Another day in the office.

Mhmm.

What are they doing?

Five During the questions and answer session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the CEO, Rishi Jinjinwala, and CFO, Odd Bolin. Please go ahead.

Hello, everyone. Welcome to our Q1 report webcast. I'm Rishi Jinjanwala, the CEO of Truecaller, and with me, I have Odd our CFO. We'll start with the overall highlights from the quarter and then walk you through our financial performance. After that, we'll cover product highlights and then open up for questions. So let's get started with the highlights of the quarter. This quarter, to a large extent, was a continuation of our strategy which we have mentioned to you in the past. Our strategy has been focused on global growth and growing our recurring revenue streams. We continue to see strong global growth, good business momentum, strong cash flow and growth of our recurring revenues which now makes up almost onethree of our total revenues. The underlying profit development continues to be great as well. But the bottom line P and L numbers were ironically punished by the increase in share price. Which we've seen lately. This share price movement impacts our incentive costs we will come back to in a while. In terms of user growth, we continued very well. We crossed 450,000,000 users on April. And we continue to grow steadily in all regions. Our biggest income stream, advertising, continued to show growth for the third quarter in a row, Direct sales of advertisements, which is a focus area for us, improved very well And even though cricket related advertising revenues from the Indian Premier League were slightly lower this year Our enterprise offering Truecaller for Business, grew revenues with a stunning 60% year on year.

This growth is driven by strong performance in all product groups, towards businesses we're really excited to see. Growth for consumer subscriptions stayed strong as well, and we continue to increase conversion and revenue per user. While adding more value for our paying customers. As you know, we launched the update of our iOS product, and the focus is now on improving the product further, increasing the number of paying subscribers, and so on. As mentioned in Q4, we did not expect any impact from the launch revenue wise in Q1 but we are now gradually starting to see a positive impact on the subscriber numbers in q two. We will cover everything in more detail the coming slides. As our iOS product is now a premium first product, as we've informed you in the past as well, we will now focus on user numbers excluding iOS and for iOS, we will focus on subscription revenues instead. We closed Q1 with an average four twelve million monthly active non iOS users, which is an increase of 15%. Our our average daily users grew 17% to 356,000,000 and our DAU to MAU ratio was, an an amazing 86%. Our net sales for the quarter stood at almost SEK 500,000,000.0 a 16% increase year on year.

All three of our revenue streams contributed to this growth. In constant currency terms, our estimate is that growth would have been more like 18%. EBITDA without incentive costs increased by 22% to SEK 199,000,000. This growth comes despite higher growth related investments and extra marketing spend primarily for our iOS launch. Our margin, excluding incentive cost, also strengthened. When we look at EBITDA, including incentive costs, was 1% lower than Q1 twenty twenty four and this margin was adversely impacted by the increased incentive costs, which we will come back to. We are really proud that we continue to operate with high profit margins, and our cash flow remains strong at 178,000,000 in net cash from operating activities before tax payments, and was not impacted by the volatility stemming from incentive costs in the P and L statement. Now let's go into more detail. As mentioned, we continue to see strong user growth. We closed Q1 with an average of four twelve million monthly active non iOS users. Compared to the same period last year, we grew an incredible 53,000,000 users. Which is equivalent to 15% year on year growth. Our daily active user base grew at a rate of 17%, This growth is the cornerstone of our business and we're really happy that we continue to lead the market.

With that, I'll hand over to Od an update on our financial performance. Thank you, Rishit.

So let me walk you through the financials starting with the top line. This quarter, we grew, like, already mentioned, revenues by 16% compared to the first quarter last year. All our three revenue streams contributed positively to this. We saw accelerated growth for recurring revenues. And in addition to our revenues, grew and in addition, revenues grew also this quarter, although at a slightly lower relative pace than we have seen during the two previous quarters. Happy to say that our recurring revenues now contribute 32% to total revenues with a good 49% growth year on year. Although there presently is a lot of global macroeconomic uncertainty, we have so far not seen any really material impact on our revenues, or our business momentum. Do have a negative effect coming from the strengthening of the Swedish crown, that impacts us to a certain extent during the quarter. These currency levels currency effects will have a larger impact on our revenues during the coming quarters, though. Now let's look at our three different revenue streams, starting with Ads. This quarter, we saw continuing growth in India as well as in Middle East and Africa, but a somewhat lower revenues from the rest of the world.

The primary reason for this minor decrease was the strengthening of the Swedish krona. For ads, an important part of our strategy is to increase our direct sales efforts, and we did see an increasing share of our ads revenue coming from direct sales this quarter. A Apart from creating more stability and better visibility, higher direct sales also results a better gross margin for us. As usual, our Indian ad sales in Q1 and Q2 sees a material impact the Indian Premier League in cricket IPL. This year, we have seen IPL demand through third party channels to be somewhat weaker than last year, although we managed to increase increase direct IPL sales instead. All in all, IPL revenues were SEK 10,000,000 lower in q one, this year compared to last year. Last year, we had approximately Now we are down to 20,000,000 in IPL direct or IPL related revenue. We haven't seen any other material demand fluctuations quarter versus the previous quarters. Obviously, we remain watchful of any impact from the present macroeconomic situation. And we do continue to focus on the areas that we ourselves can control. The increased value that we have put into our subscription offering over the last two years continues to translate into revenue subscription growth.

Our recurring subscription revenues grew by 40% compared to the same quarter 2024, and we see strong development across all regions, India and The Middle East and Africa continue to grow at a good pace. But the strongest growth continues to count from the rest of the world, which is now accounts for almost 50% of the overall subscription revenues. Truecaller for business, which has been an area where we have substantially over the last three years, had another strong quarter with a growth of 60% year on year. These are SaaS revenues that are sticky and where we continue to 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 customers as well as expanding current partnerships. An important driver of the unit growth has been that our customers utilize more functionality in our offering, which increases revenue per account as well as overall revenues. Volumes within Business Messaging continued to grow and also contributed to the growth in Truecaller business revenues. So did our actually our new product area where we offer risk product to the financial industry.

Ads is still our largest revenue stream, and again, it grew by 5% year on year. Our ad revenues per daily active user decreased somewhat and so did average price per impression. With that within ads, we put more and more effort on into increasing our sales. This quarter, direct sales increased more than 35% compared to the last year, but our ambitions on direct side are considerably larger than that, we continue to focus on this area. Subscriptions continue to be a good revenue driver for us. We grew the number of subscribers by 25%, and the average revenue per subscriber by 12%. We see continuing growth in the adoption of our family offering as well as iOS. The Rest of the Worldcon segment continues to be the strongest growth driver although we see a good development globally, including on Android. Again, Truecaller for Business grew by grew revenues by a good 60% year on year. The customer experience platform verified business is the core of the enterprise offering, based on a SaaS model. Today, this is offer offering is primarily larger enterprises, Annual recurring revenues for the verified business segment grew by almost 40% year on year. We have, from the very start of this business, had a low revenue churn, and that trend continues.

The majority of revenues is coming from India, but growth in Middle East and Africa is a focus for in for focus for us in 2025. In Q1, revenues from that region grew by 60% year on year. The age the other major part of our for business offering is business messaging, which has seen good growth in both messaging volumes and revenue This quarter, we also started to see some revenue from our number intelligence product. It is still small. Compared to the other two product lines, but the commercial traction is growing we expect revenues to continue to scale up. During the year. Our strategy to focus on recurring revenues, premium subscriptions and Truecaller continues to do well. Combined, these two revenue streams grew by 49% year on year, reaching close to SEK $650,000,000 on an annualized basis. We continue to see a lot of potential in both these streams. The conversion from free users subscribers has potential to increase substantially based on continued product innovation that creates more value for our subscribers. And the new iOS product has potential to scale much further. Regarding Truecaller for Business, there are many levers left for us to for the longer term, both when it comes to regional growth growth among small and medium sized businesses as well as growing in more and new product areas for businesses.

Now our gross profit grew by 25% year over year and the gross margin improved to 77.3%. We saw positive impact from the increased share of direct sales increased revenue for Truecaller for Business as well as efficiency gains when it comes to server costs. Going forward, we expect the gross margin to be rather stable around this level, but with possible variations between quarters. So let's move to the cost side. Underlying staff costs are stable with only a limited number of new and employees versus last year, But those costs will as usually increase with our annual salary revision. Starting from q two. Incentive costs increased mainly as a consequence of the positive share price development like mentioned, in the last six months, but I will cover that more in the next in more detail in the next slide. Other external expenses increased primarily due to increased cost for preloads in selected growth markets. And temporarily higher marketing costs related to the launch of the new iOS product. Our tax rate is continued to be a combination of the Swedish corporate tax rate and the Indian tax rate. The tax rate was somewhat higher this quarter, but we continue to think that 25%, 26% is a reasonable but was again certain possible variations in between quarters.

Now on incentive costs. This quarter, we increased our accruals for our incentive programs which had a substantial impact on our bottom line. Incentives to our employees is part of our remuneration model. But the accrued costs for these incentive programs depend on the share price, as well as a number of other factors. When the share price increases, options and RSUs become more valuable. And since we will pay social security fees on the profits, that hopefully will be made by our employees, The accrued social security fees that we recognized in our profit and loss account also increased. In addition, there are some other aspects of those programs that our quarterly costs, such as the remaining time to the exercise, the probability that the performance criteria will be met and our staff turnover. All in all, the cost that we book for incentive programs each quarter has the potential to be quite volatile, as the share price and our operational performance fluctuates. Now we have seen considerable uptick in the share price recently, and the financial outcome for 2024 fulfilled the performance criteria. Both these factors contributed to higher incentive costs during the first quarter. It is, however, important to note that although incentive costs have a substantial impact on our bottom line, they do not give any material insight into our operational performance.

Part of the costs are accounting figures that reflects the potential dilution that options in RCU eventually may have, Porter accrued Social Security fees that only will impact cash flow when and if these instruments are in the money at exercise. Our operational performance our operational leverage is best understood by looking at our profit excluding these costs. Turning to our profit development. And first, we start to look at the profit development excluding incentive costs. Excluding those costs, EBITDA grew by 22% and our margin improved to 40% when excluding. As you can see from the chart we continue to deliver a quite stable profit margin excluding those incentive costs. When we look at the EBITDA including incentive cost, we have a small decrease one percentage point and a margin of 30%. Our cash flow conversion continues to be strong with no financial costs and working capital that develops in a manageable way. We still have no financial debt and billion in cash and short term reinvestments. Ahead of the AGM, the Board has proposed a dividend of €1.7.1.7 per share which is similar to what we did last year. Since we did the IPO in 2021, the company has given back SEK 2,000,000,000 to our shareholders, quite evenly as split between dividends and buybacks.

We have been and continue to act in a position of strength, with this strong cash flow and the financial profile of the company. But with that, I'll hand over to Ruchit again.

Thanks, Odd.

Now now let's take a look at our quarterly product updates. The areas we will cover are LiveCaller already launched on iPhone, AI powered core product improvements, and significant updates to our premium business and ad tech products. Q1, as we mentioned before, saw the launch of the much anticipated revamped iPhone app, which brings Android like real time caller ID capabilities to iPhone users for the first time in Truecaller's history. Live Caller ID is built on top of technology developed by Apple especially for apps like Truecaller, We use the same underlying tech to add more advanced spam blocking capabilities to the iPhone app as well, which allows users to block all spam calls. We launched the new iPhone app with a thirty day free trial available to on all nonpremium users at launch. And and as is the norm, we have been doing AB test to optimize the packaging and pricing in different markets. Despite some technical challenges, early adoption and user feedback has been positive. We saw nearly 30% increase in daily conversion rate from trials to paying users. In April, Truecaller added nearly 55,000 paying premium customers on iPhone, which represents a 6% increase month month.

Artificial intelligence and machine learning are at the heart of all product development at Truecaller, including key areas to us like spam and fraud detection. In the previous quarter, we reported significant improvements on spam detection capabilities, and we've continued to progress in that area. With millions of additional spammers now being identified across all key markets for us. In addition to further improving the accuracy of fraud calls, detection of fraud calls in q one, we moved to make Truecaller an even safer platform thanks to new AI powered identification of fraud logos and user avatars. These capabilities are aimed at identifying removing malicious actors, impersonating established brands, as well as detecting established fraudulent patterns. In recent quarters, we've also highlighted the rollout of our brand new assistant product, which can now answer calls and interact with callers on on your behalf. The new assistant experience designed from the ground up using large language models offers a more human like interaction much faster responses. In q one, we rolled out the new assisted experience to iPhone users in The U. S. Which has improved answer rates by 66% thanks to a more natural experience. We now plan to roll out the new assistant experience in India, very soon with other markets to follow as well.

Truecaller's advancements in artificial intelligence are also enhancing other product areas. MIDs, message IDs, which are a much loved feature that provide caller ID like alerts for incoming important messages, making sure no you know, delivery or transaction message is missed In q one, the volume of message IDs grew by 30% quarter over quarter. With the vast majority of gains coming from AI powered MIDs. Which saw a 27x increase in volume compared to the previous quarter. We're also always looking at making our premium offering more compelling And in q one, we added a much requested block by name feature for our premium users on Truecaller for Android. This feature allows users to block calls based on certain words being present in the name of the caller, further strengthening the suite of features available exclusively to premium users helps drive premium adoption in the long run. Shifting our focus now a bit to Truecaller for Business. I'd like to use this opportunity to talk about our number intelligence product. In recent quarters, we've spoken about investments we've made in this area. To develop an offering that aims to provide Truecaller for business customers number related information to aid their decision making areas such as fraud detection and customer onboarding.

I'm happy to report that the Number Intelligence product has now moved beyond the proof of concept stage to find commercial usage within businesses like financial institutions, which are using it for onboarding and serving new to credit new to banking customers as well as fintech companies that are that are now using it to detect fraudulent activity such as mule account usage. Q4, the Number Intelligence API consumption grew fourfold and multiple customers transitioned from trials to production, signing long term commercial deals. Talking about ad tech a bit, Growth in Q1 was driven by a focus on supply optimization, product innovation as well as platform efficiency. A big focus was on direct sales, like Odd spoke about as well. Via the Truecaller ad server. With improvements to support new exclusive inventory, advanced targeting, enhanced campaign management. These campaigns help drive substantial incremental revenue with higher CPMs, with advertisers benefiting with more engaging formats. While Truecaller saw lower demand, from programmatic ads during the IPL this year, same as Odd spoke about, direct sales actually grew very well for us. This included large deals with fantasy sports platforms as well as the official IPL broadcaster itself. On the supply front, strategic initiatives such as a new caching infrastructure contributed to revenue improvements.

This caching framework successfully rolled out across all markets now, demonstrated strong scalability and performance consistency throughout the quarter. Right. And with that, to wrap things up, believe it was a, overall, a very healthy quarter for us with growth on all fronts. I think we have already highlighted it, but we we continue to deliver on the strategy that we've set for ourselves. It contains user growth. Growth in all revenue streams with an extra focus on growing our recurring revenues. Which now actually make up a third of our revenues and have doubled in the last two years. We continue to see multiple avenues of sustained growth for these revenue streams. We also have a highly profitable business model and the underlying EBITDA grew and the margin was stronger than a year ago. This quarter, our net profit was by incentive costs due to a good stock price development that Ard spoke about but our cash flow continued to stay very strong. We have started to see good emerging trend on our iOS product as well, it comes to the number of subscribers in q two but it will be a gradual improvement as we've expected. As usual, huge thank you to the phenomenal Truecaller team.

Every quarter, we continue to build a larger company a great purpose to help people have a safe communication experience. With that, we're happy to take your questions now.

If you wish to ask a question, please dial 5 on your telephone keypad. To enter the queue. The next question comes from Ramil Kauriya from Danske Bank. Please go ahead.

Yeah. Thank you, guys. And thank you for taking my questions. I have a few if I may be we do them one by one. First off, on the subscription side, it's quite encouraging to see Rest of World sort of constituting almost 50% of revenues and ARPU levels are quite a bit higher than the group average in that segment. And now you allude to sort of iOS initial sub synthetics being outside of India. So could you shed some light on which countries you are seeing the subscriber intake [indiscernible] If you if you've well, secondly, if you've given any discounts to initial iOS subscribers. And maybe, if we sort of lift our sight a little bit how should we reason around iOS ARPU moving forward given all the moving parts here? [indiscernible] So so the the the new subscribers on iOS that we're seeing, the growth that we're seeing iOS is coming from various countries, including The US, We haven't really discounted prices so far. But as we always do, we we we we are now conducting experiments offering 25% discounts, 50% discounts, and trying to see revenue uplift that would give us. So so we we're always experimenting on this, and it's it's hard to put a number on it right now.

And and maybe a follow-up to that, I mean, if you look into the coming few quarters, should we expect sort of India and call it ARPU dilutive markets such as Egypt growing as share of iOS subscriber intake? Or should we extrapolate the April trend here?

No. We we we definitely are striving for India and and and countries like Egypt to contribute a lot more to iOS. Should should we expect it? I I I would I'm I'm not sure how to answer that question. But but, definitely, we strive similar growth in India that we're seeing in rest of the world for iOS subscriptions.

Okay. Okay. And and then, looking at the advertising revenue composition, you did qualitatively provide us a commentary about fee CPM being up sequentially. And to my knowledge, that is the first time Q1 CPM is above Q4. And I can see the impact from direct sales and new ad formats. But conversely, it seems like ad impressions in that case is down quite a bit sequentially. Is that by design or are there any other aspects that I'm I'm forgetting here? No. Well, you do need to remember that we are not trying to work neither CPM nor impressions as such. We're working total revenue per user, and and that can change from campaign to campaign. How we do that, that can change over time. So I wouldn't read anything in particular into that. The important thing is revenue per user, and that's also why we started reporting that specifically now.

Makes sense. So but if I rephrase a little bit, is there any sort of intention of decreasing ad load over time as recurring revenue share of total growth just to improve user experience and maybe attract incremental users, so to say? Is there that not the part of the agenda here?

That's not we don't have any any agenda like that. We try to maximize revenue per user and we don't see any adverse effects of the ad load. So that is not an issue to us. But if we can find better pricing with slightly lower ad load, for some reason in some market for some campaign, then we'll do that. Okay.

Sense. And then a final one, if I may, guys, on the on the topic of marketing expenses. How it's a pretty significant step up sequentially in Q1. How should we think of sort of continued market expenses moving forward? Are they going to increase from Q1 levels? Should we think about them?

We did the an IAS marketing campaign in q one. That was reasonably large. We don't have any anything specific iOS related plan for the remainder of the year. We'll do other things, but we will I don't I don't foresee us reaching to quite a level we or spending we had in q one for the rest of the year now. Not in any individual quarter.

That's very clear. That's very clear. Thank you so much, guys.

Thank you.

Thanks, man.

The next question comes from Akhil Dutani from JPMorgan. Please go ahead.

Yeah. Hi. Good afternoon. Thanks for taking the questions.

I'll go one by one as well if I can. Can I just start by on the iOS disclosure you've given this quarter? You mentioned that you've managed to sign up 55,000 customers onto the paying premium subscription. I guess I just wondered if we could get a couple of bits of clarification around that first is could you maybe help us understand, are you seeing any particularly bias in terms of mix across markets? In terms of where those ads are coming? And you said it would be steady momentum that you'd expect. But as we think about the next couple of months, I mean, that a reasonable starting point? Is that something similar you're expecting? Just any sort of color on how you think about the phasing of how this momentum will run to the base? That would be my first question, please.

Yeah. So it's not 55,000 only. What what we reported is we saw [indiscernible] in iOS subscribers of 55,000 in the month of April. The the total number is No. No. I I get that. Because it yeah. It it would imply about 900,000. Right? Because you said it's 6% up month to month. That's I guess the base is more like 900,000, I guess. Right?

Right. Exactly. The the mix Yeah. So so I guess what I was trying to understand is how that run rate, how we should think about the run rate, really? Going forward.

Yeah. It's hard to say what the run rate would be going forward. The initial numbers is what we try to show as encouraging. From here onwards, we will, of course, try to sustain the same run rate or grow the run rate as well. That that's gonna be our focus for sure.

Okay. And is there any sort of geographic bias you're seeing at the moment in the early days?

Right. The the the current geographic bias is most of the the the new subscriptions we got were non India. Which is also encouraging for us. But but but now we're working hard to grow India in the same manner as well. Fine. Okay.

The second one is just on the down to MAU ratio. I mean, you mentioned obviously the very strong ratio you have on the total base, But actually, if I look at the numbers based on the including IRF and iOS numbers and therefore back out the iOS specific ratio. It's obviously a lot lower. It's about 40%. Obviously, there's a lot lower daily utilize utilization rate I just wondered what you can do because I guess if you're trying to incentivize customers to upsell onto premium, parts of that mechanism would presumably be to drive up utilization. So you sort of help us understand, you know, what can you do and what are you doing to incentivize customers to move up the stack and use use the service more?

So we firstly, the I iOS product is very different from the Android product. The the the iOS product works really well passively. And there there is not much opportunity for us to create more active engagement on iOS. The Android product is very different. We we have various use cases built into the product. That that create more active engagement and and many, many app opens during the day. So so they're two very different products in that sense. And will will be different on both of these products always. But to to answer your question, what do we do to drive up that active engagement? I mean, that that's that's been our focus for a very long time. And and and that's why we we we're really happy 86% is our DAUMAU ratio. So so we we are we're constantly building more use cases We're understanding user problems a lot more. As we add on each capability, those capability the the the adoption of those capabilities, create more active engagement.

Great. Thanks. And then just one financial question around FX. You've mentioned $9,000,000 FX hit. In the quarter. You've also alluded that on current spot rate the currency impact would be greater. I just wondered if you might be willing to quantify if we were to see spot rates stay where they are today what the implied FX drag would be for the rest of the year?

Well, like I said, or like, I've been saying, we we we can only estimate the numbers even the historical ones. But think it's reasonable to to believe that if the rates were to stay where they are, for the remainder of this quarter, the effect would be more than twice what we've seen. Maybe maybe more than three times what we've seen in the first quarter. But those are all estimates based on what we know There are certain things we don't know. Due to the to the indirect exposure that we have at that is a reasonable assumption, I think. Swedish crown has And also, is is the Exceptional development this year.

Makes sense. And can I just ask, is is the impact very different at EBITDA? Because I guess it's going to depend a bit on your cost allocation, things like that. So let you when you're giving us these numbers, you know, how should we understand the translation from top line to earnings?

Well, we do have a By now, we have a substantial amount of our cost base in India, both for employees, but also for direct sales that we do in India, Truecaller for Business not least. But also to an increasing extent in the ads. So not [indiscernible] Not all of that will reach the bottom line for sure.

Fine.

Okay. Thanks a lot.

Thank you, Akhil.

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

Odd and Richard. Thank you for taking my questions. I have a follow-up here on the premium sales, but on non iOS units. Which seems to that they grew 31% year over year. And how how far have you you say you have come here in the improving the conversion rates for non iOS platforms?

Yeah. That's a good question as well. Thanks, Victor. We we have done a better job in improving conversion rates Android users as well. So, mean, it's it's always been our focus We spoke about it last quarter as well that we've we've we've created various capabilities internally help us target the right user at the right time to prompt for upgrading to premium. So definitely, the Android conversion rate is improving as well.

Right. Thank you. And then I have a follow-up at the center one. If you look at the ad revenue per DAU in the rest of the world here, it was down 20% year over year. Is it any particular reason for that? Or [indiscernible] No particular reason. Seasonality more. Yes.

Okay.

Thank you. All for me.

The next question comes from Predrack Savinovich from Carnegie. Please go ahead.

Hi, Richard, Howard. Thanks for taking my questions. Can you give some more color on how ads started for the second quarter and how you see the state of the ad market currently compared to say one year or even one quarter ago? I'll start there.

We haven't seen any major changes during the second quarter as to the first quarter. Nothing that makes us think that the second quarter will be materially different terms of overall demand than the first quarter. We have seen a bit of an uptick compared to a year ago, but the market is still subdued versus the situation we had two, three, three years ago. We did see we have seen a bit bit of a comeback, but it's not super strong yet. No.

Okay. And can you unpack a little bit more on the newer ad formats and how direct sales change. I know you don't like to discuss pricing and so on, but obviously higher HRD format should have an incrementally positive contribution over time. How this affects you in the quarter? Are there any puts and takes here?

Sure. So over the last few quarters, we've spoken about innovative ad formats, and this comes from the fact that direct sales has been our focus. So in order to grow direct sales, have to have ad formats that are nonstandard, that are proprietary to Truecaller, and they're powered by our own ad tech server as well. Some of these are video related ads like immersive experiences around video. Some of this is the caller ID ad that that we spoke about last time as well. And and and these type of innovations is is what we are introducing continuously that are proprietary to Truecaller and and move away from the standard ad formats.

And and what about the kind of pricing differential between such formats compared to to banner ads, which you've previously been having?

Yeah. It it's a very dramatic price difference, actually, because the a a their innovation b, we're able to do things because it's controlled entirely by Truecaller. We're we're able to do a lot better targeting, for example, and because of that, they they command higher CPMs quite dramatically, actually.

Okay. You. And you you don't wanna quantify the the dramatic increase? I mean, you compare that to say what you've fetched for a banner, generally, if it's a five ten or something x.

No. It's it's hard to quantify because it changes from campaign to campaign and advertiser to advertiser. So it's it's hard to say a a exact multiple for it. But but but I can tell you it's it's a very healthy multiple and and we really strive for more and more usage of our innovations.

And then on the growth in business, can you unpack this also a little bit around discussing pricing and new customers and growth with existing customers. To kind of understand the three growth drivers that Absolutely. So so we made pricing changes about a year ago. So that that has some impact, but not much impact on our growth. The primary impact that that affected our growth positively was both new customers as well as expansion within customers. And this expansion comes primarily from the fact that we've expanded our product suite from just being a you know, verifying yourself on Truecaller to becoming more of a customer experience platform now participate in your lead gen activities, your CRM activities, and and now most recently, risk and fraud as well. So it's it's a combination of both new customers as well as expansion. I I think Odd also mentioned rest of world, like non India. It's still a small part of I mean, it's it's not as big as India, of course. Most of our revenue still comes from India, Truecaller for Business, but we're seeing very healthy growth in rest of the world as well where our ARPUs are actually higher too.

Okay. And and finally, on the risk intelligence product, you just mentioned this again, and you made a call out around a fourfold bit uptick compared to last quarter. Is this meaningful in terms of revenue contribution now? And what are your expectations? Or interest levels around this product that you see that can impact you for the coming quarters?

Alright. It's I I mean, it is what is meaningful about the number intelligence product is the fact that it opens up a new avenue a new product that we can sell to our existing customers. Right now, the size is probably not that meaningful. But the fact that we moved from product development to proof of concept to live is what is very encouraging to us already.

Okay. Very good. Thank you very much. [indiscernible] The next question comes from Eric Larson from SEB. Please go ahead.

Thank you and good afternoon. I just have a follow-up question on B2B here. Because for the past two years, we've seen flattish growth in Q1 versus Q4. And I think you've mentioned some seasonality playing in here historically, but now sequential growth is really strong. So anything really changed here? Or should we see it as the underlying growth coming up a bit?

I don't think anything changed as such We we like I said, we we we did see the the the renewals of contracts coming in at a healthy pace. And and we saw expansion of existing accounts as well. So nothing notable in this quarter that changed. But but but the fact that we have expanded our product helps a lot for us because we can go back to the same customers and sign bigger deals, longer term deals, which which which caused the uptick as well.

Okay.

Thank you.

Thanks.

The next question comes from Stefan Goffin from DNB. Please go ahead.

Yes. Hello. I'm I'm just trying to get some more flavor on the iOS conversion.

So you have around 31,000,000 monthly active users on iPhone. Of these, you are now approaching 900,000 premium users.

So of these 31,000,000, how many have installed the latest version, how many have tried, the premium version, and what what share of those who have tested have converted to becoming paying users? So any flavor that you can give here. Is much appreciated.

Sure. So so we have 60% of our iOS user base. On the right OS version as well as the right Truecaller version. You you you must note that the the biggest hurdle at this point that we have on iOS subscriptions is the fact that the Apple OS the iOS itself has has a has a bug in it. Which which causes Truecaller's caller ID to not show up. And it's it should get fixed in the next couple of weeks, actually. And and that we're we're hoping we'd see even better numbers. About your question on trials, I I I don't think we reveal those numbers as yet, but we have seen an uptick pre from pre the new iOS version launch to now. In a few different metrics. Including the uptake from download to trial, and trial to paid. So so so we are seeing better conversion metrics now than we used to see earlier as well.

Okay. And then just a a follow-up on the growth investments. I think you answered earlier, but let's see. So after q four, you stated that your growth investments should increase with around 50% to 100% run rate at the end of twenty twenty five. Now growth investments increased 20,000,000 year over year. And this was mainly due to the iOS launch And then you commented that you shouldn't expect these growth investments to increase significantly from this level. Do I understand that? Correctly?

No. What I spoke about specifically was the marketing investments. Not the growth investments as such.

Okay. Yes.

And and then what what additional I mean, given that this was a a quite a dramatic increase, compared to Q1 last year. How should we think about overall growth investments for the coming quarters then?

The primary driver bit behind the growth in use in use acquisition investments has been new markets, new focus markets where we wanted to start trying out investing more and see if we could get the same sort of boost that we have seen in Colombia and and Nigeria, for example. However, we have learned during the process over the last few years that we need people on the ground. In order to be efficient So getting those people on board is something we're still working on. We have we have some people We're still in the process of of finding other people. But it's not until we have those people on the ground that we can actually make any more substantial investments. So that's why we spoke about the annual run rate at the end of the year. As a measure.

But the that run rate is still valid compared to the 150,000,000.

Yes.

Okay. Perfect. Thank you. Thank you.

The next question comes from Boris Nogaraj from Cantor Fitzgerald. Please go ahead.

Thank you. I just have a couple of quick remaining questions. Did you see any traction in the new iOS app from users who are not yet premium users previously? Or was the bulk of the traction from the existing premium users? And just to follow-up on the same one, if if correct me if I'm wrong here, seven to 8% of your user base is iOS, and and I think you said 43% of the revenue, subscriber revenue is iOS. Could you provide a geographical split of the same metrics for the for the rest of the regions?

So the the your first question is the base that we're seeing now, are there new or existing users? Most of them are existing users. Simply because it's much easier to convert an existing user that has been waiting for live caller ID for a long time. And some of it is brand new users into the system as well. Your your second question was are iOS user base versus subscription revenues? Our iOS user base, I think, is about six six or around 6% of our user base is iOS. But about 40 odd percent of our premium subscription revenues come from iOS, It is I I would say, 50% India and 50% rest of the world. Is the split roughly.

Okay. Okay. That's for both the user base and the revenue, I guess. [indiscernible] Yes. Yes. That is correct.

Alright. The the other question I had is on the staff cost. I think we touched upon it just on the previous question. I think compared to Q4, it's slightly higher. In terms of the staff cost excluding incentive cost. So apart from the yearly salary increases that you mentioned, in your prepared remarks in Q2, what further level of staff investments do you expect for the rest of the Well, there are always there are always certain variations between quarters due to how people take vacation, etcetera, but I think the the if you take your average between q four and q one, that would probably give you a good indication or or take the q one number.

Okay. Thank you.

You.

There are no more questions at this time.

So thank you everyone for listening in. Look forward to seeing you in our next earning call. Thank you very much.