COVID19 impacted growth for half of Q4FY20 in international markets. The growth in India, the dominant market was strong despite the lockdown and was 100% due to organic business. Registered 33.2% revenue growth YoY in India. International business increased at 27% in the quarter. Acquired business was primary driver of international growth. The organic International business of the company began to see COVID impact from mid Feb onwards. Organic business in international markets therefore decreased 15% YoY.

Travel and hospitality vertical is the first to get impacted not just in developing but across all markets.

The international businesses of the company have increased its ability to deal with these challenges and drive growth. The company believe strong tech and business resilience will drive its ability to thrive during and after the pandemic. 

Majority of the business of the company is covid resilient even in Q1FY21. About 76% in Q4FY20 and 74% in FY20 of the revenue of the company is from resilient verticals. All top 10 business verticals of the company are COVID resilient verticals.

The E(e-commerce, eductech & entertainment), F (fintech, foodtech & FMCG), G (Gaming, grocery & Government), H (Healthtech) category has enough customers who are covid resilient. The other verticals such as hospitality, travel & transportation makes up the other 24% of the revenue of the company that are suspected to have covid impact.

In April/May 2020 the top 10 verticals of the company defended the revenue of the company despite covid. Will maximise these verticals while adding new innovations going ahead. 

Though the company does not want to provide the margin guidance at the moment, want to maintain the margin at where it is in Q4FY20. The margin is consistent at this level for last 4 quarters.

The company have laid the foundation for long-term growth and for Affle 2.0. 1) It must dominate and consolidate in India and South East Asia markets. 2) Omni-channels and connected platforms and looking at connected devices, households, video innovations. 3) Vertical alignment and deliver vertical targeted approach geography wise 4) Collaborate across teams in work from home mode. The company is ensuring that all its teams have uninterrupted communication with other teams and partners. 

The company is interacting with their clients with video calls so it able to do business even in geographies where they don't have ground teams.

Affle's able to buy inventory (impressions & clicks) at a lower cost up in Covid period. Moreover Adoption curve of consumers becoming online shoppers to shorten and mobile conversions and transactions would increase.

The company gets new opportunity with 1) Customers needs to monetize existing digital assets 2) Customers must invest to be digitally ready.

Affle to license its technology on Platform-as-Service (PaaS) model to enable greater digital readiness and monetization.

Affle to gain the market share vs. competitors, as select competitors will find it difficult to negotiate this interim period. The company to gain the market share through careful strategic investments and acquisitions.

Overall the differentiated business of the company that is growing profitability and generating strong cash flow will allow it to consolidate and dominate in India and build on its geographic expansion.