Tanla Platforms Limited has informed the Exchange about Investor Presentation

Date: January 21, 2025 To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 Scrip Code: 532790 National Stock Exchange of India Ltd. “Exchange Plaza” Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051 Symbol: TANLA Dear Sir / Madam, Subject: Investor Updates for the quarter ended December 31, 2024. With reference to the above cited subject, we enclose herewith the Investor Updates for the quarter ended December 31, 2024. The same is also available on the website of the Company at www.tanla.com Kindly take the same on record and disseminate on your website. Thanking you Yours faithfully, For Tanla Platforms Limited Seshanuradha Chava General Counsel and Company Secretary ACS-15519 SESHANURADHA CHAVADigitally signed by SESHANURADHA CHAVA Date: 2025.01.21 20:03:59 +05'30'CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission is strictly prohibitedInvestor UpdateQ3 FY25Jan 21, 2025Tanla Team Celebrating One Billion RCS Messages in a MonthInvestor Update Q3 FY252Safe Harbor and Other Information The CPaaS business is evolving at a fast pace in India with very little information available in the public domain on the overall market. The financial community has always sought a response on the total market size, key drivers of the industry and the competitive landscape in this space. In order to provide more transparency and to help understand our business better, we are providing indicative data around the market size and our relative share (assuming the indicative data). This indicative data has been arrived at basis our detailed internal analysis. This is being done with an intent to provide an indicative picture of the industry and address queries about the CPaaS space. This must not be seen as a positioning statement of the company, and one should not rely on the company’s disclosure for their assessment of the market size or the relevant share of any participants in the market.This presentation contains statements that include information concerning our possible or assumed strategy, future operations, financing plans, operating model, financial position, future revenues, projected costs, competitive position, industry environment, potential growth opportunities, potential market opportunities, plans and objectives of management, as well as assump-tions relating to the foregoing that involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking in nature. Such statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, although not all forward-looking statements contain these identifying words, you can identify forward-looking statements by terminology such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “PROPOSED,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar or derivate expressions. The forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements, expressed or implied by the forward-looking statements. It is advisable not to place excessive reliance on any of the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Additionally, these forward-looking statements, involve risk, uncertainties and assumptions based on information available to us as of 17/01/25, including those related to the continued impacts of COVID-19 on our business, future financial performance and global economic conditions. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, the timeframes for and severity of social distancing and other mitigation requirements, the timing of headwinds from COVID-19, the availability of vaccinations, the continued impact of COVID-19 on new or existing customers, business decisions and the length of our sales cycles, renewal timing or billings terms, particularly for customers in certain industries highly affected by COVID-19.If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. We assume no obligation and do not intend to update these forward-looking statements or to conform these statements to actual results or to changes in our expectations, except as required by law.This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information wherever possible, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to place excessive weightage to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information, wherever referred. Certain statements that might or might not be forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. By receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business. Any logos or trademarks other than Tanla, Karix, ValueFirst, Gamooga, Trubloq & Wisely included herein are the property of the owners thereof and are used for reference purposes only.Investor Update Q3 FY253All numbers are ₹ unless otherwise statedQ3 FY25 Results – Snapshot Revenue10,004 MnGross Profit2,607 Mn26.1% gross marginEBITDA1,634 Mn16.3% EBITDA marginFCF2,165 Mn183% of PATPAT1,185 Mn11.8% PAT margin8.82EPS Cash9,208 MnIncreased by ₹ 2155 MnNote: All growth numbers are over Q2 FY25, i.e., QoQ growthCash balance includes fixed deposits with maturity greater than twelve months classified under Non-Current Assets and liquid investments Investor Update Q3 FY254Tanla has track record of Strong PerformanceSustained Value CreationBest-in-class ExecutionWorld Class CultureVisionary in CPaaS Magic Quadrant Growth partner of the yearEnterprise Communication Google RCS Growth Partner of the YearReceived 74/100 score from S&P Global‘Global HR excellence award’Listed in indices AwardsRecognitions7,146 MnCash returned to shareholders15%PAT growth1 7+Patents4325Customers with >10 MN Revenue p.a.19,749Training hours25%Women in leadership19%Revenue growth119%EBITDA growth1100+Innovations3100+Partners51000+Employees in India and beyond74/100S&P Global ESG Score26%+Increase in stock price22,000+Customers across segments50%Rev. from 50 / top 100 cust., retained for > 5 yr.100%Return-to-Work Rate from Parental leaveZeroPOSH and human rights complaints22%Gross profit1All numbers are ₹, unless otherwise stated1. CAGR growth over four years starting from FY21 to FY242. ₹ 524 on 31st Mar 2023 vs ₹ 663 on 31st December 2024; 3. Including enhancements:4. patents granted for Wisely; 3 provisional patents for ATP and Trubloq 2.0 5. Includes all 3rd party contractorsSource: Team analysisInvestor Update Q3 FY255Today, Tanla focuses on two synergistic businesses - Digital Platforms & Enterprise CommunicationsDeeply embeddedNRR of 125%Undisputed market leadership~35% market share in IndiaE2E omnichannel presenceSMS, Voice, OTT (WhatsApp, TrueCaller, Google RCS) other advanced messaging channels, chatbot, etc.Agility & rapid customer service10k+ APIs deployed across enterprises to enable full suite of omni-channel communicationMonetizable at scale100% of revenue from SaaS business modelsPredictable growth 26%+ growth in gross profit for FY24Digital Platforms(Innovation Engine)Enterprise Communications(Scale with enterprise)Innovation at ScaleThe data indicated on market size has been arrived at basis our internal analysis. This is our assessment and merely indicative in nature.Investor Update Q3 FY256Business Outcomes 6Tanla awarded the prestigious Growth Partner of the Year by GoogleInvestor Update Q3 FY25Investor Update Q3 FY257Customer cohorts Q3 FY2425464173356425118333Q2 FY255925016>₹ 500 Mn>₹ 100 Mn - < ₹ 500 Mn>₹ 10 Mn - <₹ 100 MnCount of customers 325 Q3 FY25Customers contributing > ₹ 10 Mn annual revenue de-grew by 3% on QoQ basis325 customers contributing > ₹ 10 Mn annual revenue, down by 2% on QoQ basis 1. Customer segments are arrived at on a quarterly annualized basis (quarter revenue multiplied by four)Investor Update Q3 FY258Customer cohorts2,0513,7243,8899,6643,3462,0284,1509,5243,2452,1773,7999,2211. Customer segments are arrived at on a quarterly annualized basis (quarter revenue multiplied by four)>₹ 500 Mn>₹ 100 Mn - < ₹ 500 Mn>₹ 10 Mn - <₹ 100 MnRevenue from customer in (₹ Mn) Q3 FY24Q2 FY25 Q2 FY25Top 20 customers are contributing to 46% of revenue (₹ 4,565 Mn) in Q3 FY25Customers on-boarded during the trailing twelve months (TTM) have added ₹ 363 Mn in Q3 FY25Investor Update Q3 FY259Winning New Logos1. New customers include every unique contracting entity added during the year29Q3 FY24Q3 FY256410512350%New Customers added on WA and RCSRevenue from new customers (₹ Mn)Count of customers Investor Update Q3 FY2510Customer Concentration12out of 20 customers of last year continue to be in Top 20Q3 FY254,5654,239Q3 FY2442%46%Revenue from top 20 customers (₹ Mn)CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission is strictly prohibitedFinancial OutcomesInvestor Update Q3 FY2511Tanla Immersive and Experience Center at the India Mobile Congress, 2024Investor Update Q3 FY2512RevenueOTT contribution to overall revenue was at 22.8% in Q3 FY25, as against 14.8% in Q3 FY24 – we are making the shift to rich mediaRevenue growth remains mutedQ3 FY24Q4 FY24Q2 FY25Q1 FY25Q3 FY2515%21%10%(1%)(0.2%)Y-o-Y growth(₹ Mn)10,02610,05510,02210,00710,004Investor Update Q3 FY2513Q3 FY25 – Digital Platforms & Enterprise Communications Revenue 9,0689,049958955 (₹ Mn)Digital PlatformsEnterprise CommunicationsQ3 FY24Q3 FY250.3% de-grew YoYQ3 FY25Q3 FY240.2% de-grew YoY(excl. Vi Impact grew by 16.9%) Investor Update Q3 FY2514Gross profitQ3 FY24Q4 FY24Q2 FY25Q1 FY25Q3 FY2526.9%26.7%26.9%26.2%26.1%Margin%(₹ Mn)2,6992,6862,6942,6182,607Gross profit de-grew by 0.4% QoQ. Gross margin was at 26.1% in Q3FY25Enterprise communications gross profit de-grew by 4.9% QoQ due to softness in ILD business Digital Platform gross profit grew by 8.6% sequentially led by MaaPOn sequential basis, gross margin % decreased by 11 bpsInvestor Update Q3 FY2515Gross margin profileEnterprise businessOverall marginPlatform businessBCA26.9%26.7%26.9%26.1%26.2%35%33%32%33%36%Contribution by platformADecrease in gross margin by 87bps YoY, and 11 bps QoQ BDigital Platform gross margin contribution to total at 36%Enterprise communications gross margin at 18.4% in Q3CQ3FY24Q4FY24Q1FY25Q2FY25Q3FY2519.5%19.7%20.1%18.4%19.2%97.5%98.2%98.7%98.7%98.7%Q3FY24Q4FY24Q1FY25Q2FY25Q3FY25Q3FY24Q4FY24Q1FY25Q2FY25Q3FY25Investor Update Q3 FY2516Efficiency Metrics71%63%EBITDAGross ProfitEBITDA to Gross Profit conversionQ3 FY24Q3 FY25 (₹ Mn)1,9282,6991,6342,607Indirect cost was at 9.7% of revenue in Q3 FY25 as against 7.7% in Q3 FY24 EBITDA was at ₹ 1,634 Mn, de-grew by 6.8% QoQ. The decrease can be primarily be attributed increase in indirect cost spends and one-time forex impact of ₹ 44 MnEBITDA margin declined by 119 basis points sequentially and 289 basis points YoYInvestor Update Q3 FY2517Indirect cost walk QoQ (₹ Mn)Q2 FY25Forex FluctuationQ3 FY25Employee Cost973We have a forex fluctuation loss of ₹44 Mn in Q3, compared to a ₹23 Mn gain in Q2, due to sharp depreciation of EUROEmployee cost increased by ₹23 Mn. We will continue to invest in talent233467864Cloud and hosting Other expenses(15)Over the longer period, cumulative impact of forex fluctuation from Q3 FY24 to Q2 FY25 is a gain of ₹11 MnInvestor Update Q3 FY2518Operating IncomeQ3 FY24Q4 FY24Q1 FY25Q3 FY25Q2 FY25Q3 FY24Q4 FY24Q1 FY24Q3 FY25Q2 FY25EBITEBITDA (₹ Mn) (₹ Mn)1,6941,3761,6581,5201,3881,9281,6041,8861,7541,6341 Please refer slide no. 28 for reconciliation between reported number to adjusted number. EBIT was at ₹ 1,388 Mn and EBIT margin at 13.9% in Q3EBITDA de-grew by 15.2% YoY and 6.8% QoQ to ₹ 1,634 Mn in Q3 FY25 We have capitalized our “MaaP” platform during the quarter resulting in increased depreciation by ₹ 25 Mn 11Investor Update Q3 FY2519Free Cash Flow GenerationQ3 FY24Q4 FY24Q1 FY25Q2 FY25Q3 FY25 (₹ Mn)6401,4927445202,165In Q3, we generated ₹ 2,165 Mn as free cash flow highest in last six quartersDSO at 82 days in Q3, improved by 8 days from Q2Investor Update Q3 FY2520Profit After Tax & EPSEPSProfit After Tax (PAT) (₹ Mn) (₹)Q4 FY24Q1 FY25Q2 FY25Q3 FY25Q3 FY241,3021,4121,3021,1851,401Q4 FY24Q1 FY25Q2 FY25Q3 FY25Q3 FY249.6910.509.708.8210.421. Please refer slide no. 28 for reconciliation between reported number to adjusted number EPS was at ₹ 8.82 in Q3 FY25PAT was at ₹ 1,185 Mn in Q3, impacted by increase in indirect cost spends and impact of forex lossEffective tax rate for Q3 FY25 is at 19.2%1Investor Update Q3 FY2521Strong Balance Sheet22,330 MnStrong Equity and Reserves9,208 MnCash & cash equivalents 34%ROCE (excluding cash & cash equivalents)Debt FreeAll numbers are ₹, unless otherwise stated Tanla Immersive & Experience Center at IMC 2024CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission is strictly prohibitedAnnexuresInvestor Update Q3 FY2522Industry Roundtable at Karix Elevate, an event hosted in collaboration with MetaInvestor Update Q3 FY2523Profit & Loss Q3 FY25Q3 FY24Q3 FY25Q2 FY25In ₹ Mn, unless otherwise stated∆%134.3 134.4 134.3 Weighted average shares outstanding10,007 10,026 10,004Revenue from operations (net)(0)(7,389) (7,327) (7,397) Cost of services12,618 2,699 2,607 Gross Profit(3)(864) (771) (973) Operating Expenses261,754 1,9281,634 EBITDA(15)(234) (234) (246) Depreciation and Amortization51,5201,6941,388 EBIT(18)(15) (17) (14) Finance Cost(18)10251 94 Other income841,6071,728 1,468Profit before taxes(15)(305) (327) (283) Tax expenses (13)1,3021,4011,185 Profit after taxes(15)9.70 10.42 8.82 Earnings per share(15)Investor Update Q3 FY2524Balance Sheet December 31, 2024In ₹ Mn, unless otherwise statedAssetsNon-current assetsProperty, plant and equipment Internally developed - PlatformsCustomer RelationshipsTrade nameTechnologyNon CompeteIntangible assets under developmentGoodwillRight-of-use assetsDeferred tax assets (net)Other non-current assetsCapital work-in-progressFinancial assetsSoftwareInvestment PropertyTotal Non-Current AssetsTrade receivablesCash and cash equivalentsBank balances other than cash and cash equivalentsOther financial assetsOther current assetsTotal current assetsTotal Assets2,2818522712692171,1452,64659040543516416217179,42610,0455,221465,12650822,499Unaudited Sep 30, 202431,925Equity & LiabilitiesEquity share capitalOther equityTotal equityFinancial liabilitiesLease liabilitiesOther financial liabilitiesProvisionsOther non-current liabilitiesTotal non-current LiabilitiesCurrent liabilitiesTrade payablesLease liabilitiesOther financial liabilitiesOther current liabilitiesProvisionsCurrent tax liabilities (net)Total current liabilitiesTotal Equity & LiabilitiesUnaudited Dec 31, 202420,94121,076- 597- 1686216,238993,1463418332110,22831,925135In ₹ Mn, unless otherwise statedUnaudited Sep 30, 2024Investments1,5532,2431,4672562283156782,64655644865528452204179,7708,9763,9952,5404,61432822,872Unaudited Dec 31, 202432,6422,41922,19522,330- 565- 18115946,1921042,668348833239,71832,642135Investor Update Q3 FY2525Condensed Cash flow Q3 FY251.Cash balance includes fixed deposits with maturity greater than twelve months classified under Non-Current Assets and investments in short term liquid funds In ₹ Mn, unless otherwise statedQ3 FY25Q2 FY25Cash flow before changes in working capital1,7111,761Changes in working capital1,240(455)Cash generated from operations 2,9511,306Taxes(319)(417)Cash flow from operating activities2,632889Net investments in tangible and intangible assets(467)(369)Purchase/sale of short-term liquid funds(865)(1,553)Interest and other income 9276Cash flow from investing activitiess(1,261)(1,741)Proceeds from issue of shares00Dividend paid-(807)Interest paid on lease liabilities (15)(31)Cash flow from financing activities(58)(1,134)Cash flow for the period1,313(1,985)Cash and cash equivalents at the beginning of period7,0537,572Forex Fluctuations (44)17Investments in short term liquid funds8651,553Fixed Deposits maturity more than 12months(1) 21(105)Purchase of shares as part of ESOP trust pool(15)(285)Movement in Bank Balances(21)105Cash and cash equivalents closing balance 9,2087,053Payment on lease liabilities (28)(11)Investor Update Q3 FY2526Free Cash Flow Q3 FY24Q3 FY25Q2 FY25In ₹ Mn, unless otherwise stated∆%8891,0832,632Operating cash flow143%(369)(443)(467)Capital expenditure5%5206402165Free cash flow238%5%6%22%Free cash flow in percent of total revenue-40%46%183%Free cash flow as % of PAT-Investor Update Q3 FY2527ReconciliationQ2 FY25Q3 FY25Q4 FY24In ₹ Mn, unless otherwise statedQ1 FY251,6041,7541,634Reported EBITDA1,886273--One-time expense- MWC-1,8771,7541,634Adjusted EBITDA1,8861,6491,5201,388Adjusted EBIT1,6581,3611,3021,185adjusted PAT1,4121. Adjusted PAT is normalized for the post tax impact for 1 items – (i) one-time expenditure of ₹ 273 MN incurred for Mobile World Congress 2024CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission is strictly prohibitedAbout Us28Investor Update Q3 FY25Festive Celebrations at Tanla Innovation CenterInvestor Update Q3 FY2529Tanla embeds Gen AI across all its platforms Wise AlbertOur intelligent core underlying all our products, revolutionizing digital interactions through Gen Al capabilitiesAudience.ai (whom to send)Channel & Partner.ai (how to send)Content.ai (what to send)Scam identification and prevention in <50 ms through AI-ML led enginesTrubloqRegistration.aiDigiAssets.ai•100% compliance with all regulatory guidelinesWisely•90%+ time saving in the registration process•1 single dashboard for digital asset analyticsATPCTA engineSemantics engineSender reputationSingle API-led intelligent platform for omni-channel digital interactions to deliver distinctive impact for enterprises and their usersSingle API Partner marketplace End-to-End encryption SSOT enabled by blockchain Smart routing Integrated plugins Performance analytics Core stack GenAI to elevate Trubloq’s signature experienceInvestor Update Q3 FY2530We have also successfully addressed several Greenfield opportunitiesTrubloqWith world’s 1st blockchain-enabled communication stack. It works with a consortium of telecom players and other stakeholders to maintain the leadership position100%Compliance to address all legal challengesRegulatoryUser1Bn+Users touched60–80%Reduction in complaints per Mn SMS from telemarketersBusiness100%Market share in UAE50k+Enterprise partners3/4Indian telcos servedATPFirst of its kind anti-smishing platform. IdentificationPreventionEliminationA. Govt & its institutionsB. EnterprisesC. TelcosInvestor Update Q3 FY2531Our Customers love us in India and beyondof total revenues contributed by 50 of our top 100 customers, retained for more than 5 years50%+2000+ Customers across segmentsPlayer of choice in India across industries leaders…and serve global giants in 4 regionsWe are the player of choice in India…7/10top insurance9/10top banks served8/10top financial services7/10top social mediamarquee govt. projectsThis indicative data on market size has been arrived at basis our internal analysis. This is our assessment and merely indicative in nature and should not be relied upon~35% CPaaS market share SEAMiddle EastUSA & EuropeGlobal Tech giantsInvestor Update Q3 FY2532Our Market Leadership in Enterprise Communication (1/2)This indicative data on market size has been arrived at basis our internal analysis. This is our assessment and merely indicative in nature and should not be relied uponHigh Customer StickinessTech. backed use cases50 of Top 100 accounts > 5 years ŸDouble digit growth in every customer cohort since inceptionŸ100+ API’s integrations within a single enterprises across different ecosystemsUnmatched scale with 35% CPaaS market shareŸ5% increase post ValueFirst acquisition Ÿ~45% share in SMS NLD marketPlayer of choice across industryŸ2000+ customers across industriesŸ8 of Top 10 brands served across banking, Insurance, Retail, E-Comm, Travel & Digital NativesLargest government partnerŸMultiple campaigns supportedCustomized to serve enterprise needsŸDeeply integrated, with all major CRM systems across verticals to enable omnichannel communicationŸ10,000 customized APIs to integrate with customersŸ1000+ bank-specific use cases supportedInvestor Update Q3 FY2533Our Market Leadership in Enterprise Communication (2/2)Newer ChannelsTech. backed use casesAI/ML based solutions developed for a leading bankŸImpact: 2X increase in loyalty (offers availed) for the bankContextŸAutomated relevant promotional messages based on user card swipe activityŸIn house ML capabilities leveraged to trigger targeted offer to users basis transaction amount, location, and card typeServing enterprise curated needs ŸCommerce on WhatsApp: Enabled cab booking over WhatsApp for a seamless consumer journeyTurbo charging our growth Ÿ4x growth in RCSGreat Financial Track RecordWe continue to deliver over the last five yearsAll figures in ₹ Mn3410,040Revenues 201939,278Revenues 2024~4x967EBITDA 20197,322EBITDA 2024~8x298PAT 20195,483PAT 2024~18xInvestor Update Q2 FY2534Thank YouFollow us at:Thank You