SUMMARY
India contributed 75.5% of Truecaller’s total revenue of $37.49 Mn during the first quarter of 2023
With 24.9 Cr users, India accounted for more than 72% of Truecaller’s total monthly active users in Q1 CY23
The company saw a decline in its adtech revenue during the quarter, which it attributed to the late commencement of the IPL this year and lower demand
India continued to dominate caller identification platform Truecaller’s quarterly numbers as the country accounted for more than 75% of its revenue in the first quarter (Q1) of 2023.
Net sales in India declined 1% to SEK (Swedish Kronor) 292.2 Mn ($28.3 Mn) in the quarter ended March 2023 from SEK 296.6 Mn ($28.72 Mn) in the year-ago period. Overall, revenue from India accounted for 75.5% of the Swedish company’s total revenue of SEK 387.1 Mn ($37.49 Mn) in Q1 CY23.
The company said that the demand for its B2B-focused Truecaller for Business (TfB) product was ‘very high’ in India but didn’t disclose India’s share in the total SEK 34.4 Mn ($3.3 Mn) revenue generated by the vertical in Q1 CY23. However, it said that TfB saw strong interest from the banking and financial services sector, with it onboarding the likes of ICICI Prudential, Airtel Payments Bank, and Godrej Housing Finance during the quarter.
With 24.9 Cr users, India also accounted for over 72% of Treucaller’s total monthly active users (MAU) in Q1 CY23. This number rose 9.4% year-on-year (YoY). Alongside, daily active users (DAU) in the country also rose 10.2% YoY to 20.8 Cr during the quarter under review, contributing 75% to the company’s total DAU tally.
Average revenue per user (ARPU) for premium subscriptions in India stood at SEK 4.77 ($0.46) well below the global average of SEK 8.34 ($0.81). However, cost per mille (CPM) impressions for ad sales in the country stood at SEK 0.84 ($0.081), well below the global average of SEK 0.94 ($0.091). CPM in the Middle East and Africa stood at SEK 1.37 ($0.13).
Meanwhile, the late commencement of the Indian Premier League (IPL) weighed on the company’s adtech revenue during the quarter.
Its adtech revenue fell 10% YoY to SEK 303.9 Mn ($29.37 Mn) in Q1 CY23 from SEK 339 Mn ($32.76 Mn) in the year-ago quarter. The company attributed this decline to a seasonally weak first quarter, lower demand, and scaling down of marketing campaigns by large enterprises.
“Seasonally, the first quarter is the weakest quarter in the ads market. This year the pattern was even more evident as revenue related to IPL for 2023 is recognized entirely in the second quarter, while in 2022 it was partially recognized in the first quarter,” Truecaller President and CEO Alan Mamedi said.
Touting its recent acquisition of a minority stake in Singapore-based game development company Mayhem Studios, the company underlined its plans to focus on the burgeoning gaming market in India.
Earlier this week, Truecaller said it crossed the mark of 250 Mn active users in India. In March, the company also opened an office in Bengaluru – its first outside Sweden.
In the last few months, Truecaller has launched a slew of new offerings, including a digital government directory and caller identification service (still in beta phase) over WhatsApp and other messaging apps.
The company counts India as one of its biggest markets. However, like other tech companies, it has also been impacted by a slew of regulatory changes that the Centre has undertaken in the past few months ranging from Telecommunications Bill, 2022 to the Digital Personal Data Protection Bill, 2022.
