Truecaller (TRUE) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw record user growth, with MAU reaching 397–400 million and DAU at 325 million, both up 12% year-over-year, resulting in a DAU/MAU ratio of 82%, the highest since 2018.

• Subscription and business revenues achieved all-time highs, with strong traction in targeted markets like Colombia and Nigeria.

• Strategic focus on subscriptions, especially on iOS and in the U.S., led to subscription revenue growth of over 60% and 65% year-over-year, respectively.

• Profitability and high cash conversion supported dividends, buybacks, and growth investments.

• Overall revenue and ad revenue comparisons were impacted by strong IPL in 2023 and IPL timing in 2024.

Financial highlights

• Net sales for Q2 2024 were SEK 455.9–456 million, down 12% year-over-year, mainly due to lower ad revenues and negative FX impact.

• EBITDA was SEK 164.7–165 million, a 31% decrease year-over-year, with a margin of 36% (39% excluding incentive costs).

• Recurring revenue streams (subscriptions and B2B) grew by 33% year-over-year and now represent 27% of net sales.

• Subscription revenues grew 29% year-over-year, with ARPU at an all-time high.

• Cash and short-term investments stood at SEK 1.1 billion at period end, with no debt.

Outlook and guidance

• Continued investments in targeted growth markets (notably Nigeria, Colombia, and the U.S.) are expected to persist at current levels.

• Apple’s iOS changes are expected to significantly boost iOS user growth and monetization, with Live Lookup features launching later in 2024 or early 2025.

• Targeting average net sales growth above 45% per year over the medium term (2021E–2024E) and annual EBITDA margin of 35%+ from 2024.

• Video ads and new ad formats are being tested and are expected to contribute more meaningfully to revenue in late 2024 and beyond.

• No formal forecasts published; continued investment in user growth and product innovation planned.