Sweden's Truecaller preliminary Q3 net sales rise 3% yr/yr

Truecaller AB

Mon 05:27

Overview
Sweden-based call verification platform's preliminary Q3 net sales rose 3% yr/yr in constant currency
Premium and business revenues grew, but ad revenues fell 12% yr/yr in constant currency
Preliminary EBITDA margin excluding incentive costs declined to 37.4% from 39.8% yr/yr

Outlook
Company says focus remains on monetising existing users and expanding beyond established markets
Truecaller expects continued revenue transition as ad platform shift progresses

Result Drivers
AD PLATFORM TRANSITION - Co said gradual improvement in ad revenue was driven by transition to proprietary ad platform and auction process
PREMIUM GROWTH - Co attributed sustained premium revenue growth to ongoing demand for paid services
MONETISATION FOCUS - Co said focus has shifted toward monetising existing user base and expanding beyond established markets

Company press release: ID:nWkr1Ssxjv

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
 
SEK 464 mln
 
Q3 Adjusted EBITDA Margin
 
37.40%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Truecaller AB is SEK31.00, about 27.2% above its October 16 closing price of SEK24.38
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
Oct 16 - Sweden's Avanza Q3 profit rises on higher net interest, commissions
Oct 16 - Sweden's Maven Wireless Q3 sales rise on European demand
Oct 16 - Sweden's Nexam Chemical Q3 sales fall, loss per share widens

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)