Truecaller Reports 14% Drop in Net Sales

- The decline in net sales was primarily driven by a 22% plunge in advertising revenue in constant currencies, which fell to SEK 255.2 million. This was attributed to persistent technical issues related to an algorithm change by the company's largest demand partner. - While ad revenue fell, Truecaller's recurring revenue streams showed significant strength, growing 51% to SEK 193.7 million. This growth was fueled by a 53% increase in Premium subscription revenues and a 48% rise in Truecaller for Business revenues, in constant currencies. - Profitability was heavily impacted, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropping 34% in constant currencies to SEK 103 million. This resulted in the EBITDA margin shrinking to 22.8% from 38.5% in the same quarter of the previous year. - In response to the revenue challenges, Truecaller has implemented cost reduction measures with an expected annualized effect of approximately SEK 90 million once fully realized. - Despite the sales drop, user growth remained robust. The average number of monthly active users (excluding iOS) grew by 54.5 million year-over-year to reach 454.2 million during the fourth quarter. The company had surpassed 450 million monthly active users on Android in October 2025. - The company is accelerating its strategic shift to lessen its dependence on advertising. CEO Rishit Jhunjhunwala stated that while they are working to resolve the algorithm issue, the long-term focus is on a revamped ads strategy and growing recurring revenue streams. - The subscriber base for its premium services has been expanding, reaching over three million paying subscribers in May 2025, with one million of those on iOS. The number of subscribers grew by approximately 39% in the fourth quarter.