Q1 FY2025 Earnings Conference Call Summary for Subex Limited
Company Performance
• Revenue declined to INR 68.2 crores from INR 83.8 crores in the previous quarter.
• EBITDA reported at minus INR 6 crores; PAT at minus INR 11.2 crores, showing year-over-year improvements.
• Growth in the Telco business and a long-term transformation strategy emphasized.
Key Developments
• Secured a significant Tier-1 client in Europe.
• Advancements in AI solutions recognized in Gartner's Magic Quadrant.
• Sold IDcentral unit to Handy Online Solutions to enhance innovation and shareholder value.
Investor Q&A Highlights
• Monthly Recurring Revenue (MRR): Remained flat; CEO optimistic about future improvements.
• Ongoing Losses: Acknowledged; focus on returning to EBITDA positivity and achieving INR 100 crores quarterly revenue target.
• Transparency Concerns: Investors expressed dissatisfaction with management's communication and profit estimates.
Strategic Focus
• Emphasis on core telecommunications sector and AI capabilities.
• Highlighted the potential of the AI-first platform, HyperSense, in a growing market.
• Plans to expand product offerings beyond Revenue Assurance and Fraud Management.
Financial Outlook
• Anticipated increase in cash flow from an INR 8 crore tax refund.
• Ongoing recovery efforts for pending revenue from the Middle East.
• Management optimistic about improved performance in upcoming quarters.
Communication and Accountability
• Need for clearer updates to shareholders regarding contracts and financial decisions.
• Management committed to driving sales and maintaining accountability within the sales team.
• Acknowledgment of investor frustrations and commitment to transparency.
Conclusion
• Nisha Dutt expressed gratitude for investor support and encouraged ongoing communication.
• Reiterated the company's focus on growth, efficiency, and innovation in the telecommunications sector.

Earnings Call Overview
• Date: May 13, 2024
• Key Executives: Nisha Dutt (MD & CEO), Sumit Kumar (CFO)
• Highlights:
• 11.1% year-over-year revenue growth, highest in a decade.
• Positive EBITDA for the last two quarters.
• Non-cash impairment provision of INR 148 crores.
Financial Results
• Quarterly Revenue: INR 833 million
• Profit Before Tax: INR 14 million
• Fiscal Year Revenue: INR 3,097 million
• Loss Reduction: Notable decrease in losses compared to the previous year.
Q&A Session Highlights
• Generative AI Use Cases:
• Contract assurance using large language models.
• Fraud prevention in handset sales.
• Loss Inquiry:
• Recent loss of INR 145 crore will be written off from share capital reserve.
• Growth Prospects:
• Ambitious internal targets set for 15-20% growth in the upcoming year.
• Impairment Write-off:
• Goodwill impairment reduced from INR 344 crore to INR 196 crore.
Business Focus
• Operational Technology Security:
• Emphasis on telecommunications over IoT and automotive sectors.
• Customer Growth:
• Subscription model leads to delayed revenue recognition.
• International Contracts:
• Significant contracts outside India, particularly in the Middle East and CALA regions.
Strategic Initiatives
• Fintech Services:
• Expansion of existing offerings rather than a pivot into fintech.
• AI Product Development:
• Focus on AI-driven products to enhance shareholder value.
Future Guidance
• EBITDA Growth Timeline:
• AI revenue is already flowing in, with optimism for continued growth.
• Financial Targets:
• Targeting double-digit growth, with a commitment to consistent performance.
• Investor Engagement:
• Plans for roadshows and analyst meetings to demonstrate growth.
Conclusion
• Management's Commitment:
• Assurance of adequate staffing and budgeting for investments.
• Focus on product development and maintaining a healthy bottom line.

Earnings Call Overview
• Date: February 8, 2024
• Submitted transcript on February 14, 2024
• Key Participants:
• CEO Nisha Dutt
• CFO Sumit Kumar
• Moderator: G.V. Krishnakanth
• Document available on investor relations website
• Includes Safe Harbor statement regarding forward-looking remarks
Key Highlights from CEO Nisha Dutt
• Company Focus: Emphasis on AI and 5G use cases with strong customer interest.
• Financial Performance:
• Revenue surpassed INR 80 crores.
• Achieved consistent quarter-over-quarter growth.
• Welcomed two new AI-focused clients.
• Business Dimensions: Growth, efficiency, and talent.
• Employee Initiatives:
• Maternity mentorship program.
• Employee attrition aligned with industry standards.
Financial Results
• Quarterly Revenue: INR 818 million.
• Expenses:
• Subcontracting (25-30%), travel (20%), facility costs.
• Slight increase in expenses due to revenue growth.
• Transition: Moving from licensing to subscription models.
Investor Concerns and Responses
• Rising Expenses: Addressed by CFO Sumit Kumar, clarifying subcontracting is project-specific.
• ESOPs: Previous pool exhausted; current exercise price at INR 20.
• Revenue Growth Potential: Nisha expressed confidence in surpassing past performance levels.
• Leadership Hiring: Ongoing efforts in North America, Europe, and Africa.
Market Conditions and Future Outlook
• 5G Adoption: Critical mass adoption noted, with increased telco interest.
• RBI License: Still in approval stage, requiring compliance and infrastructure development.
• Communication: Acknowledged need for improved transparency and updates for investors.
Additional Investor Feedback
• Concerns on Updates: Investors emphasized the need for timely communication.
• Profitability vs. Growth: Dutt highlighted unique advantages justifying market cap and the focus on revenue growth.
• Future Profitability Targets: Aiming for double-digit profitability without specific figures provided.
Conclusion
• Optimizing Operations: Commitment to improving operations and exploring growth strategies.
• Cash Position: Confirmed at INR 103 crores, with plans for investments in core products.
• Feedback Acknowledgment: Nisha expressed appreciation for investor suggestions and concerns.

Financial Results
• Quarter Ending: September 30, 2023
• Revenue: INR 768 million (14% quarter-over-quarter growth)
• Challenges: Negative EBITDA and PAT figures
Strategic Focus
• Key Areas: Customer engagement, product enhancement, partnerships
• Technologies: Emphasis on artificial intelligence and 5G
• Operational Technology (OT) Security: Shift in focus from IoT security to OT security via Sectrio solution
Cost Management
• Manpower Costs: Significant portion of sales; concerns about complacency
• Focus: Top-line growth and cost optimization measures
Client Acquisition and Growth
• New Clients: Two new logos in network asset management and security
• Margin Standards: Stringent across all projects
Business Seasonality and Revenue Stability
• Recurring Revenue: Stable at INR 2.3 million per month
• Performance Trends: Historically stronger in the second half of the year
Communication and Reporting
• Investor Feedback: Consideration for more frequent press releases and better preparation time between announcements and calls
• Order Backlog: Shifted focus to monthly recurring revenue (MRR)
Challenges and Opportunities
• Technology Upgrades: Need for improvements amid increased competition
• Market Potential: Significant growth opportunities in telecommunications and adjacent markets like fintech
Sales Strategy and Employee Management
• Sales Strategy Changes: Aimed at improving efficiency and understanding regional spending
• Employee Count: Approximately 920, with hiring based on need, especially in AI
New Initiatives
• BharatID App: Designed to streamline KYC processes; currently in pilot phase with existing customers
• Product Growth: Positive developments in Sectrio and IDcentral segments
Future Outlook
• Account Aggregator License: Progress acknowledged, with hopes for profitability within nine months
• Commitment: Ongoing communication with investors about progress and developments

Earnings Call Overview
• Date: August 9, 2023
• Focus: Financial results for the quarter ending June 30, 2023
• Participants: CEO Nisha Dutt, CFO Sumit Kumar
• Communication: Transcript submitted to BSE and NSE, available on the company website
CEO's Vision and Strategic Direction
• Nisha Dutt introduced herself and shared her vision for Subex.
• Emphasized the transformative potential of AI and connectivity in telecommunications.
• Commitment to creating "connected experiences" for telecom clients.
Strategic Initiatives
• Shift towards a next-gen technology stack integrating 5G, AI, and cloud.
• Focus on three pillars: growth, efficiency, and talent.
• Promising growth outcomes reported, including new contracts with communication service providers.
Efficiency and Talent Development
• Emphasis on portfolio optimization and streamlining operations.
• Collaboration with strategic partners to reduce costs and explore new markets.
• Investments in talent development to enhance employee skills and foster innovation.
Financial Highlights
• Q1 revenue increased to INR 673 million (42% rise from previous quarter).
• Improved EBITDA and profit after tax figures.
• Confidence in recovery and commitment to sustainable growth.
Q&A Session Insights
• Concerns raised about stagnant growth and manpower costs.
• Dutt acknowledged challenges and emphasized potential growth from AI, cloud, and 5G.
• Clarified progress on Partner Ecosystem Management and blockchain initiatives.
Future Outlook
• Dutt estimated a year for substantial improvements in financial health.
• Focus on enhancing sales enablement and partnerships, particularly with Jio.
• Ongoing efforts to improve sales and capitalize on market trends.
Governance and Communication
• Concerns about high payroll costs relative to revenue.
• Acknowledgment of governance issues and the need for timely communication regarding client acquisitions.
• Commitment to addressing shareholder concerns and improving transparency.
R&D and API Usage
• Ongoing R&D investments in 5G and AI.
• 11 million API pulls reported, with R&D spending embedded in employee expenses.
Conclusion
• Dutt expressed confidence in Subex's ability to meet client expectations and navigate challenges.
• Call concluded with thanks from participants.