Thread by @tycoonmindset05

Affle Concall was today at 11:00 AM

Here are key highlights of the Conference Call😀

When the going gets tough, tough gets going!

@darshanvmehta1 @varinder_bansal @hemangjani9

- Company had a 72.5% YoY growth in PAT.

- Growth has been in CPCU and non CPCU market by both existing and new costumers in both domestic and international market.

- Management is optimistic on industry trend.

- Company is focusing on creating an integrated platform for the customers and is investing in human resources to enhance the business experience.

- numerous opportunity across market organically

- Growth in Q2 revenue of 53% Q on Q. Shift in advertising on mobile as people have started spending more time on mobile.

- EFGH category contributes more than 80% to top line

- Retailers/ businesses need to be ready to spend at the platform where the consumers are spending most of the time. How much money will shift from offline to mobile advertising cannot be determined.

- Companies will have to create more of an omnichannel experiences as this is where the world the shifting. Marketing teams will have to balance and integrate the offline and online platforms. This is the trend which is visible across developed and developing markets.

- Customers also seeing Affle as a stronger platform as it is able to provide different services at the same place.

- 24% revenue is attributed to media smart and app next. Q2 had cash flow profitable business both in organic and inorganic business.

- Every part of the business is deeply integrated and providing a meaning service to customer.

- Minority interest of appnext on the balance sheet is of 5% calculated on the basis of anticipatory acquisition method.

- When Appnext was acquired CPCU charges were lower by 10-15% as compared to what Affle was charging. Affle tries to give a bundle of services to the customer. So it is managed in it.

- Acquisition is being funded by internal cashflows. Company only acquires business which company believes can come to the same level of PAT as Affle.

- Company has bought 8% stake in Bobble AI and Indus OS

- They wants to expand beyond mobile to other connected platforms. A person will have more than 1 device so Affle wants to expand beyond mobiles

- Affle is trying to get a mind share & build a eco system in the advertising space. All the investments are done keeping that in mind

- Company is not just promoting the consumerism where it is just to promote people to buy more but company is into lifestyle products where it has services like education, fintech. On the top 10 verticals company has a better business as compared to before Covid

- Every country that the company is doing business in, it is being looked on per unit basis.

- Affle has to make a decision of which kind of Ad in which language has to be shown at what time.

- One side of the ecosystem is consumer. 600 million are mobile devises but 150- 200 million are shoppers. This segment will keep increasing. Affle is deepening its presence in all areas.

- 40-50% of business is on some unique proposition where company has some edge either in terms of decide or app.

- Reach will increase as vernacular ads are being made.

- For the management to earn their variable pay, company has to grow at some minimum rate.

- Each of the 10 main segments which the company is in each segment individually is expected to have 30% growth. As Affle has presence in these segments it can also have that kind of growth rate.

- Company is moving in line with the industry trend.

Refer to our Q2: FY 2021 Concall here👇👇

thetycoonmindset.com/conference-cal…