Truecaller (TRUE) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw record user growth, with MAU reaching 397–400 million and DAU up 12% year-over-year, marking the highest absolute user growth since 2018.

• Net sales declined 12% year-over-year to SEK 455.9–456 million, mainly due to lower IPL-related ad revenues and FX headwinds.

• EBITDA was SEK 164.7–165 million, down 31% year-over-year, reflecting lower ad revenues and increased investments.

• Recurring revenues from subscriptions and business offerings grew 29–33% year-over-year, reaching all-time highs and offsetting some advertising weakness.

• Apple’s iOS changes are expected to significantly boost iOS user growth and monetization from late 2024 and 2025.

Financial highlights

• Net sales: SEK 455.9–456 million, down 12% year-over-year, impacted by IPL ad revenue decline and negative FX effects.

• EBITDA: SEK 164.7–165 million, down 31% year-over-year; margin at 36–36.1%, up from Q1.

• Gross margin stable at 75–76%.

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

• Dividend of SEK 1.60–1.70 per share (~SEK 600 million) paid; new buyback mandate up to 10% of shares.

Outlook and guidance

• Recurring revenue streams expected to continue growing and increase their share of total revenue.

• Investments in targeted growth markets (Nigeria, Colombia, U.S.) to continue at similar levels.

• Apple’s iOS changes expected to drive further growth and monetization, especially among iPhone users.

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

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