Truecaller AB
LSE:0AA7
Truecaller AB
In the bustling era of smartphones and digital communication, Truecaller AB emerged as a pioneer, reshaping the way people handle phone calls globally. Born out of the curiosity and ambition of two Swedish engineering students, Nami Zarringhalam and Alan Mamedi, in 2009, Truecaller transformed into a global phenomenon. Their journey began with a singular mission: to build a robust platform capable of identifying unknown callers and blocking unwanted spam calls, a growing nuisance worldwide. Truecaller operates by harnessing the power of its extensive user community, who share contact details within a cloud-based, ever-expanding database. This collaborative data sharing allows users to identify unknown numbers and intercept spammers efficiently, enhancing everyday communication by making it safer and less intrusive.
Financially, Truecaller has built its revenue model with a focus on freemium service and advertisement. While the core functionalities of caller identification and spam blocking are free, the company generates most of its income from in-app advertising. Additionally, it offers a premium subscription with enhanced features such as an ad-free experience, advanced blocking options, and access to exclusive data insights, creating multiple streams of revenue. The company's strategic pivot towards evolving into a comprehensive communications platform, including messaging and payments in specific regions, further diversifies its offerings and revenue potential. With its headquarters in Stockholm and a strong foothold in high-population markets like India, Truecaller continues to refine its technology to address the complexities of digital communication, maintaining its relevance in an increasingly connected world.
In the bustling era of smartphones and digital communication, Truecaller AB emerged as a pioneer, reshaping the way people handle phone calls globally. Born out of the curiosity and ambition of two Swedish engineering students, Nami Zarringhalam and Alan Mamedi, in 2009, Truecaller transformed into a global phenomenon. Their journey began with a singular mission: to build a robust platform capable of identifying unknown callers and blocking unwanted spam calls, a growing nuisance worldwide. Truecaller operates by harnessing the power of its extensive user community, who share contact details within a cloud-based, ever-expanding database. This collaborative data sharing allows users to identify unknown numbers and intercept spammers efficiently, enhancing everyday communication by making it safer and less intrusive.
Financially, Truecaller has built its revenue model with a focus on freemium service and advertisement. While the core functionalities of caller identification and spam blocking are free, the company generates most of its income from in-app advertising. Additionally, it offers a premium subscription with enhanced features such as an ad-free experience, advanced blocking options, and access to exclusive data insights, creating multiple streams of revenue. The company's strategic pivot towards evolving into a comprehensive communications platform, including messaging and payments in specific regions, further diversifies its offerings and revenue potential. With its headquarters in Stockholm and a strong foothold in high-population markets like India, Truecaller continues to refine its technology to address the complexities of digital communication, maintaining its relevance in an increasingly connected world.
User Growth: Truecaller saw its strongest quarterly user growth since 2018, reaching 397 million monthly active users and 325 million daily active users, both up 12% year-on-year.
Revenue Decline: Net sales were SEK 456 million, down 12% year-on-year, mainly due to lower ad revenue from changes in IPL-related advertising.
Ad Revenue Impact: Advertising revenue dropped 22% year-on-year, but was nearly flat (down 3%) excluding the IPL effect.
Recurring Revenue Strength: Subscription revenue grew 29% and Truecaller for Business revenue grew 17% quarter-on-quarter, both hitting all-time highs in absolute terms.
Profitability: EBITDA was SEK 165 million, a 31% decrease year-on-year, with a margin of 36%, but still above long-term targets.
iOS Opportunity: Upcoming iOS 18 changes are expected to significantly improve the product for iPhone users, presenting a major monetization and user growth opportunity.
Cash & Buybacks: The company remains highly cash-generative, ending Q2 with SEK 1.1 billion in cash and has continued share buybacks.
