One 97 Communications Ltd. · NSE:PAYTM
One 97 Communications — Q4 FY2023 Earnings Presentation
20 slides from One 97 Communications's earnings presentation, May 7, 2023
Slide 1: Exchange filing cover letter: Earnings Conference Call Presentation
May 7, 2023 BSE Limited National Stock Exchange of India Limited Department of Corporate Services, The Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 543396 Symbol: PAYTM Sub.: Earnings Conference
Slide 2: Letter from our Founder & CEO
Q4 FY 2023 Earnings Release Letter from our Founder & CEO Dear Shareholders, I am very happy to announce our second quarter of EBITDA (before ESOP cost) profitability. Our next milestone is to make Paytm free cashflow positive in near future. This has been possible by disciplined resource allocation
Slide 3: Earnings Presentation for quarter and year ending March 2023
Earnings Presentation For quarter and year ending March 2023 1
Slide 4: Disclaimer
Disclaimer By attending the presentation or by reading the presentation on the opinions and estimates of management at the date the correctness of any information or opinions contained herein and slides you agree to be bound as follows: statements are made and are subject to a variety of risks and a
Slide 5: FY 2023: Revenue of ₹7,990 Cr, growing 61% YoY; EBITDA before ESOP improvement
FY 2023: Revenue of ₹7,990 Cr, growing 61% YoY; EBITDA before ESOP improvement of ₹1,342 Cr Revenue growth of 61% YoY EBITDA before ESOP improved by ₹1,342 Cr YoY 2.9X ₹7,990 Cr FY 2021 FY 2022 FY 2023 (2%) 1,520 ₹(176) Cr 1,540 ₹4,974 Cr 1,105 437 (31%) ₹2,802 Cr Margin 693 4,930 Improvement of 128
Slide 6: EBITDA before ESOP at ₹234 Cr for Q4 FY 2023
Led by revenue growth and 100% increase in UPI incentives, EBITDA before ESOP at ₹234 Cr for Q4 FY 2023 Revenue growth of 51% YoY Contribution Profit growth of 138% YoY EBITDA before ESOP improved by ₹602 Cr YoY Margin improvement of +20% YoY Margin improvement of +34% YoY ₹234 Cr 51% YoY ₹2,334 Cr
Slide 7: Scaling the core business model of Payments and Loan Distribution & Collection
Scaling the core business model of Payments and Loan Distribution & Collection Average Monthly Transacting Users Total Value of Loans distributed through Paytm 27% YoY 9.0 Cr 8.5 Cr 8.0 Cr 253% YoY ₹12,554 Cr 7.5 Cr 7.1 Cr ₹9,958 Cr Ma r-22 Jun-22 Sep-22 Dec-22 Ma r-23 + Brand + Distribution ₹7,313
Slide 8: Revenue growth driven by Payment and Financial Service businesses
Revenue growth driven by Payment and Financial Service businesses Total Revenue 51% YoY ₹2,334 Cr ₹2,062 Cr ₹1,914 Cr ₹1,680 Cr ₹1,541 Cr 1 1,467 Payments revenue 1,197 With annual UPI incentive & Other Operating revenue2 1,188 41% YoY to ₹1,467 Cr3 1,078 1,041 Financial Services revenue 446 475 183
Slide 9: Continued revenue growth in payments with improved profitability
Continued revenue growth in payments with improved profitability Total Payments Revenue Net Payment Margin (in ₹ Cr) Mar-22 Mar-23 YoY % 41% YoY ₹ 1,467 Cr Like-for-like Payments Revenue 1,041 1,334 28% Payment Processing Charges (774) (780) 1% 133 Like-for-like Net Payments Margin 266 554 108% ₹1,1
Slide 10: Continued momentum in consumer & merchant loan distribution
Continued momentum in consumer & merchant loan distribution along with improving portfolio quality Personal Merchant Postpaid Loan Loan Value of loans distributed through Paytm platform 5.9% of 4.3% of 0.9% of Penetration1 as of Q4 FY 2023 device MTU MTU merchants 253% YoY ₹12,554 Cr Indicative port
Slide 11: Commerce & Cloud: Enabling Commerce for merchants and Co-Branded Credit Cards
Commerce & Cloud: Enabling Commerce for merchants and Co-Branded Credit Cards driving growth 23% YoY Commerce ₹420 Cr We sell travel, movies and event ticketing and deals, gift ₹393 Cr vouchers to customers ₹377 Cr § Commerce services GMV was ₹2,185 Cr, up 22% YoY ₹331 Cr ₹320 Cr § While sequentiall
Slide 12: Growth Drivers in Our Business
Growth Drivers in Our Business 1. We recently launched our new technology platform, built with 100% indigenously developed technology and capable of carrying out 10x more transactions than current scale 2. Launched 4G-enabled Soundbox 3.0, a first-of-its-kind device that offers the fastest real-time
Slide 13: Annexure
Annexure 11 11
Slide 14: Revenue breakdown: Overall growth of 51% YoY
Revenue breakdown: Overall growth of 51% YoY Quarter Ended Change Financial Year Ended (in ₹ Cr) Mar-22 Dec-22 Mar-23 YoY QoQ Mar-22 Mar-23 Y-o-Y Payments & Financial Services 1,209 1,599 1,918 59% 20% 3,858 6,385 66% Payment Services to Consumers 469 513 524 12% 2% 1,529 2,105 38% Payment Services
Slide 15: Contribution Profit up by 138% YoY in Q4 FY 2023
Contribution Profit up by 138% YoY in Q4 FY 2023 Quarter Ended Change Financial Year Ended (in ₹ Cr) Mar-22 Dec-22 Mar-23 YoY QoQ Mar-22 Mar-23 Y-o-Y Revenue from Operations 1,541 2,062 2,334 51% 13% 4,974 7,990 61% Payment processing charges 774 738 780 1% 6% 2,754 2,958 7% As % of GMV 0.30% 0.21%
Slide 16: EBITDA before ESOP cost improved by ₹602 Cr YoY in Q4
EBITDA before ESOP cost improved by ₹602 Cr YoY in Q4 Quarter Ended Change Financial Year Ended (in ₹ Cr) Mar-22 Dec-22 Mar-23 YoY QoQ Mar-22 Mar-23 Y-o-Y Contribution Profit 539 1,048 1,283 138% 23% 1,498 3,900 160% Contribution Margin % 35.0% 50.8% 55.0% +20% +4% 30.1% 48.8% +19% Marketing 131 136
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA before ESOP cost Quarter Ended Financial Year Ended (in ₹ Cr) Mar-22 Dec-22 Mar-23 Mar-22 Mar-23 (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) EBITDA before ESOP cost (A) (368) 31 234 (1,518) (176) ESOP cost (B) (362) (362) (363) (809) (1,456) Ini
Slide 18: Operational KPIs
Operational KPIs Quarter Ended Change Financial Year Ended (in ₹ Cr) Units Mar-22 Dec-22 Mar-23 YoY QoQ Mar-22 Mar-23 GMV ₹ Lakh Cr 2.6 3.5 3.6 40% 5% 8.5 13.2 Merchant Transactions Crore 414 628 685 65% 9% 1,260 2,401 Total Transactions Crore 503 763 835 66% 9% 1,540 2,900 MTU (avg over the period)
Slide 19: Definitions for Metrics & Key Performance Indicators
Definitions for Metrics & Key Performance Indicators Metric Definition GMV is the rupee value of total payments made to merchants through transactions on our app, through Paytm Payment GMV Instruments or through our payment solutions, over a period. It excludes any consumer-to-consumer payment servi
Slide 20: Thank You! India loves Paytm
One 97 Communications Limited (Paytm) — Q4 FY2023 Earnings Presentation on 6ix