Truecaller’s stock fell as much as 35%, from $35.95 to $24.47, on Friday before somewhat rebounding after the company, based in Switzerland and best known for its caller ID app of the same name, revealed lower-than-expected sales.
In September, Truecaller, a Stockholm-listed company, reported sales of SEK 399 million ($35.88 million), an 11% decrease from the same period the previous year. JP Morgan predicted Truecaller’s Q3 revenue to reach SEK 469 million last week.
Truecaller is a smartphone software that blocks spam and provides caller ID, but it also provides an expanding list of additional features. Around 368 million monthly active users worldwide (with roughly 75% based in India) have been added to the firm since its start in 2009, and it now processes over 3.2 billion calls daily. About 80% of its income is generated by in-app advertising.
The IT sector is renowned for its tenacity and capacity to adjust to shifting market conditions. To adapt to shifting customer needs and maintain their competitiveness in the digital market, businesses frequently innovate and pivot.
The 32% stock loss in Truecaller that followed a dip in sales highlights the difficulties and competition in the software sector. The company’s chances of recovering and succeeding in the dynamic digital market will mostly depend on its capacity to innovate, adapt, and grow its user base.