Truecaller AB (publ)

Hi, and welcome everyone who's listening in. I'm Alam Amedy, and I'm the CEO and the co-founder of Truecaller. With me, I have our CFO, Odd Bolin. We are very happy to announce our interim report for the second quarter of 2022. I will start with presenting financial and business highlights for the quarter. I will then provide an update on some of the exciting things we've worked on during the quarter. Odd will then walk you through our financial performance in more details. Finally, I will wrap up with a summary of the quarter and then we open up for Q&A. So let's get started with highlights of the quarter. We had an outstanding quarter and closed Q2 with an average of 321 million monthly active users. It's a 15% increase year on year. Average daily active users grew to 255 million, an increase of 17%. This gives us an engagement of 79% of our monthly active users being active on a daily basis. Our net sales continue to grow, and we closed the quarter at 480 million Swedish crowns, a 100% increase compared to the same quarter in 2021. We also had a strong adjusted EBITDA of 218 million Swedish crowns and adjusted EBITDA margin of 55.5%. We continue to have a very strong cash flow with 281 million Swedish crowns in net cash from operating activities in the quarter. We're also very proud to be a profitable, high growth tech company. And we also intend to continue with that with solid profitability, great margins and strong cash flows. So we continue to grow our user base across targeted regions and have achieved notable malgrowth of about 50% in a number of South American markets. We're excited to maintain our position on sensor tower list as one of the top 20 most downloaded apps in the world for a second consecutive quarter. While we ramped up our user acquisition and intend to continue, the majority of this growth in Q2 is organic, which means we don't buy and add slots to convert clicks to downloads. The majority of them are actually organic. But more on this on the next slide. But before that, Also, we continue to see substantial growth in advertising this quarter. This was driven by user growth in different markets combined with improvements in ad revenue per user. Demand for true color for business continues to grow and the composition of our customer base demonstrates the relevance of our offerings to a wide range of industries. Notable companies onboarded as customers in the second quarter, such as Google, American Express, and DHL Express, among many others as well. We also continue to grow True Color for Business in markets outside of India, and our customer base in South Africa, Egypt, Israel, and Malaysia also grew across different verticals. And lastly, I'm proud to share that we achieved an all-time high in our net promoter score in our customer surveys in India, which confirms our position as one of the most loved brands in the Indian market. So on our user base, it continues to grow. Majority of our user growth, as I mentioned, is driven by strong organic growth. But we're also seeing our investments in user acquisition start to seed upcoming markets that are of strategic importance to us. We closed Q2 at an average of 321 million monthly active uses, which is up by 42 million from the same period last year, or a 15% increase. And we saw a solid growth in markets like India, Nigeria, Egypt, Kenya, Colombia, and so forth. But markets that showed some of the strongest growth were South America overall, Malaysia, Bangladesh, and South Africa. Our daily active use base is also growing at a very healthy pace. We closed the quarter at an average of 255 million daily active uses, which is up by 37 million from last year, or a 17% increase. We continue to see solid engagement. And in Q2, we had 79% of our monthly active users being active every day. And now over to a product. And as a product-first company, we continuously invest in developing our offering to further improve the user experience. As usual, we'll recap the product offering on the next slide. So there are two main areas where we focus on from a product perspective. One is our consumer product, which is available on iPhone and Android. As mentioned, 321 million users use Truecaller every month. And we're proud to be the leading global platform for phone number verification. Consumers use our product in order to have a safer and more efficient calling and messaging experience. It's their go-to product for their communication needs. But also, the other side of this is our business product that we call TrueColor for Business, which allows businesses to verify through a KYC process and become verified businesses on our platform in order to increase trust in their communication with consumers, but also prevents impersonation, which is a big problem today. They can also integrate their calling and messaging experience directly into our product so they can grow their business more efficiently through features like call reason and so forth. Now, let's go into the highlights. Cool. So some of the highlights this quarter includes improvements we made to the consumer product, but also improvements and enhancements to our AI identity and communication offering. We also further developed our ads and enterprise products. And I will also be sharing some exciting things that we have in the works, which includes our investments in driving a better iPhone experience, as well as a better subscription product. Cool. So we continue to develop our core offering in order to provide users with a smarter and safer and more efficient communication experience. In the previous quarter, we were excited to introduce opportunities for users to leave feedback on unknown numbers in the form of comments, up and down votes, and so forth. This new initiative has increased our user engagement and contributed over 30 million community feedbacks. And we developed our AI identity even further this quarter to extract intelligent, actionable insights. and offer even more context to a phone number.

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All right, cool. Sorry, we had some issues there. And we also upgraded our calling feedback functionality that made the call log load up time 13 times faster than before. And the call screen now supports over five times more call entries than before. Let's see here. Sorry, we're losing some slides here. All right. So on the messaging and SMS side, we started to see strong traction from improvements rolled out in previous quarters, especially through increased engagement with our messaging products. We also introduced some new features. Since transactional and personal information in messages becomes more and more common, our users have asked for an extra layer of protection, which is why we now have the option to set a passcode lock on their messaging tab. The passcode lock is easy to set up and supports biometric and fingerprint authentication. We've also made some changes to improve the UX for Smart SMS, which categorizes and highlights the most important messages for our users. The search experience within Smart SMS is now more intuitive, and it's now easier to find what you're looking for. We also made improvements to better accommodate coupon codes sent on SMS, an incredibly popular marketing channel used by businesses in many of our markets. Users can now easily find coupon codes and interact with them more efficiently through smart SMS. We really want to thank our users who kept feeding us with feedback and great ideas. And these are the ideas and inputs that we take into our roadmap when we develop the product further. On our paid offering, we continue to work to give our subscribers more value. This quarter, we launched Messaging Caller ID, which is a new feature available to premium users on Android, which brings our ability to identify unknown senders to other popular messaging platforms, which extends our core capability beyond the Truecaller ecosystem. On our paid offering, we continue to work to give our subscribers more value. This quarter, we launched messaging caller ID, a new feature available to premium users on Android, which brings our ability to identify unknown senders to other popular messaging platforms and so forth. All right. So on the next theme, which is ad tech and true call for business, our advertising business continues to grow, driven by improved access to demand, investments in ad tech and optimizations on the inventory side. We continue to improve our auction setup, which allows us to integrate even more demand partners more easily. We now offer the ability to onboard virtually any demand partner, irrespective of their integration preference, buying type or geographical strength. We've also started to deploy more innovative and engagement-driven ad units that drive performance for advertisers. From a data perspective, we continue to invest in advanced analytics and machine learning in order to improve our understanding of the ad engagement. This feeds into better targeting, trafficking, and yield management for further optimized different aspects of the ads business. And we're proud to be a chosen publisher for a wide range of brands across different industries, as this indicates the versatility and industry agnostic nature of our advertising platform. Next is the demand for our B2B, of course, product, True Colorful Business, also continues to grow across a wide range of industries. We onboarded a number of notable companies in the second quarter, including a few global brands wanting to take advantage of our scale in India. As you see on this slide, of course, demand for Truecall or business-facing solution in markets beyond India, such as South Africa, Egypt, Israel, and Malaysia, continue to grow as well across other verticals. And Truecall for business has grown at a great pace since we introduced it to the market less than two years ago. We've therefore been investing in improving our operational capabilities in order to serve such growing demand. In our previous reports, we talked about the self-serve portal that we developed for both resellers and direct sales. In the second quarter, we developed and launched even more features to our reseller portal. This gives resellers more comprehensive control and visibility over the deal management cycle. We also invested in automated market intelligence capabilities in this second quarter, enabling more efficient sales operations. On the business product itself, we continue to explore new use cases and develop more value-added services in addition to the core business offering. Our reseller partnership for business messaging with Tandla was commercially launched in the second quarter. Within one month of commercial launch, the partnership has successfully delivered millions of business messages and is expected to ramp up in volume over the year. Now on to some of the exciting things we're actively working on. We've invested in completely rebuilding our offering on iPhone and it's planned to be released later this year. Our team progressed significantly on revamping the iPhone app, which will deliver a brand new experience for both free users and subscribers. The new iPhone experience will offer a refreshed look and fundamentally better user experience from end to end, including a faster and smoother search and caller ID experience that we believe is much closer to what we offer on Android. The upgraded app will also provide a new premium experience on iPhone to support new plans. Some of the plans will include the Truecaller Assistant, which is a fully integrated offering from our acquisition of CallHero. And we're very excited that after only a few months of acquiring CallHero, we'll soon be ready to introduce the Truecaller Assistant to the market. Truecaller Assistant is an enhanced call screening solution for both Android and iPhone that automatically answers calls, filters spam, and shows the user what the caller wants in real time. We believe that Truecaller Assistant will take call screening to the next level and will be a strong addition to our premium offering. The fully integrated product will be made available to premium users in select markets in the second half of this year. Now, over to Ald to talk about our financial performance.