Delivering with Resilience, Progressing with Optimism
Dear Shareholders,
We take great pride in our 18+ years of success driven by
our vision of ‘Built to Last' and anchored on our differentiated business model,
entrepreneurial culture, continuous innovations and robust financial fundamentals. We
would not have made it this far without the unwavering support of our shareholders, the
dedication of all Afflers and the trust of our customers.
Affle's core differentiation of being a consumercentric
technology business powering conversions at scale, while ensuring consumers' data privacy
has led us to consistently deliver strong profitable growth. We continued our growth
momentum in FY2022-23 to conclude the year with highest revenue, conversions,
profitability and cash flows from operations till date. It was an exciting year marked
with several important milestones and well supported by our focus on enhancing the quality
of revenue and bottom-line fundamentals by further scaling our tech platforms and
ecosystem level partnerships.
A PERIOD OF NEW NORMS
Last financial year ushered a period of new norms - new
customer needs, new normal macro environment and new avenues of technological evolution.
Building further on our focused efforts to augment our value proposition with Affle2.0
Consumer Platform Stack, we were extremely agile to strategically realign our teams,
products, offerings and go-to market approach to power the emerging realities and tech use
cases at an enhanced scale. This has further strengthened our moat, enhanced mutual trust
with our customers & partners and laid a solid foundation for long-term future growth.
TECHNOVATION: BOLD AND FUTURE-READY
We have made tremendous strides in strengthening our
impactful tech capabilities and
platform solutions that power the mobile marketing
ecosystem. We launched our full- funnel proposition on iOS Appstore Apple Search Ads,
enabling advertisers to drive premium conversions of iOS users effectively. We also rolled
out CPCU model on Connected TV with household ID sync technology, that has established a
unique competitive advantage for us as one of the first few companies to offer
conversion-linked capabilities on the Connected TV ecosystem. Further, we augmented our
mobile OEMs, operators and publisher partnerships to power an open internet connected
ecosystem across the global emerging markets. This has further strengthened our consumer
platform and enabled greater ROI impact for our customers.
STRENGTHENED OUR CORE
We continued to capitalize on broader transformational
industry shift to further strengthen our core by focusing on talent building, empowering
our teams with futuristic capabilities and riding deeper into new markets. We made efforts
towards enhancing our team capabilities in India as well as augmented on-ground presence
in some of the international geographies like South East Asia, Middle East Africa, North
America and Latin America. Further, we realigned our onground resources in North America
to ensure greater alignment of our teams to upsell and crosssell all our platform use
cases on the CPCU business model, linked to the aggressive growth plans powering our
Vision 2030.
SPIRITED PERFORMANCE
We concluded FY2022-23 as a landmark year having achieved
over 5X growth in topline and profitability over the last 5 financial years. Our Revenue
from Operations increased by 32.6% y- o-y. Our Profit After Tax increased by 14.4% y-o-y
and Normalized PAT (attributable to equity holders of the parent) increased by 33.8%
y-o-y. Our cashflow from operations increased at a CAGR of 52.8% over the period
FY2019-23. Powered by ROI-linked CPCU business model, our consumer platform delivered
256.8 million converted users crossing the ‘250 million' mark for the first time and
our CPCU revenue increased by 35.3% y-o-y. Our strong cash flow and balance sheet ensures
that we continue to invest to drive long-term sustai nable growth through technology
innovation, market expansion and consolidation.
*/-ni o oo
SUCCESSFUL TECH ACQUISITIONS
We have a proven track record of unlocking greater
profitable growth for the acquired companies through successfully turning them around over
time. This has helped us leverage on our past acquisitive experience and sound financial
position to penetrate deeper into the high-growth gaming vertical globally through the
acquisition of YouAppi. It complements our CPCU business model, verticalization strategy
and overall culture to deliver a comprehensive range of programmatic mobile app marketing
solutions for leading gaming companies globally.
CREATING VALUE SUSTAINABLY
As a responsible corporate citizen, we have always upheld
business integrity and sound governance as the cornerstone of consistent stakeholder value
creation. We have taken proactive measures towards ESG reporting and implemented various
policies that promote sustainable business practices. Our pursuit of excellence in
corporate governance, risk management and sustainability initiatives has enabled us to
emerge as a resilient organization.
CHARTING THE FUTURE: TOWARDS NEW WORLD REALITIES
As we look ahead, we are excited about growth opportunities
that await ahead of us. We remain committed to staying at the forefront of the industry,
driving innovation, thought leadership and creating a significant impact. As an AI
algorithm powered consumer platform business, we are investing our resources in
identifying future technological trends, leveraging our core R&D capabilities to build
new IP, new patents and pursue innovative use cases for responsible integration of
Generative AI large language models. This proactive approach allows us to strike a balance
between short-term product- based innovation and making long-term decisions to strengthen
our pole position.
With this, I conclude by extending my gratitude to all our
stakeholders. Together, we will continue to chart new territories and shape a successful
and sustainable future.
Anuj Khanna Sohum
Managing Director and Chief Executive Officer