Vertoz Advertising Ltd (NSE: VERTOZ) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Unidentified Speaker
Hiren Shah — Founder and Managing Director
Ashish Shah — Founder and CEO
Analysts:
Unidentified Participant
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the Q4 and full year FY25 earnings conference call of Vertox Limited. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. If you require assistance during the conference call, please signal an operator by pressing Star followed by zero on your touchtone phone. Please note that this conference is being recorded. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the management as of date of this call.
These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. Joining us today from the management is Mr. Hireen Kumar Shah, promoter and managing director and Mr. Ashish Shah, promoter and Director. We will commence the call with Mr. Hireen Kumar Shah taking you through the operational and financial performance for the fourth quarter and twelve months ended 3-31-2024. Following this we will open a forum for question and answer session. With that I now hand the conference over to Mr. Hireen Kumar Shah, Promoter and Managing Director for his opening remarks.
Thank you and over to you Sir.
Hiren Shah — Founder and Managing Director
Good evening everyone. Thank you all for thank you all for taking the time to join us. I would like to extend a warm welcome to Virtos earning conference call for the fourth quarter and full year ended March 31, 2025. I’m joined today by my fellow Promoter and Director Ashish Kumarsha and other members of our senior leadership team. Before we talk numbers, let me take a step back and share a broader perspective on the industry we operate in. Industry we play in is a Medtech and cloud tech are all witnessing high growth momentum. Globally. Ad tech is expanding at over 13%, MadTech even faster nearly 20%, cloud infrastructure at 14% and domains around 8%.
This growth is being driven by shift in digital spending from traditional media to programmatic connected TV, digital out of home and AI powered campaigns on platforms like OTT platforms, YouTube, Instagram etc. Our solutions are aligned to this trend giving us the right product market fit for the future. Now turning to our financial performance this year. Financial year 25 has been truly been a transformative year for Vertos. Not just because of what we have achieved financially but because of who we are becoming as an organization. Speaking on the annual performance we have delivered some of our best ever numbers.
Revenue from the operations touched 255.20 crore growing 64% over financial year 24. EBITA has reported at 36.44 crore an increase of making 70% year on year growth and PAT reached 25.66 crore growing by 59% year on year. Further, for the quarterly performance we closed the quarter with 65.18 crore in revenue from operations reflecting 43% growth year on year. EBITA came in at 12.40 crore with 86% year on year growth and our PAT stood at 6.1 crore which is 28% increase year on year. I now request Ashish to share his view on the performance.
Ashish Shah — Founder and CEO
Thank you Ziren Bai While the number shared speak on the scalability of our business but it is only part of the story. Over the last five years we have grown our revenue six folds. Our profit CAGR over this period stands at 44% and what I am particularly proud of we have grown our team from just 45 people to over 350B talented professional across geographics Let me share couple of moments that made me proud. This year we have turned around a ambitious campaign for Hubtown, placing 34 boards across Mumbai overnight. For Arcelor Mittal Group we won the tender and executed a nationwide campaign across eight states and over 1200 stores in just two months.
These aren’t just client wins, these are proof points of agility, execution, capability and culture we have built at Vertas. And this culture extends into our cloud in cloud tech business where we have quietly built a formidable presence. 45,000 plus domains registered across 150 plus TLDS in 60 countries, a growing network of over 9,000 active resellers with 300 just added this year, 400 SSL certificates issued with 70% renewal rate. In every vertical of our business the message is same. We are delivering not just products but reliability. Not just service but partnerships. Also this year Virtus crossed an important inflection point in its journey.
From being an ad focused company, we have become a technology enabler delivering AI led solutions across programmatic advertising through medtech, digital identity and cloud infrastructure. Through cloud tech and domains we have also expanded domestically and internationally positioning us for deeper geographic and vertical reach. The world is moving fast but we are keeping pace by investing in what’s next and in many ways we are helping our partners to do the same. Looking ahead, our ambitious ambition is clear. We are just getting started over the next three years. Our goal is to achieve substantial growth and we will get there through a thorough, thoughtful blend of organic growth, tech investments and strategic acquisition to our shareholders, partners and employees.
Thank you for believing in our journey. Financial year 2025 laid the foundation Financial year 2026 is about taking the flight. We are building a bold, borderless, virtuous ready for the world. Thank you. I now welcome your questions.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question may press star and one now the first question is from the line of Varda who is an individual investor. Please go ahead.
Unidentified Participant
Can you provide some detail on your business model and some guidance?
Ashish Shah — Founder and CEO
Sure, definitely. We can give you some clarity. So our MedTech business, which makes up to around 70 to 80% of our revenue, spends media buying ad exchange and more serving clients globally. We have recently added multiple new clients in the various sectors working with top agencies like WPP and Danloo. We have seen a substantial revenue surge thanks to our influencer led campaign that delivers real ROI. CloudTech contributes 20 to 30% of our revenue supports businesses with scalable cloud solutions. Think of like hosting, storage, security kind of solutions. Our recent cloud tech merger has been a game changer letting us cross sell to MacTech clients.
Like CloudTech is a domain business where we manage 2.2 billion domains making us India’s second largest registrar growing at a steady 8 to 10% CAGR through registrations and services like domain monetization. Hope this answers your question.
Unidentified Participant
Yeah, I have another question.
operator
Yes sir. Please go ahead with your question.
Unidentified Participant
What is the update on inorganic acquisition? I mean plans about it?
Ashish Shah — Founder and CEO
Sure, definitely. On the acquisition front we have dedicated team working hard to identify the opportunities that align with our vision of strengthening both our medtech and cloud tech segments. We have particularly focused on the North America for our acquisitions. We have already signed couple of Lois with the promising targets. While we can’t share the specific names just yet, we are aiming to finalize this deal soon which will help us expand our digital ecosystems and enhance our offerings for clients worldwide. Hope this answers your question.
operator
Thank you. The next question is from the line of Aakash who is an individual investor. Please go ahead.
Unidentified Participant
Yeah. Hi everyone. I have two questions. Firstly I can see there is a. High amount of receivable. One is advised that. And secondly if I see year on year there has been a huge drop in the stock price then in this case how are you addressing the investor concerns?
Hiren Shah — Founder and Managing Director
Sure. So let Me start with first answer in terms of like the first question is a. Receivables. Yeah. Receivers see basically in our industry the operating under principal to principal. Basically partner to partner model. You can say with the agencies which is often involved extended payment cycles typically ranging between 90 days to sometimes exceeding 100, 120 days. This is a standard practice within this sector. To effectively manage this, we have implemented proactive measures including the establishment of dedicated collection team. This has resulted positive for us as our data days have reduced from 120 days to 90 days in this year. And we are further trying our best to enhance on this because this will help us in our cash flow.
I hope I answered your first question.
Unidentified Participant
Yes.
Hiren Shah — Founder and Managing Director
Yeah. And let me give you answer for the second question. I mean this is about the stock pricing. While we typically don’t comment directly on the stock price movement, our primary focus remains on delivering strong sustainable business growth. We have achieved significant progress this year reflecting a substantial revenue growth and notable improvement in pact. Our management team is committed to investing in reserves strategically to accelerate the future growth. At the same time we remain mindful of shareholders interest including minority investors. And we thoughtfully evaluate all decision as part of our broader objective of creating long term shareholders value.
As a company and as a management, we always try and do our best to work on towards growing the business. And that’s what we think that that should be our focus. I hope I have answered both the questions. Yes, sir.
Unidentified Participant
Thank you.
operator
Thank you. Before we take the next question, I would like to remind the participants that you may press Star and one to ask a question. The next question is from the line of Manohar Joshi who is an individual investor. Please go ahead.
Unidentified Participant
Yeah. Congratulations for this wonderful achievement of numbers. Despite. You know.
operator
Sorry to interrupt sir. I would request you to please use your handset. Your audio is not here.
Unidentified Participant
Am I audible now? Yes, yes, yes. Mr. H. Congratulations for the wonderful achievement in terms of results and numbers. However, you know the script prices as as have which has seen a significant drop percent in the past six months. Now this gives a clue of some foul play in the system. Promoters comment on this. How would you gain confidence investors again and what are the future projection in terms of numbers which the company is going to achieve in the coming years?
Hiren Shah — Founder and Managing Director
Sure. So first of all let me be little clear here. As a promoter, as a managing part of the company, our major focus is on working towards growing the business. Not in the secondary market. But as you are also aware that overall market scenario and international movement which has happened and which has really impacted many of the stock market and secondary market. But you know, as I said earlier, we are not, we should not comment directly on the stock price movement because that is purely based on the demand and supply. But as what you can see last three, four, five years, if you would have seen our numbers, we have consistently improved our number.
Just to give you one heads up today, like you know, when we did our ipo, what was our top line today is our bottom line. And we believe that, you know there is a, there is a significant and there is a lot of opportunity in this particular industry and we are really working very hard towards that.
Unidentified Participant
Okay, what is the kind see for actually for a retail investor the stock prices is the main indicator about the health of a company.
Hiren Shah — Founder and Managing Director
Correct. I, I understand what you’re trying to say. And, and we are definitely working hard towards, you know, I mean gaining more confidence towards with our investor by working hard and getting more and more better results for the business. And I think that is what something which we can do and I’m sure the investors like you will have interest and who will have trust in us so that you know we can grow further on this.
Unidentified Participant
Yeah. So my question is one, one thing is it’s again the script is back, back to back going into the additional surveillance measure for some reason or the other. The, the second question is how the promoters are projecting the future of the company in terms of numbers. I mean the turnover and the path. And also how would you gain the confidence of the investors since the stock prices has tanked by 80% which is a major significant downfall in terms of the return on equity.
Hiren Shah — Founder and Managing Director
I understand your concern and I’m really feeling that you know that investor will always have a concern. But as I said, you know we don’t typically comment on direction stock price movement and the categorization of ESM is based on the volatility of the stock. Again something that the management doesn’t control that. Having said that, I think our focus on enhancing corporate governance strong growth metrics and that is what we will be in a strong stock very soon.
operator
Thank you. The next question is from the line of Prashant Marathi who is an individual investor. Please go ahead.
Unidentified Participant
Congratulations to promoters of stellar numbers.
Hiren Shah — Founder and Managing Director
Thank you. Thank you.
Unidentified Participant
I have only one question which is like current margins are really, really looking great. But I would like to know about. How they look about in next one. To three years for an end future growth prospects of the company.
Ashish Shah — Founder and CEO
Do you want me to take up Hirindrai?
Hiren Shah — Founder and Managing Director
Yes. Yeah, yeah, sure. So definitely see Prashant as hidden by earlier mentioned, we are not commenting on the forward looking statements or the numbers of at this time. However, our focus on the metrics such as the ARPU average revenue per user, new business, new clients to evaluate our business performance and the growth potential in our Mattech and cloud tech segments. These are the metrics which we follow will help us in seeing the growth potential within the organization, help us to monitor the growth within the organization. All right. Thank you very much. Thank you.
operator
Thank you, ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Hireen Kumar Shah for closing comments.
Hiren Shah — Founder and Managing Director
Thank you so much everyone for attending this call. Thank you. Bye bye.
operator
Thank you on behalf of Vertos Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.