Conference Call with Affle India Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript. 

Comments from Anuj Khanna Sohum, CEO of Affle

We have had several milestones in FY20 including a record breaking IPO and completion of 15 years since launching the company. Believe we are well-placed to manage macroeco concerns including the COVID19 pandemic.

Despite the tough economic factors, Affle has delivered well-balanced growth. We saw 33.8% revenue growth YoY and 32.4% YoY in PAT for the year. Consumer platform business saw great growth momentum, delivering 73.3 million converted users for this year alone, from 55 million converted users in FY19.

Q4 in particular: COVID19 impacted growth for half of the quarter in international markets. Registered 33.2% revenue growth YoY in India, our dominant market. International business increased at 27% in the quarter. India growth was strong despite the lockdown and was 100% due to organic business.

Acquired business was primary driver of international growth. Our organic business internationally began to see COVID impact from mid Feb onwards. Travel and hospitality first to get impacted not just in developing but across all markets. Organic business in international markets therefore decreased 15% YoY. But does that make us concerned? No - because our international businesses have increased our ability to deal with these challenges and drive growth. We believe strong tech and business resilience will drive our ability to thrive during and after the pandemic. 

While our PAT for international business declined 16.7% YoY due to COVID19 as well as increased investments to build our team and business, PAT overall remained healthy for the quarter on a consolidated basis. We are seeing COVID resilience even in Q1. Top 10 verticals contributed over 74% revenue for FY2020 and over 76% for Q4 FY2020. We will maximise these verticals while adding new innovations going ahead. 

We have laid the foundation for long-term growth and for Affle 2.0. 1) We must dominate and consolidate in India and South East Asia markets. 2) Omni-channels and connected platforms and looking at connected devices, households, video innovations. 3) Vertical alignment and deliver vertical targeted approach geography wise 4) Collaborate across teams in work from home mode. We are ensuring that all our teams have uninterrupted communication with our teams and partners. 

Overall we are a differentiated business growing profitably, increasing cash flows consistently. This will allow us to consolidate and dominate in India and build on our geographic expansion.