Revenue mix shifted toward international markets, because of Jampp’s acquisition | Affle India Q2 FY22 Conference Call Highlights
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2 years ago
Growth broad based across verticals and geographies.
EBITDA Margins have been affected mainly due to Jampp acquisition in 2021. Jampp’s contribution to overall EBITDA will increase and would reach the organic EBITDA of Affle within 3 years.
Jampp’s revenue mix is 66% Outside India and 34% in India.
Affle is likely to grow organically at greater than the industry average of 25%- 30% CAGR over the 5 years.
Affle’s Philosophy of Acquisitions: Acquire companies which can grow at greater than the industry average. Expected to bring the acquired company within 2 to 3 years to 20%+ EBITDA Margins.
CPCU rates in India are lower as compared to outside India.
With Jampp getting added, Affle will look at the unit economics of Jampp, next at what CPCU rate can they sell, what kind of conversion can they drive, extracting higher value on unit economics and turning Jampp fundamentally profitable at each unit economic assessment. Hence, then pressing the accelerator for growth, where both top line as well as bottom- line performance will be important.
The company recently got three patent grants in the USA, taking total patent grants to six in the USA.
Management cited that the company would continue to grow better than the digital advertising industry’s average growth rate, which is expected to clock a 25-30% CAGR in the long-term.