Truecaller said ad revenues have been depressed since an algorithm change by its largest demand partner on Aug. 13 and from a softer Indian ad market, and now expects Q4 ad revenue of SEK 210–230m, roughly a 30% decline in constant currencies; the incidence of the issue has eased but is not fully resolved. The company reported continued robust growth in recurring revenue streams (Premium and Truecaller for Business) and monthly active users as it approaches 500 million users, and is accelerating a revamped ads strategy to reduce dependency on single partners/markets, expand outside India and ramp direct sales/reseller channels while tightening costs to protect profitability. Truecaller also flagged an additional non-cash LTIP 2022 revaluation of about SEK 30m in Q4 (with incentive costs around SEK 70m excluding share-price dependent social security), and management will host an investor webcast today.
Truecaller reported a material, partner-driven ad revenue shock that began after an algorithm change by its largest demand partner on August 13; management now estimates Q4 ad revenues of SEK 210–230 million, roughly a 30% decline in constant currencies, and says the incidence has been substantially reduced but not fully resolved. The company attributes part of the weakness also to a softer ads market in India and expects ad revenues to remain muted in the near term until the partner-related issue is eliminated. Recurring revenue streams are intact: Premium and Truecaller for Business along with monthly active users continue robust growth, with the user base approaching 500 million from the cited ~450 million active users, supporting a strategic revenue-mix shift. Management is executing a pre-existing ads restructuring—reducing dependency on single partners/markets, expanding outside India, and focusing on direct sales/resellers—which it expects to deliver gradual, meaningful benefits while maintaining tighter cost discipline to protect profitability. Truecaller flagged an additional non-cash LTIP 2022 revaluation of ~SEK 30 million and incentive costs of ~SEK 70 million excluding share-price dependent social security; these items do not impact cash flow. Management will host a webcast today; near-term outlook remains cautious given unresolved ad issues despite moderate improvement and a market-impact score indicating potential medium-term recovery.
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Overall Sentiment
moderately negative
Sentiment Score
-0.48
