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TrueCar, Inc. Stock Price: Quote, Forecast, Splits & News (TRUE)

Finance

Company Profile

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TrueCar, Inc. Price & Performance (TRUE)

Stock Performance

Updated Mar 18, 8:00 PM UTC

TRUE:NASDAQ

$1.75USD

3.85% · $0.07

After Hours

+0.12% · $0.0021

Open

$1.78

High

$1.79

Low

$1.73

Market Cap

$152.70M

P/E Ratio

-5.2

Volume

420.77K

Year High

$4.62

Year Low

$1.73

News & Market Insights

TrueCar Faces Stock Challenges Amid Market Volatility
Mar 14, 2025
TrueCar's stock has hit a 52-week low, closing at $1.87, reflecting a 42% drop over the past year. Despite maintaining robust gross profit margins and liquidity, the company struggles with industry pressures. Analysts suggest the stock is oversold, but market concerns linger as TrueCar navigates competitive challenges.12
Investors React to TrueCar's Q4 Financial Results
Mar 6, 2025
TrueCar reported a revenue miss for Q4 2024, generating $46.2 million against a forecast of $47.3 million. Earnings per share also fell short at -$0.07. Despite eight consecutive quarters of EBITDA growth, the market remains cautious, and analysts have downgraded the stock amid concerns over profitability.34
TrueCar's Strategic Outlook Under Investor Scrutiny
Feb 24, 2025
TrueCar has faced downgrades from major analysts following disappointing Q4 results. While EBITDA growth persists, the company’s stock performance and profitability outlook have raised concerns. Analysts have adjusted their price targets, emphasizing the need for operational improvements to regain investor confidence.56

What's Happening

Peers

Earnings

Report Date

Feb 18, 2025

Reported Revenue

46.2M

Avg 1d Change

9.55%

Report Period

Q4 2024

Reported EPS

-0.07

Implied Move 1d

59.32%

Transcript

9m 10s

Hello, everyone, and welcome to our year end webcast. I'm Rishi Jundjhunwala, CEO of TruCaller since January. And I look forward to presenting our report along with Odd, our CFO. And then walk you through the financial performance, We will then cover product highlights, then we'll open up for questions as well. So let's get started with the highlights of the quarter. [indiscernible] We closed Q4 with an average of four twenty nine million monthly active users, which is an increase of 15%. Our average daily active users grew 16% to three fifty four million This therefore takes us to a record high DAO to MAO ratio of 83%. Net sales for the quarter stood at SEK523 million, a 23% increase year over year. All three of our revenue streams contributed to this growth and the relative growth rate for ads and premium revenues increased from the third quarter Truecaller of a Business continued to show good growth, EBITDA increased by 19% to SEK201 million. This growth is despite higher growth related investments as well as higher incentive costs due to a higher share price. Net profit and earnings per share grew even stronger with approximately 30% year on year.

10m 37s

We're really proud that we continue to operate profitably We have a solid cash flow with SEK228 million in net cash from operating activities before tax payments. In terms of user growth, we continue to grow very well. We crossed 400,000,000 users on Android, and the growth numbers for 2024 are at an all time high. With good growth from all regions. Our biggest income stream, advertising, continued to show growth as well. We did stronger we saw stronger market development in several countries such as Middle Eastern regions, the African markets and so on. The recurrence of ad revenue growth during the second half of twenty twenty four was driven by a combination of user growth, users engaging more with the product, improved demand as well as optimization of our inventory. Our enterprise offering Truecaller for Business continues to develop well Growth is mainly driven by strong performance both in our verified business consumer experience platform as well as Business Messaging. Growth for consumer subscriptions accelerated with strong development in all regions and both on iOS as well as Android. The growth of our subscriber base continues to outpace the growth of our total user base with the average revenue per user continues to increase.

12m 6s

In January, we launched the long awaited update of Truecaller for iPhone, which brings caller ID and spam blocking on par with our Android product. With this new release, we're shifting our strategy and we will primarily position Truecaller for iPhone as a subscription product It's still very early days for us, but the initial results on this look very promising. We will cover everything in more detail in the slides that will come soon. Now going into a bit more detail, as mentioned, we continue to see strong user growth We closed Q4 with an average of four twenty four twenty nine million monthly active users Compared to the same period last year, we grew by 55,000,000 users, which is an equivalent to 15% year on year growth. Our daily active user base grew at a rate of 16%. We also continue to see strong retention and are really proud that 83% of our monthly active users use Truecaller on a daily basis. We see this as an indicator of product stickiness and the continued relevance of our services. During the quarter, we surpassed 400,000,000 users on Android, and the average monthly active users was three ninety six million.

13m 28s

Dollars User growth continues to be a key metric for us on Android But on iOS, like I mentioned earlier, we will start focusing a bit more on premium subscriptions as opposed to just MAU. With that, I'll hand over to Od for a Thank you, Eurshid. So as usual, it's time to take a more in-depth look at our financial performance this quarter. And as always, we start with our revenue development. This quarter, we grew revenue by 23% compared to the fourth quarter last year. And as you can see from the graph, Q4 was the strongest revenue quarter this year. Actually, it was an all time high revenue quarter for us. All our three revenue streams contributed positively to this We saw accelerated growth for ads compared to Q3, and subscription revenues also grew fastest during the end of the year. Now let's look at our three different revenue streams, starting with Ads. Where revenues grows. Grew for the second consecutive quarter, this time with 17% year over year. Positive contributions came from all regions with the strongest development in the Middle East and Africa region.

14m 42s

We continue to grow the number of impressions. This is an effect of improved ads platform, further user growth, increased interact least, some positive demand development in the in at least parts of the Indian market.

14m 58s

The overall digital ads demand in the Indian market seems to have stabilized with some signs of an uptick in demand. We also continue to see positive signs from our introduction of other formats, other than the traditional banner ads. The scaling of these formats made some positive contributions, and we see good fill rates and good yield for them. We're obviously happy about the recent development we have seen in the Ads business, but we are also still cautious and continue to focus on areas we ourselves can control. The strengthening of our subscription offering with more advanced features and one global.

15m 41s

The subscription revenues are sticky and stable, and we have a strong incentive to continue to drive a top of subscriptions as we own approximately 30 times as much on a premium subscriber compared to non paying users. Our recurring subscription revenues grew by 39% compared to the same quarter in 2023. And was 15% compared to the third quarter in 2024. The conversion continued to improve and so did the revenue per user. We see a strong development across all regions India and Middle East and Africa continue to grow at a good pace, but the strongest growth came in the rest of the world. Growth is coming from both Android and iOS. Truecaller for business continues to develop well with the growth of 45% year over year. The SR SaaS revenues that are sticky and where we see many more opportunities going forward. The current product offerings can be expanded much further with higher adoption, larger geographic spread and to other segments of the market. We're growing revenues both with new agreements as well as expanding current partnerships. An important driver of the growth has been that our customers utilize more functionality in our offering, which increases revenue per account and overall revenues.

17m 2s

Volumes within Business Messaging continued to grow strongly and also contributed to the growth in revenues year over year. Now ads is our largest revenue stream and as mentioned before, we grew by 17% year over year. Our ad revenues per DAU increased for the first time in a long time. CPM declined, but overall revenues still grew at a decent rate. As mentioned before, we do not focus on CPMs or fill rates, but rather on maximizing overall overall ad revenues. Given our strategy, we think a more relevant measurement is ad revenues per DAO, where we saw this quarter saw a small growth year over year. Our subscription revenues showed a very strong development in the quarter and the growth was 39% year over year. So iPhone iPhone users have been important contributors to our Ascot subscription revenues. Already before the release of our new iOS product. IOS users are about 7% of our user base, but contribute with 43% of the subscription revenues. The new iOS product launched in late January is a premium first product so we're expecting that this will further boost our subscription revenue. However, please remember that this is a gradual process First users need to be on the latest version of the operating system.

18m 24s

Takes some time. Then we market the product through our CBRM tools. As well as with external marketing, which will happen later this quarter. Users will be given a thirty days trial of the new product so they really feel the value that we bring. They can then decide if they would like to continue being a paid subscriber with the same capabilities of caller identification and spam blocking as on Android, we if they would like to continue with the free and much more limited version. The initial data that we are getting from the launch are positive, but bear in mind that this will be a gradual process. So do not expect any material impact from the iOS launch until from the second quarter. Average numbers of subscribers grew by 22%, which is higher than the our overall user growth, and consequently, conversion also increased. The average revenue per user continued to grow as an effect of the geographical mix of our subscribers, than the average of the older plans. Truecall for business continues to show good growth with a growth rate of 45% year over year. The customer experience platform verified business is the core of our enterprise offering, so based on the SaaS model.

19m 43s

Today, this offering is primarily for larger enterprises, and it has been, to a large extent, focused on India. The annual recurring revenues for the Verified Business segment grew by more than 50% year over year. And since the start, we have had very low revenue churn. The other major part of our Truecaller for Business offering is a business messaging which has seen good growth in message volumes, this quarter with more than 80% year over year. [indiscernible] The growth in total recurring revenues continues to be encouraging, and we see more lever for growth in these areas going forward. Combined, they grew by 42% year over year, And now they're make up around 600,000,000 on an annualized basis. We're pleased that our gross profit grew by 25% year over year and that we continue to have a gross margin at the same good level that we reported in Q3. 77%. Going forward, we expect the gross margin to be rather stable around this level with possible variations between quarters. Long term, a positive impact could come from a larger share of Truecaller for Business revenues, lower fees to subscription advertising partners, or more direct sales in the ads business.

20m 59s

However, in 2025, we also expect somewhat higher server costs from the new iPhone offering. Time now to move with the focus of costs Truecaller has a robust business model with very high operating leverage, but efficiency is key in order to deliver solid margins. Underlying staff costs are quite stable, but will increase with our annual salary revisions. We also plan to add some more headcount in 2025, as we do selective recruitment in revenue units and growth related areas, Incentive costs increased from Q3 due to the long term incentive 2024 program. This quarter, we also saw an increase in our accrued Social Security costs coming from the increased share price. As mentioned previously, some volatility is to be expected here due to the share price developments. In Q4 twenty twenty three, we started to increase investments in targeted growth as can be seen as an increase in other external expenses during 2024. More on this shortly. But first, something on our tax rate. Our tax rate is a combination of the Swedish corporate tax rate and the Indian tax rate. Tax rate was stable both for the quarter and for the year, and we continue to think that 25%, 26% tax rate is reasonable, but with possible variations quarterly numbers.

22m 26s

As you probably are aware, the Indian Tax Authorities initiated a tax survey in Q4 where they are looking into our transit pricing model. This is a common thing that multinational companies are being questioned about their international tax practices. At this time, there is not much to report. On this topic. We have transparent and well documented transfer pricing policy in place. External advisers that have assisted us in developing this model do not believe there is reason for us to pay more taxes we have done so far. We are not a tax optimizing company. However, we do think that this process will take time. But we do not see any reason at this time to believe that the survey should result in an immaterial increase in tax payments in India. We will, of course, get back to you if and when we have anything to communicate around this subject. Let's also look at our cost development in a full year perspective. Our cost is [indiscernible] As mentioned, during 2024, we increased our gross related investments. These investments are easy and quick for us to turn off and on. On and off depending on where we see the best results.

23m 40s

We continue to be pleased with the results we are getting out from the investments so far, we continuously fine tune them to achieve the best long term return on investment. In 2025, we intend to expand these investments to a few more geographical markets as we see that there is a lot of room for global growth for us. The increased investments we are planning for can still be absorbed without ASHC not achieving our financial targets. [indiscernible] With the launch of our new improved iOS product, we will also do some extra marketing efforts to make users aware of the new improved product. Now turning to our property development. Our EBITDA grew by 19% even with substantially higher growth investments and higher incentive costs than in 2023. Excluding incentive costs, EBITDA grew by 36%. Our EBITDA margin came in at 38.5%, which was the highest quarter in margin during 2024. The margin excluding incentive costs improved to 44.3%. Net profit grew by 29% and EPS grew by 33%. Our cash flow continues conversion continues to be strong. The cash flow creates opportunities to continue to give back money to shareholders through buybacks and future dividends as well as continuing to invest in growth and scan the market for potential M and A, We are in the very favorable position of having no debt, SEK 1,300,000,000.0 in cash and short term investments.

25m 16s

In Q4, we halted our buybacks as they mainly are a tool to provide liquidity in the stock market during times when liquidity is limited It's a flexible tool we can turn on and off as we please. The Board will come back with a dividend proposal in conjunction with the notice [indiscernible] Then lastly, our financial targets, a few words on them. As we close 2024, it is time to look at our actions performance compared to the targets we set in conjunction with the IPO in 2021. The target has been active since the IPO was to have an annual net sales growth of 45% on average between 2021 and 2024. We did not fully reach that target, but we grew revenues by 40% on average over those years. We also stated at that time an ambition of the non- and outright target to achieve a combination of revenue growth and EBITDA margin, above 70%. The purpose was to clarify our ability to combine revenue growth and profitability. Here, we reached 80% during the twenty twenty one-twenty twenty four period. Now what takes effect now from 2025 is that we should have an EBITDA margin about 35% after after 2020, '24.

26m 39s

Starting this year. During the period 2021 to '24, we had an average EBITDA margin of 40%, But like I said, that wasn't an out right target at the time. So going forward, the EBITDA margin is the target that remains. If there will be future financial targets added, we will of course inform the market about that when the Board makes such a decision. We also have a dividend policy where remembering in place since last year, stating that we should do an annual dividend [indiscernible] dividends or more buybacks. It all depends on what believe is best for our shareholders in the medium to long term. We have also decided to make some adjustments to our KPI structure in 2025, to give investors the most relevant KPIs for our business. As mentioned previously, for user growth, our focus for Android will be on the total number of users, while for iOS, our focus is on paying users and subscription revenues. For ads, we have now, for quite some time, stated that CPM isn't is not something that we focus on, and that is in the very light We will therefore stop reporting CPN, but we'll instead report ad revenue per user and add additional qualitative and quantitative [indiscernible] which aligns better with how with how we steer the business.

28m 11s

We will be more transparent and give more data on how our subscription business is We'll add data about the number of subscribers, conversion rates and iOS share of revenues. We will continue to report ARPU For Truecaller for Business, we will give date down annual recurring revenue as well as revenue churn for our SaaS part. Verified Business. For Business Messaging, we will For all these KPIs, we will provide historical trend well in advance of the Q1 report that we are publishing in May. Now with that said, I will hand it over to Richetia. [indiscernible] So now let's take a look at our quarterly product updates. The four areas we will cover are the core product offering, Truecaller Premium, AdTech and then Truecall for Business. So in order to constantly work towards protecting people from scam and fraud calls, in Q4, we rolled out a new neural network based approach that greatly improved our spam detection capabilities. This system was able to accurately detect 50% of more spam callers in focused markets such as Colombia, and we saw gains in other top markets as well. We also launched a first of its kind spoof call detection capability, which addresses a growing fraud mechanism in many of our markets.

29m 41s

With this, we're already able to identify millions of additional fraud calls. A key aspect of protecting people from scams and fraud is to create awareness on common practices that bad actors use. So once again, we use the power of large community we have to achieve this. So in Q4, we launched a scan feed on Android which gives our community of hundreds of millions of users as destination to discuss real world fraud incidents and to learn from the experience of others. We rolled out scam feed first to a small number of users in India to gauge their interest, and now we've rolled it out to the entire user base in India. We're already seeing healthy engagement in addition to underlining Truecaller's thought leadership in this space. For subscription conversion improvements, as well as growing retention, we built a very powerful internal tool which we call the user monetization engine that enables us to accurately target users with contextual offers that are suited only to them In Q4, we continued to invest in this engine, both for iOS as well as Android, and now we're able to segment our audience much better We're able to communicate with them in a more timely manner and we're also able to gauge the likelihood of them becoming subscribers.

31m 6s

The capabilities built within the user monetization engine has been one of the key factors improving conversion and growing Truecallers premium subscriber numbers. Artificial intelligence remains a key driver in many of our product development efforts, particularly within the Assistant product. As we revealed in the previous quarter, we leveraged LLM on large language models to significantly enhance the conversational capability of the Assistant. Resulted in a more natural and a very human like experience. We also made substantial progress in optimizing the speed and responsiveness of assistance interactions. This enhanced assistant experience has been successfully launched to our premium users in The US where we've already observed a 50% increase in assistant usage. We are now working towards a global rollout of this new experience in the next few months We remain confident that products like Assistant hold transformative potential for mobile communications in the years to come. Now on to Truecall for iPhone. As we mentioned in Q4, we continue to work on this new iOS app along with which gives users the full experience of Truecaller. Something that was available only on Android until these capabilities were unlocked in iOS 18.2. We launched this brand new iOS experience late in January 2025 exclusively for Truecaller Premium subscribers.

32m 44s

We now also have enabled the family subscription on iOS, which is a popular and more affordable option for users to protect their friends and family. We've started marketing efforts on this to raise awareness about the new product and we'll continue to deploy external well as internal marketing tools in the near future. To broaden the reach and drive adoption continuously. The early feedback from this and some very initial data looks promising. With new subscriptions, lower cancellation rates, after the trial period, and we continue to see more and more users in general coming to the higher priced single plan and the family plan. So while it's early days, we expect positive revenue contribution from this to come gradually only from Q2. Remember that subscription revenues from iOS users is already 43% of our total subscription revenues. So this should be an exciting development for us in 2025. On the advertising product, we continue investments in improving supply improving demand, building our proprietary ad tech in house ad tech platform, A significant development is that we ran our first pilot campaigns with the Truecaller ID ad unit. This new ad space, which generates billions of impressions per day, is managed through our own proprietary in house ad server and sold only by our own direct sales channel.

34m 19s

We believe this format holds significant potential for us in the future and we'll continue to develop on it. Additionally, we continue momentum on Interstitial Ads, rewarded ads, video ads. We onboard a lot more advertising partners we continuously optimize our inventory. On the Truecall for Business side, our offering which helps businesses communicate better with their audience. We've evolved to become a more well rounded customer experience platform. In Q4, we launched verified campaigns for businesses to create hyper personalized and contextual engagements on calls as well as messages to their audience. Verified campaigns has received early customer interest and has begun to show encouraging signs of commercial adoption already. We also continue to create value for businesses in the existing call me back functionality. Which has turned out to be a very valuable lead conversion tool for businesses. Where improvements rolled out in Q4 made it easier for businesses to engage with the right customers at the right time.

35m 28s

The product strategy overall for true core of a business continues to be deeper integration with enterprises, as well as a broader range of capabilities on both calls and messages. In the recent quarters, Truecall has integrated large language models into its messaging platform as well. Introducing AI powered message ID We recently extended this functionality even to enterprises which enables businesses to customize the summary of their messages resulting in enhanced engagement and improved message visibility. During the last quarter Q4 of last year, Message ID saw adoption by prominent businesses such as Swiggy, a leading food delivery service in India, and NoBroker a major real estate technology platform demonstrating the versatility and effectiveness of Truecaller messaging part of the enterprise offering. Right. And now to wrap things up, I'm very happy to state that the need of Truecaller has never been bigger. We've been on a positive trend during the quarter with an increased growth this quarter And this quarter we saw the strongest DAO growth in the history of Trukolr. I'd like to remind you that the absolute majority of this growth continues to be organic. With targeted growth investments we've done in 2024 We now have a blueprint to grow in markets with lower penetration.

36m 58s

We continue to use this strategy even more in 2025. We'll cover more growth markets and there is immense growth potential left for us. Q4 was an all time high revenue quarter for us as well, but we have a lot more to do to further monetize our platform even more efficiently. All our revenue streams contributed and saw good growth, which is very encouraging for us. The profit development also was really strong and we have great operating model, we generate strong cash flows backed by an already strong balance sheet. We continue to be optimistic about the new iPhone experience, of course, we have already made progress in the past few years improving monetization on iPhone But with the new update, this will enable us to deliver a significantly better user experience and further grow our revenues. I'm also proud and yet very humbled about my new role as CEO. I think Alan and Naomi and our fellow Truecaller colleagues have built a great company that helps almost half a billion people make their communication efficient and safe. Before we open up for questions, I'd like to extend a huge thank you to our users, who love us and use us every day, the great partners that we work with, and the phenomenal Truecaller team across the world. [indiscernible] With that, we're happy to take your questions.

38m 28s

If you wish to ask a question, please dial on your telephone keypad, to enter the queue, if you wish to withdraw your question, please dial pound key. 6 on your telephone keypad. The next question comes from Preetrack Sabinovich from Carnegie. Please go ahead.

38m 54s

Hi, Rishi. Hi, Od, and thanks for taking my questions. First one to Eurishit and congrats on the new role.

39m 2s

Could you discuss the succession from your previous role You've been influential in the establishment of Truecaller business. Yaz business as well, both of which are this reasons, quite important, right? So discuss this transition, make sure that this is smooth on your appointment that you're going to make there. And that you have made Sure. Thanks for the question. So luckily, we were very well staffed at the leadership level. And this change was quite smooth for us. Frederick, who used to manage some parts of our revenue earlier, he now manages all the revenue. So he looks after the advertising business as well as Truecaller for business So that part of the succession was relatively easy, I would say. It's early days, of course. And still paying attention to it while Frederic onboards fully But I think we were in a really fortunate position that our leadership was so well beefed up that we actually didn't need to even look at any hiring from outside [indiscernible] coming back to some of the numbers then, I'm looking specifically among subscribers on premium. When I do the math in in ARPU, packing out the users in absolute numbers, it looks like you almost grow double digit compared to Q3.

40m 34s

Has changed here with regards to user growth? What levers have you pulled to improve this? It's going to be a high figure then for the quarter.

40m 42s

I guess your question is about user growth. So we a lot of our activities as well as subscriber growth We were able to unlock a lot of the investments that we've made in 2024. We spoke about the user monetization engine. That helped to improve not only conversion to premium, but also retention of premium subscribers. We saw growth coming from various regions India, of course, grew, but many of the other regions as well contributed to this growth. We had migrated to a single plan instead of a few different plans. I think that simplicity helped in users, you know, being able to subscribe easier as well. So overall, it was a set of various factors that helped in subscriber growth.

41m 36s

Okay. And just finally then on your enterprise offering, In the report, you say that you believe that you have only scratched the surface of this full potential. If you can elaborate on this claim and the ambitions you have going forward, what kind of new products you expect in the future at So when we said scratch the surface, I think we meant it in two different ways. The first way is that, while we have most of the largest businesses in India and a few businesses outside of India as well that are customers already, we still have penetration left within those enterprises. So while some of their processes are using our platform, there are various processes that are still haven't migrated to the Truecaller platform. So we see some potential there as well, and that's why we've only scratched the surface for our existing customer base. On the product side as well, I think we started only with a simple offering of verifying your brand and your enterprise on Trukolr. As we added on more and more capabilities onto the platform, we realized that we've unlocked a huge potential where there are areas such as fraud protection within enterprises, There are areas such as CRM within enterprises.

42m 59s

That we still have room to grow in. So I think that's where I came from that we've just scratched the surface on the [indiscernible] Brilliant. Thank you very much. Thank you. The next question comes from Ramul Kauria from Danske Bank.

43m 23s

Please go ahead.

43m 29s

Yes. Thank you, guys. And we should welcome aboard. It's going to be a ton of fun to interact with you moving forward. A few questions on my end. So starting off on perhaps [indiscernible] If you could elaborate a little bit on the potential for ARPU changes as iOS sort of increase the share of total presumably in the future. Which markets will you target more specifically from the get go? And how will that evolve over time? Any color on that would be quite helpful.

44m 5s

Sure. So like I said, we launched the iPhone app, the new iPhone app less than a month ago. So it's a bit early to comment on how it's going to do in the future. But I think we have some signals already. Users have been extremely positive to this development. They've been waiting for the iPhone to have the full Truecaller experience for a long time now. There are some signals as well that we have already in the business we spoke about the iOS premium subscription revenues is very disproportionate to our user base. And that tells us that we're quite confident that the iOS should the new iOS version should lead to a growth in subscriber revenue starting Q2 onwards In terms of markets, we believe that the existing markets were we have good penetration of iOS will continue to be the ones that drive revenue growth as well. India being one of them, The U. S. Being another one, and various other markets will continue to drive that revenue growth.

45m 23s

That's very clear. And then on the topic of [indiscernible] caller ID advertising solution. I'd love to hear a little bit more what have been the hurdles to launch such an ambulatory Historically, why has that changed now? Clearly, if one believes that after call screen, launching caller ID ads effectively means that your ad opportunity improves quite substantially. So any any additional color on that would be quite helpful. [indiscernible] So Truecaller ID ad unit is a unique ad unit because we can't really have a click through on it. Simply because when a user gets an incoming call, that's probably not the right time when somebody is going to click on the ad and try and take an action there. So it's a unique ad format that we had to tweak over a period of time. We had to speak to some of our biggest advertisers and and package it in the right manner that will suit them. Secondly, it's taken us long because have to crack the experience right. We're always conscious about the UX load of ad units on our users. And we balance it very carefully Against that, So we've rolled out the caller ID ad unit slowly over time.

46m 56s

Experimenting as we go along, making tweaks as we go along. And finally, we reached a stage in Q4 where we were able to take it to the market and we ran a few pilot campaigns from it successfully.

47m 12s

And now that you've run a few pilot campaigns, how should we think of the rollout of it or the scaling of it, so to say.

47m 21s

Yeah. It's hard to comment about how the take up will be in the future. But so far, the pilot campaigns were successful. And it remains to be seen how how our advertising partners will latch onto it.

47m 40s

Okay, very clear. And then if I may guys, just a final question on the topic of OpEx perhaps for you or If you could shed some light on the two main sort of variable OpEx buckets here. First off, what is the actual recruitment need if you could shed some light on that? You said selective recruitments, but what are we talking in terms of numbers if could provide us with anything there? And secondly, on the topic of growth related costs, Now with the iOS launch that you also alluded to will drive some marketing expenses. How should we calibrate our expectations numerically on that line item? Now you're looking for some guidance, sorry. Seriously, I always am. I know that.

48m 35s

In terms of recruitments, we are still very selective. We have been very selective over the last years. Obviously, that has been partly due to the fact that the ads demand has been subdued, but we continue to be selective and careful on recruitments. We don't want to ever end up in a situation where we have more employees and we actually need I'd say that over this year, between 510% increase in employee costs due to new recruits. On top of the salary revision that we do every year.

49m 18s

Not more than that.

49m 20s

You could argue that we could potentially use more people than that, but we it is in our DNA to be a cost efficient company and and do a lot of things with not so many people. And we continue we intend to continue along those lines. When it comes to the growth investments that we do, which is primarily user acquisition, preloads and also some marketing, will increase those this year. But like I said, we will be able to absorb that extra cost that we will take on within what is being achievable and still still reaching our financial target.

50m 10s

Okay. Very clear. Thank you, guys. Thank you. [indiscernible] The next question comes from Stefan Gorphin from DNB. Please go ahead.

50m 28s

Yes, hello. Thanks for taking my questions and nice to talk to you, Richard.

50m 35s

So Looking at the new iOS launch can you provide some information on how many of your existing users have downloaded the new version? [indiscernible] Secondly, you've stopped the buyback [indiscernible] due to liquidity reasons, but that also increases your cash situation. So you now have SEK 1,200,000,000.0 in cash or short short term financial assets on your balance sheet. And just how are you thinking about this position And [indiscernible] Is it room to hand out more to the shareholders?

51m 38s

If you take the first one, I'll figure out a good answer to the second one while you talk. So on the iOS, it'll be hard to share the exact numbers, but I can give you some flavor nevertheless. For adoption of the iOS product. The first one actually, even before the Truecaller app upgrade, you need to be on iOS 18.2. So once a user is on iOS 18.2, and then the user has the latest version of our app, then they can get the full experience of Truecaller on iPhone. So this is a gradual process There is I would say, a decent audience already that is on iOS 18.2. And have the right version installed. But it is a gradual process because iOS 18.2 is a recent app version, OS version, So it'll gradually gain adoption over time.

52m 43s

All right. And on the capital structure and capital allocation, Stefan, First of all, we are always looking at this from the perspective of what's best for our shareholders in the medium to long term. Meaning that we are basing our decisions or As a management team, we're basing our decisions and recommendations to the Board based on what we believe are the operational targets and then ambitions that we want to achieve. So Rashid has only been in this role for about a month. And obviously, there are things that needs to be discussed and decided on. It comes to where we what we want to do this year and during the coming years. And that then comes back to the capital structure, capital allocation So far, we have spent more than SEK 1,500,000,000.0 since the IPO. Buying back shares and giving back dividends, and we will continue doing that. The exact format is something that would be decided by the Board communicated in advance of the AGM So no later than the AGM notice that comes out will come out mid April We are not we do not intend to be overcapitalized. But we do intend to be capitalized in such a way that we have a freedom of action when it comes to both investments in M and A and potential business risks, such that our shareholders can rest in peace in our ability to always do what's best in the market at the time, at the time.

54m 39s

Okay. If I can squeeze in one more question and that relates to the solid MAU net adds and how much of these are coming from preinstallment on smartphones? And how has this trended recently?

54m 56s

So most of our user growth continues to be organic. Which is basically based on word-of-mouth. And a portion of it comes from activities like Odd mentioned from preloads, from user acquisition and other marketing spends. But I think it's a very healthy trend that most of our growth is still organic.

55m 20s

Okay.

55m 26s

The next question comes from Boris from Cantel. Please go ahead.

55m 35s

Thank you for taking my questions. Congratulations on your appointment. The first question I have is a question I've asked historically as well. Please could you give us a flavor for the industrial sector mix with regards to your ad revenues? There like a focus sector in 2025?

55m 55s

Right. I think the sectors vary quite dramatically from season to season. For example, during Q1, when the IPL starts off in, I believe, mid March, we'll see gaming companies in India that will begin to advertise a lot more. [indiscernible] then once the towards the end of the year when there's e commerce sales then we'll see the e commerce companies advertising a lot more When there's a festive period, we see FMCG companies probably and electronics type of companies that sell mobile phones because that's what takes place at that time. So I would say it's a wide mix of advertisers. And 2025 I don't think we're focusing on exactly a segment of advertiser. As such, because we are quite a broad based set of customers in the advertising space for us.

57m 2s

Sure. Thank you. Thanks for that color. On with regards to the second question, the ad impressions per user continue to grow. But probably this has a ceiling before it kind of worsens the customer experience. Given this context, I'm very mindful what you said that you're focusing on ad revenue per user rather than CPMs or anything else. Just want to understand how big a factor does CPM is going to be for 2025 revenue growth.

57m 31s

Yes. So I think how we have always looked at the our ads play is that our job is to monetize on user engagement. And as the product gets more and more engaging, which means as we add more value to users, and users use our product for many more different things, that's when our our set of impressions available will expand. It's not necessarily going to be like you were rightly pointing out. It's not going to be about slapping on more ads and ruining the user experience. That's not something we have done in the past and we won't do that future as well, It's going to be driven more by users engaging with the product a lot more.

58m 25s

Okay.

58m 25s

Okay. Understood. Thank you. The last one, if I may, is do you have any feedback from customers and churn from your to call up a business customer outside of India.

58m 38s

We have minimal churn It's a number we've started publishing now as well. Outside India as well, we have a very low churn. We have high quality contracts that have a good tenure exceeding six months, twelve months and beyond. Outside of India as well, we continue to see Customers appreciating the value that Truecaller can add to their business And we haven't seen a specific concern outside India from Truecaller for Business customers. Thank you.

59m 25s

The next question comes from Victor Lindstrom from Nordea. Please go ahead.

59m 34s

Hi, Ricci, it's Tyad and congrats on a solid quarter. So a few ones from me. First of all, you mentioned that you would like to invest and scale up in new countries in 2025. So which countries are you primarily evaluating here? And also on a relative basis, how will these investments be compared to this year's growth investments in Nigeria and Colombia?

59m 59s

I can talk about the first part sure. How we evaluate countries that we pick to grow? Firstly, we look at those countries that have good organic growth for Truecaller already.

1h 12s

This means there is initial product market fit Our brand is appreciated over there our service is appreciated over there, and we're growing slowly organically. That's when we actually step into the country and we start localizing the product creating flavors of of features that are more local to that region We have partnerships for marketing, and so on and so forth. At the moment, we're looking at a few different regions. Some regions in Africa, South Africa as well, some LatAm countries as well, that are showing positive growth to us.

1h 1m

Right.

1h 1m 2s

And in terms of numbers, We are looking at Dan, increasing our investments in those sort of activities by a factor of say between 50100%. A little bit depending on [indiscernible] or rather a little bit depending on when we get started. For real. We are in the process of finding people on the ground in those countries. And once we have that, we will start investing And we will invest similar amounts as compared to what we have invested in Nigeria, Colombia, so forth.

1h 1m 47s

Great. Thanks. And then just another one. I noticed that inflation was a bit higher here in the quarter. So is is there something extra here or should we view this as a new normal based No, there is nothing particular, but we are working on more and more functionality enhancing capabilities and we have to increase capitalization a little bit in order to to be working in accordance with IFRS. So there will be some some increases probably during the year.

1h 2m 33s

Great. Thanks. That was all for me. Thank you. There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

1h 2m 51s

Okay. Thank you very much everyone for listening in. We look forward to seeing you at our next earnings call. Thank you very much.

Key Insights

Truecaller reported a 23% year-over-year increase in Q4 net sales, reaching SEK 523 million, with all three revenue streams contributing positively. Subscription revenues grew by 39% year-over-year, and Truecaller for Business saw a 45% growth in revenues.
The company achieved record user growth, with 429 million monthly active users (MAU), a 15% increase year-over-year, and 354 million daily active users (DAU), representing a DAO-to-MAO ratio of 83%. Android remains the primary driver of user growth, while iOS is being positioned as a subscription-focused platform.
The new iOS app launched in January 2025 is expected to drive subscription revenue growth starting in Q2. iOS users currently make up 7% of the user base but contribute 43% of subscription revenues. Early feedback on the new iOS product has been positive.
Truecaller continues to invest in growth markets such as Africa and Latin America, with plans to increase growth-related investments by 50-100% in 2025. The company also plans to expand its enterprise offerings and ad tech capabilities, including the rollout of the new Truecaller ID ad unit.
EBITDA grew by 19% year-over-year, with an EBITDA margin of 38.5%. The company maintains a strong cash position of SEK 1.3 billion and plans to balance shareholder returns through dividends and buybacks while exploring M&A opportunities and further investments.

Recent Transcripts

Revenue increased 4.6% YoY, driven by mobile and online segments.

TrueCar achieved its highest annual revenue growth since 2017, driven by strategic initiatives.

Feb 19

Q4 2024

Annual Revenue Growth

+10.6%

Free Cash Flow

-$200K

Q4 achieved record revenue and user growth with strong expansion in premium subscriptions.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$279M	$232M	$162M	$159M	$176M
Cost of Revenue	$22M	$22M	$16M	$16M	$26M
Gross Profit	$257M	$209M	$145M	$143M	$149M
Gross Profit %	92%	90%	90%	90%	85%
R&D Expenses	$45M	$41M	$46M	$42M	$30M

2020

2021

2022

2023

2024

Revenue

$279M

$232M

$162M

$159M

$176M

Cost of Revenue

$22M

$16M

$26M

Gross Profit

$257M

$209M

$145M

$143M

$149M

Gross Profit %

92%

90%

85%

R&D Expenses

$45M

$41M

$46M

$42M

$30M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$20M	-$38M	-$119M	-$50M	-$31M
Dep. & Amort.	$26M	$21M	$20M	$21M	$19M
Def. Tax	-$743K	$63K	-$2.4M	$0	$0
Stock Comp.	$23M	$20M	$18M	$14M	$12M
Chg. in WC	-$14M	$3.6M	-$5.5M	-$11M	-$810K

2020

2021

2022

2023

2024

Net Income

-$20M

-$38M

-$119M

-$50M

-$31M

Dep. & Amort.

$26M

$21M

$20M

$21M

$19M

Def. Tax

-$743K

$63K

-$2.4M

Stock Comp.

$23M

$20M

$18M

$14M

$12M

Chg. in WC

-$14M

$3.6M

-$5.5M

-$11M

-$810K

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$273M	$245M	$176M	$137M	$112M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$273M	$245M	$176M	$137M	$112M
Receivables	$33M	$17M	$14M	$19M	$16M
Inventory	$5.8M	$6.1M	$6M	$0	$0

2020

2021

2022

2023

2024

Cash

$273M

$245M

$176M

$137M

$112M

ST Investments

Cash & ST Inv.

$273M

$245M

$176M

$137M

$112M

Receivables

$33M

$17M

$14M

$19M

$16M

Inventory

$5.8M

$6.1M

$6M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

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EarningsEarnings
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Balance SheetBalance Sheet

Earnings

Report Date

Feb 18, 2025

Reported Revenue

46.2M

Avg 1d Change

9.55%

Report Period

Q4 2024

Reported EPS

-0.07

Implied Move 1d

59.32%

Transcript

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38m 54s

Hi, Rishi. Hi, Od, and thanks for taking my questions. First one to Eurishit and congrats on the new role.

39m 2s

40m 34s

Has changed here with regards to user growth? What levers have you pulled to improve this? It's going to be a high figure then for the quarter.

40m 42s

41m 36s

42m 59s

43m 23s

Please go ahead.

43m 29s

44m 5s

45m 23s

46m 56s

Experimenting as we go along, making tweaks as we go along. And finally, we reached a stage in Q4 where we were able to take it to the market and we ran a few pilot campaigns from it successfully.

47m 12s

And now that you've run a few pilot campaigns, how should we think of the rollout of it or the scaling of it, so to say.

47m 21s

Yeah. It's hard to comment about how the take up will be in the future. But so far, the pilot campaigns were successful. And it remains to be seen how how our advertising partners will latch onto it.

47m 40s

48m 35s

49m 18s

Not more than that.

49m 20s

50m 10s

Okay. Very clear. Thank you, guys. Thank you. [indiscernible] The next question comes from Stefan Gorphin from DNB. Please go ahead.

50m 28s

Yes, hello. Thanks for taking my questions and nice to talk to you, Richard.

50m 35s

51m 38s

52m 43s

54m 39s

Okay. If I can squeeze in one more question and that relates to the solid MAU net adds and how much of these are coming from preinstallment on smartphones? And how has this trended recently?

54m 56s

55m 20s

Okay.

55m 26s

The next question comes from Boris from Cantel. Please go ahead.

55m 35s

55m 55s

57m 2s

57m 31s

58m 25s

Okay.

58m 25s

Okay. Understood. Thank you. The last one, if I may, is do you have any feedback from customers and churn from your to call up a business customer outside of India.

58m 38s

59m 25s

The next question comes from Victor Lindstrom from Nordea. Please go ahead.

59m 34s

59m 59s

I can talk about the first part sure. How we evaluate countries that we pick to grow? Firstly, we look at those countries that have good organic growth for Truecaller already.

1h 12s

1h 1m

Right.

1h 1m 2s

1h 1m 47s

1h 2m 33s

Great. Thanks. That was all for me. Thank you. There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

1h 2m 51s

Okay. Thank you very much everyone for listening in. We look forward to seeing you at our next earnings call. Thank you very much.

Key Insights

Truecaller reported a 23% year-over-year increase in Q4 net sales, reaching SEK 523 million, with all three revenue streams contributing positively. Subscription revenues grew by 39% year-over-year, and Truecaller for Business saw a 45% growth in revenues.
The company achieved record user growth, with 429 million monthly active users (MAU), a 15% increase year-over-year, and 354 million daily active users (DAU), representing a DAO-to-MAO ratio of 83%. Android remains the primary driver of user growth, while iOS is being positioned as a subscription-focused platform.
The new iOS app launched in January 2025 is expected to drive subscription revenue growth starting in Q2. iOS users currently make up 7% of the user base but contribute 43% of subscription revenues. Early feedback on the new iOS product has been positive.
Truecaller continues to invest in growth markets such as Africa and Latin America, with plans to increase growth-related investments by 50-100% in 2025. The company also plans to expand its enterprise offerings and ad tech capabilities, including the rollout of the new Truecaller ID ad unit.
EBITDA grew by 19% year-over-year, with an EBITDA margin of 38.5%. The company maintains a strong cash position of SEK 1.3 billion and plans to balance shareholder returns through dividends and buybacks while exploring M&A opportunities and further investments.

TrueCar, Inc. Price & Performance (TRUE)

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Volume

Year High

Year Low

News & Market Insights

What's Happening

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Reported EPS

Implied Move 1d

Transcript

Key Insights

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

Go Deeper

News & Market Insights

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Recent Transcripts