IZMO Limited (IZMO)

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Summary from June 2024

IZMO Limited Q4 and FY 2024 Earnings Conference Call Summary

Company OverviewDate of Call: June 3, 2024 • Submitted to: National Stock Exchange of India and BSE • Managing Director: Sanjay Soni • Industry Focus: Leading software provider for the automotive sector • Segments: • IzmoStudio: Interactive media solutions • izmoauto: Digital retail and CRM platform • FrogData: AI and data intelligence platform

Key Developments in FY 2024Market Recovery: Global auto markets recovering; shift towards digital marketing • Product Launches: • Virtual reality product for car buyers • Spanish portal in the U.S. targeting Hispanic customers (2,000+ dealer sign-ups) • Major Contracts: CRM products contract with Stellantis in Europe • Financial Performance: • Q4 FY '24 revenue up 15.18% YoY • Total FY '24 revenue increased by 21.4% • Anticipated 30-40% growth for FY '25, with FrogData expected to grow by 75-100%

Financial InsightsRevenue Contribution: Stellantis contributes less than 10% of revenue • Client Contributions: Top three clients account for 12-13% of total revenue • Growth Targets: Aim for 500 crores turnover in 3-4 years with 30-40% growth rate • R&D Investment: Constant investment, but decreasing percentage of revenue spent as overall revenue increases • EBITDA Margin: Approximately 24% in the last quarter

Future Plans and ProjectionsExpansion Plans: Targeting Germany and Spain, with potential future expansion into Brazil • Funding Strategy: Plans to raise funds through a 10-15% stake divestment in FrogData • Revenue Guidance: Top-line growth of 35-40% expected, driven by new and existing clients • Promoter Ownership: Set to increase to around 39% next financial year

Market Position and Investor RelationsMarket Capitalization: Under 1,000 crores; lack of domestic institutional investors • Equity Dilution: Anticipated to attract more interest and improve valuation perception • AI Positioning: Strong position in AI with a profitable business model • Collaboration with Sony: Expanded team and increased work share due to positive feedback

ConclusionFuture Product Development: Ongoing work on VR product and data system integration • Acknowledgments: Thanks to the IZMO team and encouragement for further inquiries through Investor Relations.

Summary from November 2023

IZMO Limited Q2 and H1 FY24 Earnings Conference Call Summary

Submission Details • Date of submission: November 22, 2023 • Conference call date: November 20, 2023 • Compliance with SEBI regulations

Company Overview • Led by Managing Director Sanjay Soni • Specializes in software solutions for the automotive industry • Three main divisions: • izmoStudio: Interactive media solutions • Izmoauto: Digital retail and CRM platform • FrogData: AI and data intelligence

Key Highlights • Launch of a Spanish-language platform for the Hispanic market in the U.S. • Significant contracts with Stellantis for CRM products • Rapid growth in the FrogData division focusing on AI-driven analytics • Investment in new technologies for digital retail and customer engagement

Financial Performance • Strong performance aligned with projections • 25.45% year-on-year revenue increase for Q2 FY24 • Growth in EBITDA and PAT • Anticipation of strong second half of the fiscal year

Client Growth and Projections • 137 new clients added in the last quarter • Projected 70% increase in total clients for FrogData • Revenue model primarily recurring with annual contracts

Market Insights • Discussion on the presence of Chinese brands in South America • Focus on capital for expanding FrogData's product development and sales

Employee and Financial Concerns • Increase in employee costs due to ESOP expenses and hiring • Clarification on financial reporting and employee costs

Client Onboarding Process • Initial engagements involve setting up a data cube (2-3 weeks) • Initial revenues range from $1,800 to $18,000 annually • Low attrition rate of 1.3% to 1.6%

Future Growth and Investments • Plans to invest $10 to $15 million in product development and marketing • Targeting 70-80% revenue increase for FrogData in FY24

EBITDA Margins and Competition • Lower EBITDA margins attributed to increased costs • Expected margin improvement over time • AI competition noted, emphasizing unique high-quality image production

Risks and Strategic Outlook • Potential risks from a possible U.S. recession • Cautious spending and modest headcount increase planned • Future growth projections of 50-100% without successful fundraising

Conclusion • Sanjay Soni expressed confidence in achieving growth targets • Acknowledged the importance of team engagement and investor interest

Summary from June 2023

IZMO Limited Q4 and FY23 Earnings Conference Call Summary

Company OverviewDate of Call: June 2, 2023 • Submission Date: June 7, 2023 • Key Speakers: Managing Director Sanjay Soni, President Tej Soni • Established: 1995, publicly listed since 1999 • Specialization: Digital marketing for the automotive sector, with a strong presence in the US and Europe

Performance HighlightsClient Growth: Record client additions in the last two quarters • Revenue Growth: • Q4 FY23: 15.52% year-on-year increase • Full Year FY23: 16.16% rise • Product Launches: izmoEmporio and Frog BI

Strategic GoalsGeographic Expansion: Focus on Western Europe and exploring opportunities in the US • Innovation Commitment: Development of AI-driven solutions for enhanced customer engagement

Frog Data PlatformAdvancements: Significant growth in automotive analytics and AI since 2015-2016 • New Launch: Large language model for generative analytics expected in Q4 2023 • Revenue Model Shift: Transition from services to a recurring platform revenue model

Market InsightsUS Automotive Industry: Significant growth potential, targeting three-digit year-on-year growth • Client Attrition: Noted increase but balanced by new client acquisitions

Financial StrategyFundraising Initiative: Aiming for a valuation between $80 million and $120 million for Frog Data • Tax Strategy: Utilizing past losses in the U.S. for tax benefits

European Market EngagementNew Contracts: Partnership with Stellantis for CRM products • Consulting Subsidiary: Established in France for access to training budgets

Employee GrowthCurrent Workforce: Approximately 350 employees • Future Hiring Plans: Adding around 55 employees, focusing on AI and analytics

ConclusionOverall Growth Target: 25-30% growth with gradual EBITDA margin increase • Market Position: 10% market share in the U.S. automotive dealer space, debt-free • Focus Areas: Strengthening automotive offerings and expanding recurring revenue streams