45% healthy organic growth on YoY basis this quarter, Jampp acquisition is near 7% EBITDA margin in its first year since its integration | Affle India Q4 FY22 Conference Call Highlights

• Q4 FY2022 Highlights (y-o-y): Revenue from Operations of Rs. 315.1 crores, an increase of 122.6% y-o-y. EBITDA at Rs. 58.7 crores, an increase of 70.2% y-o-y. Profit After Tax (PAT) at Rs. 52.7 crores, an increase of 98.7% y-o-y.
• FY2022 Highlights (y-o-y): Revenue from operations of Rs. 1,081.7 crores, an increase of 109.3% y-o-y. EBITDA at Rs. 213.5 crores, up by 63.8% y-o-y. PAT at Rs. 183.4 crores, up by 77.8% y-o-y.
• The CPCU business continued the growth momentum delivering 5.7 crores of converted users in Q4 FY2022, an increase of 91.1% y-o-y and taking the total converted users delivered in 12M FY2022 to 19.5 crores. The top industry verticals for the company continued to be high growth, helping it register a strong performance in this quarter.
• Organic growth in this quarter YoY is 45%.
• While Q3 continues to be the highest quarter during the year on account of business seasonality, consistent positive momentum reflected in Q4 as well.
• Last year Q4 had a higher other income (non-operating) primarily on account of onetime gain on divestment of Indus OS.
• Rapid growth of online commerce globally forecast to contribute 22% of all commerce by 2024 with equally rapid digital disruptions happening in retail commerce.
• Global Digital Ad Market to grow by 9% with Emerging markets like India expected to grow at 25-30% together with other emerging markets like SEA & LATAM also exceeding global trends- e-marketer.
• Only half the world is online with US/UK at ~80% smartphone penetration and Emerging Markets trailing with India 32%, Brazil 51% & Indonesia 59%- GSMA.
• CPCU rates to grow both in India as well as abroad going forward 2-3 years ahead.
• Free cash flow at 153-154 Cr in FY22.
• Operating cash flow/ PAT is 112.3%. Return on equity (ROE) is 27.2%, ROCE- 18.5%.
• Jampp is 7% EBITDA this year while in FY23 it will be around mid-teens and in FY24 it will be around 20%. This is also the strategy of every acquisition (within one-year single digit EBITDA margin, second year mid-teen EBITDA, third year- 20% EBITDA margin).
• Plan is to have 4% of revenues to spend on the innovation in FY23.
• Indian revenues are 34.7% while 65.3% is International revenues in FY22.

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