 137,405 -636,860 475,438 89,963
Cash and cash equivalents at the beginning of the period 714,583 1,578,285 1,327,801 1,238,443 1,238,443
Foreign exchange differences in cash and cash
equivalents -1,112 3,222 3,063 5,032 -605
Cash and cash equivalents at the end of the period 694,003 1,718,912 694,003 1,718,912 1,327,801
===== SIDA 21 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Condensed consolidated statement of
changes in equity
Equity attributable to owners of the parent
Amounts in SEK 000s
Share
capital
Other
capital
contributions Reserves
Retained profits
including
profit for
the period
Total equity
attributable
to owners
of the parent
Opening balance at 1 January 2022 747 1,707,864 3,153 -300,354 1,411,410
Profit for the period - - - 449,744 449,744
Other comprehensive income for the period - - 4,512 - 4,512
Comprehensive income for the period - - 4,512 449,744 454,256
Transactions with owners of the Group
Share issue 11 - - 18,152 18,163
Treasury shares after transaction costs - - - -19,755 -19,755
Warrants - 2,161 - - 2,161
Share-based payment - - - 19,003 19,003
Total 11 2,161 - 17,399 19,571
Closing balance at 30 September 2022 758 1,710,025 7,666 166,789 1,885,238
Opening balance at 1 January 2023 758 1,710,139 2,400 90,797 1,804,093
Profit for the period - - - 420,101 420,101
Other comprehensive income for the period - - 1,476 - 1,476
Comprehensive income for the period - - 1,476 420,101 421,577
Transactions with owners of the Group
Share issue 4 46,714 - - 46,719
Treasury shares after transaction costs - - - -479,755 -479,755
Warrants - -335 - - -335
Share-based payment - - - 34,280 34,280
Total 4 46,380 - -445,475 -399,092
Closing balance at 30 September 2023 762 1,756,519 3,876 65,422 1,826,578
===== SIDA 22 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Condensed parent company income
statement
Amounts in SEK 000s Note
2023
Jul-Sep
2022
Jul-Sep
2023
Jan-Sep
2022
Jan-Sep
2022
Jan-Dec
Operating revenue 2,039 1,953 6,188 4,813 6,734
Other external costs -2,634 -2,908 -7,821 -9,659 -13,003
Employee costs -3,180 -5,189 -9,020 -9,784 -12,846
EBIT (operating profit) -3,775 -6,144 -10,653 -14,630 -19,116
Net financial income or expense 6,158 -911 416,036 -4,996 -2,978
Profit or loss after financial items 2,384 -7,055 405,382 -19,626 -22,094
Appropriations - - - - 102,600
Profit or loss before tax 2,384 -7,055 405,382 -19,626 80,506
Tax -535 1,443 -1,150 4,031 -16,598
Profit or loss for the period 1,849 -5,612 404,232 -15,595 63,908
===== SIDA 23 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Condensed parent company balance
sheet
Amounts in SEK 000s Note
2023
30 Sep
2022
30 Sep
2022
31 Dec
ASSETS
Non-current assets
Investments in Group companies 10,297,177 10,247,177 10,247,177
Deferred tax assets - 20,613 -
Total non-current assets 10,297,177 10 267,791 10,247,177
Current assets
Current receivables 11,128 13,497 12,357
Receivables from Group companies 24,111 10,746 106,248
Short-term placements 416,177 148,979 400,490
Cash and cash equivalents 322,980 714,749 305,935
Total current assets 774,396 887,971 825,030
TOTAL ASSETS 11,071,573 11,155,761 11,072,207
EQUITY AND LIABILITIES
Equity and liabilities
Equity 11,064,640 11,139,471 11,059,499
Current liabilities 6,933 16,290 12,708
TOTAL EQUITY AND LIABILITIES 11,071,573 11,155,761 11,072,207
===== SIDA 24 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Notes
Note 1. Significant accounts policies
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 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
classified as treasury shares and recognized as a d ebit
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.
Financial instruments at fair value
The group has non-current financial assets consisting of
the investment in Mayhem Studios. The non-current
financial assets are valued at fair value through the income
statement. As no market quotation exists for the
investment, its fair value is determined through other
observable data (level 2).
kapital.
Note 2. Key judgements and estimates
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.
Note 3. Revenue from contracts with customers
DISTRIBUTION OF REVENUE FROM CONTRACTS WITH CUSTOMERS
Amounts in SEK 000s
2023
Jul-Sep
2022
Jul-Sep
2023
Jan-Sep
2022
Jan-Sep
2022
Jan-Dec
Geographical region
India 293,430 333,563 998,390 1,008,991 1,324,080
Middle East and Africa 50,638 62,123 153,517 174,327 237,096
Rest of the world 54,603 54,443 152,264 145,475 211,750
===== SIDA 25 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Revenue from contracts with customers 398,671 450,129 1,304,171 1,328,792 1,772,926
The geographical distribution is based on where the customer has their mobile subscription.
Amounts in SEK 000s
2023
Jul-Sep
2022
Jul-Sep
2023
Jan-Sep
2022
Jan-Sep
2022
Jan-Dec
Type of service
Advertising revenues 298,917 373,072 1,028,032 1,126,274 1,488,558
User revenues 53,928 45,129 150,531 125,403 170,507
Truecaller for Business 44,423 28,593 120,564 70,521 105,473
Other revenues 1,403 3,335 5,044 6,594 8,388
Revenue from contracts with customers 398,671 450,129 1,304,171 1,328,792 1,772,926
Note 4. Financial instruments
Measurement of financial assets and liabilities at 30 September 2023
FINANCIAL ASSETS
Financial assets
measured at fair value
through profit and loss
Financial assets
measured at amortized
cost Total carrying amount
Other non-current receivables - 19 771 19 771
Non-current financial assets 32,812 - 32,812
Claims on advertising networks and platform
owners
- 89,418 89,418
Trade receivables - 97,207 97,207
Short-term placements 930,954 - 930,954
Cash and cash equivalents - 694,003 694,003
Total 963,767 900,399 1,864,166
FINANCIAL LIABILITIES
Trade payables - 48,823 48,823
Conditional consideration (earnout) 8,902 - 8,902
Total 8,902 48,823 57,725
Measurement of financial assets and liabilities at 30 September 2022
FINANCIAL ASSETS
Financial assets
measured at fair value
through profit and loss
Financial assets
measured at amortized
cost Total carrying amount
Other non-current receivables - 19,371 19,371
===== SIDA 26 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Claims on advertising networks and platform
owners
- 124,296 124,296
Trade receivables - 48,744 48,744
Short-term placements 148,979 - 148,979
Cash and cash equivalents - 1,718,912 1,718,912
Total 148,979 1,911,324 2,060,303
FINANCIAL LIABILITIES
Trade payables - 21,897 21,897
Conditional consideration (earnout) 19,447 - 19,447
Total 19,447 21,897 41,344
Measurement of financial assets and liabilities at 31 December 2022
FINANCIAL ASSETS
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
FINANCIAL LIABILITIES
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 th e net amounts of the carrying
amounts shown in the table above.
The Group has short -term placements , conditional
consideration (earnouts) and non-current financial assets
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 liabilities 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.
===== SIDA 27 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Short-term
placements, SEK 000s
2023
Jan-Sep
2022
Jan-Sep
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
30,464 -1,087 424
Closing balance 930,954 148,979 400,490
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-Sep
2022
Jan-Sep
2022
Jan-Dec
Balance at 1 January 13,301 - -
Acquisition value - 16,785 16,785
Payout -5,286 - -5,228
Change in value
recognized in profit
and loss
887 2,662 1,744
Closing balance 8,902 19,447 13,301
Non-current financial assets
The group’s non -current financial assets consist of the
investment in Mayhem Studios that was made during the
second quarter. The non-current financial assets belong to
level 2 in the valuation hierarchy.
Note 5. Incentive programs
The Annual General Meeting on 26 May 2023 approved the
Board of Directors’ proposal on an employee stock option
program and share program (together “LTIP 2023”) for
senior executives, key individuals and employees of the
Truecaller Group. LTIP 2023 consist s of a maximum of
2,800,000 employee stock options and a maximum of
500,000 performance-based share rights.
The Group applies IFRS 2 Share -based Payment to
employee stock options and performance -based share
rights, where the cost is measured at fair value and
allocated over the term of the program and recognized in
equity. The Group recognizes a reserve for a ccrued social
insurance costs for the program based on the estimated
benefit value for participants.
The Group has two previously implemented incentive
programs, LTIP 2021 and LTIP 2022. Refer to the 2022 annual
report for detailed information about the programs.
Costs of incentive
programs, SEKm
2023
Jul-
Sep
2022
Jul-
Sep
2023
Jan-
Sep
2022
Jan-
Sep
2022
Jan-
Dec
Cost of vested
warrants per IFRS 2
-13.1 -9.5 -34.1 -18.8 -28.4
Social insurance
contributions
-2.5 -0.4 -3.8 -1.5 -1.8
Costs of incentive
programs
-15.7 -10.0 -37.9 -20.3 -30.2
Note 6. Treasury shares
The Annual General Meeting on 26 May 2023 authorized
the Board of Directors to again repurchase class B shares.
The new authorization permits the Board of Directors to
resolve to repurchase a maximum number of shares such
that the company’s shareholding does not exceed ten (10)
percent of the total number of outstanding shares in the
company as of the date of the Annual General Meeting.
Share repurchases may be executed on one or more
occasions prior to the next Annual General Meeting.
The repurchases based on the authorization from the
Annual General Meeting 2022 have now been completed.
Through the end of the reporting period, a total of
19,391,533 class B shares had been repurchased for SEK
668.5 million including transaction costs.
Truecaller also issued and repurchased 5 ,600,000 class C
shares for a cost of SEK 0. 2 million. The transactions were
executed in accordance with the mandate issued by the
Annual General Meeting 202 2 and 2023 to secure the
commitments under share program 2022 and 2023, which
is part of the Group’s long-term incentive program s. The
class C shares will be converted to class B common shares
in connection with the delivery of class B common shares in
accordance with share program 2022 and 2023.
Distribution of shares at the end of the reporting period:
Share class Shares
Class A
Class B
Class C
46,783,800
328,803,704
5,600,000
Total number of shares outstanding 381,187,504
- of which Class B shares held by Truecaller
- of which Class C shares held by Truecaller 19,391,533
5,600,000
Total number of shares outstanding. net after
shares held by Truecaller
356,195,971
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Note 7. Contingent liabilities
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 lik ely that the
outcome will be in its favor and has therefore not
recognized a provision in relation to this matter.
Note 8. Acquisitions
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. 8 million.
The investment was financed through existing cash. Other
investors include Sequoia and Mobile Premier League.
Mayhem Studios Private Ltd. focuses on developing mobile
games for the Indian market.
During the third quarter, a conditional additional purchase
price of SEK 5.3 million has been paid regarding the
acquisition of CallHero. The additional purchase price is
paid according to the agreement and has no impact on the
group's results.
Note 9. Related party
transactions
No transactions with related parties have been made
during the period.
Note 10. Events after the
reporting date
On October 6 Truecaller closed the acquisition of the India-
based company Unoideo Technologies Pvt Ltd
(“TrustCheckr”). The company provides the service
TrustCheckr that through a SaaS platform helps businesses
verify customer information and detect risk of fraud based
on phone numbers and digital signals. TrustCheckrs current
offering has attracted interest from companies in different
industries with the most noticeable interest coming from
banks, fintech, and other financial institutions. The
acquisition will strengthen Truecaller’s risk intelligence tool
for enterprises, which was launched in Q3, and with
improved tech it will speed up the roll-out of that offering.
The consideration amounts to INR 161m/SEK 21. 3m paid in
cash from existing reserves. The acquisition is primarily an
acquisition of technology and skills and is not expected to
have significant impact on profit or loss under 2023.
According to the preliminary acquisition analysis, surplus
value of SEK 8.9 million arose attributable to proprietary
software, as well as non-tax-deductible goodwill of SEK 14.2
million, primarily attributable to the skills added to the
company by the employees of TrustCheckr. The useful life
of proprietary software has been estimated at five years.
Fair value of acquired net
assets, TrustCheckr
(SEK 000s)
Proprietary software 8,910
Property, plant and equipment 35
Other current assets 223
Trade receivables and other
receivables
243
Cash and cash equivalents 834
Deferred tax liability -3,113
Trade payables and other
current liabilities
-13
Total acquired net assets 7,118
Purchase consideration
(SEK 000s)
Consideration, cash 21,282
Total consideration 21,282
Fair value of acquired net
assets
-7,118
Goodwill 14,164
Group,
Investing activities (SEK 000s)
Consideration paid -21,282
Cash and cash equivalents in
acquired entities
834
Costs directly related to
acquisitions
-1,422
Net effect of acquisitions on
consolidated cash and cash
equivalents
-21,870
===== SIDA 29 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Assurance
The CEO and the Board of Directors hereby certify that the interim report provides a true and
fair view of the operations. position and earnings of the parent company and the Group and
describes the material risks and uncertainties faced by the parent company and the
companies included in the Group.
Stockholm, 2023-10-27
Nami Zarringhalam
Board Chair
Alan Mamedi
Director and CEO
Annika Poutiainen
Director
Helena Svancar
Director
Bing Gordon
Director
Shailesh Lakhani
Director
===== SIDA 30 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Auditor’s review report
Truecaller AB (publ) org. no 559278-2774
Introduction
We have reviewed the condensed interim financial information (the interim report) for Truecaller AB as of 30 September
2023 and the nine-month period then ended. The directors and management are responsible for the preparation and fair
presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to
express a conclusion on this interim report based on our review.
Focus and scope of the review
We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim
Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists
of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and
other review procedures. A review differs from and is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing and generally accepted auditing practices otherwise, and consequently does
not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an
audit. The conclusion expressed based on a review therefore does not provide the same level of assurance as an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report was not, in all
material respects, prepared with regard to the Group in accordance with IAS 34 and the Annual Accounts Act and with
regard to the parent company in accordance with the Annual Accounts Act.
Stockholm, 27 October 2023
Ernst & Young AB
Jennifer Rock-Baley
Authorised Public Accountant
===== SIDA 31 =====
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Alternative performance measurements
In accordance with ESMA (European Securities and Markets Authority) Guidelines on Alternative
Performance Measures. the definition and reconciliation of alternative performance measures used by
Truecaller are presented here. The guidelines entail additional disclosures regarding financial measures
not defined under IFRS. The performance measures shown below are presented in the interim report.
They are used for the purposes of internal control and monitoring. As all companies do not calculate
financial measures in the same way. these measures are not always comparable to measures used by
other companies. The following measures are measures used by Truecaller to clarify the company’s
performance and simplify evaluation for users of the company’s financial reports.
Key performance
measurements Definition Purpose
Gross profit Net sales minus brokerage costs. Gross profit is used to analyze profit minus direct costs
(costs related directly to brokerage of ad space and
the costs to onboard new premium users).
Gross margin Gross profit as a percentage of net sales. Gross margin is a measure of profitability minus direct
costs.
Adjusted EBITDA EBIT before interest. taxes. depreciation
and amortization (EBITDA) and adjusted
for items affecting comparability. Items
affecting comparability consist of costs
related to the IPO and synthetic options
from the acquisition of Backwater
Technologies.
Adjusted EBITDA is a measurement Truecaller uses to
show how current operations develop over time.
Adjusted EBITDA margin Adjusted EBITDA as a percentage of net
sales.
Adjusted EBIT margin is used to illustrate the
profitability of current operations excluding items
affecting comparability and before amortization.
EBIT (operating profit) Operating profit (earnings) before
interest and taxes
EBIT is used to analyze the profit generated by the
operating entity.
EBIT margin EBIT as a percentage of net sales. The EBIT margin is used to illustrate the profitability of
current operations.
Adjusted EBIT Operating profit (earnings) before
interest and taxes (EBIT) and adjusted for
items affecting comparability. Items
affecting comparability consist of costs
related to the IPO and synthetic options
from the acquisition of Backwater
Technologies.
Adjusted EBIT is used to analyze the profit generated by
the operating entity. adjusted for items affecting
comparability.
Adjusted EBIT margin Adjusted EBIT as a percentage of net
sales.
The adjusted EBIT margin is used to illustrate the
profitability of current operations adjusted for items
affecting comparability.
Equity to assets ratio Equity divided by total assets. A measure to illustrate financial risk. expressed as the
percentage of total assets financed by shareholders’
equity.
Monthly Active Users
(MAU)
The number of users that have a
Truecaller profile and are active on the
platform on a monthly basis. Calculated
as an average of all days in the period.
Used to illustrate the volume of active users of
Truecaller’s services.
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INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
Daily Active Users (DAU) The number of users that have a
Truecaller profile and are active on the
platform on a daily basis. Calculated as
an average of all days in the period.
Used to illustrate the volume of active users of
Truecaller’s services.
Cost per thousand
impressions (CPM)
CPM illustrates the cost of displaying one
ad one thousand times.
Used to illustrate the effectiveness of the ad platform.
Average revenue
per user (ARPU)
The average revenue for one recurring
paying user (Truecaller Premium)
Used to illustrate how revenues per user develop over
time.
RECONCILIATION OF SELECTED KEY FIGURES THAT ARE NOT DEFINED UNDER IFRS
Group, SEKm
2023
Jul-Sep
2022
Jul-Sep
2023
Jan-Sep
2022
Jan-Sep
2022
Jan-Dec
Gross profit and gross margin
Net sales 398.7 450.1 1,304.2 1,328.8 1,772.9
Minus brokerage costs -100.3 -113.4 -319.5 -306.6 -417.7
Gross profit 298.4 336.8 984.7 1,022.2 1,355.2
Divided by Net sales 398.7 450.1 1,304.2 1,328.8 1,772.9
Gross margin 74.9% 74.8% 75.5% 76.9% 76.4%
Adjusted EBITDA and Adjusted EBITDA margin
Profit before tax 148.0 186.2 555.1 578.4 688.1
Excluding net financial income or expense -14.3 -12.8 -53.7 -16.6 0.4
Excluding depreciation. amortization and
impairments
12.1 8.1 33.0 19.5 28.7
EBITDA 145.8 181.5 534.4 581.3 717.2
Excluding items affecting comparability - - - - -
Adjusted EBITDA 145.8 181.5 534.4 581.3 717.2
Divided by Net sales 398.7 450.1 1,304.2 1,328.8 1,772.9
Adjusted EBITDA margin 36.6% 40.3% 41.0% 43.7% 40.5%
EBIT (operating profit) and EBIT margin
Profit before tax 148.0 186.2 555.1 578.4 688.1
Excluding net financial income or expense -14.3 -12.8 -53.7 -16.6 0.4
EBIT (operating profit) 133.7 173.4 501.4 561.8 688.5
Divided by Net sales 398.7 450.1 1,304.2 1,328.8 1,772.9
EBIT margin 33.5% 38.5% 38.4% 42.3% 38.8%
Adjusted EBIT and Adjusted EBIT margin
===== SIDA 33 =====
33
INTERIM REPORT JANUARY -SEPTEMBER 2023 TRUECALLER AB
EBIT (operating profit) 133.7 173.4 501.4 561.8 688.5
Excluding items affecting comparability - - - - -
Adjusted EBIT 133.7 173.4 501.4 561.8 688.5
Divided by Net sales 398.7 450.1 1,304.2 1,328.8 1,772.9
Adjusted EBIT margin 33.5% 38.5% 38.4% 42.3% 38.8%
Equity to assets ratio
Total equity 1,826.6 1,885.2 1,826.6 1,885.2 1,804.1
Divided by Total assets 2,211.5 2,354.1 2,211.5 2,354.1 2,344.4
Equity to assets ratio 82.6% 80.1% 82.6% 80.1% 77.0%