Truecaller AB (publ)

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 Rishat Jhinganwala and CFO Aad Bolin. Please go ahead.

Hello everyone and welcome to our Q1 report webcast. I'm Rishat Jhinganwala, the CEO of Truecaller and with me I have Aad, 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 a third of our total revenues. The underlying profit development continues to be great as well but the bottom line P&L numbers were ironically punished by the increase in share price which we've seen lately. This share price movement impacts our incentive costs which we will come back to in a while. In terms of user growth we continued very well. We crossed 450 million users on April 1st this year 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 lowered this year. Our enterprise offering True Call for Business grew revenues with a stunning 60% -on-year. This growth is driven by strong performance in all product groups towards businesses which 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 Q2. We will cover everything in more detail in 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 of 412 million monthly active non-iOS users which is an increase of 15%. Our average daily users grew 17% to 356 million and our Dow to Mao ratio was an amazing 86%. Our net sales for the quarter stood at almost half a billion SEC a 16% increase -on-year. All three of our revenue streams contributed to this growth. In constant currency terms our estimate is that the growth would have been more like 18%. EBITDA without incentive costs increased by 22% to 199 million SEC. 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 it was lower than Q1 2024 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 million SEC in net cash from operating activities before tax payments and was not impacted by the volatility stemming from incentive costs in the P&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 412 million monthly active non-iOS users. Compared to the same period last year we grew an incredible 53 million users which is equivalent to 15% -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 Aad for an update on our financial performance. Thank you Rashid.

So let me walk you through the financials starting with the top line. This quarter we grew like Rashid 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 to our revenues 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 -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. We 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 somewhat lower revenues from the rest of the quarter. The primary reason for this minor decrease was the strengthening of the Swedish crown. 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. Apart from creating more stability and better visibility higher direct sales also results in a better gross margin for us. As usual our Indian ad sales in Q1 and Q2 sees a material impact from the 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 direct IPL sales instead. All in all IPL revenues were 10 million Swedish crowns lower in Q1 this year compared to last year. Last year we had approximately 30 million now we are down to 20 million in IPL direct or IPL related revenue. We haven't seen any other material demand fluctuations this 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. A recurring subscription revenues grew by 40 percent 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 percent of the overall subscription revenues. True call of a business which has been an area where we have invested substantially over the last three years had another strong quarter with a growth of 60 percent year on year. These are SAS 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 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 strongly and also contributed to the growth in true call for business revenues. So did our actually our new product area where we offer risk products to the financial industry. Ads is still our largest revenue stream and again it grew by five percent year on year. Our ad revenues per daily active user decreased somewhat and so did the average price per person. Within ads we put more and more effort on increasing our direct sales. This quarter direct sales increased more than 35 percent compared to the last year but our ambitions on direct side are considerably larger than that and 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 percent and the average revenue subscriber by 12 percent. We see continuing growth in the adoption of our family offering as well as iOS. The rest of the world segment continues to be the strongest growth driver although we see a good development globally including on Android. Again true call for business grew by revenue grew revenues by a good 60 percent year on year. The customer experience platform verified business is the core of the enterprise offering based on a SaaS model. Today this is offering is primarily for larger enterprises. Annual recurring revenues for the verified business segment grew by almost 40 percent 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 us in 2025. In Q1 revenues from that region grew by 60 percent year on year. The other major part of our true call for business offering is business messaging which has seen good growth in both messaging volumes and revenues. This quarter we also started to see some revenues from our number intelligence product. It is still small compared to the other two product lines but the commercial traction is growing and we expect revenues to continue to scale up during the year. Our strategy to focus on recurring revenues premium subscriptions and true call for business continues to do well. Combined these two revenue streams grew by 49 percent year on year reaching close to 650 million swedish crowns on an annualized basis. We continue to see a lot of potential in both these revenue streams. The conversion from free users to 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 true call for business there are many levers left for us to for the longer term both when it comes to regional growth and 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 percent year over year and the gross margin improved to 77.3 percent. We saw positive impact from the increased share of direct sales, increased revenue for true call 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 employees versus last year but those costs will as usually increase with our annual salary revision starting from Q2. Incentive costs increased mainly as a consequence of the positive share price development like Rishit mentioned in the last six months but I will cover that more in the next in more detail in the slide. Other external expenses increased primarily due to increased costs for preloads in selected growth markets and temporarily higher marketing costs related to the launch of the the new iOS product. Our tax rate is a 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 percent is reasonable but with once 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 price as well as a number of other factors. When the share price increases options and our use 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 recognize in our profit and loss account also increase. In addition there are some other aspects of those programs that impact 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 a potential to be quite volatile as the share price and our operational performance fluctuates. Now we have seen a 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 cost are accounting figures that reflects the potential dilution that options and RCU eventually may have. Part of accrued social security fees that only will impact cash flow when and if these instruments are in the money at exercise. Our operational performance and 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 EBTA grew by 22 percent and our margin improved to 40 percent 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 EBTA including the incentive cost we have a small decrease of one percentage point and a margin of 30 percent. 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 1.4 billion swedish crowns in cash and short reinvestments. Ahead of the AGM the board has proposed a dividend of one crown in 70 euro 1.7 crowns per share which is similar to what we did last year. Since we did the IPO in 2021 the company has given back 2.2 billion swedish crowns to our shareholders quite evenly split between dividends and buybacks. We have been and continue to act in a position of strength with a strong cash flow and the financial profile of the company. But with that I'll hand over to Rishit again.

Thanks Aad. Now let's take a look at our quarterly product updates. The areas we will cover are live call 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 true colors history. Live caller ID is built on top of technology developed by Apple especially for apps like true color. 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 30 day free trial available to all non-premium users at launch and as is the norm we have been doing A-B tests 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 percent increase in daily conversion rate from trials to paying users. In April true caller added nearly 55,000 paying premium customers on iPhone which represents a six percent increase month on month. Artificial intelligence and machine learning are at the heart of all product development at true color including key areas to us like spam and fraud detection. In the previous quarter we reported significant improvements on our spam detection capabilities and we've continued to see more and more customers now being identified across all key markets for us. In addition to further improving the accuracy of fraud calls detection of fraud calls in Q1 we move to make true color an even safer platform thanks to new AI powered identification of fraud logos and user avatars. These capabilities are aimed at identifying and removing malicious actors impersonating established brands as well as detecting established fraudulent patterns. In recent quarters we've also highlighted the rollout of a brand new assistant product which can now answer calls and interact with callers on your behalf. The new assistant experience designed from the ground up using large language models offers a more human-like interaction and much faster responses. In Q1 we rolled out the new assistant experience to iPhone users in the US which has improved answer rates by 66 percent 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. True callers 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 delivery or transaction messages missed. In Q1 the volume of message IDs grew by 30 percent 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 Q1 we added a much requested block by name feature for our premium users on true caller 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 which helps drive premium adoption in the long run. Shifting our focus now a bit to true call 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 true call for business customers number related information to aid their decision making in 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 activities such as mule account usage. In 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 true caller ad server with improvements to support new exclusive inventory advanced targeting and enhanced campaign management. These campaigns help drive substantial incremental revenue with higher CPMs with advertisers benefiting with more engaging formats. While true callers saw lower demand from programmatic ads during the IPL this year same as odd spoke about a 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 I 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 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 impacted by incentive costs due to a stock price development that odd spoke about but our cash flow continued to stay very strong. We have started to see a good emerging trend on our iOS product as well when it comes to the number of subscribers in Q2 but it will be a gradual improvement as we've expected. As usual a huge thank you to the phenomenal Truecaller team. Every quarter we continue to build a larger company with 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 pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question please dial pound key six on your telephone keypad. The next question comes from Ramal Kauria from Danske Bank. Please go ahead.

Thank you guys and thank you for taking my questions. I have a few if I may be maybe we do them one by one. First off on the subscription side it's quite encouraging to see the rest of the world sort of constituting almost 50 percent 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 subs intake being outside of India. So could you shed some light on you know which countries you are seeing the subscriber intake in? 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 site a little bit how should we reason around iOS ARPU moving forward given all the moving parts here?

Yeah thanks a bit. So the new subscribers on iOS that we're seeing the growth that we're seeing on iOS is coming from various countries including the US. We haven't really discounted prices so far but as we always do we are now conducting experiments offering 25 percent discounts 50 percent discounts and trying to see what revenue uplift that would give us. So we're always experimenting on this and it's hard to put a number on it right now.

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

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

Okay okay and then looking at the advertising revenue composition you did qualitatively provide us a commentary about 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 you know it seems like ad impressions in that case is down quite a bit sequentially. Is that by design or you know are there any other aspects that I'm forgetting here?

Now 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 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.

Yeah it makes sense 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 improve user experience and maybe attract incremental users so to say is there or is 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 makes sense and then a final one if I may guys on the on the topic of marketing expenses. It's a pretty significant step up sequentially into Q1. How should you think of sort of continued market expenses moving forward? Are they going to increase from Q1 levels or how should we think about them?

We did the NIOS marketing campaign in Q1 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 foresee us reaching to quite a level with spending we had in Q1 for the rest of the year now not in any individual quarter.

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

Thank you. Thanks.

The next question comes from Akhil Dattani from JP Morgan. 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 asking 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. The first is could you maybe help us understand are you seeing any particular bif 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 is that a reasonable starting point? Is that something similar 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 we reported is we saw a growth in IOS subscribers of 55,000 the month of April. The total number is no no I

get that because yeah it would imply about 900,000 right because you said it's six percent up -on-month. So I guess the base is more like 900,000 I guess right.

Right exactly. So I

guess what I'm 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's going to 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 current geographic bias is most of the new subscriptions we got were non-India which is also encouraging for us but now we're working hard to grow India in the same manner as

well. Okay the second one is just on the down to mal ratio when you mentioned obviously the very strong ratio you have to do on the total base but actually if I look at the numbers based on the including IOS and excluding IOS numbers and therefore back out the IOS specific ratio it's a lot lower it's about 40 percent so obviously there's a lot lower daily 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 can 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 the service more?

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

Great thanks and then just one financial question around effects. So if you've mentioned nine million effects hit in a quarter you've also alluded that on current spot rates the currency impact would be 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 effects drag would be for the rest of the year?

Well like I said or like I've been saying we can only estimate the numbers even the historical ones but I think it's reasonable to believe that if the spot rates were to stay where they are for the reminder of this quarter the effect would be more than twice what we've seen 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 indirect exposure that we have but that is a reasonable assumption I think the Swedish Crown has exceptional development this year.

Makes sense and can I just ask 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 when you're giving us these numbers you how should we understand the translation from top line to earnings?

Well we do have 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 true call for business not least but also to an increasing extent in the ads so not all of that will reach the bottom line for sure.

Okay thanks a lot.

Thank you.

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

Hi Auden and Rishit and thank you for taking my questions. I have a follow-up here on the conversion rate for non-IOS platforms.

Yeah that's a good question as well. Thanks Victor. We have done a better job in improving conversion rates for Android users as well. So I mean it's always been our focus we spoke about last quarter as well that we've created various capabilities internally that 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 here. Is there any particular reason for that or just seasonality maybe?

No particular reason seasonality more yes.

Okay thank you all for me.

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

Hi Rishit and 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 compared to the first quarter. Nothing that makes us think that the second quarter will be materially different from the second quarter. It's still a bit different in 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 years ago. But we did see we have seen a bit of a comeback but it's not super strong yet.

No. Okay and can you unpack a little bit more on the new ad formats and how direct sales change? I know you don't like to discuss pricing and so on but obviously higher each ad format should have an incrementally positive contribution over time. How you know 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 we have to have ad formats that are non-standard 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 we spoke about last time as well and these type of innovations is what we're introducing continuously that are proprietary to Truecaller and move away from the standard ad formats.

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

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

Okay thank you. You don't want to quantify the the dramatic increase. I mean if you compare that to say what you've fetched for a banner ad generally it's a 510 or something x.

Now it's hard to quantify because it changes from campaign to campaign and advertiser to advertiser. So it's hard to say exact multiple for it but I can tell you it's a very healthy multiple 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.

Absolutely so we made pricing changes about a year ago so that has some impact but not much impact on our growth. The primary impact 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 true color to becoming more of a customer experience platform which can now participate in your lead gen activities your CRM activities and and now most recently risk and fraud as well. So it's a combination of both new customers as well as expansion. I think odd also mentioned rest of world like non-India it's still a small part of I mean it's not as big as India of course most of our revenue still comes from India and true call for business but we're seeing very healthy growth in rest of the world as well where our pools are actually higher too.

Okay and finally on the risk intelligence product you just mentioned it again and you made a call around a four-folded uptake 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?

Right it's I mean it is what is meaningful about the number intelligence product is the fact that it opens up a new avenue and a new product that 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. Thank you.

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 flatish growth in Q1 versus Q4 and I think you've mentioned some seasonality playing in here historically but now the sequential growth is really strong so has 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. Like I said we did see the renewals of contracts coming in at a healthy pace and we saw expansion of existing accounts as so nothing particularly notable in this quarter that changed 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 caused the uptick as well.

Okay thank you. Thanks.

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

Yes hello I'm just trying to get some more flavor on the iOS conversion. So you have around 31 million monthly active users on iPhone. Of these you are now coaching 900,000 premium users. So of these 31 million how many have installed the latest version? How many have tried the premium version? And 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 we have 60% of our iOS user base on the right OS version as well as the right true caller version. You must note that the biggest hurdle at this point that we have on iOS subscriptions is the fact that the Apple OS, the iOS itself has a bug in it which causes true caller's caller ID to not show up. It should get fixed in the next couple of weeks actually and that we're hoping would see even better numbers. About your question on trials I don't think we reveal those numbers as yet but we have seen an uptick from pre the new iOS version launched to now in a few different metrics including the uptake from download to trial and trial to paid. So we are seeing better conversion metrics now than we used to see earlier as well.

Okay and then just a follow-up on the growth investments. I think you answered earlier but let's see so after Q4 you stated that your growth investments should increase with around 50 to 100% run rate at the end of 2025. Now growth investments increased 20 million 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 marketing investments not the growth investments as such. Okay the growth investment in preloads.

Yes and then what what additional I mean given that this was a quite a dramatic increase compared to Q1 last year how should we think about overall growth investments for the coming quarter?

The primary driver behind the growth 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 boosts that we have seen in Colombia 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 some people we're still in the process 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 that run rate is still valid compared to the 150 million? 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 a bulk of the traction from the existing premium users? And just to follow up on the same one if correct me if I'm wrong here seven to eight percent of your user base is iOS and I think you said 43 percent of the revenue subscriber revenue is iOS. Could you provide a geographical split of the same metrics for the rest of the regions?

So your first question is the subscriber base that we're seeing now are they 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 second question was are iOS user base versus subscription revenues? Our iOS user base I think about six percent of our user base is iOS but about 40 odd percent of our premium subscription revenues come from iOS. It is I would say 50 percent India and 50 percent rest of the world is the split roughly.

Okay okay that's for both the user base and the revenue I guess.

That's correct. Yes yes that is correct.

All right 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 is slightly higher in terms of the staff cost excluding incentive costs. So apart from the yearly salary increases that you mentioned and your prepared remarks in Q2 what further level of staff investments do you expect for the rest of the year?

Well there are always there are always certain variations between quarters due to how people take vacation etc but I think the the if you take an average between Q4 and Q1 that would probably give you a good indication or or take the Q1 number.

Okay

thank

you.

Thank

you. There are no more questions at this time so I hand the conference back to the speakers for any closing comments.

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