Affle 3i (AFFLE) Q2 24/25 earnings summary

Executive summary

• Achieved record performance in H1 FY25, surpassing both H1 and H2 FY24, with strong growth in revenue, EBITDA, and PAT, and highest-ever quarterly metrics in Q2 FY25.

• 100% of Q2 FY25 revenue was contributed by the CPCU business model, with 95 million conversions at a CPCU rate of INR 57.1, driving a 35.2% year-on-year increase in CPCU revenue.

• India and global emerging markets contributed 73.4% of Q2 FY25 revenues, growing 25.3% year-on-year, while developed markets grew 27.5% year-on-year.

• Continued investment in GenAI-powered capabilities and technology, with two new U.S. patents granted, ISO 27001:2022 certification achieved, and the completed acquisition of YouAppi Inc.

• Platform recognized with Gold Awards at ET BrandEquity MarTech Plus Awards 2024 and multiple industry recognitions for adtech innovation.

Financial highlights

• Q2 FY25 consolidated revenue reached INR 5,429 million, up 25.9% year-on-year; H1 FY25 revenue was INR 10,624 million, up 26.8% year-on-year.

• EBITDA for Q2 FY25 was INR 1,133 million, up 29.9% year-on-year, with a margin of 20.9%; H1 FY25 EBITDA was INR 2,178 million, up 31.8% year-on-year.

• PAT for Q2 FY25 was INR 920 million, up 37.7% year-on-year; H1 FY25 PAT was INR 1,786 million, up 34.3% year-on-year.

• Operating cash flow for H1 FY25 was INR 2,623 million, with an OCF to PAT ratio of 81.7%.

• Basic and diluted EPS for H1 FY25 stood at 12.74, compared to 9.98 in H1 FY24.

Outlook and guidance

• Confidently on track to deliver over 20% revenue growth for FY25, with even higher growth in EBITDA and PAT.

• Expect strong Q3 and Q4 performance, with festive and holiday quarters typically being the best.

• Medium-term guidance of 20% annual revenue growth and 25% annual bottom-line growth compounded over five years.

• Focus on scalable data platforms, global reach, and leveraging AI/ML and proprietary tech for future growth.

• Management remains committed to utilizing QIP and preferential issue proceeds for specified purposes, with unutilized funds held in deposits.