Affle 3i (AFFLE) Q4 22/23 earnings summary

Executive summary

• FY2023 reached record revenue, conversions, profitability and operating cash flow; revenue from operations grew 32.6% YoY and normalized PAT grew 33.8%.

• The ROI-linked CPCU model remained the core growth engine, with CPCU revenue up 35.3% and 256.8m converted users.

Financial highlights

• Revenue from customer contracts was ₹14,339.56m, up 32.6% YoY; total revenue was ₹14,882.80m, up 29.0%.

• Parent-attributable reported PAT was ₹2,445.89m, up 14.4%; normalized PAT was ₹2,453.00m, up 33.8%, excluding non-operating financial-instrument gains and related tax effects.

• EBITDA was ₹2,929.70m, up 37.2%; operating cash flow was ₹2,603.03m, up 26.4% YoY.

• CPCU revenue reached ₹13,175m, up 35.3% YoY and 91.9% of customer-contract revenue; converted users totaled 256.8m.

Outlook and guidance

• Vision 2030 targets reach across 10bn+ connected devices, integrated online/offline journeys and responsible integration of Generative AI; no numerical FY2024 guidance is stated.

• Growth priorities include deeper emerging-market penetration, verticalization, OEM/operator partnerships, connected-device use cases, technology and IP investment, and selective acquisitions.

• Plans include developing Generative AI use cases for privacy protection, synthetic data, vernacular campaign decisions and fraud prevention.