Truecaller AB (publ)

Hello, everyone, and welcome to our year-end webcast. I'm Rishi Jhunjhunwala, CEO of Truecaller since January this year, and I look forward to present our report along with Aude, our CFO. We'll start with the overall highlights from the quarter and then walk you through the financial performance. We will then cover product highlights, and then we'll open up for questions as well.

So let's get started. highlights of the quarter. We closed Q4 with an average of 429 million monthly active users which is an increase 15%. Our average daily active users grew 16% to This therefore takes us to a record high doubt amount ratio of 83%. Our net sales for the quarter stood at 523 million cents. At 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 while true call of a business continued to show good growth EBITDA increased by 19% to $201 million this growth is despite higher growth related investors 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.

We're really proud that we continue to operate profitably. We have a solid cash flow with 228 million SEC in net cash from operating activities before tax payments. In terms of user growth, we continue to grow very well. We crossed 400 million 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 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 2024 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 TrueCall 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. In January this year, we launched the long-awaited update of Truecoder for iPhone. phone, which brings color and spam blocking on par with our Android product. With this new release, we are shifting our strategy and we will primarily position true color 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, I'm going into a bit more detail. As mentioned, we continue to see strong user growth. We closed Q4 with an average of $429 million. monthly active users. Compared to the same period last year, we grew by 55 million users, which is an equivalent to 15% year-on-year growth. Our daily active user base grew at a rate of 16%. sees strong retention, and I'm really proud that 83% of our monthly active users use Truecaller on a daily basis. We see this as an indicator of and the continued relevance of our services. During the quarter, we surpassed 400 million users on Android. And the average monthly active users was 396 million.

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 Odd for a financial update.

Thank you, Rishit. 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 revenues by 23% compared to the fourth quarter of 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 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. We continue to grow the number of impressions. This is an effect of improved ads platform, further user growth, increased interactions by our users, and last but not the least, some positive demand development in at least parts of the Indian market.

The overall digital ads demand in the 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 than the traditional banner ads.

The scaling of these formats made some positive contributions, and we see good field rates and good yield for them.

We're obviously happy about the recent development that we've seen in the Azure business, but we're also still continue to focus on areas we ourselves can control. The strengthening of our subscription offering with more advanced features and one global payment plan continue to pay off. subscription revenues are sticky and stable and we have a strong incentive to continue to drive adoption of subscriptions as we earn approximately 30 times as much on a premium subscriber compared to the non-paying users. Our recurring subscription revenues grew by 39% compared to the same quarter in 2023, and with 15% compared to the third quarter in 2024. The conversion continued India to improve and so did their 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 both Android and iOS.

True Google for Business continues to develop well with the growth of 45% year over year. These are 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. Volumes within business messaging continue 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 70% year over year. Our ad revenues per DAO increased for the first time in a long time. CPM declined, but overall revenue still grew at a decent rate. As mentioned before, we do not focus on CPMs or fill rates, but rather on maximizing overall ad revenues. Given our strategy, we think a more relevant measurement is ad revenues per DAO, where 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. iPhone users have been important contributors to our subscription revenues already before the release of our new iOS program.

iOS users are about 7% of our user base, but contribute with 43% of the subscription revenues. The new iOS product launched in late 2018 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 which takes some time then we market the product through our CVRM tools as well as with external marketing which will happen later to this quarter. Users will be given a 30 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 capabilities of core identification and spam blocking as on Android, or 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. We do not expect any material impact from the iOS launch until from the second quarter. Average number of subscribers grew by 22%. which is higher than our overall user growth, and consequently, conversion also increased. The average revenue per user continued to grow as an effect of the growth.

graphical mix of our subscribers, as well as us moving to one global payment plan with a higher price point 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, sold based on the SaaS model. Today, this offering is primarily for larger enterprises, and it has been, to a large extent, been 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 a very low revenue churn. The other major part of our true color for business offering is the business messaging, which has seen good growth in message volumes this quarter with more than 80% year over year. The growth in total recurring revenues continues to be encouraging, and we see more levers for growth in these areas going forward. Combined, they grew by 42% year over year, and now they make up around 600 million 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 to call for business revenues, lower fees to subscription and advertising partners, or more direct sales in the ad business. However, in 2025, we also expect somewhat higher server costs from the new iPhone offering. Time now to move with the focus to cost Truecaller has a robust business model with very high operating leverage efficiency is key in order to deliver solid margins other Underlying staff costs are quite stable, but will increase with our annual salary revisions. We also plan to add some more accounting in 2025, as we do selective recruitment in revenue generating 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 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 development. Q4 2023, we started to increase investments in target growth markets, 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 switch Swedish corporate tax rate and the Indian tax rate. The tax rate was stable both for the quarter and for the year, and we continue to think that a 25-26% tax rate is reasonable, but with possible variations in quarterly numbers.

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. Our external advisors 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 costs, excluding growth-related investments and incentive costs, increased by 6%. As mentioned, during 2024, we increased our growth-related investments. These investments are easy and quick for us to turn on and off, depending on where we see the best results. We continue to be pleased with the results we are getting out from the investments so far.

We continue to find them to achieve the best long-term results. 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 increase in investments we are planning and that work can still be absorbed without us achieving our financial targets. With the launch of our new implementation, we will also reduce and extra marketing efforts to make users aware of the newly improved product. Now turning to our profit 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 margin during 2023. The margin excluding incentive costs improved 44.3%. Net profit grew by 29% and EPS grew by 33%. Our cash flow conversion continues to be strong. The cash flow creates opportunities to continue to give back money to shareholders through buybacks and future developments, as well as continuing to invest in growth and scan the market for potential M&A. We are in the very favorable position of having no debt and 1.3 billion Swedish crowns in cash and short-term investments. In Q4, we halted.

are 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 to the AGM. Then lastly, our financial targets, a few words on them. As we close 2024, it is time to look at our actual performance compared to the targets we set in conjunction with the IPO in 2021. The target that 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, although not an 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 2021 to 2024 period. Now, what takes effect now from 2025 is that we should have an EBITDA margin of about 35% after 2020-2024, starting this year. During the period 2021-2024, we had an average EBITDA margin of 40%.

But like I said, that wasn't an out. right target at that time. So, going forward, the EBITDA margin is the target that remains. If there are future financial targets added, we will, of course, inform the bank about that. when the board makes such a decision. We also have a dividend policy, worth remembering, in place since last year, stating that we should do an annual dividend equal to 25% of the net profits. Of course, we can also do one of dividends or more buybacks. It all depends on what we believe is best for our shareholders in the medium 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 the total number of users, but 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 it's not something that we focus on, and that is a very enlightening KPI considering how we run our ads business. We'll therefore stop reporting CPM, but we'll instead report ad revenue per user and add additional quantitative comments which aligns better with how we steer the business. We will be more transparent

and give more data on how our subscription business is developing. We'll add data about the number of subscribers, conversion rates, and iOS share of revenues. We will continue to report our POOP. For true quality for business, we will give data on annual recurring revenue as well as revenue churn for our SaaS part, verified business. For business messaging, we will continue to report the number of messages delivered. For all these KPIs, we will provide the 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 Rishit again.

Thanks, Arun. 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 Truecaller 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 focus markets such as Columbia, 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. With this, we are already able to identify millions of additional fraud causes. A key aspect of protecting people from scams and fraud is create awareness on common practices that bad actors use. So once again, we use the power of the large community we have to achieve this. scam feed on Android, which gives our community of hundreds of millions of users a 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 income. engagement in addition to underlining true callers thought leadership in this space. 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 continue 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. The capabilities built within the user monetization engine has been one of the key factors in improving conversion and growing Truecaller's 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 leverage LLM, or large language models, to significantly enhance the conversational capability of the assistant. This 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 onto Truecaller for iPhone.

As we mentioned in Q4, we continue to work on this new iOS app along with Apple, which gives users the full caller ready 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 2020. exclusively for Truecaller Premium subscribers. 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 We started marketing efforts on this to raise awareness about the new product and we'll continue to deploy external as 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 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 new caller 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. 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, and 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. The product strategy overall for true control over businesses continues to be deeper integration with enterprises, as well as a broader range of capabilities on both calls and messages. In the recent quarters, 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 Last year, Message ID saw adoption by prominent businesses such as Swiggy, a leading food delivery service in India, and No Broker, a major real estate technology platform. Demonstrating the versatility and effectiveness of Truecaller's messaging part of the enterprise offering.

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 Truecaller. 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. We'll continue to use this strategy even more in 2025. We'll cover more growth markets. 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 was very encouraging for us. The profit development also was really strong, and we have a 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 true 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. Right, with that, we're happy to take your questions. If you wish to ask a question, please dial 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial £6 on your telephone keypad. Please go ahead. Hi, Richard. Thanks for taking my questions. First one to you, Richard, and congrats on a new role, could you discuss the success from your previous role? I mean, you've been influential in this establishment of a business, the ads business as well, most of which are for this reason. It's quite important, right?

So in discussing this transition, make sure that this is smooth and on your appointments 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 I'm you know, still paying attention to it while Frederick on boards 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 to fill the roles.

All right. Coming back to some of the numbers, and I'm looking specifically on subscribers on premium when I do the math in, you know,

ARPU and backing out the users in absolute numbers it looks like you almost go double-digit prior to Q3. What has changed here with regards to user growth? What levers have you pulled to improve this reasonably high figure for the quarter? I guess your question is about user growth. So we a lot of our activities as well as subscriber growth we were able to 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. many of the other regions as well contributed to this growth. We have not limited to a single plan in terms of a few different plans. I think that simplicity helped in users being able to subscribe easier as well. So overall, it was a

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, etc.

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 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 Truecaller.

As we added on more and more capabilities on Truecaller, to 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 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. Brilliant. Thank you very much. Thank you. The next question comes from from Danske Bank. Yeah, thank you. Thank you, guys. Richard, welcome. Welcome aboard. It's going to be a ton of fun to interact with you moving forward. A few questions on my end. And so starting off on perhaps IOS and the rollout of it. If you could elaborate a little bit on the potential for you know, output changes, iOS sort of increase the share of total, presumably in the future.

You know, which markets will you target more specifically from the get-go, and, you know, how will that evolve over time? Any color on that would be quite helpful.

Sure. So like I said, we launched 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 like we spoke about. The iOS premium subscription revenues is very disproportionate to our user base. That tells us that we're quite confident that 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 where we have good penetration of IOS will continue to be the ones that drive revenue growth as well. India being one of them, the US being another one, and various other markets will continue to drive that revenue growth. That's very clear. And then on the topic of discourse, I'd love to hear a little bit more, you know, what have been the hurdles to launch such an ad inventory? Historically, why has that changed now? Clearly, if one believes that after cold screen constitutes... a fairly large share of your total ad inventory. Today, launching Colorado ID ads effectively means that your add-ons opportunity improves quite substantially. So any additional color on that would be quite helpful. The caller ID I do.

It's 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 try and package it in the right manner that will suit them. Secondly, it's taken us long because we 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. 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 and and now that you've run a few pilot campaigns you know how should we think of the rollout of it or scaling of it so to say yeah

It's hard to comment about how the take-up will be in the future. But so far, the pilot campaigns were successful. It remains to be seen how our advertising partners will latch on to it. Okay, very clear. And then if I may, guys, just question on the topic of perhaps for you if you could shed some light on the two main variables gets here first you know what is the actual recruitment if you could shed some light on that you said select the recruitment but you know What are we talking in terms of numbers? Provide us with anything there. And secondly, on the topic of growth-related costs, now with the iOS launch that you also alluded to, we'll drive some marketing expenses You know, how should you calibrate expectations numerically on that line item? Are you looking for some guidance?

Seriously?

I always am.

I know that. 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 than we actually need. I'd say that over this year, between 5% and 10% increase in employee costs due to new recruits on top of the salary revision that we do every year. Not more than that. You could argue that we could potentially use more people than that, but it is in our DNA to be a cost-efficient company and do a lot of things with not so many people.

We intend to continue along those lines. When it comes to the growth investments that we do, which is primarily used for acquisition, preloads, and also some marketing. We're willing increase those next this year like i said we will be able to absorb that extra cost that we will take on and within what is being achievable and still reaching our financial target. Okay. That's very clear. Thank you, guys. Thank you.

The next question.

Yes, hello. Thanks for taking my questions. and a nice talk to you, Richard. So, looking at the new iOS

launch, can you provide some information on how many of your existing users have downloaded the new version and are hence possible to try the new version? Secondly, you've you've stopped the buyback program and explaining that due to liquidity reasons but that also increases your cash situation so you now have 1.2 billion in cash or short term financial assets on your balance sheet and just how are you thinking about this position and yeah it Is it room to hand out more to the shareholders?

If you take the first one, I'll figure out a good answer to the second one.

So on the iOS, it'll be hard to share the exact numbers, but I can give you some flavor nevertheless.

There are actually two dependencies for adoption. of the iOS product. The first one, actually, even before the TrueCore wrapper, you need to be on iOS 18.2. So, Once the 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. I would say decent audience already that is on iOS 18.2 and have the right app version installed. But it is a gradual process because iOS 18.2 is a recent app version, OS version. So it will gradually gain adoption over time. capital structure and capital applications to fund. First of all, we're 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 company, as a management team, we're basing our decisions and recommendations to the board based on what we believe are the operational targets and 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 when it comes to what we want to do this year and during the coming years. And that then... comes back to the capital structure and capital allocation. So far, we have spent more than 1.5 billion Swedish crowns since the IPO, buying back shares and giving back dividends. And we will continue doing that. The exact format is something that will be decided by the board and communicated in advance of the AGM. So no later than the AGM notice that will come out in mid-April.

We do not intend and 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&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. Okay. If I can squeeze in one more question, and that relates to the solid-mound methods. how much of these are coming from pre-installment of smartphones and how has this trended recently? 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 God 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.

Okay, perfect, thank you.

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

Thank you for taking my questions, and 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 industry or sector mix with regards to your ad revenues? Is there like a focus sector in 2025?

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. Then once the, you know, 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 companies that sell mobile phones because that's what takes place at that time. So I would say it's a wide mix of advertising. And 2025, I don't think we're focusing on exactly a segment of advertisers as such. because we require a broad-based set of customers in the advertising space for us. Sure, thank you. Thanks, Kala. With regards to the second question, the added impressions per user continue to grow. But probably this has a ceiling before it kind of worsens the customer. or experience. Given this context, I bear in mind what you said that you're focusing on ad revenue. When you produce it, rather than on CPMs or anything else, I just want to understand how big a factor that is going to be for 2025 as revenue growth. Yes.

So I think how we have always looked at 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 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 in the future as well. It's going to be driven more by users engaging with the product a lot more.

Okay. 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 customers outside of India?

We have minimal churn. It's a number we've started publishing now as well, outside India as well.

We have very low churn. We have high quality contracts that have a good tenure exceeding six months, 12 months and beyond. So outside of India as well, we continue to see customers appreciating the value that Truecaller can add to their business. their business. And we haven't seen a specific concern outside India from business customers. Thank you very much. The next question comes from Victor Lindstrom from Nordia. Please go ahead. Hi, Richard. Hi, Brad. And congrats on a solid quarter. A few ones for me. First of all, you mentioned that you would like to invest and scale up in India. 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?

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

Right.

And in terms of Omni, numbers. We are looking at increasing our investments in those activities by a factor of a little bit depending on or rather depending on when we get started. 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 and Colombia. Great. Thanks. And then, yes, the... I don't know if you said that... was a bit higher here in the quarter, so it's something extra here, or should we view this as a new normal base? Now, there is nothing particular, but we all are working on more.

more and more functionality-enhancing capabilities, and we have to increase capitalization a little bit in order to be working according to the IFRS. So there will be some increases probably during the year.

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.

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