Truecaller (TRUE) investor relations material

Executive summary

• User base surpassed 500 million, with MAU at 463 million (up 12% YoY) and DAU at 403 million (up 13% YoY), maintaining an 87% DAU/MAU ratio.

• Net sales declined 27% year-over-year to SEK 361.6 million, mainly due to ad revenue headwinds, currency effects, and business model changes.

• EBITDA dropped 57% year-over-year to SEK 64.4 million, with margin at 17.8% including incentive costs.

• Recurring revenues (subscriptions and business) rose to 47% of total, up from 32% last year, driven by premium subscriber growth surpassing 4 million.

• Organizational restructuring and cost reduction initiatives underway, targeting at least 20% lower staff costs from Q3.

Financial highlights

• Net sales down 27% year-over-year in SEK and 16% in constant currencies, with SEK 362M reported.

• EBITDA margin at 17.8% in SEK, 20.1% in constant currencies; excluding incentive costs, margin was 28.6%.

• Gross profit decreased 33% year-over-year; gross margin fell to 70.9% from 77.3%.

• Cash and short-term funds totaled approximately SEK 900 million; no drawdown on SEK 500 million credit facility.

• Board proposes a dividend of SEK 0.28 per share.

Outlook and guidance

• Premium revenue and subscriber growth expected to remain strong, with premium conversion rate up 27% YoY to 0.80%.

• Ads business transformation to auction-based model to be completed in Q2; yield improvements expected thereafter.

• Cost base to reduce by at least 20% from Q3 due to restructuring, with SEK 22–23 million one-off cost in Q2.

• No immediate recovery in ad revenues expected in Q2; cautious on further downside risks.

• Strategic focus on recurring revenue growth and ads business transformation.