Truecaller Reports Sequential Revenue Growth Amid Declining Ad Sales
Event summary
- Net sales decreased by 21% year-over-year to SEK 393.2 million, but improved 9% sequentially.
- Subscription revenues grew 41% year-over-year in constant currencies, while ad revenue declined 34%.
- Recurring revenues now account for 49% of total net sales, up from 33% previously.
- EBITDA margin excluding restructuring costs was 26.9%, down from 42.6% year-over-year.
- Monthly active users increased by 8 million during the quarter.
The big picture
Truecaller's sequential revenue growth across all streams signals progress in its strategic pivot towards recurring revenue models. The decline in ad sales reflects broader industry challenges, but the company's focus on subscription services and business messaging positions it to navigate shifting market dynamics. With a leaner organization and new product initiatives, Truecaller aims to build a more resilient and diversified revenue base.
What we're watching
- Ad Revenue Recovery
- Whether Truecaller can sustain the sequential improvement in ad revenue following the removal of flagging by its largest demand partner.
- Premium Growth
- The pace at which Truecaller can convert its large user base into Premium subscribers, given current low penetration rates.
- Product Diversification
- How the launch of travel eSIMs and other digital products will impact future revenue streams and user engagement.
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