Shares of Truecaller, the Switzerland-based firm famous for its caller ID app, experienced a significant drop in value after the company reported lower than expected revenue. The stock price fell as much as 32%, from $35.95 to $24.47, before slightly recovering on Friday.
Key Takeaway
Truecaller, known for its caller ID app, experienced a drop in shares by 32% due to lower than estimated revenue. The company reported a revenue decline of 11% compared to the same period last year. Truecaller relies heavily on in-app advertising for its income, with approximately 368 million active users globally.
Lower Than Estimated Revenue for Q3
Truecaller, which is listed in Stockholm, reported a revenue of SEK 399 million ($35.88 million) for the quarter ending in September, marking an 11% decline compared to the same period last year. This figure fell short of JP Morgan’s projection of SEK 469 million.
A Popular Caller ID and Spam Blocking App
Truecaller is renowned for its caller ID and spam blocking capabilities and has gained popularity worldwide. Since its launch in 2009, the app has attracted approximately 368 million monthly active users globally, with around 75% in India. Moreover, Truecaller handles a staggering 3.2 billion calls every day.
Relying on In-App Advertising for Revenue
A significant portion of Truecaller’s revenue, approximately 80%, comes from in-app advertising. While the company offers a range of other services, such as spam filtering and call recording, advertising remains its primary source of income.
