Truecaller (TRUE) Q1 2025 earnings summary

Executive summary

• Net sales grew 16% year-over-year to nearly SEK 497 million, with all revenue streams contributing and recurring revenues now 32% of total, doubling over two years.

• User base surpassed 450 million, with monthly active users up 15% to 412 million and daily active users up 17% to 356 million.

• Premium subscriptions and Truecaller for Business revenues surged 40% and 60% year-over-year, respectively, with iOS accounting for 43% of premium revenue.

• Advertising remained the largest income stream, growing 5% year-over-year, with direct ad sales and new formats driving higher CPMs.

• New iOS app launch with Live Caller ID led to a 6% month-on-month increase in iOS premium subscribers in April.

Financial highlights

• EBITDA excluding incentive costs rose 22% to SEK 199 million, with margin improving to 40%; including incentive costs, EBITDA was SEK 149 million, margin 30%.

• Gross profit increased 19% to SEK 384.3 million, with gross margin improving to 77.3%.

• Net cash from operating activities before tax was SEK 178 million; cash and short-term investments totaled SEK 1.4 billion.

• Board proposed a dividend of SEK 1.70 per share and cancellation of 3.9 million repurchased shares.

• Equity to assets ratio stood at 78.2%, down from 82.7% a year earlier.

Outlook and guidance

• Gradual positive revenue impact from the new iOS product expected from Q2 onward.

• No material impact from global macroeconomic uncertainty observed yet, but currency effects from a stronger Swedish krona expected to have a larger impact in coming quarters.

• Marketing expenses are not expected to reach Q1 levels for the remainder of the year.

• Growth investments in new markets will depend on hiring local teams; annual run rate guidance for user acquisition investments remains valid.

• Continued focus on efficiency and growth initiatives, with SEK 1.4 billion in cash and short-term funds available for investments, dividends, and buybacks.