Financial Performance Highlights

Q2 FY27 Financials (Consolidated)

  • Revenue: ₹767 million, representing 41.3% YoY growth (from ₹543 million in Q2 FY26) and 5.4% sequential growth (from ₹728 million in Q1 FY27)
  • Supply-end data cost: 58.5% of revenue (improved from 60.4% in Q1 FY27 and 61.5% in Q2 FY26)
  • Gross margin: 41.5%
  • Employee benefit expenses: ₹99 million (62.3% YoY increase from ₹61 million)
  • Other expenses: ₹57 million (17.9% YoY increase from ₹38 million)
  • EBITDA: ₹160 million, 47.3% YoY growth with margin of 21.1% (improved from 20.3% in Q2 FY26)
  • PAT: ₹113 million, 54.8% YoY growth (from ₹73 million) with margin of 14.7% (improved from 13.4% in Q2 FY26)

H1 FY27 Financials (Consolidated)

  • Revenue: ₹1,496 million, representing 48.6% YoY growth (from ₹1,007 million in H1 FY26)
  • Supply-end data cost: 59.4% of revenue (improved from 62% in H1 FY26)
  • Employee benefit expenses: ₹184 million (from ₹104 million in H1 FY26)
  • Other expenses: ₹107 million (32.1% YoY increase from ₹32 million)
  • EBITDA: ₹360 million, 59.6% YoY growth (from ₹198 million) with margin of 21.1% (improved from 19.7% in H1 FY26)
  • PAT: ₹229 million, 72.2% YoY growth (from ₹132 million) with margin of 15.3% (improved from 13.2% in H1 FY26)

Operational and Strategic Updates

Business Overview

  • Company positioned as AI-native global ad tech and consumer growth platform
  • A3 framework: Awareness, Acquisition, and Activation across mobile, web, video, connected TV, DOOH
  • Serves approximately 170 brands across 13 countries
  • Platforms process approximately 1.4 billion signals daily, reach 2.7 billion devices globally
  • Revenue per outcome improved by more than 10% YoY to ₹50.67

Client Mix

  • Direct clients contributed 64.7% of Q2 FY27 revenue
  • Channel partners (agencies, resellers) contributed 35.3% of revenue
  • Key sectors: Quick Commerce, BFSI, Fintech, Super Apps, entertainment, travel, commerce

Geographical Expansion

  • International markets contributed 23.8% of Q2 FY27 revenue (up from 12.3% YoY)
  • Singapore office operating as regional hub for Southeast Asia (Philippines, Indonesia, Thailand)
  • Strengthened US presence with local hiring and subsidiary setup
  • Eric Lin appointed as country head for activation platform with two decades of ad tech experience

Technology Developments

  • Mobavenue Neural Engine (unified AI intelligence layer) supporting decision-making across platforms
  • PiiX (AI-powered Apple ads platform) gaining traction with advertisers
  • Focus on evolving from AI-powered to AI-native ecosystem with agentic workflows
  • Participation at App Growth Summit in San Francisco

Corporate Actions

  • Initiated merger of wholly owned Indian subsidiary into Mobavenue AI Tech Limited
  • Aimed at consolidating Indian operations, simplifying corporate structure, improving operational efficiency

Management Guidance and Framework

  • Long-term 'Rule of 50' framework: sustain annual revenue growth >30% while maintaining EBITDA margins ≥20%
  • H1 FY27 performance: 48.6% revenue growth with 21.1% EBITDA margin
  • Confident in achieving guidance given strong H1 performance and festive season momentum

Q&A Session Highlights

Growth Confidence

  • Management confident in achieving 30%+ growth target for FY27
  • Q3 typically strong due to festival season in India and year-end spending in global markets
  • International expansion expected to be key growth pillar

Margin Sustainability

  • EBITDA margin sustained above 20% for three consecutive quarters
  • Key supporting factors: outcome-based model, asset-light operating model, operating leverage
  • Medium-term outlook: maintain Rule of 50 framework

Technology Sustainability

  • Built AI-native from start with full technology stack powered by AI
  • Neural Engine has four capabilities: planning, execution, creative intelligence, conversational reporting
  • Competitive advantage through owned infrastructure, data, intelligence, and distribution

International RPO Differences

  • Blended revenue per outcome better in international markets than India
  • Emerging markets show slightly better RPO than India due to deeper internet penetration
  • Developed markets (US, UK) are value-driven with higher RPO than volume-driven India
  • Specific numbers not disclosed as business metric tracked internally

Client Differentiation

  • Key differentiator: outcome-driven model with faster integration (3-5 days) and quick results (2-3 weeks)
  • Average wallet share: 3-4% of overall marketing spend in India
  • From alternate spend perspective (beyond Google/Meta): 7-10% range, can reach 10-25%

PiiX Platform Strategy

  • Focus on Apple ecosystem (phones, TV, iPads) not Android
  • Platform utility for existing and new customer relationships
  • Five months since launch, gaining traction but revenue contribution not yet material
  • Self-serve capability planned for smaller developers in international markets

Client Mix Strategy

  • International expansion initially through agency/reseller relationships
  • Direct client mix expected to increase medium to long term
  • Hiring direct teams in international markets similar to India strategy