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Announcement Details • Date of Announcement: August 2, 2024 • Earnings Call Date: July 31, 2024 • Key Management Present: • Neha Singh (Chairperson and Managing Director) • Abhishek Goyal (Vice Chairman and Executive Director) • Prashant Chandra (Chief Financial Officer) • Transcript Availability: Accessible on the company's website; communicated to BSE and NSE.
Financial Performance • Revenue from Operations: ₹20.5 crore (4% YoY growth) • Total Income: ₹21.9 crore (6% YoY growth) • EBITDA: Positive at ₹0.3 crore • Profit After Tax (PAT): ₹1.3 crore (PAT margin of 6.2%) • Free Cash Flow: ₹3.6 crore • Cash and Cash Equivalents: ₹80.4 crore (30% YoY increase) • Total Expenses: ₹20.3 crore (2% increase YoY)
Customer Growth and Market Trends • Customer Accounts Added: 101 in Q1 FY25 • Deferred Revenue: ₹35.7 crore (16% YoY increase) • Platform Engagement: Usage increased 1.6X over two years • International Revenue: 61% from customers in 50 countries
Strategic Initiatives • Growth Investments: Focus on marketing, sales, and account expansion • Tracxn Lite Launch: Attracted over 36,000 users in six months • Specialized Sales Teams: Established for universities, private equity, and startups • Data Offerings Expansion: Increased financial and captable data offerings
Q&A Highlights • Customer Acquisition: Consistent momentum; 101 net customer accounts added • Revenue per Customer: Anticipated improvement following volume growth • Unique Selling Proposition: Global reach and comprehensive data coverage • Retention Metrics: Revenue retention declined from 115% to 103% over three years • Cost Management: Cloud hosting costs optimized; expected EBITDA margin improvement
Future Outlook • Incremental Revenue: Target of over 50% falling to the bottom line • User Growth: Strong additions expected to continue • Revenue Realization: 65% of new customers pay annually upfront, allowing for gradual revenue accrual
Conclusion • Optimism for Growth: Management expressed confidence in maintaining growth momentum and improving financial metrics in upcoming quarters.
Earnings Call Overview • Date: May 20, 2024 • Hosted by: Systematix Shares and Stocks • Key Management: • Neha Singh (Chairperson and Managing Director) • Abhishek Goyal (Vice Chairman and Executive Director) • Prashant Chandra (Chief Financial Officer) • Transcript available on the company's website.
Financial Performance • Q4 FY24 Results: • Revenue from operations: 20.3 crores • Total income: 21.6 crores • EBITDA: 0.7 crores • PAT: 1.4 crores • Full FY24 Results: • Revenue from operations: 82.8 crores (6% YoY increase) • Total income: 87 crores • PAT: 6.5 crores • EBITDA margin: 5.5% • Positive free cash flow: 10.3 crores • Strong cash position: 75.2 crores
Business Metrics • Significant increase in customer accounts: 88 new accounts in Q4 FY24 • Deferred revenue rose by 12% YoY to 32.9 crores • Platform engagement metrics improved, with usage growing 1.5 times over two years. • Focus on growth initiatives in marketing, sales, and account expansion.
Customer Base and Market • 66% of revenue from international customers across 50+ countries. • Diverse clientele includes venture capital, private equity, investment banks, and government agencies. • Anticipated recovery in private markets, especially in early-stage funding.
Q&A Highlights • Growth Prospects: • Neha Singh optimistic about returning to a 25% CAGR despite market challenges. • Employee Headcount: • Plans to increase sales team while maintaining minimal growth in other areas. • Data Demand: • Sector-based data for private companies is in high demand. • Competition: • Market not highly competitive; differentiation in data quality is key. • Tracxn Lite Product: • Serves as a marketing tool; conversion rates to paid accounts still being assessed.
Strategic Focus • Dedicated sales teams for universities, private equity, and startups to improve conversion rates. • Emphasis on inbound sales strategies before transitioning to outbound efforts. • Addressing complexities in reconciling account growth with deferred revenue trends.
Future Outlook • Expectation of improved customer acquisition and revenue recognition in upcoming quarters. • Potential capital allocation options discussed, including buybacks, pending resolution of accumulated losses. • Ongoing efforts to enhance organic traffic and conversion rates.
Conclusion • Neha Singh invited further questions via email, indicating openness to continued dialogue with stakeholders.
Announcement Details • Date of Announcement: February 5, 2024 • Earnings Call Date: January 31, 2024 • Key Management Present: • Neha Singh (Chairperson and Managing Director) • Abhishek Goyal (Vice Chairman and Executive Director) • Prashant Chandra (CFO) • Transcript Availability: Accessible on the company's website
Financial Performance Overview • Q3 FY24 Results: • Revenue from operations: ₹21.1 crore • Total income: ₹22.2 crore • EBITDA: ₹1.9 crore • PAT: ₹2.2 crore (highest quarterly PAT to date) • Year-to-Date (YTD) Performance: • Revenue from operations: ₹62.5 crore (8% increase) • Total income: ₹65.5 crore (9% increase) • EBITDA: ₹3.9 crore • PAT: ₹5.1 crore • Revenue Model: Subscription-based, recognized on an accrued basis • Margins: • EBITDA margin: 6.3% • PAT margin: 8.1% • Incremental revenue contributing to bottom line: 43%
Market Conditions and Challenges • 2023 Market Challenges: • 44% decline in global tech funding • 70% drop in India • New unicorn creation at a seven-year low • M&A activity at a decade-low • Signs of Recovery: Early indications of funding reversal and increased deal activity
Growth Metrics • Deferred Revenue: Up 19% year-on-year • Platform Engagement: Usage doubled over two years • Customer Accounts: 3% increase • Invoicing Amounts: 11% rise • Entities Tracked: Over 2.5 million globally
Strategic Initiatives • Growth Investments: Enhancing organic traffic, increasing press mentions, expanding financial data coverage • Cash Flow: Positive free cash flow of ₹6.7 crore, despite a decrease from the previous year • Geographic Expansion: Existing customers in the Middle East and Southeast Asia
Q&A Highlights • Revenue Growth: Flat QoQ revenue growth; deferred revenue indicates future potential • Customer Accounts: Sequential drop attributed to macroeconomic factors • Pricing Strategy: Considering price increases for customer contracts • Product Development: Expanding coverage of cap tables and financial data; plans for a limited partner database
Conclusion • Market Position: Limited competition in private market software; low software adoption rates • Future Outlook: Optimism for recovery in 2024; strategic initiatives aimed at growth and market penetration • Closing Remarks: Neha Singh expressed gratitude and encouraged further inquiries via email.
Announcement Details • Date of Call: November 2, 2023 • Announcement Date: November 7, 2023 • Key Participants: • Neha Singh (Chairperson) • Abhishek Goyal (Vice Chairman) • Prashant Chandra (CFO) • Transcript Availability: Accessible on the company's website • Communication Signed By: Megha Tibrewal (Company Secretary)
Financial Performance Highlights • Q2 FY24 Revenue: ₹21.5 crore (12.5% YoY increase) • Total Income: ₹22.5 crore • EBITDA: ₹2 crore • PAT: ₹2.2 crore (highest quarterly figures) • Free Cash Flow: ₹0.6 crore • Cash and Cash Equivalents: ₹63.1 crore (20% YoY increase)
Growth and Market Insights • Revenue Growth: Accelerating after previous decline; 48% of incremental revenue contributing to bottom line. • Expense Increase: 7% YoY, mainly due to team costs (88% of total expenses). • Headcount Optimization: Reduced from 900 to 783 through automation. • International Revenue: Constitutes 66% of total revenue.
Market Conditions • M&A Activity: Lowest deal volume in a decade; signs of recovery in private tech markets. • Deferred Revenue: Grew by 26% YoY in Q2 FY24.
Operational Changes • Billing Methodology: New system to reduce bad debts. • Engagement Metrics: Platform usage nearly doubled over two years. • Growth Initiatives: Focus on organic traffic and media presence.
Customer Base and Market Strategy • Diverse Customer Base: Includes venture capital, private equity, investment banks, corporates, government agencies, and universities. • Key Updates: Encouraged attendees to review business overview and financial statements offline.
Q&A Session Highlights • Employee Optimization: Headcount expected to stabilize between 750-800. • Data Monetization: Growth in customer segments and geographic expansion. • Promoter Stake: No shares sold post-IPO; slight reduction due to ESOPs. • Pricing Strategy: Current pricing at $600 per month per user; minimal negotiation during renewals.
Competitive Landscape • Market Competition: Stable competitive pressure; comprehensive solutions offered compared to competitors.
Future Outlook • Revenue Growth Guidance: Targeting 30% CAGR; revenue solely from platform subscriptions.
Closing Remarks • Invitation for Further Questions: Participants encouraged to reach out to management for additional inquiries.
Tracxn Technologies Limited Q1 FY24 Earnings Call Summary
Earnings Overview • Date of Call: August 1, 2023 • Revenue from Operations: ₹19.8 crores (8% YoY increase) • Total Income: ₹20.8 crores • Positive EBITDA: ₹0.02 crores • Profit After Tax (PAT): ₹0.7 crores • Total Expenses: ₹19.8 crores (9% increase, primarily team costs)
Market Insights • Private Markets: Significant decline in global tech funding (54% drop) and in India (72% drop). • Unicorn Creation: Nine-year low with no new unicorns in India. • M&A Activity: Lowest deal volume in a decade. • Future Outlook: Potential recovery in private markets expected.
Company Performance • Deferred Revenue: Increase observed, indicating healthy user activity. • Customer Accounts: 9% growth; 66% of revenue from international markets. • Free Cash Flow: Positive at ₹0.6 crores, but decreased due to rising expenses.
Business Model and Strategy • Subscription-Based Model: 100% revenue from prepaid subscriptions; average pricing of ₹6.5 lakhs per account. • Customer Base: Diverse, including venture capital, private equity, and government agencies. • Headcount Reduction: From 900 to 815, attributed to efficiency improvements, not cost-cutting.
Growth Initiatives • Focus Areas: Enhancing organic traffic, increasing press mentions, and expanding financial datasets. • Sales Productivity: Closely monitored; effective in acquiring new revenue despite market conditions. • User Growth Strategies: Improved customer education, office visits, and free logins to boost engagement.
Employee Stock Options (ESOP) • Cost Stability: ESOP cost remains around 8% of total employee costs. • Employee Expenses: Increase attributed to broader employee cost growth, not solely ESOP.
Future Aspirations • Revenue and Profit Goals: Aiming for a return to 50% EBITDA flow from incremental revenue. • Deferred Revenue Clarification: Represents future collections; growth rate recently decelerated but showed slight acceleration.
Conclusion • Management's Optimism: Despite current market challenges, management remains focused on growth initiatives and customer acquisition strategies. Further questions can be directed via email.
Tracxn Technologies Limited Earnings Call Summary (May 11, 2023)
Financial Performance • Q4 FY23 Results: • Revenue from operations: ₹20.3 crore (19% YoY increase) • Total income: ₹20.1 crore • FY23 Results: • Revenue from operations: ₹78.1 crore (23% YoY increase) • Total income: ₹81.2 crore (25% YoY increase) • Profit After Tax (PAT): ₹5.3 crore (up from a loss of ₹0.4 crore) • EBITDA: ₹2.6 crore (improved from -₹1.9 crore) • Positive free cash flow: ₹11.9 crore (143% YoY increase) • Cash and cash equivalents: ₹60.3 crore (32% increase)
Revenue Growth Insights • Customer Contributions: • Revenue from existing customers: ₹64.9 crore in FY23 (up from ₹63.5 crore in FY22) • New customer acquisitions at an all-time high. • Growth Initiatives: • Enhancing organic traffic and brand visibility. • Expanding financial datasets for private companies.
Operational Highlights • Headcount and Expenses: • Total headcount: 820 employees. • Employee expenses: 88% of total costs, with a focus on efficiency. • Market Position: • Single-digit market share in a largely underserved market. • 68% of revenue from international markets.
Technology and Innovation • Generative AI Initiatives: • Projects aimed at improving data accessibility and user experience. • Leveraging technology to track private companies globally.
Future Outlook • Expense Management: • Anticipation of lower expense increases as headcount stabilizes. • Revenue Projections: • Expected improvement in revenue-to-EBITDA conversion in upcoming quarters.
Customer Engagement and Retention • User Engagement Metrics: • Over 40% of users log in daily. • High daily active users (DAU) to monthly active users (MAU) ratios. • Customer Growth: • Net Revenue Retention (NRR) from existing customers expected to stabilize.
Strategic Considerations • Market Challenges: • Addressing potential recession impacts on customer acquisition and retention. • Investment Plans: • Considering options for organic and inorganic growth, including potential dividends or buybacks.
Data Sourcing and Product Differentiation • Data Sources: • Information gathered from publicly available data, proprietary analyst insights, and regulatory filings. • Product Usage: • Approximately 50% of customers use only one platform; 30% use multiple products.
Conclusion • Neha Singh invited further questions and provided contact information for follow-ups, emphasizing the company's commitment to growth and innovation in the private market sector.
Financial Performance Highlights • Q3 FY23 Results: • Revenue from operations: Rs. 20.3 crores (23% YoY increase) • Total income: Rs. 21 crores (25% YoY increase) • EBITDA: Rs. 0.8 crores (3.9% margin) • PAT: Rs. 1.4 crores (7.1% margin) • Positive free cash flow: Rs. 7.8 crores (149% YoY increase)
• First Nine Months of FY23: • Revenue from operations: Rs. 57.8 crores (25% increase) • Total income: Rs. 60.1 crores (27% increase) • EBITDA: Rs. 1.9 crores (3.2% margin), Rs. 5.7 crores excluding ESOP expenses • PAT: Rs. 4.1 crores (7.1% margin)
Expense and Growth Initiatives • Total Expenses: • Increased by 16% to Rs. 56 crores, primarily due to growth initiatives • 88% of expenses attributed to team costs
• Growth Focus: • Expansion of data offerings and brand visibility • Scaling inside sales team • Positive cash flow despite increased expenses
Customer Metrics • Customer Growth: • 15% increase in customer and user accounts • Rs. 60 crores in invoicing (20% increase) • 68% of revenue from international customers
Strategic Insights • Company Overview: • Cost arbitrage model leveraging Indian operations • Minimal paid marketing, focusing on organic customer acquisition • Experienced management and technology platform
• Market Positioning: • Competitive pricing with emphasis on customer engagement • Ongoing initiatives to enhance sales efficiency and conversion rates
Q&A Highlights • ESOP Expenses: • Clarified to be around Rs. 1.34 crores for the quarter, consistent across quarters
• Customer Dynamics: • Revenue growth is prioritized over customer growth metrics • Churn rate remains stable at around 25%
• Future Outlook: • Anticipated improvement in customer acquisition and account expansion • Focus on maintaining high margins and improving cash flow
Conclusion • Neha Singh expressed optimism about future growth despite current market conditions, emphasizing ongoing marketing and conversion initiatives to drive performance. The call concluded with an invitation for further inquiries.