Interim report January-September 2025
Truecaller, the leading global platform for verifying contacts and blocking unwanted communication, report an increase in net sales with 2% to SEK 467.9 million (457.3), in constant currencies the increase was 14%. In constat currencyies subscription revenues grew with 55%, Truecaller for Business with 39% while revenue from ads declined with 1%. EBITDA excluding incentive costs decreased with 1% and the EBITDA margin was 39.8% (41.0%), in constant currencies the increase was approximately 14%. EBITDA including costs for incentive programs decreased with 3% and the margin was 34.8% (36.6%), in constant currencies the increase was approximately 14%. During the quarter average number of monthly active users grew with 15 million.
CEO Word:
"During the third quarter, we continued to see very strong growth in both our recurring revenue streams. Premium subscription revenues grew by 55% in constant currency, on the back of increasing conversions of non-paying users on both Android and iOS. We achieved an all-time high growth in the number of subscribers during the quarter, reflecting strong product engagement and continued consumer demand.
We also saw continuing robust growth of Truecaller for Business, where revenues grew with 39% in constant currency, supported by continued low churn, increasing enterprise adoption and geographical diversification. Growing recurring revenues continues to be one of our most important strategic goals, and we will intensify our efforts here even further going forward.
Our ads business experienced a challenging environment and revenues declined with 1% in constant currency. The quarter started really well, with increasing demand in July to mid-August. However, factors outside of our control, namely, macro-economic uncertainty due to the ongoing trade tariff discussions and the regulatory ban on Real Money Gaming (RMG) in India, then started to have a negative impact on the overall demand in the Indian ads market. Effects from FX continued to be part of the headwinds we faced as well. On top of this, our largest advertising network partner made a change in their algorithm in relation to click through tracking, without prior notice or detailed clarification, causing a downturn in revenues to us and several other large publishers. This, despite no change in user behaviour or ad delivery on our platform. This issue significantly contributed to weaker ad revenues toward the second half of the quarter. Of course, we have been and will continue working tirelessly to recover from this and will not rest until it is fully resolved.
Albeit having a negative revenue effect now, these developments strengthen the conviction in our strategy to diversify our revenue streams and our revenue sources within ads, and focus on a less volatile growth trajectory that we are in full control of. Our ads business fundamentals are healthy, but what got us this far will not take us to the next phase of growth. We continue to execute towards our long-term strategic targets; a material pivot towards more direct ad sales, more ads traffic based on our own ads platform and a more diversified geographical mix. We are strengthening our capacity to execute on those targets and are signing ...
