Affle India Q4 Review - Conversions Business Sees Traction, Guidance Scaled To 30% Growth: Dolat Capital
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Dolat Capital Report
Affle India Ltd. reported revenue de-growth of 5.9% QoQ (our estimate: down 6.6% QoQ) in a seasonal quarter.
The miss was led by weaker non-cost per converted user revenue (14% of revenue, down 18.4% QoQ) while cost per converted user business de-grew just 3.4% QoQ and conversions remained healthy at 29.6 million, Q4 organic growth 45% YoY.
Ebit margin declined 149 basis points QoQ to 20.7% (our estimate: 22.2%) due to lower operating leverage and slight inch up in other expenses (up 7.8% QoQ).
Conversion efficiency improved as inventory and data cost declined to 57.4% (gross margin up 53 basis points).
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