Affle 3i (AFFLE) Q4 20/21 earnings summary

Executive summary

• FY2020-21 closed with record revenue, conversions, profitability and operating cash flow despite COVID-19 disruption.

• Growth was broad-based across existing and new customers, supported by advertiser spending, platform investment and acquisitions.

Financial highlights

• Revenue from contracts with customers rose 54.8% YoY to Rs. 5,167.79 mn; total revenue increased 64.3% to Rs. 5,583.10 mn.

• PAT attributable to equity holders increased 105.8% to Rs. 1,348.03 mn; normalized PAT, excluding fair-value gains and specified tax items, rose 57.4% to Rs. 1,030.99 mn.

• Adjusted EBITDA was Rs. 1,300.02 mn, up 46.4% YoY; adjusted EBITDA margin was 25.1% versus 26.5%.

• Operating cash flow reached Rs. 1,016.16 mn, up 41.4% YoY; conversions were 105.3 mn versus 72.3 mn.

• Other income rose to Rs. 415.31 mn, including a Rs. 339.80 mn fair-value gain on financial instruments.

Outlook and guidance

• FY2021-22 outlook was described as optimistic, with growth plans spanning technology innovation, market expansion and consolidation.

• Affle2.0 targets 10bn connected devices over the decade, expanding beyond smartphones into connected TV, wearables and out-of-home screens.

• Priorities include vernacular, verticalization, ecosystem partnerships, fraud prevention, connected-device journeys and selective acquisitions.